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Canadian Royalty Trusts


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#21 vitaminm

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Posted 27 January 2006 - 11:23 AM

Vitaminm: Is there any high yielding royalty trust mutual fund?


Well heck yes. In my order of preference; best first.

Avenir Diversified Income Trust, Enervest Diversified Income Trust, Citadel Diversified Income Trust, Series S-1 Income Fund, Sentry Select Diversified Income Trust, Select 50 S-1 Income Trust, Diversitrust Income Fund, Brompton Stable Income Fund.

In percent, yields are 11+, 10+, 9+, 8+, 8+, 7, ~5.7, ~5.7

Avenir is different from the others in that it's been using its income not just to pay dividends, but to buy more producing assets. Far and away my favorite here.

None of these are as risky as pure energy trusts. They're into power generation, real estate, etc., too.

Doug


Thanks.

What are the ticker symbols for these funds if they are not privetly held?
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#22 PorkLoin

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Posted 27 January 2006 - 12:01 PM

What are the ticker symbols for these funds if they are not privetly held


Vitaminm, do you have a "symbol lookup" area of your quote system or brokerage?

Doug

#23 vitaminm

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Posted 27 January 2006 - 01:05 PM

What are the ticker symbols for these funds if they are not privetly held


Vitaminm, do you have a "symbol lookup" area of your quote system or brokerage?

Doug



Thanks.

I will find here.



http://finance.yahoo... Trust&t=S&m=US
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#24 PorkLoin

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Posted 29 January 2006 - 01:20 AM

Posted Image

A tough week for natural gas prices, and the trust share prices are suffering. I'm surprised that Esprit is holding up, since it's heavily gas-weighted. Thunder worries me the most, since it's a new trust and I know the least about it. It's been policy all along for it to pay 15 cents a month per share in dividends, and it hasn't missed yet. It's down 40 cents since the portfolio began, and we will see....

Of the eleven trusts, right now I think Viking Energy is the best buy. It will merge with Harvest Energy Trust and form a trust that's even more solid. Long-term, I'm guessing that Peyto will give the most share price appreciation. Canetic is looking good, and if and IMO when the NYSE listing comes through it should be bullish for it. We're just past the ex-dividend dates for most of the trusts and thus have slightly over a 1% boost for the portfolio coming in 2 to 3 weeks when the dividends get paid.

From what I have read, the future supply and demand picture is more bullish for natural gas in North America than for crude oil, on balance. IMO the current weakness in natural gas prices will lead to very good buying points for many of the trusts. I don't know when the $NATGAS price low will come, and will watch the charts on this as well. Meanwhile, the big dividends make waiting a lot less painful.

Best,

Doug


#25 PorkLoin

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Posted 29 January 2006 - 11:35 AM

On the trust mutual funds: name, yield, Toronto Exchange symbol, and US OTC symbol if any:

Avenir 11.49% AVF.UN AVNDF

Enervest 10.43% EIT.UN EVDVF

Citadel 9.31% CTD.UN CTDXF

Series S-1 8.56% SRC.UN SRIUF

Sentry 8.15% SDT.UN SSDUF

Select 50 6.96%SON.UN SFYIF

Diversitrust 5.83% DTF.UN

Brompton 5.76% BSR.UN


From Avenir's website, they are aiming for 50% energy, 25% real estate, and 25% financial services. Within the financial services mentioned, the site states: "Acquisition on October 4, 2005 of the privately held joint venture Management Company, that is the sole Manager of the EnerVest Group of Funds." So, Avenir owns the manager of EverVest funds. Interesting but sounds sort of incestuous to me.

"Two of the key strategies of the Trust will be to stabilize distributions and retain cash flow to fund internal growth. The target is for a minimum of 20% retention of cash flow for internal growth and distribution stabilization; however current modeling contemplates a greater than 20% cash flow retention ratio."

Last I saw, while the other mutual funds are paying out right about 100% of their distributable money, Avenir is keeping 49% for growth. Sounds good to me. If one thinks that energy prices and real estate are going to go down in the future, then this is likely not a good investment. If not, then it's a solid fund with a good record of paying dividends and raising the dividend over time.

