NEWS WATCH
The median market capitalization for trusts including energy producers and REITs remains relatively small at $300 million. The income trust structure has been a source of low cost capital for entrepreneurial companies open to public participation. And that money is attracted by plans to grow business while paying profits to investors.
What does it mean when a large public company adds weight to the income trust universe?
iTrust Institute is studying the key features, perceived potential & benefits of income trusts starting from the premise that:
Equities managed and structured like income trusts to flow net gains through to owners by way of frequent and regular distributions of cash can offer superior rates of overall return, support market growth, enhance economic productivity and contribute to growth of the tax base with less risk than other equities given honest managers and a fully competitive market supported by open communications.
We will test this notion and explore related questions.