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Business Trusts

With this category of income fund, cash flows are generally related to one individual business or operating company, as against a diversified pool or portfolio as in the case of many other types of income funds. The trust will hold the assets of an operating (generally revenue generating) business in a wholly-owned subsidiary. The trust structure suits mature industries with steady cash flows, and businesses that exhibit these characteristics may opt for trust structure over incorporation to take advantage of tax efficiency.