Topic: How To Invest

Q: Pat, what is your opinion of Canadian General Investments (CGI)? Thank you.

Article Excerpt

A: Canadian General Investments Ltd., $33.42, symbol CGI on Toronto (Units outstanding: 20.9 million; Market cap: $697.2 million;, is a closed-end fund that mainly invests in shares of Canadian companies that it sees as average or above-average in quality. Established in 1930, it is one of the oldest closed-end investment companies in North America. Morgan Meighen & Associates Limited has managed the fund since 1956. The fund’s largest holdings are First Quantum Minerals, 4.8%; Franco-Nevada Corp., 4.7%; Canadian Pacific Railway, 4.7%; Nvidia Corp., 4.6%; TFI International, 4.3%; West Fraser Timber at 4.1%; Apple Inc., 3.6%; Descartes Systems Group, 3.4%; WSP Global, 3.2%; and Mastercard Inc., 3.0%. Following is Canadian General Investments’ holdings broken down by industry: Industrials, 21.1%; Information Technology, 20.7%; Materials, 16.5%; Consumer Discretionary, 11.6%; Energy, 10.5%; Financials, 9.9%; Real Estate, 5.0%; Communication Services, 2.2%; and Health Care, 1.0%. The fund’s units now trade at a 37.9% discount to its net asset value. It pays a regular quarterly dividend; this was raised…