NEWS WATCH
After an initial round of releases of information from bank-based analysts, many have since closed off public statements about the Department of Finance Consultation Paper on income trusts. They do not want to appear self-serving nor offend the government pending bank merger talks. But while these expert informants have been effectively “muzzled”, Canaccord Capital has released an informative and advocacy document called, “Trust Reform Hurts Canadians”.
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.