NEWS WATCH
The Canadian Association of Income Trust Investors was launched with a new web site. The group mission is to preserve the ongoing viability and sustainability of the Canadian income trust market for the benefit of Canadians saving for retirement and those Canadians seeking retirement income, and ensuring that this important investment choice is preserved not just for today but for the benefit of all Canadians in the future.
Advocis, the Canadian association for financial advisors and Certified Financial Planners has published an article Breach of Trust in FORUM Magazine for December 2006.
Written by Leslie Hayman as President of iTrust Institute, the article went to publication the week the first week of November, the week in which the Government of Canada announced new taxes on income trusts.
The article provides a fundamental perspective on the income trust market and the state in its development at the time the new tax was put in place, also exploring considerations of security and investment risks and returns for financial professionals working to advise clients in regard to trust investments.
Marc Tellier, head of the Yellow Pages income fund (YLO.UN) spoke to a Canadian Club group of businessmen and media in Toronto and addressed the impact of and requirements for policy related to income trusts. His comments included words surely welcome by informed investors including do-it-yourself individual investors.
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.