Beating expectations is the key to building wealth in the stock market. Buying stocks and trusts with healthy and growing underlying businesses is the surest way to accomplish that because rising enterprise value eventually means a higher stock price.

As we move into the final quarter of 2009, however, there are other compelling ways to beat the still very low bar investors have set for Canadian trusts and dividend-paying corporations. True, Canadian Edge Conservative and Aggressive holdings are up an average of nearly 50 percent this year in US dollar terms.

But the broad-based S&P/Toronto Stock Exchange Income Trust Index (SPRTCM), which includes 44 large trusts, is also still more than a third off the high it reached in mid-2006 and revisited briefly in mid-2008.

The average yield of nearly 10 percent and price to book value of just 1.55 are also well off last year’s more robust levels. And many oil and gas producer trusts still trade as low as 50 cents per dollar’s worth of energy reserves in the ground.

One reason for the low bar is simple economics. We still have what’s largely a bifurcated investment market. On the one hand is the credit risk-free standard, US Treasury paper, still the safe haven of choice when the economic news turns sour. On the other is virtually everything else, including most definitely Canadian trusts and dividend-paying corporations of all stripes.

From its recent high of 171 reached June 30, 2008, the SPRTCM plunged nearly 100 points to a low of just 75.90 on March 6, 2009. Much of that horrific decline can be laid at the feet of tumbling energy prices, which eventually forced all but three producer trusts to cut distributions at least once. But even trusts with no exposure to energy and that were increasing distributions were pulled down in the wreck.

And the Canadian dollar compounded losses for US investors, sliding more than 22 percent from mid-July to an ultimate low of just USD0.77, not coincidentally also on March 6.

Since that low point Canadian dividend-paying stocks and trusts have been off to the races. Canada’s economy had never reached the lows the US did, thanks to the superior health of its banking system, a lower reliance on debt leverage economy-wide and a budding trade relationship with China that kept its natural resource exports at least relatively stable.

But the country’s market as a whole nonetheless performed as a high-beta bet on energy prices, which in turn acted like a leveraged bet on expectations for the global economy. Ditto the Canadian dollar’s exchange value, which has tracked the recovery in oil prices to a new 2009 high of USD0.95.

The better the news gets on the global economy, the fatter these gains will become.

In fact, should recovering growth begin to have inflationary implications, US investors in Canadian trusts and dividend-paying stocks are likely to score even more, as rising energy prices push the Canadian dollar higher and increase the US dollar value of dividends and share prices.

On the other hand, the preponderance of opinion seems to point the other way, toward more global economic weakness.

Worries about high and rising unemployment, consumers’ ongoing retrenchment and severe weakness in portions of the US financial system have led many to fear what amounts to a “Big W” scenario, in which the globe is on the precipice of a second sharp decline for the economy and investment markets.

As I noted last month, there are stark differences between the market/economic environment of today and of late 2008. The biggest of these is the credit market, which–although still tight for the less well-off–has rarely been more accommodating for corporations, including those without investment-grade ratings.

Credit spreads to US Treasuries have sunk to between 100 and 150 basis points for A-rated companies. Even junk-rated paper, which was literally untradeable a year ago, is going for 500 basis points and less. Coupled with Treasury rates still scraping along around 3 to 3.5 percent, it adds up to the lowest borrowing rates in decades.

Lower borrowing rates not only mean the newly capitalized banks are lending again. They translate into real cost savings for companies, which can not only refinance maturing debt cheaply but also have the ability to lock in long-term money to finance expansion. Ultimately, that means growth. And, again, it’s a far cry from a year ago, when credit markets were literally frozen to all.

There are still plenty of catalysts out there for a stock market selloff. It’s increasingly unlikely, however, that credit concerns will at the root of a future one. Low valuations for stocks and trusts mean low expectations that will take an awful lot of bad news to fail to meet.

And it won’t take a lot of good news to beat them, either, very likely just avoiding a Big W.

The Windfall Revisited

As I pointed out in August, strong Canadian trusts are also on track to beat the market in another way: by exceeding expectations for dividends when they convert to corporations, most over the next 12 to 15 months.

