Email of the day (1)
Comment of the Day

March 04 2011

Commentary by Eoin Treacy

Email of the day (1)

on Middlefield Canadian Income Trust:
"Thank you for a review of income producing LNG related investments. I have discovered a good diversified way in for UK investors is a Channel Island domiciled investment trust, Middlefield Canadian (LSE:MCT). I believe you or David may have mentioned it in the past too. Advantages, apart from diversification, may include that it trades at a discount to NAV, is hedged currency-wise and dividends are paid in Sterling and free of withholding tax."

Eoin Treacy's view Thank you for highlighting this investment trust which may also be of interest to other subscribers. The trust's factsheet, indicates it invests across the spectrum of income trusts rather than focusing on LNG related vehicles. I last mentioned it in Comment of the Day on January 14th. Since then it has extended its breakout, currently yields 5.03% and trades at a discount to NAV of 12.92%. It is somewhat overextended relative to the 200-day MA but a clear downward dynamic would be required to check the advance beyond a brief pause.

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