Tax-Advantaged Return of Capital Distributions to Continue

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TORONTO, April 1, 2013 /CNW/ - (TSX: FNM.UN) On March 21, 2013, the Minister of Finance announced proposed measures (the "Character Conversion Budget Measures") which would affect certain tax benefits gained by taxable unitholders of investment funds, such as First National Mortgage Investment Fund (the "Fund"), that utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. The Fund's forward purchase and sale agreements currently allow unitholders to receive tax-advantaged distributions of return of capital. Based on its review to date, Stone Asset Management Limited, the manager of the Fund, believes that the Fund and the tax characterization of distributions received by unitholders will be unaffected by the Character Conversion Budget Measures until the expiration of the forward agreements on December 19, 2017. The Fund awaits further guidance from the Federal Government on the implementation of the budget proposals and will provide additional details when available.

About First National:

First National Financial Corporation (TSX: FN) is the parent company of First National Financial LP, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single-family and multi-unit) and commercial mortgages.  With over $67 billion in mortgages under administration, First National Financial Corporation believes it is the largest lender of single-family residential mortgages in Canada outside the five largest chartered banks and one of the largest multi-unit and commercial mortgage lenders in Canada.  For more information, please visit www.firstnational.ca.

About Stone Asset Management Limited:

Stone Asset Management Limited ("SAM") manages a family of open-ended mutual funds, a series of flow-through limited partnerships and a TSX-listed investment fund. SAM specializes in structuring and managing high quality investment products and currently has approximately $710 million in assets under management.

SOURCE: First National Mortgage Investment Fund

Robert Inglis
Chief Financial Officer
First National Financial Corporation
Tel:  [phone]
Email: [email protected]

Jeremy Wedgbury
Managing Director, Commercial Mortgages 
First National Financial Corporation
Tel:  [phone]
Email: [email protected]