The 18 trusts that have converted to corporations are up roughly 30 percent from where they traded before announcing their switch. The eight that didn’t cut distributions at all have performed best. But even those making deep reductions have seen their share prices rise, recovering the initial hits following the cuts and then some.

And all this has been during one of the worst periods for the overall market in memory. That means two things.

First, Canadian trusts have been pricing in the impact of 2011 taxation, their eventual conversion to corporations and likely dividend cuts literally since Finance Minister Jim Flaherty made his announcement on Halloween night 2006. Second, the bar of expectations for post-2010 dividends has been set so low that well-run trusts are having no problems exceeding it.

Naturally, I’d prefer if all of our recommended trusts were able to convert to corporations without cutting their dividends a cent. The point is, however, that we’re likely to score solid capital gains even if they do make cuts because the market has been pricing in much, much worse for nearly three years.

Here’s where we stand so far, starting with the 19 Conservative Holdings.

All four real estate investment trusts–Artis REIT (TSX: AX-U, OTC: ARESF), Canadian Apartment Properties REIT (TSX: CAR-U, OTC: CDPYF), Northern Property REIT (TSX: NPR-U, OTC: NPRUF) and RioCan REIT (TSX: REI-U, OTC: RIOCF)–will qualify for continued tax advantaged status in 2011 and will therefore need no adjustments to dividends.

Moreover, all continue to weather the downturn in Canadian real estate well, thanks to strong balance sheets, high-quality properties and conservative dividend policies. All four are solid buys.

Meanwhile, Atlantic Power Corp (TSX: ATP-U, OTC: ATPWF) is not actually a trust. It trades as an income participating security, which combines equity with a high-yielding debt security.

Although it avoids the conversion debate, Atlantic Power will face a decision in 2016 on whether or not to refinance the bond portion or replace it with debt denominated in US dollars and thereby better match its US dollar revenue.

Management, however, has affirmed the current dividend rate to that point based on the current asset base. And even if the bond portion was paid off, the equity portion would still yield well over 10 percent and be well covered with cash flow. Atlantic Power Corp has surged but is still a buy for those who don’t already own it up to USD10.

Two picks have already converted. Colabor Group (TSX: GCL, OTC: COLFF) made the jump this fall without cutting its distribution, though it has switched to a quarterly payout starting with the January 15 payment. Bay Street remains resoundingly bullish on this diversified and rapidly growing food and merchandise distributor and so am I. Buy Colabor Group up to USD12.

TransForce (TSX: TFI, OTC: TFIFF), in contrast, cut deeply from a monthly rate of 13.25 cents Canadian per unit to a quarterly rate of CAD0.10 when it announced its conversion in mid-2008.

Coupled with the impact of the global recession on the transport business, the shares sold off sharply, finally hitting a bottom of USD2.46 on March 13, 2009. Since then, however, TransForce has climbed back to USD8.

The key: TransForce has proven itself as a strong business, sowing the seeds of its eventual recovery even as many investors gave up and bailed out. The stock is up roughly 150 percent since January 1 in US dollar terms.

But trading at just 36 percent of sales and less than half its 2006 highs–when it wasn’t nearly the battle-tested growth company it is now–I see a lot more ahead. TransForce remains a buy up to USD8.

Eight more holdings have declared their intention to convert to corporations. Brookfield Renewable Power Income Fund (TSX: BRC-U, OTC: BRPFF) made its announcement on July 6 as part of a broad strategic initiative that included absorbing parent Brookfield Asset Management’s (TSX: BAM-A, NYSE: BAM) other renewable power assets. The trust also changed its name from Great Lakes Hydro Income Fund and, most importantly, announced it would maintain its current distribution rate after it converted, probably in late 2010.

The units have been on fire ever since, hitting new highs this week. That’s run them a bit above my buy target of USD17 after they traded well below it for many months. My advice if you haven’t bought in yet is to wait on a dip. Long-term, however, Brookfield Renewable Power is a superb bet on the growth of renewable energy and now with no 2011 risk.

