Dow Jones reported that a survey of fund managers released by Merrill Lynch & Co. found that, “The proportion of fund managers wanting to see cash returned to shareholders reached a record high of 53% this month, up from 44% in December 2006.”

The Merrill Lynch Survey for January 2007 found that:

1. Investors increasingly want corporations to prioritize their cash flow to return cash to shareholders;

2. Returns to shareholders can come in the form of share buybacks, dividends or cash acquisitions;

3. A majority of investors believe cash returns should take priority over capital spending, debt repayment and topping up pension funds.

The implication is that equities structured for frequent returns, like those from Canadian Income Trusts, meet the needs and demands of global investors.