Interim Results

RNS Number : 2249L

Canadian General Investments Ld

27 July 2011

 



NEWS RELEASE TRANSMITTED BY MARKETWIRE

FOR: CANADIAN GENERAL INVESTMENTS, LIMITED

TSX SYMBOLS: CGI, CGI.PR.B, CGI.PR.C

LONDON STOCK EXCHANGE: CGI

July 26, 2011

Canadian General Investments, Limited Reports June 30, 2011 Interim Results

TORONTO, CANADA - Canadian General Investments, Limited's (CGI) net asset value at June 30, 2011 was $478,804,000, representing a 4.5% decrease from the $501,548,000 at the end of 2010. CGI's net asset value per share (NAV) at June 30, 2011 was $22.95, down from $24.04 at year end 2010.  The NAV return, with dividends reinvested, for the six months ended June 30, 2011 was -4.0%, compared with a 0.2% total return for the benchmark S&P/TSX Composite Index.

At June 30, 2011 the portfolio was overweight in Materials and Consumer Discretionary and underweight Financials and Energy, as compared to the sector weightings in the S&P/TSX. In the high-weighted Materials sector of the S&P/TSX Index, the impact of a hesitant global recovery and particular concern regarding growth levels in China, weighed heavily on sentiment for its constituents. Energy, the second largest sector in the S&P/TSX, had better relative returns, but also performed below that of the benchmark and finished in negative territory.

In general, valuations have been particularly hard to establish with any consistency for any commodity-related securities during this period, the only constant so far being a generally neutral to negative bias. Trading in the period was particularly focussed on temporarily reducing exposure to declining base and precious metal stocks.

During each of the first two quarters of both 2011 and 2010, CGI paid regular income dividends of $0.06 per share to its common shareholders.

CGI is a closed-end equity fund, focussed on medium to long-term investments in primarily Canadian corporations.  Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains/losses and appropriate income generating instruments.

FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

                                                                                                            For the Year Ended

		June 30, 2011	June 30, 2010
Net investment loss		(2,286)	(1,478)
Net loss on investments		(15,971)	(16,697)
Decrease in net assets resulting from operations		(18,257)	(18,175)
Decrease in net assets resulting from operations    per share		(0.88)	(0.87)

                                                                                                 As at

		June 30, 2011	December 31, 2010
Selected data(1)
Net asset value		478,804	501,548
Net asset value per share		22.95	24.04
Selected data according to GAAP(1)
Net assets		477,228	500,049
Net assets per share		22.88	23.97

⁽¹⁾ The Company calculates the net asset value and net asset value per share on the basis of the valuation principles set out in its annual information form.  These valuation principles differ from the requirements of Canadian generally accepted accounting principles (GAAP), with the main difference relating to securities that are listed on a public stock exchange.  While the Company values such securities based on the latest sale price, GAAP requires the use of the closing bid price.  Accordingly, bid prices are used in determining net assets and net assets per share for purposes of the interim and annual financial statements.

In the United Kingdom, copies of the Company's financial reports will be made available at the U.K. branch transfer agent, Computershare Investor Services PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. Phone [phone].

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FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian General Investments, Limited

Jonathan A. Morgan

President & CEO

Phone: [phone]

Fax: [phone]

e-mail: [e-mail]

website: www.mmainvestments.com

 

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