Keyera Facilities Income Fund (TSX: KEY-U, OTC: KEYUF) also has no real remaining 2011 risk after announcing its intent to convert to a corporation in January 2011 without reducing distributions. That’s in part because of the extreme stability of its energy infrastructure business, which has actually continued to grow despite overall sector weakness, thanks to high asset quality.

It’s also because second quarter distributable cash flow covered the distribution by a nearly 2-to-1 margin, and debt is low as well. This, one, too has soared to a new high this week. But anyone without a position should consider Keyera Facilities Income Fund when it trades below USD20.

Pembina Pipeline Income Fund (TSX: PIF-U, OTC: PMBIF) won’t commit to more than five years at the current distribution rate. But that’s more than enough time for investors to see how well it manages its new tax burdens as well as for management to continue boosting cash flow by adding low-risk, cash cow assets in both the oil sands and areas of conventional energy production.

And that adds up to a distribution likely to be consistently increased for years to come, just as it has been in years past, including three separate boosts since Halloween night 2006. Pembina Pipeline Income Fund is a strong buy up to USD16 for even the most conservative investors.

Just Energy Income Fund (TSX: JE-U, OTC: JUSTF), the former Energy Savings Income Fund, also affirmed its intention to convert to a corporation when it announced second quarter earnings, probably in late 2010.

Management stated it had been choosing “not to continue increasing” distributions “despite generating the cash flow to do so.” The reason is “intent to grow cash flow by the imposition date (of the tax) with the expectation that a converted Just Energy would be able to pay CAD1.24 in dividends replacing the more heavily taxed CAD1.24 distribution” of the trust.

This is still more akin to an announcing an engagement than setting an actual wedding date. But it is a clear sign of intent. And, given its recent strong results in a very difficult economic environment, Just Energy should be able to pull it off.

In any case, the yield of nearly 9 percent and share price of just 80 percent of growing sales means expectations still aren’t high, and that’s a good sign for beating them. Just Energy Income Fund is a buy up to USD12 for those who don’t already own it.

Expectations for post-2010 are much lower for AltaGas Income Trust (TSX: ALA-U, OTC: ATGFF). The trust has yet to make a new 52-week high despite continued strong performance from its portfolio of energy infrastructure assets. The primary reason is likely a statement by management during its second quarter conference call in August regarding its intention to convert the trust to a corporation in late 2010.

Management affirmed it would continue paying the current monthly distribution rate of CAD0.18 a share. When it converts, however, it will cut to an annualized rate of between CAD1.10 to CAD1.40, for an effective reduction of 35 to 49 percent from the current rate depending on the state of the economy and business.

AltaGas’ decision boils down more to a desire to keep cash around to grow the asset base than to take out what’s needed to absorb the additional taxes. Unfortunately, we won’t know exactly what the new policy will be until conversion takes place.

What we do know, however, is that assets are solid, income is growing and, based on the numbers we do know, management is definitely low-balling on what it can pay. That makes it highly likely the trust will surprise on the upside. AltaGas Income Trust remains a buy up to USD20.

Note that the company has succeeded in buying back 95 percent of the shares of former spinoff AltaGas Utility Group (TSX: AUI-U, OTC: ALGSF) and will acquire the remainder compulsorily, presumably at the same rate of CAD10.05 per share in its offering. The acquisition further boosts the trust’s base of steady cash flows, increasing the odds of a fatter post-2010 dividend.

Consumers’ Waterheater Income Fund (TSX: CWI-U, OTC: CSUWF), Macquarie Power & Infrastructure Income Fund (TSX: MPT-U, OTC: MCQPF) and Yellow Pages Income Fund (TSX: YLO-U, OTC: YLWPF) have also announced they’ll convert to corporations by late 2010. Unlike the trusts and companies above, however, the trio has already made preemptive dividend cuts.

Consumers’ Waterheater and Macquarie Power & Infrastructure made their cuts last month, as part of major strategic moves to reposition ahead of 2011.

Yellow Pages dropped its payout back in May at the same time it announced disappointing first quarter earnings.

The good news for holders of Macquarie and Yellow (see High Yield of the Month) is the new dividend rates are definitely a baseline for future years.

