Canadian General Investments (LSE:CGI and TSE:CGI) was launched in 1930, it is North America’s second-oldest closed-end fund. Since 1956, it has been managed by Morgan Meighen & Associates. Portfolio manager Greg Eckel invests with a medium- to long-term outlook in a broad selection of primarily Canadian equities, aiming to outperform the total return of the benchmark S&P/TSX Composite Index. CGI has a favourable tax status, but to maintain this, the company is unable to repurchase its shares to help manage the share price discount to net asset value. CGI has followed a levered strategy since 1998 and more than 50% of its shares are held by related parties.
In this webcast, Morgan Meighen’s executive vice president and chief operating officer Jonathan Morgan provides an update on the agreement between the North American trading partners and explains why the benchmark Canadian oil price is lower than that in the US. He then describes how Canadian equity valuations stack up against the valuations of US companies. Morgan then highlights CGI’s active stock-picking approach and how its sector exposures differ from those of its benchmark, before discussing the company’s dividend policy and discount.