Royalty Income Trust

Royalty Income Trust

A unit investment trust in which the trustee buys the rights to income from a natural resource, such as oil or real estate, and distributes the profit to beneficiaries. A company, such as an oil company, may sell the right to income from an oil well to a royalty income trust because it usually pays more than other ways of raising capital. Likewise, an investor may be interested in buying into such a trust because yields are often higher than stocks or bonds. For example, an oil company may sell oil wells to a royalty income trust instead of issuing stock or a bond in order to raise capital to increase its capacity for pumping oil out of the ground.
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Black also serves on the Boards of Prime Restaurants Royalty Income Trust and Spectra Energy Income Fund, both of which are listed on Canadian stock exchanges, as well as on the Boards of various private companies and philanthropic organizations.
The company's investment objective is to seek a high level of total return with an emphasis on dividend income paid to stockholders by investing primarily in a diversified portfolio of master limited partnership (MLP) and royalty income trust (RIT) securities.
Standard & Poor's, the world's premier provider of index services, announces the forthcoming launch of a new Royalty Income Trust Index for the Canadian market.
As an asset class in Canada, the Royalty Income Trusts have become increasingly important.
We are delighted to have this opportunity to bring Standard & Poor's global indexing expertise to Royalty Income Trusts," said Glenn Doody, Director, Canadian Index Operations, Standard & Poor's.
In addition to an overall index for Royalty Income Trusts, Standard & Poor's will calculate sub-indices for REITs and the energy sector.