INDEXPLUS Income Fund Closes IPO

On August 15, 2003, INDEXPLUS Income Fund, a closed-end investment trust, completed a $325 million initial public offering. On September 4, the fund raised additional gross proceeds of $20 million on the exercise of an over-allotment option. The investment objectives of the trust are to provide unitholders with high levels of monthly cash distributions, to outperform the S&P/TSX Capped Income Trust Index (which INDEXPLUS partially tracks) on a total return basis over the life of the trust and to return at least the original issue price of units to unitholders upon its termination. The net proceeds of the offering will be invested in a broadly diversified portfolio of securities, up to 80 per cent of which will track the index to the extent possible and the remainder of which will be actively managed and invested in units of income trusts and other high-yielding equity-based securities. Middlefield Securities Limited and Guardian Capital Advisors Inc. are co-advisors to the fund, and will be responsible for providing investment advice to the actively managed portion of the trust’s portfolio.

CIBC World Markets Inc. and RBC Capital Markets Inc. were co-lead agents of the offering, and the other syndicate members included TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, First Associates Investments Inc., Middlefield Securities Limited, Raymond James Ltd., Wellington West Capital Inc., Acadian Securities Incorporated and Research Capital Corporation.

The fund and Middlefield Securities were represented by Fasken Martineau DuMoulin LLP in Toronto, with a team that included Stephen Erlichman and John Sabetti, and Jeffrey Klam (securities) and Kathleen Hanly and Mitchell Thaw (tax). The agents were represented by McCarthy Tétrault LLP in Toronto, with a team that included Christopher Hoffmann and Andrew Armstrong (securities) and James Morand (tax).

Lawyer(s)

John M. Sabetti Kathleen S.M. Hanly Jeffrey D. Klam James G. Morand Mitchell L. Thaw Christopher S. L. Hoffmann Stephen I. Erlichman