Wednesday, December 3, 2008   
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Canadian Energy Trusts



Investors searching for high income and an inflation hedge can find both in Canadian Energy Trusts. Also referred to as Royalty Trusts, these unique investment vehicles offer tax-advantaged, consistently high monthly income directly related to the price of oil and natural gas. Therefore, rising energy prices produce higher monthly distributions, providing a natural hedge against inflation. So while the government may exclude energy from its "core" inflation computations, investors can certainly include it in the "core" of their portfolios. After all, even if the government and Wall Street do not think rising energy prices count, all of us still have to pay them. Owning Canadian Energy Trusts allows investors to fill up with a smile, as rising pump prices are more than offset by higher dividends.

To learn more about Canadian Energy Trusts, and for a fuller explanation of both the risks and rewards of investing, download our exclusive free report "Energy and Double Digit Yields: Canadian Energy Trusts Explained".

Alternatively you may contact a Euro Pacific Capital representative today at 800-727-7922, or simply fill out the form below, and a representative will be in touch with you shortly.

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A special note on Unit Investment Trusts

Due to the rising popularity of Canadian Energy Trusts, some firms are now making them available through Unit Investment Trusts. However, investors are cautioned to avoid this method of investing. These Trusts add additional transaction costs, unnecessary fees, are overly diversified, produce adverse tax consequences and result in reduced dividend yields, all without the benefits of professional management.

We at Euro Pacific Capital believe the main reason that such trusts are recommended is that doing so mainly benefits the brokers who sell and the advisors who "manage" them. As a result, though we can certainly offer these trusts to our clients, and make a pretty penny in the process, we strongly advise investors to avoid them. For a fuller explanation of the many shortcomings and pitfalls of Unit Investment Trusts, make sure to consult your Euro Pacific Capital Representative.

In addition, for an explanation of how Euro Pacific Capital can save investors money on their foreign stock investments, see the Euro Pacific Advantage.

Disclaimer: Canadian Energy Trusts may not be appropriate for all investors. There are various risks, such as exchange rate, political, company specific and market, and dividend distributions are not guaranteed, and may be reduced due to falling energy prices. Please consider these risks carefully before investing and consult a Euro Pacific Capital representative to discover if such investments are suitable for your unique investment objectives and risk tolerance.


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