Canadian General Investments, Limited

Canadian General Investments, Limited

July 25, 2012 10:23 ET

Canadian General Investments, Limited Reports June 30, 2012 Interim Results

TORONTO, CANADA--(Marketwire - July 25, 2012) - Canadian General Investments, Limited's (CGI or the Company) (TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) net asset value at June 30, 2012 was $433,668,000, representing a 1.7% increase from the $426,413,000 at the end of 2011. CGI's net asset value per share (NAV) at June 30, 2012 was $20.79, up from $20.44 at year end 2011. The NAV return, with dividends reinvested, for the six months ended June 30, 2012 was 2.3%, and the market value total return to shareholders was -4.6% compared with a -1.5% total return for the benchmark S&P/TSX Composite Index (S&P/TSX).

At June 30, 2012 the portfolio was overweight in Industrials and Consumer Discretionary and underweight Financials and Energy, as compared to the sector weightings in the S&P/TSX.

Equities in the Materials and Energy sectors have succumbed to lower pricing for oil, gas, fertilizers and most other commodities resulting in year-to-date price returns of -11.2% and -9.1%, respectively. These were by far the second and third worst performing groups in the S&P/TSX. Fortunately for CGI, though not unscathed, its better performance relative to the benchmark was assisted by continued underweighting in Energy. Holdings in these areas did generate the greatest individual losses for the Company. However, two of the top five positive contributors for CGI also come from these groups. Franco-Nevada Corporation, a royalties company and a top 10 holding of the Company, had an outstanding result with its 18.7% return standing in stark contrast to the -16.5% return for the Gold sub-sector overall. Pacific Rubiales Energy Corp. was the other major contributor in this regard, rebounding in 2012 with a return of over 15% compared to the overwhelmingly negative results for most of its peers in the Energy sector.

Health Care, one of the smallest of the sectors in the S&P/TSX, had the second best performance in the index based on a substantial return by SXC Health Solutions Corp., a health technology company. SXC is presently the largest holding in the portfolio with an approximate 5% weighting.

During each of the first two quarters of both 2012 and 2011, 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,
2012 2011
Net investment loss (203) (2,286)
Net gain (loss) on investments 9,696 (15,971)
Increase (decrease) in net assets resulting from operations 9,493 (18,257)
Increase (decrease) in net assets resulting from operations per share

As at
June 30, December 31,
2012 2011
Selected data(1)
Net asset value 433,668 426,413
Net asset value per share 20.79 20.44
Selected data according to GAAP(1)
Net assets 431,759 424,875
Net assets per share 20.70 20.37

(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 are available from the National Storage Mechanism ( PDF versions are also available at and at

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