The new levels should easily hold as the pair converts and they’ll almost surely be increased in coming years, as the underlying businesses grow.

Macquarie Power & Infrastructure Income Fund and Yellow Pages Income Fund are strong buys, both up to USD8.

As I point out in Dividend Watch List, unfortunately, we still don’t have that level of assurance for Consumers’ Waterheater. Management made a convincing case in its September 21 conference call for why it’s still a strong business and why its shares will recover their lost ground as it proves its worth. But as I stated in a September 23 Flash Alert, I want to see third quarter numbers that back up their strong statements. Until then, Consumers’ Waterheater Income Fund is a hold.

As for the rest of the Conservative Holdings, we can only make an educated guess at what management will do in 2011 with distributions. Based on the numbers anyway, Bird Construction Income Fund (TSX: BDT-U, OTC: BIRDF) should have absolutely no problems whatsoever maintaining its current monthly distribution of CAD0.15 per unit, which it increased 24 percent in May.

Second quarter distributable cash flow covered the current payout rate by a huge 2.5-to-1 margin. Meanwhile, Bird continues to keep its project backlog at a high level despite the recession by winning contracts from government entities, the most reliable payers around.

The latest of these were a CAD84.7 million deal to build a new maintenance hangar for Defence Construction Canada and a design-build contract to build schools in Atlantic Canada. Bird Construction Income Fund has roughly doubled our money this year but is still a buy up to USD33.

CML Healthcare Income Fund (TSX: CLC-U, OTC: CMHIF) has yet to give us any definitive word as to its 2011 plans. The acquisition of two medical imaging operations comprised of six testing centers in the US announced this week will certainly boost its ability to avoid a dividend cut whether it goes corporate or not. That’s because it increases the percentage of cash flow earned outside Canada, which isn’t subject to taxation. US revenue was already more than 25 percent of the total in 2008 and that share rose to 31 percent in the second quarter.

On the other hand, CML’s payout ratio has been on the high side in recent years, coming in at 90 percent in the second quarter. So while management professes to see no merit in converting before 2011, it may not be able to avoid a dividend cut when it eventually does.

In any case, this is a healthy business with plenty of growth potential and a buy anytime it trades below USD13.

Finally, Innergex Power Income Fund (TSX: IEF-U, OTC: INRGF) has also yet to state a post-2011 dividend policy. Encouragingly, the payout ratio hit an all-time low for the second quarter 2009 of 87 percent, a clear sign its assets are performing well and that management’s strategy is growing cash flow as expected. And power trusts have many weapons at their disposal for reducing their prospective tax burdens.

On the other hand, as we saw with Macquarie Power & Infrastructure, pending trust taxation means unsustainable payout ratios are going to be reduced sooner than later. Continued progress on the earnings front will increase the odds any dividend cut will be minor at most. But we won’t really know until management pulls the trigger.

Until then, the 10 percent yield and modest share price of 1.51 times book value mean the bar is still set low, building in both downside protection and room for an upside surprise. Innergex Power Income Fund remains a buy up to USD12.

All About Energy

Three Aggressive Holdings have already converted to corporations. Ag Growth International (TSX: AFN-U, OTC: AGGZF) did so without cutting its distribution, and its shares have been soaring ever since. All it takes is a cursory glance at its second quarter profit numbers to see clearly how it managed the feat. Demand for the company’s grain-handling, storage and conditioning equipment remains robust, and its financial policies are still conservative.

If there’s anything wrong with this picture it’s that the shares have shot up to a new high this week and above my buy target. But with the underlying company this healthy and growing even in a bad market for agricultural commodities, the outlook is bright indeed as the global economy cycles out. Ag Growth International is a solid buy any time it dips under USD30.

Newalta Corp (TSX: NAL, OTC: NWLTF) and Trinidad Drilling (TSX: TDG, OTC: TDGCF), in contrast, cut their distributions substantially when they announced conversions last year. Trinidad was forced to cut its payout again in February by two-thirds because extremely difficult conditions in the drilling market forced it to conserve cash.

