Investment Trust Insider on Middlefield Canadian Income
James Carthew: Middlefield – North America with income
Canada tends to get overlooked by investors, dismissed perhaps as a play on resources. Of course, while these are an important part of its economy, there is much more to the country than that. Within the investment companies market, we have two ways of accessing Canadian markets – Canadian & General Investments (CGI) and Middlefield Canadian Income (MCT), the latter I thought I’d look at this week.
Middlefield listed in London in 2006. It is an income fund that currently yields 5.2%. The original idea was to offer UK-based investors access to the Canadian income trust market. Canadian companies were able to gain tax advantages if they streamed their profits to shareholders as dividends. This made sense for companies that generated fairly stable cash flows but, at the time, the idea was being embraced by a range of other businesses.
Conscious that resource plays were… read more here