Canadian General Investments, Limited

Canadian General Investments, Limited

July 26, 2011 14:11 ET

Canadian General Investments, Limited Reports June 30, 2011 Interim Results

TORONTO, CANADA--(Marketwire - July 26, 2011) - Canadian General Investments, Limited's (CGI) (TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) net asset value at June 30, 2011 was $478,804,000, representing a 4.5% decrease from the $501,548,000 at the end of 2010. CGI's net asset value per share (NAV) at June 30, 2011 was $22.95, down from $24.04 at year end 2010. The NAV return, with dividends reinvested, for the six months ended June 30, 2011 was -4.0%, compared with a 0.2% total return for the benchmark S&P/TSX Composite Index.

At June 30, 2011 the portfolio was overweight in Materials and Consumer Discretionary and underweight Financials and Energy, as compared to the sector weightings in the S&P/TSX. In the high-weighted Materials sector of the S&P/TSX Index, the impact of a hesitant global recovery and particular concern regarding growth levels in China, weighed heavily on sentiment for its constituents. Energy, the second largest sector in the S&P/TSX, had better relative returns, but also performed below that of the benchmark and finished in negative territory.

In general, valuations have been particularly hard to establish with any consistency for any commodity-related securities during this period, the only constant so far being a generally neutral to negative bias. Trading in the period was particularly focussed on temporarily reducing exposure to declining base and precious metal stocks.

During each of the first two quarters of both 2011 and 2010, CGI paid regular income dividends of $0.06 per share to its common shareholders.

CGI is a closed-end equity fund, focussed on medium to long-term investments in primarily Canadian corporations. Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains/losses and appropriate income generating instruments.

(in thousands of dollars, except per share amounts)
For the Year Ended
June 30,
June 30,
Net investment loss (2,286) (1,478)
Net loss on investments (15,971) (16,697)
Decrease in net assets resulting from operations (18,257) (18,175)
Decrease in net assets resulting from operations
per share


As at
June 30,
December 31,
Selected data(1)
Net asset value 478,804 501,548
Net asset value per share 22.95 24.04
Selected data according to GAAP(1)
Net assets 477,228 500,049
Net assets per share 22.88 23.97
(1) The Company calculates the net asset value and net asset value per share on the basis of the valuation principles set out in its annual information form. These valuation principles differ from the requirements of Canadian generally accepted accounting principles (GAAP), with the main difference relating to securities that are listed on a public stock exchange. While the Company values such securities based on the latest sale price, GAAP requires the use of the closing bid price. Accordingly, bid prices are used in determining net assets and net assets per share for purposes of the interim and annual financial statements.

In the United Kingdom, copies of the Company's financial reports will be made available at the U.K. branch transfer agent, Computershare Investor Services PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. Phone 0870-702-0000.

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