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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (9916)	6/2/2005 11:26:47 PM
From: Taikun	Respond to of 37387

Crossy, The trust structure is more tax efficient on domestic income. More int'l trusts (like VET.UN) pay taxes on int'l income (they have a good int'l tax lawyer to help structure partnerships to ameliorate this). The trust structure can divert funds away from growth (some trusts payout 100%), and DVT may need 100% of CF to fund growth for a little while longer. There are growth trusts that have lower payout ratios of closer to 50%, but it can be a drag on some companies, particularly in competitive sectors where R&D spending is high. That said, trusting is a great way to get a currency because valuations rise. The key is to have a record of stable/growing CF. DVT may need to build this record. Trusts can issue debt to fund expansion and acquisitions, though. It might still be a little early for DVT. D