Canadian General Investments

Potential for Canadian outperformance

30 October 2024

Canadian General Investments (CGI) is managed by Greg Eckel at Morgan Meighen & Associates (MMA). He believes that investors could be rewarded by an allocation to Canada, rather than automatically heading to the US, which tends to be the default option for North American exposure. The manager highlights the very commendable returns that CGI has achieved over the long term, with 1.4pp annual share price outperformance versus the Canadian market over the last 25 years, and an even greater 2.3pp annual outperformance over the last 50 years. Eckel is unconstrained by the sector weightings of the S&P/TSX Composite Index benchmark, evidenced by a very long-term underweight to financial stocks. CGI has recently confirmed that 2024 will mark the 11th consecutive year of higher dividends. The company’s margin facility has recently been drawn down by a further C$25m to C$200m. MORE »

Adding to positive long-term performance record

7 May 2024

Canadian General Investments (CGI) has delivered a very commendable long-term performance versus the Canadian market. Longstanding manager Greg Eckel at Morgan Meighen & Associates (MMA) is unphased by stock market volatility, following a fundamental, long-term approach to stock selection. He has taken advantage of the maximum 25% permitted allocation to US stocks to increase CGI’s returns, including a position in NVIDIA, which has been in the portfolio since 2016. The manager is unconstrained by index sector weightings and has had an underweight exposure to financial stocks for many years. However, the underweighting in energy stocks has been reduced as the major companies in the sector are increasing their cash returns to shareholders via dividends and share repurchases. There are also two new positions in uranium companies, where the industry supply/demand balance is looking more favourable. MORE »

Building on strong long-term performance record

17 May 2021

Canadian General Investments (CGI) has been managed by Greg Eckel at Morgan Meighen & Associates (MMA) since 2009. He comments that his strategy of investing in high-quality companies for the long term has proved to be successful, and he aims to ‘deliver more of the same’. The manager is ‘very happy with the value CGI has generated for its shareholders’. Its diversified portfolio includes a number of themes including companies offering decarbonisation products and services, while the manager considers ‘now may be the time’ to consider investing in Canada given the broad range of later-cycle opportunities available and relatively attractive company valuations. MORE »

Reaping rewards from sound investment process

8 December 2020

Canadian General Investments (CGI) has been managed by Greg Eckel at Morgan Meighen & Associates (MMA) since 2009. He is encouraged by the company’s performance during 2020, a period during which investors have had to endure significant stock market volatility. Stock selection and positive sector allocation, along with remaining calm during the extreme sell-off in Q120, have all contributed to CGI’s strong absolute and relative performance. While Eckel is aware ‘there can be bumps in the road’, he says he will try to manage through these as he has done in the past. ‘We are offering consistency, as our shareholders expect,’ he adds. MORE »

Sticking to the fundamental, long-term process

6 May 2020

Canadian General Investments (CGI) is managed by Greg Eckel at Morgan Meighen & Associates. He stresses that despite the tough macro backdrop as a result of the coronavirus pandemic, he is sticking to the company’s philosophy and fundamental investment process, which has generated a very long-term record of outperformance versus the Canadian market. The manager says: ‘We will not veer off into unknown, dangerous territories and away from our core, proven strengths. It is easy to fall victim to near-term pressures, but doing so has proven to handicap and impair returns otherwise available. We rely on our experience and learnings of the past in an effort to avoid such pitfalls, and make every effort to provide our shareholders with the results to which they have become accustomed.’ MORE »

Executive interview

20 November 2019

Canadian General Investments (LSE:CGI and TSE:CGI) was launched in 1930, it is North America’s second-oldest closed-end fund. Since 1956, it has been managed by Morgan Meighen & Associates. Portfolio manager Greg Eckel invests with a medium- to long-term outlook in a broad selection of primarily Canadian equities, aiming to outperform the total return of the benchmark S&P/TSX Composite Index. CGI has a favourable tax status, but to maintain this, the company is unable to repurchase its shares to help manage the share price discount to net asset value. CGI has followed a levered strategy since 1998 and more than 50% of its shares are held by related parties. In this webcast, Morgan Meighen’s executive vice president and chief operating officer Jonathan Morgan discusses the outcome of the recent general election, and the free trade agreement. He then focuses on the health of the Canadian economy, including the housing sector. Morgan also highlights CGI’s gearing, distribution policy, portfolio activity and investment performance. MORE »

Continuing to find interesting investment ideas

7 November 2019

Canadian General Investments (CGI) is a well-established company with a long-term track record of outperformance. Manager Greg Eckel is ‘sticking to his knitting’, seeking companies with strong fundamentals and well-respected management teams, that are trading on reasonable valuations and can be held for the long term. While there are economic headwinds, including the ongoing US-China trade dispute, the manager says that ‘Canada remains an island of stability’, and suggests investors may benefit from Canadian exposure as part of a global portfolio. Eckel is continuing to find what he considers to be interesting investment opportunities in a variety of sectors, in both Canada and the US. MORE »

Building on positive long-term track record

13 May 2019

Canadian General Investments’ (CGI) manager Greg Eckel is optimistic on the outlook for Canadian equities in 2019, particularly if there is resolution to the US-China trade dispute, along with clarity about the revised North American trade agreement. The manager says that while there are macro issues to consider, the Canadian equity market looks reasonably valued and he is encouraged by the outlook for corporate earnings, judging by the US Q119 results so far. Eckel is continuing to ‘stay true to CGI’s heritage’, following a bottom-up, low portfolio turnover approach, and is finding interesting new investment opportunities. The company has a very strong track record; its NAV has outperformed the S&P/TSX Composite index over the last one, three, five and 10 years. CGI’s total dividend is on track for its first growth in seven years, and offers a prospective yield of 3.1%. MORE »

