Best of the Trusts & REITs

Article Excerpt

GUARDIAN MONTHLY HIGH INCOME II FUND $16.06 (CWA Rating: Income) (GGOF Guardian Group of Funds, Commerce Court West, Suite 4100, P.O. Box 201, Toronto, Ontario M5L 1E8. 1-800-668- 5613; Web site: www.ggof.com. Available from brokers) emphasizes more stable real estate investment trusts (REITs), and high-quality, long-lived resource trusts. We think investors should diversify carefully with trusts, and emphasize those with stable cash flows, a low need for capital expenditures and mature business operations. The $1.3 billion fund’s top holdings are: ARC Energy Trust, Canadian Oil Sands Trust, Rio- Can REIT, Canadian REIT, Yellow Pages Income Fund, Enerplus Resources Fund, Penn West Energy Trust, Peyto Energy Trust and BFI Canada Income Fund. Guardian Monthly High Income II Fund’s focus on resources and real estate offers an inflation hedge, along with income. Guardian Monthly High Income II pays a $0.06 monthly distribution, for a 4.5% cash yield. The fund has an MER of 2.52%. Guardian Monthly High Income II is a buy. buy…