Canadian General Investments Reports Unaudited Investment Update
Canadian General Investments, Limited (CGI) has released an unaudited report on its net asset value per share (NAV) as of October 31, 2023. The NAV per share was $50.60, resulting in year-to-date and 12-month NAV returns of 6.3% for both periods, with dividends reinvested. In comparison, the benchmark S&P/TSX Composite Index had returns of 0.1% and 0.4% on a total return basis for the same periods. CGI employs a leveraging strategy through bank borrowing to enhance returns for common shareholders, with leverage representing 16.6% of its net assets as of October 31, 2023. This is an increase from 14.9% at the end of 2022 and 14.8% at October 31, 2022.
The closing price for CGI's common shares on October 31, 2023, was $32.58, resulting in year-to-date and 12-month share price returns of 2.0% and 6.7%, respectively. The sector weightings of CGI's investment portfolio at market as of October 31, 2023, were as follows: Information Technology (23.3%), Industrials (22.0%), Energy (13.3%), Materials (12.9%), Consumer Discretionary (11.7%), Financials (9.5%), Real Estate (4.3%), Communication Services (1.8%), Health Care (0.8%), and Cash & Cash Equivalents (0.4%).
The top ten investments, which comprised 40.0% of the investment portfolio at market as of October 31, 2023, included companies such as NVIDIA Corporation, Canadian Pacific Kansas City Limited, TFI International Inc., Apple Inc., Franco-Nevada Corporation, WSP Global Inc., Mastercard Incorporated, The Descartes Systems Group Inc., West Fraser Timber Co. Ltd., and Enerplus Corporation.
For further information, please contact Jonathan A. Morgan, President & CEO, at (416) 366-2931 or via email at cgifund@mmainvestments.com. Additional details can be found on the Canadian General Investments website at www.canadiangeneralinvestments.ca.
Implications of Canadian General Investments' Unaudited Report for New Businesses
The recent unaudited report from Canadian General Investments, Limited (CGI) offers valuable insights that could impact new businesses, particularly those in the investment sector.
Performance Metrics and Benchmarking
CGI's report reveals a year-to-date and 12-month NAV returns of 6.3%, outperforming the benchmark S&P/TSX Composite Index. This highlights the importance of strategic investment decisions and could inspire new businesses to adopt similar strategies to maximize their returns.
Leveraging Strategy
CGI's leveraging strategy through bank borrowing, which enhances returns for common shareholders, underscores the potential benefits of leveraging for investment growth. This could influence new businesses to consider leveraging as part of their financial strategies.
Portfolio Diversification
The sector weightings of CGI's investment portfolio demonstrate a diversified investment approach, which can help manage risk and potentially yield higher returns. This could encourage new businesses to diversify their own portfolios.
In conclusion, CGI's unaudited report provides a valuable benchmark for new businesses in the investment sector. It offers insights into effective strategies for maximizing returns, leveraging, and portfolio diversification, which could guide these businesses in their financial and investment planning.
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