Two Closed-end Trust Buys

Article Excerpt

CANADIAN GENERAL INVESTMENT TRUST $29 (Toronto symbol: CGI) mainly invests in shares of Canadian companies. The trust’s discount to its net asset value is now 14%. Canadian General Investments is a buy. THIRD CANADIAN GENERAL INVESTMENT TRUST $54.13 (Toronto symbol: THD) holds around 60.5% of its assets in units of Canadian General Investments. The rest of its holdings are mostly high-quality income trusts and stocks. Its discount to its net asset value is 10%. Since Third Canadian trades at a discount to its asset value, as does its main holding, Canadian General, you might say Third Canadian in effect trades at a “double discount” of approximately 22%. The total MER for Third Canadian, including the MER paid on the units of Canadian General it holds, is 1.9%, a bit above the 1.7% MER on Canadian General. Third Canadian holds 8.5% of its assets in foreign stocks, while Canadian General holds only Canadian stocks. Third Canadian General Investment Trust is also a buy. Third Canadian…

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