Successful active management in Canada

30 October 2018

Canadian General Investments (CGI) aims to generate an attractive total return from a portfolio of primarily Canadian equities. Manager Greg Eckel describes the fund as a ‘one-stop-shop’ for investment in Canada. He says that the country is currently out of favour with investors, and equity valuations are reasonable, which may provide an attractive opportunity. While he invests for the long term, Eckel actively manages CGI’s portfolio, seeking to buy companies with attractive fundamentals and long-term growth potential, while adding to or trimming existing positions to maximise returns. This strategy has proved effective, with CGI outperforming its S&P/TSX Composite index benchmark over one, three, five and 10 years. It also offers an attractive dividend yield of 3.5%. MORE »

Long-term record of outperformance

25 April 2018

Canadian General Investments (CGI) is a Canadian investment corporation, providing investors with a broad exposure to primarily Canadian, but also selected US, equities. Manager Greg Eckel suggests the company may be considered a ‘one-stop shop’ for investment in Canada. CGI has a positive investment track record; it has outperformed its benchmark S&P/TSX Composite index over one, three, five and 10 years, and over much longer time periods. More recent performance has benefited from a repositioning of the portfolio at the beginning of 2016, which included increasing the materials exposure. Total annual distributions have remained stable for the last six years, but the manager is hopeful that annual dividends can increase in the future. CGI has a dividend yield of 3.4% (including a 4c special dividend). MORE »

Long-term record of outperformance

25 April 2018

Canadian General Investments (CGI) is a Canadian investment corporation, providing investors with a broad exposure to primarily Canadian, but also selected US, equities. Manager Greg Eckel suggests the company may be considered a ‘one-stop shop’ for investment in Canada. CGI has a positive investment track record; it has outperformed its benchmark S&P/TSX Composite index over one, three, five and 10 years, and over much longer time periods. More recent performance has benefited from a repositioning of the portfolio at the beginning of 2016, which included increasing the materials exposure. Total annual distributions have remained stable for the last six years, but the manager is hopeful that annual dividends can increase in the future. CGI has a dividend yield of 3.4% (including a 4c special dividend). MORE »

Outperformance down to stock selection

26 October 2017

Canadian General Investments (CGI) enjoys favourable tax status as a Canadian investment corporation. Its portfolio of primarily Canadian equities is broadly diversified, suggesting that the company can be considered as a ‘one-stop shop’ for investment in Canada, where there are investment opportunities available across a range of sectors. As a result of positive fundamental stock selection, CGI’s NAV total return has outperformed the benchmark S&P/TSX Composite Index over one, three and five years. The board has been shifting emphasis towards more regular interim rather than year-end special dividends; CGI’s current dividend yield is 3.1%. MORE »

'One-stop-shop' for investment in Canada

27 April 2017

Canadian General Investments (CGI) is registered as a Canadian investment corporation, which confers favourable tax status; it is listed on both the Toronto and London stock exchanges. Given its broad exposure to primarily Canadian equities, the fund may be considered as a ‘one-stop-shop’ for investment in Canada. CGI’s NAV total return has outperformed the S&P/TSX Composite index benchmark over one and five years. The manager’s high ownership of CGI ensures that all shareholders’ interests are aligned; however, this may be a factor in the size of the discount. Emphasis is moving more towards regular, quarterly rather than year-end special dividends; CGI’s current dividend yield is 3.6%. MORE »

Broad exposure to Canadian equities

19 September 2016

Canadian General Investments (CGI) is a closed-end investment fund listed on both the TSX and LSE; it is registered as a Canadian investment corporation. CGI aims to outperform the benchmark S&P/TSX index by investing in an actively managed portfolio of primarily Canadian stocks. Given its diversified exposure to the Canadian equity market, CGI could be viewed as a ‘one-stop shop’ for investment in the country. It has a progressive dividend policy; emphasis has shifted to quarterly rather than year-end special dividends. The 2016 prospective yield is 3.6%. High share ownership by related parties ensures that management’s and shareholders’ interests are closely aligned – although it may also be a factor in the wider than average discount. MORE »

Selective, diversified Canadian fund

3 December 2015

Canadian General Investments (CGI) sets out to provide an actively managed, balanced Canadian portfolio. The Canadian economy demonstrated relative stability through the financial crisis and has moved back into growth following an oil-related hiatus in the first half. CGI has outperformed its benchmark over one, three and five years. Combining this with the modest ratings commanded by Canadian stocks compared with the US market, CGI’s yield of nearly 3% (excluding any special dividend) and a price to NAV discount of more than 25% suggests an interesting proposition for investors. MORE »

Canadian stock picking for the long term

14 January 2015

Canadian General Investments (CGI) is a TSX- and LSE-listed investment company that provides actively managed exposure to Canadian equities. CGI’s NAV total returns have outperformed its S&P/TSX Composite Index benchmark over five years and the shares have additionally benefited from a narrowing discount during 2014. Well-established growth in the US economy is helpful for the Canadian market, while the negative effect of its above average energy exposure is arguably balanced by a lower P/E rating and, for CGI, by an underweight position in this sector. CGI also offers a 4.1% dividend yield and scope for further narrowing of the discount. MORE »