Portfolio Update

RNS Number : 0112Y

Canadian General Investments Ld

03 September 2020

 

FOR: CANADIAN GENERAL INVESTMENTS, LIMITED

TSX SYMBOLS: CGI, CGI.PR.D

LONDON STOCK EXCHANGE: CGI

September 3, 2020

Canadian General Investments: Investment Update - Unaudited

TORONTO, CANADA - Canadian General Investments, Limited (CGI) reports on an unaudited basis that its net asset value per share (NAV) at August 31, 2020 was $42.86, resulting in year-to-date and 12-month NAV returns, with dividends reinvested, of 17.9% and 24.7%, respectively.  These compare with the -1.1% and 3.8% returns of the benchmark S&P/TSX Composite Index on a total return basis for the same periods.

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 August 31, 2020, the combined leverage afforded by both forms of leverage represented 19.6% of CGI's net assets, down from 22.7% at the end of 2019 and 23.9% at August 31, 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 during 2020, and potentially beyond. While it is too early to predict the overall impact of COVID-19 related factors, during a time of increased uncertainty and volatility, it is to be expected that the financial results could be negatively affected in the near term. 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 August 31, 2020 was $27.80, resulting in year-to-date and 12-month share price returns, with dividends reinvested, of 8.7% and 19.9%, respectively.

The sector weightings of CGI's investment portfolio at market as of August 31, 2020 were as follows:

Information Technology	29.1%
Industrials	18.7%
Consumer Discretionary	14.0%
Materials	13.8%
Financials	8.1%
Energy	5.1%
Cash & Cash Equivalents	4.8%
Real Estate	2.6%
Communication Services	2.2%
Health Care	1.0%
Utilities	0.6%

 

The top ten investments which comprised 42.3% of the investment portfolio at market as of August 31, 2020 were as follows:

Shopify Inc.	8.1%
Franco-Nevada Corporation	5.3%
Cash	4.8%
Amazon.com, Inc.	4.1%
Canadian Pacific Railway Limited	4.1%
NVIDIA Corporation	4.1%
Mastercard Incorporated	3.4%
Apple Inc.	3.2%
The Descartes Systems Group Inc.	2.9%
Square, Inc.	2.3%

FOR FURTHER INFORMATION PLEASE CONTACT:

Canadian General Investments, Limited

Jonathan A. Morgan

President and CEO

Phone: [phone]

Fax: [phone]

e-mail: [e-mail]

website: www.canadiangeneralinvestments.ca

 

END

 

 

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