| Canadian Income Trusts |
| Canadian Income Trusts should not be confused with the securities we call Canadian Oil/Gas Royalty Trusts. While they are very similar in most every respect Canadian Income Trusts typically have much less volatility than their Oil and Gas Brothers. Broadly we can define income trusts as vehicles that hold direct or indirect holdings in income producing assets strictly for the purpose of paying high, stable and predictable income streams to the unit holders. We categorize these Income Trust into 2 sectors UTILITY TRUSTS AND ALL OTHER The Utility Trusts sector is comprised of companies that provide regulated services such as electricity, water and telecommunications. These tend to be stable business with a steady and reliable cash flow which provides a generous cash flow to the unit holders. The All Other category is comprised of Income Trusts that operate in virtually any market sector. These businesses have distributions which are generally much less reliable and predictable. The Yield Hunter is most interested in the Utility Trusts as we are hunting for relative high yields with good safety and are willing to sacrifice some appreciation potential for good safe yields. Our Research has found that the majority of the Utility Sector Trusts are safe investment, but there are some things that you have to consider prior to investment. All of these issues trade on the Toronto Exchange. When you bring these issues up during your research that unit price will be in Canadian Dollars most likely. This is no problem, but you will need to convert to U.S Dollars to know your price and the distribution yield. As of April 15, 2008 1 U.S Dollar = 1 Canadian Dollars This will change slightly up or down on a daily basis Most of these issues pay a monthly payout (a few are paid quarterly). Additionally you should be aware that the Canadian Government will apply a 15% withholding tax to all payments to U.S. citizens. Depending on whether you hold the shares in a taxable or tax deferred account you may be able to apply for a refund on a portion of these withholdings. So if a unit is showing a yield of 10% to you (after calculating basis the exchange rate) you will only receive only 8.5%. As you do your due diligence you may find little information and financial reports except on the companies website---so if you put the Trust name in a search engine you will find the company website. As with all investments nothing is guaranteed and any investment in the securities listed below should be only a small part of as diversified portfolio. So DO YOUR HOMEWORK AND KNOW YOUR RISK TOLORANCE |
| Listed below are Canadian Income Trusts from the UTILITY SECTOR These are NOT recommended purchases, but are just informational. You must do additional due diligence to find investments suitable to your needs and style. Information Current as of 4/14/2008 Ticker Symbols shown are for Yahoo Finance Quotes. Other quote services may use a slightly different ticker. Prices Below have NOT been Converted to U.S. Dollars As of 4/18/2008 the exchange rate is 1 to 1 so no conversion is necessary |
Copyrights 2006-2008 SGM Publishing |
| The Yield Hunter |
| Updated 8/14/2008 |
| Let's make some money and sleep well at night |
| Notice The Canadian government has made changes in taxation of trusts in Canada. This will not affect current trusts until 2011. Please do your homework and understand the long term affect on investments in any Canadian Trust (including oil and gas trusts). |
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| Algonquin Power Income Fund Latest Quarterly Report for Period End 6/30/2008 Algonquin Power is an open-ended investment trust that owns and has interests in a diverse portfolio of renewable power generation and sustainable infrastructure assets across North America, including 42 renewable energy facilities, 12 thermal energy facilities, and 17 water distribution and waste-water facilities. Algonquin Power was established in 1997 to provide investors with sustainable, highly stable cash flows through a diversified portfolio of renewable energy assets. |
| Atlantic Power Corp Latest Results for Period End 6/30/2008 Atlantic Power Corporation (TSX: ATP.UN) is a power income fund that owns interests in a diversified portfolio of power generation and transmission projects situated primarily in major U.S. markets. Atlantic Power is one of the largest and most diverse power income funds in the industry. |
| Boralex Power Income Fund Latest Quarterly Report for Period End 6/30/2007 Created in February 2002, Boralex Power Income Fund (the “Fund”) is an unincorporated open-ended trust that indirectly owns ten power generating stations with a total installed capacity of 190.0 MW. Eight of these power stations are located in Quebec (Canada) and two are in the State of New York (United States). |
| Bell Aliant Income Fund Financial Results for Period End 12/31/2007 Bell Aliant Regional Communications Income Fund (TSX: BA.UN) serves its customers throughout six Canadian provinces with innovative information and communications technology (ICT) solutions, including telephony, wireless, Internet, data, IT professional services, and value-added solutions. Bell Aliant also provides IT professional services through xwave’s offices in the US. Bell Aliant's approximately 10,500 employees build on its 100-plus year history by collaborating to deliver the highest quality of customer service, choice and convenience. |
