1、Edward Rodriguez, Jerry Young, and Linxiao (John) Zhang for Dr. G. Poitras, March 12, 2007 BUSINESSTRUSTS . bus417 . 1.1 Trusts in General Trust Basics A Canadian Story Types of Trusts 1.2 Business Trusts Investor Risk Governance & Structure Taxes! 1.3 Recent Events Pre-Halloween Massacre & Reasons
2、Since Then Going Forward Deal Finding 3 Trusts Agenda Trust Basics Just what IS a trust? Term refers to: legal entity (FTE) capital structure ownership vehicle Company/entity share “units” traded on exchanges like stock Structured to facilitate (tax-friendly) profit transfer to owners Based on CFs o
3、f underlying businesses Monthly/Qly distributions, usu higher vs stock divs (10-20% /yr) Holds income-producing assets Characteristics: stable CFs, limited capital maintenance, mature cycles origin: American PTP/LLPs Trust Basics How does a trust work? Operating entity (Corp, Operating Trust, Ltd Pa
4、rtnership) Unit Trust / Income Trust Unitholders equity, debt, royalty interest, lease interest, royalty or lease pmts, divs, return of capital $ for units $ distributions A Canadian Story Once upon a time American Publicly Traded Partnerships (PTPs) LLPs w/ publicly traded units Purpose: to combine
5、 tax advantages of partnerships with liquidity of public companies A Canadian Story A TSX Timeline A Canadian Story A rapid rise A Canadian Story A rapid rise Tripled numbers in just 5 years 54 conversions to income trusts from 2002-Sep 2006 36 between 2004-2006 alone A Canadian Story A rapid rise Tripled numbers in just 5 years 54 conversions to income trusts from 2002-Sep 2006 36 between 2004-2006 alone Volumes gone wild! Everyones in! Taking the cake, dominating the pie(s) A Canadian Story A rapid rise
