TSX:EIT.PR.A - Post by User
Comment by
strzelinon Aug 20, 2007 3:24pm
327 Views
Post# 13273309
RE: EIT''''s conversion to a dividend trust....
RE: EIT''''s conversion to a dividend trust...."On July 7, 2007 the unitholders of EnerVest Diversified Income Fund voted to expand the investment mandate of the Fund to ensure the future viability of the Fund and prepare the Fund for post 2011 when income trusts will be taxed and likely a much smaller investment segment. "
This statement IMO is very clear. After 2011 management will have no choice but to change this Trust Diversified Fund to Dividend Mutual Fund with small number of trust holdings available on the market.
Since this fund is leverage about 20% the yield will drop way down below 10% .You can only try to guess to what will happen to the EIT unit price.