Both stocks are well off the price levels they held as trusts. That, however, is much more due to business conditions than any decisions involving 2011 taxation and their dividends. The energy drilling business, for example, is more leveraged to energy prices than oil and gas production.

Meanwhile, Newalta’s environmental cleanup business has been hit hard by the dramatic slump in eastern Canada’s industrial region as much as the depression in the energy patch.

The silver lining here is, despite the dramatic ups and downs in their share prices over the past year, both companies have held their franchises together. Both hit bottom in March and have been off to the races since.

Newalta has more than tripled off its lows, while Trinidad is up nearly four-fold. Neither is likely to make much headway if economic conditions deteriorate. Both, however, sell at sharp discounts to both book value and sales and at a fraction of their mid-2006 and mid-2008 highs.

Both have proven their ability to weather the worst possible environments in their sectors, and you won’t find many bigger winners when the economy does definitively cycle out. Newalta Corp is a buy up to USD10; Trinidad Drilling for now is a buy only on dips to USD5.

Of the rest, two trusts have declared their intentions to maintain current distributions to 2011 and beyond, Chemtrade Logistics Income Fund (TSX: CHE-U, OTC: CGIFF) and Vermilion Energy Trust (TSX: VET-U, OTC: VETMF).

Both owe that ability largely to the fact that they garner 75 to 80 percent of their income outside of Canada, cash flow that won’t fall under the tax. Vermilion has indicated it will likely convert to a corporation in late 2010. Chemtrade has given no clear indication of its plans but odds are it will do the same to avoid running afoul of the Canadian government.

Obviously, much for both depends on what happens to the global economy in general and the prices of the commodities they produce in particular.

Vermilion should be in a much better position after cementing its deal to acquire a producing stake in an oilfield off the coast of Ireland. The field is operated by super Oil Royal Dutch Shell (NYSE: RDS-A) and is expected to increase the trust’s cash flow by up to 30 percent.

Vermilion has also reached a deal with the Libyan government for the sale of its 42 percent stake of exploration and production company Verenex Energy (TSX: VNX, OTC: VRNXF).

That will provide enough cash to retire up to half of the trust’s already very low outstanding debt or, alternatively, to fund further growth. Vermilion Energy Trust is a buy up to USD30.

Chemtrade is protected by an ultra-conservative distribution policy, evidenced by its ability to cover its payout comfortably even in a horrific environment for its sulphuric acid output. Buy Chemtrade Logistics Income Fund up to USD8 if you haven’t yet.

As for the rest of my oil and gas producers, it really all boils down to energy prices. All are hunkered down now to handle much lower prices for both oil and natural gas. After the distribution cuts of the past year, payout ratios are extremely low, and cash flows are covering capital expenditures as well, leaving room for debt reduction.

With natural gas prices steaming toward USD5 per million British thermal units and oil still hanging around USD70 a barrel, it’s looking more and more like the second half of 2009 will be great for cash generation, further strengthening operations and balance sheets.

Sooner or later, however, each trust is going to have to make a decision. In light of the fact that they’ll soon owe taxes, how much do they want to invest in growing reserves and production, and how much do they want to pay out in distributions?

Some trusts have already been forced to decide and painfully. Advantage Oil & Gas (TSX: AAV, NYSE: AAV), for example, completely eliminated its distribution when it converted to a corporation. Now well above its pre-conversion price and with management set on devoting all available cash to development, it’s not likely to pay a dividend any time soon.

Advantage Oil & Gas is a hold, but only for those who want a high stakes play on natural gas, certainly not for income seekers.

In contrast, we’ve seen other producer trusts elect to maintain dividends in full when they’ve converted. Bonterra Oil & Gas (TSX: BNE, OTC: BNEFF) and Crescent Point Energy (TSX: CPG, OTC: CSCTF) both managed the feat.

Both, of course, were helped immeasurably by the fact that they’re oil rather than natural gas-weighted, as Advantage is. But maintaining the distribution intact was also a decision that could have gone either way, had growth rather than high dividends been the objective.

