Current market conditions and Canadian tax changes have depressed trading prices of Canadian income funds. Nevertheless, many such funds own businesses that may be attractive targets for Indian strategic buyers looking to make longer-term investments. In acquiring the business of a Canadian income fund, an Indian buyer must, however, understand the structure through which the fund owns the business. Such structures are tax driven, and tax considerations and opportunities are key to getting the deal done.

type India Practice Bulletin - January 2009 - Canadian Income Funds: Prospective Targets for Investment from India