Canadian General Investments Sees Positive NAV Growth

Author: Henry Turner Updated: 02-05-2025 12:00 PM

Overview of Canadian General Investments' Recent Performance

Canadian General Investments, Limited (TSX: CGI) recently shared an update regarding its investment performance. As of the latest assessment, its net asset value per share (NAV) stood at $70.79, showcasing a year-to-date return of 2.1% and an impressive 12-month return of 26.3%. This performance is noteworthy, particularly when compared to the S&P/TSX Composite Index, which registered returns of 3.5% and 25.2% for the same durations.

Leverage Strategy Enhancements

To maximize returns for its common shareholders, Canadian General Investments utilizes a leveraging strategy primarily through bank borrowing. As of the most recent report, leverage constituted 13.5% of CGI’s net assets, reflecting a slight decrease from 13.8% at the close of the previous year and down from 14.7% a year earlier. This strategic adjustment indicates a prudent approach to managing financial risk while still aiming for amplified returns.

Market Performance and Share Returns

At the end of the reporting period, CGI's common shares closed at $39.75. This represents a year-to-date return of -1.8% and a 14.0% return over the past year, factoring in dividends that were reinvested. Despite the current market fluctuations, this 12-month performance highlights a resilient investment strategy.

Investment Portfolio Composition

As of the end of January, the sector allocations within CGI’s investment portfolio were as follows:

Sector Weightings

1. Information Technology - 23.7%
2. Industrials - 22.7%
3. Financials - 13.9%
4. Energy - 11.7%
5. Materials - 11.4%
6. Consumer Discretionary - 9.9%
7. Real Estate - 4.2%
8. Cash & Cash Equivalents - 1.9%
9. Communication Services - 0.6%

Top Ten Investments

The top ten investments constituted 37.0% of CGI’s overall portfolio. These include significant entities such as:
1. The Descartes Systems Group Inc. - 4.0%
2. TFI International Inc. - 4.0%
3. Canadian Pacific Kansas City Limited - 4.0%
4. NVIDIA Corporation - 3.9%
5. Celestica Inc. - 3.7%
6. Apple Inc. - 3.5%
7. Shopify Inc. - 3.5%
8. WSP Global Inc. - 3.5%
9. Mastercard Incorporated - 3.5%
10. Franco-Nevada Corporation - 3.4%

Future Outlook

Looking ahead, Canadian General Investments is strategically positioned to adapt to evolving market conditions. Its diversified portfolio, robust leveraging strategy, and focus on high-potential sectors like technology are expected to sustain its growth momentum. Investors can remain optimistic as CGI continues to navigate the complexities of the investment landscape while prioritizing shareholder value.

Frequently Asked Questions

What is Canadian General Investments' recent NAV report?

As of the latest reporting, CGI's NAV per share was $70.79, reflecting a 2.1% year-to-date increase.

How does CGI's leverage strategy impact its performance?

CGI employs a leveraging strategy using bank borrowings to enhance returns, with current leverage at 13.5% of net assets.

What were the returns for CGI's shares?

As of the latest assessment, CGI's share price returned -1.8% year-to-date and 14.0% over the past year.

Which sectors are significant in CGI's portfolio?

Information Technology and Industrials are the leading sectors in CGI's investment portfolio, with allocations of 23.7% and 22.7%, respectively.

Who can I contact for more information about CGI?

For further inquiries, please contact Jonathan A. Morgan, President & CEO, at (416) 366-2931.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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