| Creststreet Power and Income Fund Latest Report for Period End 12/31/2007 The Creststreet Power & Income Fund LP is Canada's first 100% windpower income fund. CPIF currently operates two wind energy projects with a nameplate capacity of 84.6 megawatts (MW) of power generating capacity |
| EPCOR Power Financials for Period End 06/30/2007 EPCOR Power L.P. owns and operates independent power generating facilities in Canada and the United States. Its power plants use natural gas, fuel oil, waste heat, wood waste, coal, tire derived fuel, water flows, or a combination of these energy sources to produce electricity. As of April 7, 2008, the company had a portfolio of 19 wholly owned power generation assets, as well as a 50% interest in a power generation asset in Washington State with a total net generating capacity of 1,287 megawatts. The company also has a 15.4% interest in Primary Energy Recycling Holdings LLC, which owns 4 recycled energy assets in the United States with an aggregate generation capacity of 283 megawatts |
| Great Lakes Hydro Income Fund Latest Quarterly Report for Period End 12/31/2007 The Great Lakes Hydro Income Fund offers investors a unique investment opportunity that has provided a stable, reliable and consistent return on investment since its inception in 1999. With long-life assets that are the highest quality in the power income fund sector, the Fund preserves and maintains value for investors for many years to come by reinvesting, on average, nearly $24 million per year on its assets. Stable performance is driven by long-term contracts with an average duration of 17 years, at an average fixed price of 4.6 cents per kilowatt hour, storage capabilities, geographic diversification and the lowest and most stable cost of operations in the power income fund sector. In just five years, output has more than doubled, capacity has quadrupled and 26 high-quality generating stations are producing annual revenues of over $150 million while maintaining stable returns to unitholder |
| Macquarie Power and Income Infrastructure Fund Latest Quarterly Report for Period End 6/30/2007 Macquarie Power & Infrastructure Income Fund invests in essential infrastructure assets in North America with an emphasis on power infrastructure. MPT's strategy is to acquire and actively manage a diverse, high quality portfolio of infrastructure assets to improve their financial performance and provide growing and sustainable distributions to unitholders. MPT's portfolio includes investments in gas cogeneration, wind, hydro and biomass power generating facilities, representing approximately 350 MW of installed capacity, and a 45% indirect interest in Leisureworld Senior Care LP, a leading provider of long-term care, or social infrastructure, in Ontario. MPT is managed by an affiliate of Macquarie Group Limited. |
| Innergex Power Income Fund Latest Quarterly Report for Period End 6/30/2007 Innergex Power Income Fund's unique mission is to own and manage electricity production units in harmony with nature. As such, it has developed an expertise in this field. The Fund now stands amongst the leaders of the renewable energy industry. Innergex operates seven facilities in Québec, one facility in Ontario, one facility in British Columbia and one facility in Idaho, USA, as well as two wind farms in Québec. |
| Primary Energy Recycling Latest Quarterly Report for Period End 6/30/2007 |
| Northland Power Income Fund Latest Quarterly Report for Period End 6/30/2007 Northland Power Income Fund indirectly owns interests in six power generating facilities: three natural gas-fired combined-cycle cogeneration power plants that efficiently and cleanly produce electricity and steam for sale, and three wind farms. Two cogeneration plants are located in Ontario: the 120 megawatt ("MW") Iroquois Falls facility that has been wholly-owned by the Fund since its inception in 1997, and the 110 MW Kingston facility. Through its 19% equity interest in Panda Energy Corp (PEC) and loan to a PEC subsidiary, the Fund has an interest in the 230 MW Panda-Brandywine cogeneration power plant located just outside Washington, D.C. Electricity produced from the cogeneration plants is sold under long-term power purchase agreements (PPAs) with creditworthy entities to ensure revenue stability, and long-term contracts assure the supply and price of natural gas, which is the Fund's largest cost. The 54 MW Mont Miller wind farm in the Gaspesie region of Quebec supplies electricity to Hydro-Quebec under a long-term PPA while the Fund's two wind farms in Germany, with a combined capacity of 21.5 MW, sell electricity to regional power utilities under the provisions of German renewable energy legislation. The Fund has committed to provide $30 million as subordinated debt to Northland Power Inc.'s 265 MW Thorold Cogeneration Project that is under construction near the Town of Thorold, Ontario. |
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