# Canoe EIT Income Fund (EIT.UN)



## OurBigFatWallet (Jan 20, 2014)

Anyone have any comments on this one? Looks like some blue chip core holdings (CN, Microsoft, RBC). MER of 1.73%. From what I understand the distributions are return of capital (ROC). 10 year average (cumulative) is 9.5%


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## yyz (Aug 11, 2013)

I have owned it for a while.Added some for the wife's RRSP and just exercised the warrants that were given out.The NAV is $15.16 and the units trade at $12.52.
I'm sure the MER is too much for some but the dividend is around 9.6% and $0.10 per month since August 2009.I like it and there is also I think once a year that you can redeem up to 10% of your units for 95% of the NAV.

http://www.canoefinancial.com/produ...nervest-divesified-income-trust/overview-eit/


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## OurBigFatWallet (Jan 20, 2014)

@yyz thanks for the info. I'm interested in it for a 'hands off' investment account and I noticed they have a drip with a 5% discount available. I haven't been able to find much info about it (good or bad) aside from their own website


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## Jon_Snow (May 20, 2009)

I've looked at this as well as NIF.UN as a way to boost my investment income a bit. Both are definitely on my radar.


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## yyz (Aug 11, 2013)

And here is a pretty good reason to maybe get into this

http://www.canoefinancial.com/produ...d-confirms-0.10-monthly-distribution-to-2016/


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## OurBigFatWallet (Jan 20, 2014)

yyz said:


> And here is a pretty good reason to maybe get into this
> 
> http://www.canoefinancial.com/produ...d-confirms-0.10-monthly-distribution-to-2016/


Thanks for the link. That is an impressive track record


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## godblsmnymkr (Jul 15, 2015)

is anyone still in this? I'm thinking about investing a decent chunk in EIT for income, but the issuing of warrants is a little confusing to me. 
so you get 1 warrant for each unit you own. 4 warrants can be traded in for 1 unit. then this adds X amount of shares in circulation which then drops the price a corresponding amount? is this basically a wash because you receive more units yet the price drops? 
please help me understand this, thanks!


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## yyz (Aug 11, 2013)

No,
4 warrants gave you the right to purchase an additional unit, they aren't free.They are basically giving you the rights to buy up to 1/4 of the shares that you currently own at a unit price they set when they issue warrants.


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## godblsmnymkr (Jul 15, 2015)

in the language of the Prospectus they made it sound like if you do not get the new shares then your shares that you already own will be diluted. so if thats right they're basically forcing you to buy more shares unless you want your shares diluted?
thanks for the reply.


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## Numbersman61 (Jan 26, 2015)

godblsmnymkr said:


> in the language of the Prospectus they made it sound like if you do not get the new shares then your shares that you already own will be diluted. so if thats right they're basically forcing you to buy more shares unless you want your shares diluted?
> thanks for the reply.


There are currently no warrants outstanding since they closed the last warrant offering in Nov 2014


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## godblsmnymkr (Jul 15, 2015)

yes. i was talking about the last warrants issued. i just want to have a good understanding of these warrant offerings for the future.
thanks


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## jargey3000 (Jan 25, 2011)

Tought I'd 'bump' this thread up.
Came across it here recently ( maybe via yyz?). Any current thoughts on it? Thinking of poking it into my TFSA when a measly GIC comes due soon...


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## tygrus (Mar 13, 2012)

Own it, love it, will buy more when I can.

Cover calls and ROC are part of the distribution, but I dont care. I love yield.


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## jargey3000 (Jan 25, 2011)

tygrus said:


> Own it, love it, will buy more when I can.
> 
> Cover calls and ROC are part of the distribution, but I dont care. I love yield.


tks tygrus. yes, the yield looks really attractive!
anyone else?


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## Numbersman61 (Jan 26, 2015)

I own the units and am very pleased. NAV per unit 12.94; market price 11.86. Distribution 10 cents per month or 1.20 per year. Diversified portfolio - mostly blue chip and about a third in US equity.


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## getliquid (Mar 2, 2014)

how is this vs funds like DIV.to or CDV/CDZ? seems like the fund does not have much assets? Isnt ROC essentially getting your own money back? Is it necessary to put this in TFSA?


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## tygrus (Mar 13, 2012)

getliquid said:


> how is this vs funds like DIV.to or CDV/CDZ? seems like the fund does not have much assets? Isnt ROC essentially getting your own money back? Is it necessary to put this in TFSA?


A GIC is the same as getting your own money back with a return. If you give me $1.00 and I give you back your dollar plus another 20c, wouldnt you take that? If you are concerned with the return of capital then just take your dividend and buy something else with it.


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