All of the producer trusts we hold have indicated they intend to convert to corporations, probably in late 2010, and that they intend to keep paying generous distributions thereafter. What’s less clear is what percentage of cash flow they intend to devote to growing output and what they intend to pay in distributions.

ARC Energy Trust (TSX: AET-U, OTC: AETUF) appears to have set developing its Montney Shale reserve as a major goal, which will require a great deal of cash flow. Penn West Energy Trust (TSX: PWT-U, NYSE: PWE) has been rumored to be mulling a similar strategy of devoting the lion’s share of post-conversion cash flow to growth.

On the other hand, Provident Energy Trust’s (TSX: PVE-U, NYSE: PVX) strategy of investing in cash generating midstream infrastructure looks tailored toward continuing a generous payout policy.

Enerplus Resources Fund (TSX: ERF-U, NYSE: ERF) has never wavered from its focus on a “balanced approach” between dividends and capital spending to sustain them long-term. Enerplus and Daylight Resources Trust (TSX: DAY-U, OTC: DAYYF) both covered their current payout rates by roughly a 2.5-to-1 margin. That’s a lot of dividend protection, no matter how the taxes fall.

The important thing here isn’t trying to follow the latest rumor or second-guessing what management is going to do. We’ll find that out soon enough. Rather, it’s that all of these are solid, well-managed outfits motivated to increase long-term shareholder value. And expectations for future dividends are low, as evidenced by the fact that they trade at steep discounts to the value of their assets in the ground.

Most important, any up- or down-move in energy prices has the potential to completely alter any decision by management.

If in January 2011 oil is selling for USD100 a barrel and gas has recovered to the USD6-to-USD7 range, converting trusts will be increasing both dividends and capital spending from current levels.

If oil is under USD50 and gas is scraping USD2, they’ll be cutting, even if the Canadian government relents and cancels the trust tax.

Energy prices are the whole ballgame here. That’s where we want to keep our focus. And if you’re half as bullish as I am on oil and gas for the long term, you’re going to want to hold your positions in these first-rate energy trusts, tax or no tax.

Odds and Ends

Some readers have asked me about the prospects for two former recommendations, Algonquin Power Income Fund (TSX: APF-U, OTC: AGQNF) and Boralex Power Income Fund (TSX: BPT-U, OTC: BLXJF).

Algonquin is in the process of converting to a corporation via a merger with a company called Hydrogenics Corp (TSX: HYG, NSDQ: HYGS). It’s important for unitholders to remember that, though they’re being asked to vote on the deal, this isn’t a takeover in the conventional sense. Rather, it’s Algonquin’s method of converting to a corporation on a unit-for-share basis.

As advertised, the distribution will remain the same after the deal is done. Algonquin unitholders’ stake in the company’s considerable assets won’t be diminished, and there will be no taxes due on the transaction.

It’s a bit complex, and it’s a safe bet that a fair number of lawyers and accountants have gotten work. But the deal deserves a “yes” vote. Meanwhile, Algonquin Power Income Fund is still a buy up to USD4.

Boralex Power Income Fund (TSX: BPT-U, OTC: BLXJF) hasn’t stated what it intends to do about 2011. Manager and 22 percent-owner Boralex (TSX: BLX, OTC: BRLXF) has the ultimate power over what happens here and seems motivated to maximize cash flow from the assets. That could take the form of a takeover, which, given the stock’s price of 81 percent of book value, should be at a substantial premium.

The big issue for both Boralex Power and the parent has been the fate of its two biomass power plants, the cash flow from which has been put at risk by the bankruptcy of Abitibi Bowater.

The latest development in the case is positive: The company and Abitibi have agreed to terms that should keep the Dolbeau plant supplied with wood waste and its power purchased this winter.

Assuming the details are worked out, that should ensure Boralex Power has the cash flow to maintain its more than 17 percent distribution up until 2011. At that point it will be up to management to decide what to do.

But in any case, a dividend yield that high–coupled with a price of just 81 percent of book value–builds in a lot of downside protection. Boralex Power Income Fund is a buy up to USD4.

