With the market for new income trusts all but dead, courtesy of the federal government’s decision to change the way those investments are taxed starting in 2011, manufacturers of structured products have been reinventing themselves and their offerings.

Manufacturers have spent the past year providing Canadian retail investors with an exposure to non-Canadian assets or developing new local asset classes to package, such as structured products based on uranium or on investing in up-and-coming China and India.

These products may fit the bill if your clients want something a little out of the ordinary for their portfolios. Many are structured as closed-end funds, and thus don’t have to provide daily liquidity as open-ended mutual funds do.

Also, many use tools or strategies largely unavailable to conventional funds, such as leverage, covered call writing (in which the manager sells call options on stock it owns as a way of boosting income), adopting a split-share structure (in which the dividend stream is removed from the capital gains stream and two securities are offered) or adding a share purchase warrant to the units that are on offer (a move that allows two securities to trade).

These features can make closed-end funds a good investment for clients who have a long-term perspective, says Sandy McIntyre, a portfolio manager with Toronto-based Sentry Select Capital Corp., one of the largest manufacturers of closed-end funds. For instance, managers of closed-end funds do not face the issue of having to liquidate assets to meet redemptions.

“For long-term investors who want a portfolio that isn’t jerked around by having to redeem at the wrong time,” McIntyre says, “[a closed-end fund] is a stronger portfolio [than an open-ended fund].”

Many investors have been looking for opportunities overseas, McIntyre says, and the closed-end fund industry has been moving to meet the demand. In fact, Sentry Select recently developed its first two non-Canadian funds — one investing in China and the other investing in global infrastructure.

A number of new products reflect the dual themes of going global and packaging new assets. Two structured products making their way through the regulatory system have an agricultural bias: one focuses on Saskatchewan farmland; the other on companies engaged in the supply-and-demand chain of global agribusiness.

And two other offerings focus on dividend-paying stocks: one on Canadian stocks; the other on European stocks.

Here is a closer look at some of these investments:

> Assiniboia Farmland LP 3. This partnership allows investors to gain exposure to farmland in Saskatchewan that the general partner — EAI Agriculture Development Corp. of Regina — believes will benefit from increasing global demand for agricultural commodities, particularly from India and China. The idea is to pay out semi-annual distributions and maximize long-term total returns. The LP has had its first closing, raising more than $10 million. The fund is open until mid-December and the prospectus notes the partnership can run to 2022.

This is the general partner’s first public transaction. EAI previously raised $12.2 million in two private deals. The proceeds will be invested in a mix of property types, with 60% of the funds investing in grain land, 20% in irrigated land and the rest in ranch land. Different types of farmland offer different risk/reward profiles, the prospectus says, but, in general, the key risks relate to the illiquid nature of farmland investments, commodity prices and other macroeconomic variables. Leverage is not permitted. EAI also manages Assiniboia’s two private partnerships.

> Global Agribusiness Trust. Toronto-based Lawrence Asset Management Inc. , portfolio manager of this issuer, plans to invest in global agricultural businesses. Five sectors are highlighted: crop/animal production and aquaculture; agrichemicals, fertilizers and crop protection; food processing, distribution and retailing; farm machinery/equipment and transportation; and biofuels and related agribusinesses. Lawrence plans to invest in 40 to 60 companies with market caps of at least US$150 million; Saskatchewan Wheatpool Inc. and Potash Corp. are the only two Canadian companies on the list.

The prospectus notes the investment should benefit from increasing global population, rising incomes in developing countries and strong demand for biofuels vs limited resources. The fund aims to pay out 5% a year and offers annual redemption at net asset value starting in 2009. The fund employs foreign currency hedging and may also use leveraging (up to 25% of assets). Among the risks the fund faces are fluctuations in commodity prices and lack of diversification.

@page_break@> European Premium Divi-Dend Fund. This fund, from Burlington, Ont.-based Copernican Capital Corp. , will invest in European dividend-paying companies with strong credit ratings. It plans to pay out 8% a year on a monthly basis and increase NAV.

Why focus on dividend-paying stocks? Copernican Capital believes premium-quality dividend-paying companies experience consistent earnings growth. The fund is for long-term holders; investors may redeem starting in 2009, but those who redeem prior to 2016 will pay a penalty.

Management fees start at 1.85% and decline over time. Leverage is permitted (20% of assets), but performance could be affected by currency changes as a minimum of 50% of its non-Canadian exposure will be hedged.

> Dividend Growth Split Corp. Developed by Toronto-based Brompton Funds Management Ltd. , this investment offers split shares on 20 large-cap Canadian equities, with capital shareholders entitled to capital gains produced by the underlying portfolio of common stocks and preferred shareholders receiving all income from the dividend stream.

The portfolio will consist of the 20 stocks with the highest dividend growth rate over five years and dividend yields of at least 2% a year. Plans call for offering $10 preferred shares and $15 Class A shares: preferred shareholders will receive a fixed 5.25% a year; Class A shareholders will receive a fixed 8% a year, plus growth of NAV. London, Ont.-based Highstreet Asset Man-agement Inc. will be the portfolio manager. Management and service fees will total 1% of assets. IE