Adding to positive long-term performance record
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Edison Investment Research Limited
London, UK, 8 May 2024
Edison issues review on Canadian General Investments (CGI): Adding to positive long-term performance record 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. CGI’s board employs a progressive dividend policy whereby annual payments have increased for the last 10 years, which qualifies the fund for inclusion in the AIC’s list of next-generation dividend heroes. While the company’s discount is wider than it has been in recent years, over the last decade CGI has generated comparable share price and NAV total returns; hence, the manager views the current valuation as an opportunity rather than a distraction. Click here to view the full report. All reports published by Edison are available to download free of charge from its website About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Mel Jenner + 44 (0)20 3077 5720 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ X www.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv
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1898217 08-May-2024
