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(Denny Thurston/Getty Images/iStockphoto)

Thirst for yield drives wave of energy trusts

Canada’s much-loved income trusts got the boot long ago, but investors who like oil and gas and are thirsty for yield are quickly finding hope in a growing wave of energy trusts that cross the U.S border.

Since 2010, a handful of energy trusts have gone public in Canada. Much like the old income trusts, they pay out their cash flows to investors as distributions, offering their owners some much-needed yield in a rough interest rate environment. But the new class differs from their long-gone peers because their assets must be U.S. based, otherwise they would fall under the federal government’s ban.