Nice Burn
Friday, 15. December 2006, 23:48:59
Well, it has been quite a fall. Due to lack of information about changes to the Canadian income tax that most trusts will pay after 2011, it truly has been difficult knowing what to think about this investment vehicle.
I still have great faith that the trusts I am following will survive in one form or another, and will continue to benefit the unit-holding investor, if not as well as before, then still much better than other forms of (more) conservative investments. The businesses that underly most of the trusts mentioned here have been successfully and progressively operating for several years. I see no reason why these companies cannot adjust for the changes and reduce distributions to investors to offset the changes. This will create a lower-yield investment that will still be very healthy.
Here is an update to show how the value (not including income) of investments that I am following is tracking since I first mentioned them here several months ago:
Cominar Real Estate Income Trust (+16%)
Canwel Building Materials Income Fund (-1%)
Badger Income Fund (-8%)
Rogers Sugar Income Trust (-8%)
Sentry Select Diversified Income Trust (-9%)
Boston Pizza Royalty Income Trust (-15%)
Yellow Pages Income Trust (-14%)
Penn West Energy Trust (-16%)
Most of these show a 10 to 15% loss (result of Canadian income tax changes). However, all of these trusts have continued to pay good distributions during this period, and show every indication of continuing to do so for the near future. I have stopped following Tahera Diamond and IPSCO in this blog. For a different view, check Next Big Whoop.
I still have great faith that the trusts I am following will survive in one form or another, and will continue to benefit the unit-holding investor, if not as well as before, then still much better than other forms of (more) conservative investments. The businesses that underly most of the trusts mentioned here have been successfully and progressively operating for several years. I see no reason why these companies cannot adjust for the changes and reduce distributions to investors to offset the changes. This will create a lower-yield investment that will still be very healthy.
Here is an update to show how the value (not including income) of investments that I am following is tracking since I first mentioned them here several months ago:
Cominar Real Estate Income Trust (+16%)
Canwel Building Materials Income Fund (-1%)
Badger Income Fund (-8%)
Rogers Sugar Income Trust (-8%)
Sentry Select Diversified Income Trust (-9%)
Boston Pizza Royalty Income Trust (-15%)
Yellow Pages Income Trust (-14%)
Penn West Energy Trust (-16%)
Most of these show a 10 to 15% loss (result of Canadian income tax changes). However, all of these trusts have continued to pay good distributions during this period, and show every indication of continuing to do so for the near future. I have stopped following Tahera Diamond and IPSCO in this blog. For a different view, check Next Big Whoop.
WIDGETIZE