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

Great deals if you can find them

[mkirk]

With the destruction in the income trust sector lately, the best places to look for deals are in the low liquidity funds that are diversified. I'm looking for your opinions on this one - although I already got in (a little too soon it appears!). Northwater Top 75 Trust plus. It holds an equal weighted portfolio of the top 75 trusts by market cap (which makes it track very similar to BAE.UN - the barclays equal weighted trust etf). The NAV as of Oct. 31 was $8.80. BAE.UN since then hasn't bounced around much since Oct. 31 yet NTP.UN is trading down to $7.50 or so. At 96 cents a year distribution that pushes its yield to near 13%. But there's more. In addition to the full NAV being invested in the top 75 trusts, it margins 100% to get a fully diversified hedge fund of market neutral strategies. That's what pumps up the yield a bit without adding to the variance of the returns. So for currently $7.50 a share, you're getting about $8.80 invested equally in the top 75 income trusts plus another $8.80 invested in a market neutral basket of hedge funds. And a yield of near 13%. What do you think? I got in an $8.10 a share but don't feel so bad with the $8.80 NAV coming out today. Plus, if my reference point is the $10 point that was undoubtably sold by investment advisors to their clients, I'm happier already. That's a good bit of advice. If you're buying a closed end fund and they trade at par or a small discount, if your advisor offers you the new issue at $10 a share, the NAV after all the selling costs, paying the advisors the kick back for prodding you, etc. is usually lower. Maybe $9.50 or so. So what do you think happens to the $10 start price? Anyway, I digress. Any comments on NTP.UN?