Smart Decisions on Income Trusts
All Income Trusts are Going to be Winners
Income trusts are a made-in-Canada
product gaining popularity with their target
market of retail investors. The roaring yields
of the past three years will likely abate, but some
trusts still offer formidable opportunities.
to Limit Liability of Income Trust Owners
Canada's publicly traded income trusts
scored a major victory recently when the
Ontario government said it will introduce
legislation to limit the liability of
unitholders. Big news — this move will
remove a disincentive to invest, and increase
liquidity. Are Alberta and other provinces
You Can't Price Dirt if You Don't Understand it
Not so fast jumping on the income trust
bandwagon. Investing wisely, cautions Fabrice
Taylor, requires research and perspective.
"Income trusts may look safe in a
bond-like way, but they aren't bonds; they're
equities that pay out all their earnings."
Income Fund Provides A Cautionary Tale for
Choose your income trust wisely, or your
returns may droop, or — even worse —
disappear altogether. When biz is bad,
distributions are among the first things to go,
along with the share price. The key, again,
is understanding the business that your clients
are buying. Read the full story and avoid
the next Halterm Income Fund.
UPDATE: Mutual Fund News
- Ainsworth joins Mackenzie
All-star mutual fund manager Ian Ainsworth is
back in the investing game after joining
Mackenzie Financial Corp. yesterday.Mr.
Ainsworth will run two funds for Mackenzie and
lead one of the teams that picks stocks for the
company's fund of funds. He was most recently
working at Altamira Investment Services Inc.,
where he won manager-of-the-year honours from
several industry groups in 1999 and 2000.
More: Mackenzie launches new
AIM makes changes to
MARKETS: Stormy, but Bright Spots on the Horizon
Markets Suffer Another Losing Quarter
As of March-end, the Toronto Stock
Exchange's benchmark S&P/TSX Composite was
down 4.1% year-to-date. Traditional safe havens
fared poorly. But strategists say certain
events could provoke a rally.
Fears Spur Stock Selloff
Called Good for Investors
Contrarian view: A veteran Bay
Street fund manager says these are the most
favourable market conditions he's seen in his
20-year career. Specifically drawn to
junior oil and gas stocks, plus large caps with
"exceptional value," this active
trader shares some picks with Globe and Mail
mutual funds reporter Angela Barnes.
FINANCE: Read What Your Clients are Reading
the Net For Tax Help
Most advisors are familiar with some of the
online tax help available; here Rob Carrick
offers an update. Which Web sites offer the
best interface, least headaches? Does filing
online mean you're more likely to be audited?
Here are the answers.
DRIP Is The Best Stock Market Bargain Around
Get re-acquainted with dividend
reinvestment plans. In this column, Rob Carrick
asks: "Which DRIP stocks stand out as
having the most bargain potential? Are your
clients fully exploiting their opportunities to
invest in fractional share amounts, without