Canadian General Investments: Investment Update - Unaudited

Monday, April 6, 2020
 
NEWS RELEASE TRANSMITTED BY GLOBENEWSWIRE
FOR: CANADIAN GENERAL INVESTMENTS, LIMITED
TSX SYMBOLS: CGI, CGI.PR.D
LONDON STOCK EXCHANGE: CGI
 
Canadian General Investments: Investment Update - Unaudited
 
TORONTO, CANADA – Canadian General Investments, Limited (CGI or the Company) reports on an unaudited basis that its net asset value per share (NAV) at March 31, 2020 was $27.39, resulting in year-to-date and 12-month NAV returns, with dividends reinvested, of -25.5% and        -19.9%, respectively.  These compare with the -20.9% and -14.2% 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 March 31, 2020, the combined leverage afforded by both forms of leverage represented 30.6% of CGI’s net assets, up from 22.7% at the end of 2019 and 20.6% at March 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 impact on the value of investments held by CGI during the first half of 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 continue to 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 March 31, 2020 was $19.50, resulting in year-to-date and 12-month share price returns, with dividends reinvested, of -25.0% and -17.0%, respectively.
 
The sector weightings of CGI’s investment portfolio at market as of March 31, 2020 were as follows:
 

Information Technology

27.1%

Industrials

17.9%

Consumer Discretionary

14.3%

Materials

12.6%

Financials

9.5%

Energy

6.1%

Cash & Cash Equivalents

3.9%

Communication Services

3.3%

Real Estate

3.0%

Health Care

1.4%

Utilities

0.9%

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

Shopify Inc.

7.1%

Franco-Nevada Corporation

5.5%

Canadian Pacific Railway Limited

4.8%

NVIDIA Corporation

4.5%

Amazon.com, Inc.

4.3%

Cash

3.9%

Mastercard Incorporated

3.9%

Royal Bank of Canada

2.9%

Apple Inc.

2.8%

Bank of Montreal

2.6%
 
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian General Investments, Limited
Jonathan A. Morgan
President and CEO
Phone: (416) 366-2931
Fax: (416) 366-2729