Canadian General Investments: Investment Update - Unaudited
07 January 2021 - 8:46AM
Canadian General Investments, Limited (CGI) reports on an unaudited
basis that its net asset value per share (NAV) at December 31, 2020
was $50.02, resulting in a one-year NAV return, with dividends
reinvested, of 38.1%. This compares with the 5.6% return of the
benchmark S&P/TSX Composite Index on a total return basis for
the same period.
The Company employs a leveraging strategy, by
way of preference shares and bank borrowing, in an effort to
enhance returns to common shareholders. As at December 31, 2020,
the combined leverage afforded by both forms of leverage
represented 16.8% of CGI’s net assets, down from 22.7% at the end
of 2019.
The worldwide spread of novel coronavirus
(COVID-19) and its impact on such factors as business operations,
supply chains, travel, commodity prices and consumer confidence,
and the associated impact on domestic and international equity
markets and fixed income yields, is expected to continue to have a
significant influence on the equity markets and could significantly
impact the value of investments held by CGI. Morgan Meighen &
Associates Limited, the manager of the Company, will maintain its
consistent, steady, long-term approach of holding diversified,
appropriate investments, while pursuing selective new
opportunities.
The closing price for CGI’s common shares at
December 31, 2020 was $34.81, resulting in an annual share price
return, with dividends reinvested, of 37.0%.
The sector weightings of CGI’s investment
portfolio at market as of December 31, 2020 were as follows:
Information Technology |
28.1 |
% |
Industrials |
22.7 |
% |
Materials |
16.4 |
% |
Consumer Discretionary |
11.4 |
% |
Financials |
9.4 |
% |
Energy |
4.3 |
% |
Real Estate |
3.4 |
% |
Communication Services |
2.1 |
% |
Health Care |
1.1 |
% |
Cash & Cash Equivalents |
0.6 |
% |
Utilities |
0.5 |
% |
|
|
|
The top ten investments which comprised 37.6% of the investment
portfolio at market as of December 31, 2020 were as follows:
Shopify Inc. |
7.4 |
% |
Canadian Pacific Railway Limited |
4.2 |
% |
Franco-Nevada Corporation |
3.8 |
% |
Lightspeed POS Inc. |
3.5 |
% |
NVIDIA Corporation |
3.4 |
% |
First Quantum Minerals Ltd. |
3.4 |
% |
Amazon.com, Inc. |
3.4 |
% |
Mastercard Incorporated |
2.9 |
% |
Apple Inc. |
2.9 |
% |
Square, Inc. |
2.7 |
% |
|
|
|
FOR FURTHER INFORMATION PLEASE CONTACT: Canadian
General Investments, Limited Jonathan A. Morgan President and CEO
Phone: (416) 366-2931 Fax: (416) 366-2729 e-mail:
cgifund@mmainvestments.com website:
www.canadiangeneralinvestments.ca
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