QUOTE:

The question is, how many more companies are going to turn themselves into trusts? ...there’s simply not enough appetite ...for unlimited trust conversions.

"Retail investors have already started backing away from trusts...The Investment Funds Institute of Canada reports that sales of dividend and income funds — income trusts would be a major component of these funds — are off 50 per cent this year on a net basis that subtracts redemptions from new purchases.”

“...the aging of Canada’s population actually suggests that people will increasingly turn to trusts to help generate income in retirement...money managers and individual investors will continue to want to own the shares of companies like Research In Motion that offer growth, as well as income-generating trusts.”

There’s not an insatiable appetite for trusts. Not everyone who owns a corporation wants to own a trust.

FROM: Article By Rob Carrick
ROB, Globe & Mail