“I own what?” Get ready for income trust confusion

Just a warning to the IIROC-licensed advisors out there whose clients held onto their income trust holdings: You might get some confused phone calls the next time client statements go out.

No doubt you explained to clients long ago that most of their income trusts would convert to corporate structures by January 1, 2011. Less predictable – and possibly missed – was that some of these trusts would also change their names to something completely unrecognizable.

To be sure, most have opted to maintain their brand recognition: Pengrowth Energy Trust has become Pengrowth Energy Corporation, and Second Cup Income Trust is now Second Cup Ltd.

Others have gone the contraction route: Phoenix Technology Income Fund has become PHX Energy Services.

But there are some that have chucked their brand name right out the window. For example, clients who held onto Consumers’ Waterheater Income Fund might look at their next statement and wonder when they bought EnerCare Inc.

Chorus Aviation Inc.? That’s their Jazz Air Income Fund investment. And if they want to know why you have them in Ten Peaks Coffee Company Inc., that’s the new name of Swiss Water Decaf Coffee Income Fund.

If you haven’t already had a chat with your clients about the new names, we have a list of recent trust conversions from the TSX which you might want to incorporate into a client letter.