September 15, 2005 08:00 ET

TrustInvestor: First Annual Study of Income Trust and Equity Markets

TORONTO, ONTARIO--(CCNMatthews - Sept. 15, 2005) -

Today released its inaugural annual study of equity markets in North America, entitled, "Where's The Good Money - 2005".

The graphic thirty page report is a special supplement to the bi-monthly iTrustReport published in connection with The study provides insight into the shape of high-yield equity markets just as public attention is refocusing on the merit of Canadian income trusts.

The author, Leslie Hayman, Editor and Publisher of said that she hopes the study is timely and useful as a growing number of banks and a range of other businesses have just announced their consideration of converting shares into income trust units. Some of their interest comes in response to a trust-related Consultation Paper and request for input on public and tax policy from The Department of Finance Canada.

According to Ms. Hayman's report, income trusts offer unique value to both issuers and investors. The study articulates many key measures of investment performance not currently part of the trust discussions. It includes data from the unique iTrustIndex, offering for example, a finding that:

- Equities that yield cash are proportionately more numerous in American markets than Canadian markets; however,

- The median rate of distribution from Canadian income trusts exceeds comparable returns in other major equity exchanges by nearly 2% per annum;

- Total annualized returns are many times greater for income trusts than comparable investments when considering both cash dividends and capital gains on rising unit prices.

Prior to its release, Ms. Hayman referred to the study when she was interviewed by Jim O'Connell on Report on Business Television, talking about banks converting shares into trust units.

Based on the findings of the study, she proposed that, "The kind of (equity) model that we're talking about (with income trusts) in terms of efficient distribution of cash flow from business profits back through to the owners, is similar to what was common 40-50 years ago at the time Benjamin Graham was talking about the virtues of common stock...What we're actually seeing with income trusts, post tech-bubble, is a re-emphasis on cash flow and responsibility to unit holders."

The report also concludes that:

- Investors face a growing sea of alternative equity investments, particularly if considering mutual funds.

- Canadian income trusts listed on the TSX offer high-yield and monthly cash returns. Trusts based on specific businesses can also offer potential for significant capital gains.

- Relative to risk, select trusts provide total returns far superior to proceeds from other securities available in North American markets.

Requests for a copy of the 2005 report, "Where's The Good Money?" can be made through the web address

To see the Hayman interview on Report on Business Television, refer to the segment for Wednesday September 14, 2005 at 10:15 am EST in the video archive at


The web Guide to Income Trusts, as well as the iTrustIndex and Report was designed for and by investors.

Leslie Hayman created TrustInvestor in 2000 to research the budding income trust market. She subsequently launched the iTrustReport and iTrustIndex to gage total investor returns from income trusts, understand returns relative risk and help investors better inform their decisions. There are now more than 1900 members of the web site including its free guide to trusts and a growing number of subscribers to the iTrustReport.

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