Jul. 31, 2010

Preferred shares are a class of shares that provide an income stream of dividend payments and entitle the shareholder to preferred status relative to holders of common shares in the event of a company's liquidation. Preferred shares usually have voting rights only when a stated number of dividends have been omitted. Closed-end funds can issue preferred shares as a means of leveraging their common stockholders' returns. In such a case, the proceeds from a preferred offering would be used to increase the investment portfolio of the Company (the Fund).

Preferred Shares
Currently, CGI has two series of Class A preference shares outstanding:

TSX Symbol Issue Date Number of Shares Outstanding Issue Size Coupon
Series 2 CGI.PR.B November 04, 2003 3,000,000 $75,000,000.00 4.65%
Series 3 CGI.PR.C March 03, 2006 3,000,000 $75,000,000.00 3.90%

Each of the series above pays quarterly dividends on March 15, June 15, September 15 and December 15 and has a maximum life of 10 years. Full details concerning the terms of these shares, including redemption features, are provided in the respective prospectuses below:

Download Series 2 Prospectus
Download Series 3 Prospectus

In addition, CGI’s $60 million, 5.40% Class A preference shares, Series 1, which were issued on October 5, 1998 were redeemed on October 6, 2008 in accordance with the terms of its short form prospectus.

Closed-End Funds
  Balanced Market Change
 CGI $15.10  -$0.01 
PREFERRED SHARES
 CWF $ 3.30  $0.07 
 THD $26.51  -$0.67 
Pooled Funds
  NAV Change
Income $13.32  $0.07
Growth $11.37  $0.02
Global $ 9.54  -$0.02
Balanced $ 9.22  $0.02