retired aviator

Canadian Royalty Trusts Will Never Return to Their Former Glory

Nobody owns or has an opinion on Enervest???

(EIT.UN, or EVDVF in the US)

It's supposed to be the largest diversified income fund in Canada. It's also about 45% energy with the balance in REIT's and business trusts; transitioning to some equities due to the tax changes.

It's exchange-traded, at a whopping 25% discount to NAVs right now, and worth a serious look!

Canadian Royalty Trusts Will Never Return to Their Former Glory

Well, I am a recent venturer into Canadian trusts so I find this discussion new and very interesting. Even with the big potential downside from here that is illustrated by the author, I think valuations are compelling for US investors.
The last month or so has seen US investors buying power of foreign stocks increase some 25% on the strong dollar. And I have yet to hear any expert or pundit argue that the dollar will not weaken from here eventually, so it is likely a temporary bonus to buy stocks abroad. Further, as the USD likely weakens (as expected) it will be another bonus to be receiving foreign rather than USD dividends - the currency effect being enough to pay the tax in 2011 a well as make up for reduced distributions perhaps. Further, by buying closed-end funds selling at discounts, another bonus is achieved. 'Enervest' income trust (EIT.UN) is trading around 25% below NAV!

Is anybody knowledgeabe about this fund? It is around 45% oil and gas, and the balance in REIT's and business trusts. The fund uses some leverage on a 4% credit line, which seems pretty cheap. The current yield is completely ridiculous and the steady payout of the past will obviously have to come way down. Still, unless the CANROY's are going to really meltdown from here, it looks very compelling.

It trades on TSX as EIT.UN and in the US as EVDVF. Does anybody own it?