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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks
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To: Scott Mc who wrote (4850)11/14/2002 4:43:57 PM
From: Tommaso  Read Replies (2) of 11633
 
I guess that's always a possibility, but the commission/fee is only about 1% for most of these. Seems reasonable for the administrative problems of finding and buying a property. Of course management is in it to make money for themselves, but they are in competition with other trusts and the more money they can pass along to shareholders, the more capital they can raise.

Where I have really been cheated has been with a few United States royalty trusts where after a while the management fees eat up all the remaining income and they stop paying anything at all. There the fee is fixed--not a percentage of the income or of the acquisition. So management can deliberately reduce output and collect just enough royalties to pay themselves but none to distribute to shareholders. I bought into two of these a good many years ago; Mesa Offshore Trust and another--think it may have been a Freeport thing.

But thanks for playing the devil's advocate.
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