The world for Canadian trusts changed on Oct. 31, when Finance Minister Jim Flaherty proposed taxing them as corporations beginning in 2011. As was the case before the proposal was issued, the most-important factor for determining how profitable a trust will be remains its business. A trust that’s backed by a healthy business will fare well whether it has to pay corporate taxes or not. In contrast, trusts backed by weak businesses are doomed to fail no matter how favorable the tax regime.
Oil and gas producers have always been the most-volatile trusts. That’s now doubly true in view of the potential tax changes for trusts in 2011 and beyond. The good news is energy prices are bouncing back, energy trusts are dirt cheap and most have now adopted more conservative payout policies.
“I want you to know that I have made well over $100,000 on the Canadian trusts and I thank you. You have been a great source of financial information to me and I owe your work and intelligence a huge vote of thanks!!!”
—Cliff, SC
“Dear Roger: Just renewed my subscription. My account is now in 7 figures and the monthly dividends are just wonderful. When you mentioned that Pennwest was converting to a trust, it looked good and I bought 10,000 shares. Sold it yesterday for a profit of US$155,000. Keep up the good work.”
—C.S., FL
“Roger, I marvel at your incredible professionalism and ability and can only tell you in admiration and appreciation that I am grateful to you and to Canadian Edge for being the very finest investment service I’ve ever subscribed to in more than 25 years of investing.”
—Martin Colby
“Roger, I just want to thank you for replying to my request for updated information on Advantage and Vermilion. Your suggestions have been very accurate and profitable. I really appreciate the fact that you have always answered my calls when I had a question or concern. Best wishes.”
—V.R.B., Tustin, CA
| NEIL GEORGE - BIO | ARCHIVES Free Tax-Free Bonds ReportEditor: Personal Finance, Neil's Inner Circle, The Yield Letter, Pay Me Weekly |
| GS EARLY - BIO | ARCHIVES Executive Editor: Personal Finance Editor: The Real Nanotech Investor, Nanotech Investing News |
| ELLIOTT GUE - BIO | ARCHIVES Editor: The Energy Strategist, The Energy Letter |
| ROGER CONRAD - BIO | ARCHIVES Bulletproof Your PortfolioEditor: Canadian Edge, Utility Forecaster, Vital Resource Investor, Maple Leaf Memo, Utility & Income |
| YIANNIS MOSTROUS - BIO | ARCHIVES Editor: Silk Road Investor, Vital Resource Investor, Growth Engines |
| GEORGE KLEINMAN - BIO | ARCHIVES Editor: Futures Market Forecaster, Commodities Trends |
![]() | DAVID DITTMAN - BIO | ARCHIVES Editor: Maple Leaf Memo |
![]() | BEN SHEPHERD - BIO | ARCHIVES Free Stock Market Tips Editor: Friday Market Wrapup |