Mavrix Fund Management Inc. agrees to backstop ABCP held in its Funds

    TORONTO, Dec. 12 /CNW/ - Mavrix Fund Management Inc. ("Mavrix")
(TSX: MVX) announced that it would backstop the Asset Backed Commercial Paper
("ABCP") held in Funds it manages, namely our money market funds which hold
less than 3%, and 1% or less in each of the Dividend and Income Fund, and the
two Flow Through Limited Partnerships from 2006. In aggregate these funds have
approximately $327 million in assets of which just under $4 million is ABCP.
    Mavrix advised that, due to the rigorous analysis of its portfolio
managers, the ABCP held by the Funds, namely Rocket and Gemini "E" series, and
the underlying assets, are amongst the very best quality in the ABCP sector. 
Further, Mavrix noted that this higher quality ABCP - DBRS re-affirmed the
highest rating in August of this year. Mavrix also noted that the ABCP held by
the Funds have no exposure to U.S. sub-prime mortgages, and no exposure to the
use of leverage which many lesser quality conduits have.
    Mavrix confirmed that this ABCP, has been extended in accordance with its
terms and that its interest rate has been reset to CDOR + 1.10%.  Mavrix
advised that it believes that, as long as the conduit assets are not tampered
with, the Funds will receive full payment of the par value of these
investments at maturity and that the reset interest rates adequately
compensate the Funds for the current lack of liquidity and that accordingly,
it continues to value these securities at par.  However, in advance of the
proposed ABCP restructurings expected to be announced by the Pan Canadian
Investor Committee on Friday, Mavrix has agreed to reimburse the Funds for any
shortfall should the ABCP realize less than par value at maturity or on a
prior sale.

    %SEDAR: 00020385E

For further information:

For further information: Raymond Steele, Chief Operating Officer and
Chief Financial Officer, 36 Lombard Street, Suite 400, Toronto, Ontario, M5C
2X3, Toll Free: 1-888-964-3533, Direct: (416) 365-4071, Email:

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