Doug

#26 zepplin

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Posted 29 January 2006 - 11:27 PM

I am going to keep track of some of your picks and see if I can make it work for me. Good work. Thanks Doug

#27 vitaminm

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Posted 30 January 2006 - 12:16 AM

On the trust mutual funds: name, yield, Toronto Exchange symbol, and US OTC symbol if any:

Avenir 11.49% AVF.UN AVNDF

Enervest 10.43% EIT.UN EVDVF

Citadel 9.31% CTD.UN CTDXF

Series S-1 8.56% SRC.UN SRIUF

Sentry 8.15% SDT.UN SSDUF

Select 50 6.96%SON.UN SFYIF

Diversitrust 5.83% DTF.UN

Brompton 5.76% BSR.UN


From Avenir's website, they are aiming for 50% energy, 25% real estate, and 25% financial services. Within the financial services mentioned, the site states: "Acquisition on October 4, 2005 of the privately held joint venture Management Company, that is the sole Manager of the EnerVest Group of Funds." So, Avenir owns the manager of EverVest funds. Interesting but sounds sort of incestuous to me.

"Two of the key strategies of the Trust will be to stabilize distributions and retain cash flow to fund internal growth. The target is for a minimum of 20% retention of cash flow for internal growth and distribution stabilization; however current modeling contemplates a greater than 20% cash flow retention ratio."

Last I saw, while the other mutual funds are paying out right about 100% of their distributable money, Avenir is keeping 49% for growth. Sounds good to me. If one thinks that energy prices and real estate are going to go down in the future, then this is likely not a good investment. If not, then it's a solid fund with a good record of paying dividends and raising the dividend over time.

Doug


Comparision

http://stockcharts.c...O,BSR/UN.TO,xle
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#28 PorkLoin

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Posted 30 January 2006 - 05:15 AM

Nice comparison, Vitaminm. No question that energy has been the strongest deal here, and those funds that include real estate, financial services, etc., have not done as well, overall, as the royalty trusts that are all energy. That's why I don't own the funds and why I didn't put any funds in the Portfolio. If energy prices go up, then pure energy bets will be better. If they go sideways or down, then they're going to do worse. XLE doesn't pay the kind of dividends the higher-yielding trusts do, and IMO there is value in diversification, as with power generation and pipelines - those two have very steady income streams and don't go up and down nearly as much on swings in energy prices (power generators usually have longer term contracts). Dividends make a lot of difference, too, especially over the long term. Some of the CanRoys have returned one's entire purchase price in dividends, (or even more), had one purchased shares 5 or 6 years ago. If one is to bet on energy price increases, don't forget about the trusts. Best, Doug

#29 PorkLoin

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Posted 30 January 2006 - 08:31 AM

Zepplin: I am going to keep track of some of your picks and see if I can make it work for me.

Good luck, Zepplin. It's easy to have a whole lotta love for the big dividends but there are good times, (and) bad times, and it can be a heartbreaker to buy something and have it go down.

Posted Image

Here is Barclays Advantaged S&P/TSX Income Trust Index Fund. Some trusts did better, and some did worse, but overall there is a high degree of positive correlation to individual CanRoys. Prices climbed the stairway to Heaven on the back of the energy bull market into the post-hurricane Katrina crude oil top, then were given no quarter as oil declined and as worries about Canadian gov't policies came to the fore.

With hindsight, the Sept. and Oct. lows were great buying opportunities, as well as the pause in November. The governmental threats evaporated, and now there's a new gov't in Canada which doesn't look like it will assault the trusts, so maybe dancing days are here again. But before we go over the hills and far away, let me say that it pays to be patient.

Lots of trusts have recently made new highs, and with natural gas going down a lot since the December high, and with the potential for a double top in crude oil (in my opinion, anyway), the best way to rock and roll for profits may be in trying to "buy low." Most of the trusts do have "tradeable" price swings, even given the high dividends, and watching the charts gives real benefits for entry and exit timing, even with nothing more than MACD momentum indicators.

Best,

Doug

#30 mss

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Posted 30 January 2006 - 03:43 PM

:)
Thanks for posting the US symbles as I could not find some of them. Great service you are doing on this portfolio as it is helpful to many.

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