Acuity Focused Total Return Trust Completes IPO

On February 16, 2005, Acuity Focused Total Return Trust (the Trust), an investment trust, completed its initial public offering of 70 million Trust units at a $10 per Trust unit for gross proceeds of $700 million. On March 7, the agents for the offering exercised the over-allotment option in respect of 4,040,000 Trust units for additional gross proceeds to the Trust of $40,400,000. This offering is the largest initial public offering of a closed-end fund investing in income trusts in Canada.

The Trust’s investment objectives are: (i) to provide holders of units (Unitholders) with monthly distributions; (ii) to enhance the long-term total return within the portfolio of the Trust; and (iii) to return to Unitholders upon the termination of the Trust at least the original issue price of the units. The Trust will invest in an actively managed diversified portfolio of securities consisting primarily of units of business and industrial income funds and energy trusts, and to a lesser extent common shares of companies that the manager of the Trust believes may convert into a business and industrial income fund or energy trust at some point in the future and securities of issuers that have publicly announced their intention to convert into a business and industrial income fund or energy trust.

The offering was made through a syndicate of agents, led by CIBC World Markets Inc. and which included BMO Nesbitt Burns Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., First Associates Investments Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp., Raymond James Ltd., Wellington West Capital Inc. and Richardson Partners Financial Ltd.

The Trust and Acuity Funds Ltd., the manager of the Trust, were represented by Borden Ladner Gervais LLP with a team that included Lynn McGrade, Michael DeCosimo and Sarah Gardiner (securities/corporate) and Stephen Fyfe and Stephanie Wong (tax). The agents were represented by Blake, Cassels & Graydon LLP with a team that included Jeff Glass, Anoop Dogra and Michael Bunn (securities/corporate) and Ron Richler (tax).