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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: W D J Moore who wrote (100111)	1/12/2004 9:07:54 AM
From: Tommaso	Respond to of 132070

I was disappointed, but then realized that-- 1. The Canadian dollar has appreciated more against the US dollar than the dividend has been cut. 2. The yield is still very high on PTF compare to almost anything else available. 3. Holding back on payout does conserve cash for continuing acquisitions and might prolong the life of the trust. I would rather they had not cut the distribution, however. I may consider selling my PTF when I can benefit from the 15% capital gains long term rate and might but the money into the exchange-traded mutual fund Energy Split. I do think energy prices are likely to go up in absolute terms, against all currencies, and not just against the US dollar. I think that all these trusts need to be closely watched for evidence of poor management, whether that means overpaying for assets, managing assets poorly, overcompensating management, pursuing a policy of growth for growth's sake (and to increase management fees). By acquiring a portfolio of 17 different trusts, Scotia Capital has spread all this risk somewhat. Also, because the shares of Energy Split can be redeemed at any time (for a fee/penalty) and because the whole fund is scheduled to be "wound up" (Liquidated) in 2006, there is little danger of losing money from the shares sinking to a discount from NAV. The same consideration means they are not likely to rise much aove NAV, or if they do, they should be sold. The income might be very large for those three years.