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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (4847)	11/14/2002 3:14:11 PM
From: Tommaso	Read Replies (1) \| Respond to of 11633

Yes, this could be a really good thread. It's of particular interest to me since I have a huge block of NCN and am considering whether it might be best to spread it over ERF and PVX as well. NCN has its ups and downs (and is the target of some very bitter criticism on Yahoo!) but as best I can tell, it's pretty straightforward about acquiring properties and passing most of the income on the shareholders. I hevaen't actually compared what management takes out with other trusts. Have printout of a Cannacord analysis and will see if it includes that figure . . . OK, found it. NCN takes out 3.25% of income for a management fee, plus a small percentage of each acquisition. The only trust I see with a lower fee is ARC Energy Trust at 3%. 3.25% seems OK to me. Higher than most fund managements but lower than things like a real estate or rental agent or manager would take. And it is naturally a strong incentive to make as much money for the trust as possible, and keep down management expenses. One problem is that every time the unit price rises very much, it is an incentive to make a new offering, which temporarily dilutes the income. Any arguments against these views?