Skylon All Asset Trust is an investment trust established in September 2004, that is designed to provide investors with access to PIMCO All Asset Fund, a fund-of-funds that uses dynamic asset allocation strategy and seeks to identify those asset classes and sectors that offer the most value at any particular point in the market cycle.

Like its underlying fund, Skylon All Asset Trust seeks maximum inflation-adjusted real return, consistent with preservation of real capital and prudent investment management. The Trust will provide unitholders with exposure to the returns of PIMCO All Asset Fund by entering into a forward agreement linked to the returns of the fund.

PIMCO, the investment manager of PIMCO All Asset Fund, is one of the world’s pre-eminent fixed income managers with approximately US$392 billion in assets under management as of June 30, 2004. The sub-advisor with responsibility for determining asset allocation for PIMCO All Asset Fund is Robert Arnott of Research Affiliates LLC, an investment manager with more than 25 years of industry experience.

Highlights:

Tax-efficient quarterly distributions are initially targeted at $1.50 per unit, or 6% per annum based on the $25 subscription price per unit.

• The majority of distributions are expected in the form of capital gains and return on capital.
  
  
• Access to a wide portfolio of PIMCO funds that represent diversified asset classes and sectors.
  
  
• The investment is 100%-eligible for registered plans.
  
  
• To limit currency risk, at least 90% of the U.S. dollar exposure of the trust will be hedged back into Canadian funds in the first two years of the trust, and at least 50% of the exposure thereafter will be hedged.
  

Investment Expertise

• Robert Arnott, chairman and chief executive officer of Research Affiliates LLC, has primary responsibility for determining asset allocation of PIMCO All Asset Fund. Mr. Arnott has more than 25 years of investment management experience and is a member of the advisory committee of the Chicago Board Options Exchange, the Chicago Mercantile Exchange and the Toronto Stock Exchange.
  

Liquidity

• Liquidity of the investment will be made available through listing on the TSX (SKA.UN), annual redemptions at net asset value commencing December 2007, and a market purchase program.
  

More Information About PIMCO All Asset Fund

Additional information about PIMCO All Asset Fund and its underlying funds is easily accessible at the website of PIMCO. Please go to www.pimcofunds.com. Then, click on "MUTUAL FUNDS" in the top-left box. The names of PIMCO All Asset Fund and all the possible underlying funds will appear in the centre of the screen and are grouped together by sector and/or strategy. (PIMCO All Asset Fund appears in the "Real Return Strategy" group.)

Information about PIMCO All Asset Fund and the underlying funds is also available at the EDGAR website. Please go to www.sec.gov and proceed as follows:

• Under "Filings & Forms (EDGAR)", click on "Search for Company Filings", then
  
  
• Under "General-Purpose Searches", click on "Companies & Other Filers", then
  
  
• In the box for "Company name", type "PIMCO Funds", then click "Find Companies.
  

The first name which appears on the next screen ("PIMCO Funds") will bring you to all the documents on EDGAR concerning PIMCO All Asset Fund and the underlying funds.

Disclaimer
Please read important information about the trust.