Last but not least, our two mutual funds, EnerVest Diversified Income Trust (TSX: EIT-U, OTC: EVDVF) and Series S-1 Income Fund (TSX: SRC-U, OTC: SRIUF), aren’t subject as such to 2011 trust taxation. Rather, what both will be able to pay in distributions will depend on what their holdings pay.

EnerVest Diversified Income Trust has no real outstanding issues at this point. Trading at a discount of nearly 15 percent to net asset value, it continues to rate a buy up to USD12.

Series’ fund family Citadel’s attempt to combine its funds for greater efficiency is still under attack from a rival shareholder group. Both sides have claimed support from various impartial opinion sources, and the rhetoric has at times been quite heated.

This is basically a sideshow, with the best possible outcome being that it ends one way or the other, allowing management (whoever it is) to get back to the business of running the fund.

My advice remains to vote with Citadel, whose managers have generally had a steady hand. Series S-1 Income Fund remains a buy up to USD8.

Finally, here are announced and projected earnings release dates for Canadian Edge Portfolio recommendations. I’ll be recapping the results as they’re released in upcoming Flash Alerts and the regular November issue.

Conservative Holdings

• AltaGas Income Trust (TSX: ALA-U, OTC: ATGFF)–November 5*
• Artis REIT (TSX: AX-U, OTC: ARESF)–November 11
• Atlantic Power Corp (TSX: ATP-U, OTC: ATPWF)–November 12*
• Bell Aliant Regional Communications Income Fund (TSX: BA-U, OTC: BLIAF)–November 10
• Bird Construction Income Fund (TSX: BDT-U, OTC: BIRDF)–November 11*
• Brookfield Renewable Power Fund (TSX: BRC-U, OTC: BRPFF)–November 3*
• Canadian Apartment Properties REIT (TSX: CAR-U, OTC: CDPYF)–November 10*
• CML Healthcare Income Fund (TSX: CLC-U, OTC: CMHIF)–November 5*
• Colabor Group (TSX: GCL, OTC: COLFF)–October 16*
• Consumers’ Waterheater Income Fund (TSX: CWI-U, OTC: CSUWF)–October 27*
• Innergex Power Income Fund (TSX: IEF-U, OTC: INRGF)–November 5*
• Just Energy Income Fund (TSX: JE-U, OTC: JUSTF)–November 6*
• Keyera Facilities Income Fund (TSX: KEY-U, OTC: KEYUF)–November 3
• Macquarie Power & Infrastructure Income Fund (TSX: MPT-U, OTC: MCQPF)–November 4
• Northern Property REIT (TSX: NPR-U, OTC: NPRUF)–November 12
• Pembina Pipeline Income Fund (TSX: PIF-U, OTC: PMBIF)–October 29*
• RioCan REIT (TSX: REI-U, OTC: RIOCF)–November 4*
• TransForce (TSX: TFI, OTC: TFIFF)–October 23*
• Yellow Pages Income Fund (TSX: YLO-U, OTC: YLWPF)–November 5

*Bloomberg estimate

Aggressive Holdings

• Ag Growth International (TSX: AFN, OTC: AGGZF)–November 13*
• ARC Energy Trust (TSX: AET-U, OTC: AETUF)–October 30*
• Chemtrade Logistics Income Fund (TSX: CHE-U, OTC: CGIFF)–November 4*
• Daylight Resources Trust (TSX: DAY-U, OTC: DAYYF)–November 5*
• Enerplus Resources (TSX: ERF-U, NYSE: ERF)–November 13
• Newalta (TSX: NAL, OTC: NWLTF)–November 5*
• Paramount Energy Trust (TSX: PMT-U, OTC: PMGYF)–November 6*
• Penn West Energy Trust (TSX: PWT-U, NYSE: PWE)–November 11*
• Peyto Energy Trust (TSX: PEY-U, OTC: PEYUF)–November 5*
• Provident Energy Trust (TSX: PVE-U, NYSE: PVX)–November 13*
• Trinidad Drilling (TSX: TDG, OTC: TDGCF)–November 4
• Vermilion Energy Trust (TSX: VET-U, OTC: VETMF)–November 10*