Closed-End Funds

Efficient Portfolio Management and a Solid Track Record.

We first made a name for ourselves managing Third Canadian General Investment Trust Limited, founded in 1928 and Canadian General Investments, Limited (CGI), founded in 1930. Today, CGI is traded in both Toronto and London, and remains a bedrock of Morgan Meighen investment management.

Closed-end funds, like their open-end mutual fund cousins, invest in a pool of assets on behalf of a group of investors who share common investment objectives. Unlike mutual funds, however, closed-end funds issue a fixed number of shares traded on the stock exchange identically to other listed stock. Plus a simple and transparent commission is charged by the brokerage on purchase and sale, rather than a front-end or back-end load sales charge.

Advantages of Closed-End Funds include:
Efficient Portfolio Management

Unlike mutual funds, which have capital flowing in and out, closed-end funds have a fixed pool of assets. This means that closed-end fund managers can focus on portfolio management, take a long-term investment view and are able to invest in less liquid securities and special situations. Typically, closed-end funds are also fully invested.

 
Investment Income

Dividends and capital gains distributions can provide a source of income. 

 
Leverage

Closed-end funds can borrow funds to potentially enhance returns. Fund shareholders can also benefit from the effective leverage provided by their trading discount. 

 
Low Management Fees

Excluding leverage costs, fees are lower than average open-end funds.

 
Registered Plan Eligibility

Both CGI and CWF are eligible for RRSPs, RRIFs, LIRAs and LIFs. In the UK, common shares of CGI are also eligible for ISAs, SIPPs and SSASs. 

 
DRIPs and SPPs

The Dividend Reinvestment Plan and Share Purchase Plan (except U.S shareholders) allow accumulation of additional CGI shares without commissions or service fees.