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Canoe EIT Income 4.80 Cumulative Redeemable Pref shs Series 1 T.EIT.PR.A

Alternate Symbol(s):  T.EIT.PR.B | ENDTF | T.EIT.UN

Canoe EIT Income Fund (the Fund) is a Canada-based closed-end investment trust. The investment objectives of Fund are to maximize monthly distributions relative to risk and maximize net asset value, while maintaining and expanding a diversified investment portfolio, primarily through acquiring, investing, holding, transferring, disposing of or otherwise dealing with or in equity and debt securities of corporations, partnerships, or other issuers and such other investments as the manager may determine in its sole discretion from time to time. Canoe Financial LP is the manager and portfolio manager of the Fund.


TSX:EIT.PR.A - Post by User

Comment by harbroon Mar 27, 2013 11:44am
279 Views
Post# 21174787

RE: RE: RE: Shame

RE: RE: RE: Shame

The primary problem with this fund isn't the way it manages its holdings, but the policies they employ when it comes to unitholders rights.

The current net asset value sits at 13.78 meaning units are trading at a huge 12.75% discount.  Sadly, this discount will continue until management decides to open up the funds true value to it's unitholders.  At present, they only offer a annual redemption priviledge at 90% of NAV, and even then only redeem about 35% of what is requested,. As long as unitholders have no assurance they can redeem units for the true value of their holdings (100% less a reasonable "management fee"), and management hangs onto the other 10%, this fund will continue to languish - regardless of how well portfolio managers do their job.

 Note that to fund the current distribution, 65% of it was nothing more than a return to you of your own capital (ROC).  Thus each unit redeemed to fund distributions netted mgt a nifty 12.75% profit on 65% of the units and "only" 10% on the other 35% they so graciuously allowed unitholders to redeem.

Don't even get me started at those stupid and insulting annual warrant issues...  They offer the right to buy at 90% NAV, but when you can only redeem 35%, why would you bother?

HEY MANAGEMENT - if you want this pig to have any semblence of it's former glory, give unitholders full value 100% on ALL the units they request redemptions on.  I guarantee that will pop the unit price back up to were it should be - close to 100% of NAV - like just about every other closed end fund out there.

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