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Business Trusts
A Business Trust is an Income Trust where the principal business of the underlying corporation or other entity is in the manufacturing, service or general industrial sectors. It is anticipated that the number of businesses constituted or reorganized as Income Trusts will increase
significantly over the next year. Conversion to the Income Trust structure is attractive to many existing mature businesses with relatively high, stable cash flows and low capital expenditure requirements, due to tax efficiency and investor demand for high-yielding equity securities. One of the primary attractions of Business Trusts, in addition to their relatively high yield is their ability to enhance diversification in the portfolio as they cover a broad range industries and geographies, including public refrigerated warehousing, mining, coal distribution, sugar distribution, forest products, retail sales, food sales and processing, chemical recovery and processing, data processing, gas marketing and cheque printing. Each businessrepresented is typically characterized by long life assets or businesses that have exhibited a high degree of stability.
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Source(s):
http://www.investcom.com/incometrust/businesstrust.htm

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