Thinking of reallocting some of our US trackers to this. Feels like it should outperform them over the next few years... |
Election is 2025, but a lot of campaigning going on already and he's not popular. Canada has fallen a lot on all economic metrics since he became PM. Strange for a country so rich in natural resources.
Personally, I think people are deluded to think the agenda won't change, but I am betting on that people think it will and the discount on this trust is huge. |
Has he gone? |
Agree, it seems cheap when looking at the discount. Trudeau being voted out might also be a positive factor. |
massive 40% discount-to-NAV is far too high given rapid tightening elsewhere in North American sector.
My expectation is discount will soon start to compress back to historic mean.
And when it does, the compression can happen rapidly as we have recently witnessed with CGI's peer group.
ALL IMO. DYOR.
QP |
Gets a mention here; |
An excellent new piece of Research/Update issued on CGI today by Edison Group.
hXXps://www.edisongroup.com/equity/canadian-general-investments/ |
htTPs://citywire.com/investment-trust-insider/news/middlefield-why-dividend-rich-canada-is-about-to-deliver/ |
hTTps://www.trustintelligence.co.uk/articles/fund-profile-middlefield-canadian-income-apr-2024?utm_source=Profund&utm_medium=Email&utm_campaign=newsletter_thurs |
Yesterday's RNS details a stunning benchmark-beating performance over the last year by CGI.
Outperformance against Benchmark:-
+13.4% performance vs +6.6% benchmark (NAV)
+22.2% performance vs +14% benchmark (NAV plus dividends reinvested)
"TORONTO, CANADA - Canadian General Investments, Limited (CGI) reports on an unaudited basis that its net asset value per share (NAV) at March 31, 2024 was $62.80, resulting in year-to-date and 12-month NAV returns, with dividends reinvested, of 13.4% and 22.2%, respectively. These compare with the 6.6% and 14.0% returns of the benchmark S&P/TSX Composite Index on a total return basis for the same periods."
See RNS for full details including up-to-date composition of Top-Ten holdings.
With such exceptional performance, this is another strong reason in my view why the unusually large current Discount-to-NAV is an anomaly , overdue for compression and for reversion to mean.
all imo. dyor.
qp |
They are not . They are very much aligned in my view.
I have seen this comment before that it's a family run thing but wholly disagree.
Look at the heritage and time-line of the Trust and the Managers:-
hXXps://www.mmainvestments.com/who-we-are/our-heritage
Look at the track record of CGI:-
hXXps://www.mmainvestments.com/closed-end-funds/overview
I see nothing there which in any way suggests it's a personal vehicle.
Deeply undervalued in my view at the abnormally large Discount-to-NAV.
ALL IMO. DYOR.
QP |
Morning. How are the interests of the family misaligned with smaller holders? Genuine question.... |
Dr Biotech summarised the issues well.
Seems to be a personal vehicle managed by the largest shareholders family office effectively.
Canadian law precludesshare buy backs as a discount management measure - does anyone know if they can do a tender offer? Even letting holders out at 5% discount to NAV implies a big uplift currently. |
Irresistible Discount to NAV and a good backdoor way into the US.If I could only bring myself to plunge in!My focus on Value has led me here.Its not served me that well over the last few years but I assume we have been through such extreme times that the recently ineffective strategy will start to come good any time soon! |
Now at 40.2%
Under Canadian regs they can't undertake buybacks without being forced into a full bid. They can however make a large Special dividend. |
NAV marches on and the discount now officially at 40%! |
NVIDIA is their largest holding. |
Personally I feel they are right to take some Nvidia money off the table whenever the holding approaches 10% |
relatively costly trust in terms of annual management charges,
had to cut back the Nvidia position in late 2023 at the Board's instigation to manage the exposure that was getting near to 10%. In retrospect, it would have been much better to let it run,
at a very wide Hansa-like and Private Equity Trust discount,
should be good value but what is the dividend situation for a uk holder? |
Indeed - Nvidia up 16% last night - so bought back in for a few this morning. 2103p = C$35.94 v. the Canadian share price of C$36.69. |
Discount out at 39% now.
NVidia position should help the NAV |
Simon Thompson (IC) also tipped it last year - I recall posting on the fact when he did so. |
I've watched this fund on and off for the last several years. Performance is decent enough and its currently a big discount, even by their wide standards. The problem appears to be that
1) This fund seems to be run for benefit of the Morgans (private individuals) who own more than 50%
2) Under Canadian law they can not buy their own shares, so no obvious way to tighten the discount to NAV
3) Its a fairly large buy/sell spread. Unless you can buy directly on the Toronto exchange which may not be so good.
Searching google news brings up a few positive articles about it - seem to recall it was tipped in the telegraph some time back too. Decent long term hold, but not one for short timelines. |
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