Canadian income trust funds made a modest comeback following the federal government's decision to enhance the dividend tax credit in response to issues regarding income trusts. The industry leading categories ? Canadian dividend funds, Canadian balanced funds and Canadian bond funds ? continued to bring strong net new sales in November.
It appears investors may be concerned about the future of tax treatments of income trusts, as there were net redemptions of $190 million in October in income trust mutual funds, compared to the recent average of $200 million in net sales.