FOR: CANADIAN GENERAL INVESTMENTS, LIMITED
TSX SYMBOLS: CGI, CGI.PR.B, CGI.PR.C
LONDON STOCK EXCHANGE: CGI
Canadian General Investments Reports June 30, 2010 Interim Results
TORONTO, CANADA – Canadian General Investment, Limited’s (CGI) net asset value at June 30, 2010 was $378,050,000, representing a 6.0% decrease from the $402,001,000 at the end of 2009. CGI’s net asset value per share (NAV) at June 30, 2010 was $18.12, down from $19.27 at year end 2009. The NAV return, with dividends reinvested, for the six months ended 2009 was -5.4%, compared with a -2.5% total return for the benchmark S&P/TSX Composite Index.
CGI’s underperformance of the benchmark was primarily the result of the leverage afforded by the $150 million in preference shares the Company has outstanding. This leverage serves to enhance NAV moves both up and down. The first six months of 2010 saw the portfolio increase the weighting of cash and short-term securities, now at 3.3% and 7.6%, respectively. These increasing balances have been built up to offset a portion of the leverage in an effort to provide protection to falling markets. A reduction in the weighting of the Materials sector was the primary result, which dropped from 27.0% at the end of 2009, to 21.5% at June 30, 2010.
During each of the first two quarters of both 2010 and 2009, CGI paid regular income dividends of $0.06 per share to its common shareholders.
CGI is a closed-end equity fund, focused on medium to long-term investments in primarily Canadian corporations. Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains and appropriate income-generating instruments.
FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share amounts)
| | For the Six Months Ended |
| | June 30, | June 30, |
| | 2010 | 2009 |
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| Net investment income (loss) | (1,478) | 582 |
| Net gain (loss) on investments | (16,697) | 33,817 |
| Increase (decrease) in net assets resulting from operations | (18,175) | 34,399 |
| Increase (decrease) in net assets resulting from operations per share |
(0.87) |
1.65 |
| | As at |
| | June 30, | December 31, |
| | 2010 | 2009 |
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(1) The Company calculates the net asset value and net asset value per share on the basis of the valuation principles set out in its annual information form. These valuation principles differ from the requirements of Canadian generally accepted accounting principles (GAAP), with the main difference relating to securities that are listed on a public stock exchange. While the Company generally values such securities based on the latest sale price, GAAP requires the use of the closing bid price. Accordingly, bid prices are used in determining net assets and net assets per share for purposes of the interim and annual financial statements.
In the United Kingdom, copies of the Company's financial reports will be made available at the U.K. branch transfer agent, Computershare Investor Services PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. Phone 0870-702-0000.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian General Investments, Limited
Jonathan A. Morgan
President & CEO
Phone: (416) 366-2931
Fax: (416) 366-2729
e-mail: cgifund@mmainvestments.com
website: www.mmainvestments.com
