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

To: a.handbag. who wrote (9770)	9/25/2005 2:51:12 AM
From: Taikun	Read Replies (3) \| Respond to of 11633

You assume a stable trust environment. We do not have that, we have an unpredictable, risky environment run by a rash minister, and risk must now be priced in. "Trusts are good at producing money for me to spend" Anyway, last year I got a 15% pay reduction when withholding on foreign sheltered accts was introduced. So the daily prices are a measure of whether one gets a gain or loss on liquidation if that is required. Why might liquidation be required? Further taxation on distributions would be one reason. Restriction on business activity (ie if trusts could not expand by making M&As-a possibility under grandfathering, otherwise grandfathered trusts just gobble up non-trusts). Restriction on issuing more units would be another, further a depressed unit price that restricts expansion through issuance of formerly highly priced units may harm existing holders since debt needs to be assumed to take on projects. Finally, the internal taxation of trusts (ie disallowing deduction of some debt) could reduce distributable cash. Because if a trust I bought yielding 10% now yields 8.5 in a sheltered acct will possibly yield less under higher withholding and next they can't expand, I will want to switch that for a more stable investment.