NEWS WATCH
Amid all the talk about the tax leakage and problems for small investors and the government due to income trusts, we see that the Canadian Pension Plan Investment Board (CPP IB) has prposed to the federal government that it should spin-off and build a real estate investment trust (REIT). The CPP invests on behalf of 16 million working Canadians and not only holds income trusts of all kinds. With business trusts in its equities portfolio, the CPP has turned the public pension fund from deficit to surplus during the 10 year rise of income trusts.
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.