Following developments in the Canadian income trust market, MSCI Barra, a leading provider of benchmark indices and risk management analytics products, will consult with the investment community regarding whether and to what extent income trusts should be part of the MSCI Canada universe.
Currently, MSCI does not include income trusts in its MSCI Canada universe of eligible securities. However, to ensure that MSCI fully appreciates the scope and implications of this rapidly growing market segment in Canada, MSCI is seeking feedback on a variety of issues, including:
- Foreign ownership restrictions on income trusts
- Canadian Federal Government proposed limitations for pension fund investments in business trusts
- Investing in income trusts and personal liability
- Taxation and investment issues faced by international equity investors.
MSCI plans to contact directly some market participants to solicit feedback. Please note that the consultation may or may not lead to the inclusion of income trusts in the MSCI Canada universe. If MSCI determines to make any change, MSCI will make a public announcement in advance of the change.
