Judging by these stats we should see a good increase in the special capital dividend to be announced shortly. 52c last year.
December 4, 2013
Canadian General Investments: Investment Update - Unaudited
TORONTO, CANADA - Canadian General Investments, Limited (CGI) reports on an unaudited basis that its net asset value per share (NAV) at November 30, 2013 was $25.36, resulting in year-to-date and 12-month NAV returns, with dividends reinvested, of 17.3% and 21.2%, respectively. These compare with the 10.8% and 12.9% returns of the benchmark S&P/TSX Composite Index on a total return basis for the same periods. |
That's told you SKY!!!! (Seriously, let's hope they take your point on board)
Best regards SBP |
No - not a hope. They are all being paid good salaries to effectively manage their own pension funds - a nice trick if you can arrange it! That said the TER is lower than most players, so they're not being greedy.
By metrics they look good value at this level. |
After 83 years Voluntary liquidation is unlikely :-) |
Thanks Sky - I couldn't resist.
Good on you for having a go - what about voluntary liquidation? Not a hoipe with that 33% stake, methinks. |
David - Welcome aboard.
I have been in reasonably frequent contact with Jonathan Morgan, a director of CGI and one of the Morgan family which controls the investment managers - MMA Investments.
I put it to him that they should be installing some effective Discount Control Mechanism(s) - possibly buybacks, though not necessarily so. He replied that MMA has a large historic stake (c.33%); and this precludes them from implementing buybacks as it would effectively increase their stake; and in doing so would invalidate CGI's special tax status
On 7th Aug'13 I suggested that the way round that problem was to implement tenders instead, tenders for all parties including MMA. MMA's relative position could thereby remain constant.
So far, even though I have sent a reminder (8th Sept'13), I have received no reply to this suggestion. I have sent a second reminder today. |
Ni Nick, Thanks for this. I just bought a few at 1041p - may get more when cash allows, D. |
i'm still picking them up. |
...also the divi has just been increased; so will be interesting to see what the year end income divi and capital divi produces - not long to wait now. |
I often wonder the same. Then I wonder If I should sell up and move on. Then I remember I get a nice fat divi to wait. Then I go back to sleep. I actually added a few recently. |
Will this NAV discount ever close!!!
====================================
Toronto, Ontario, Canada - Canadian General Investments, Limited, a closed-end investment company, announces the following Canadian dollar values as at the close of business November 15, 2013.
Net asset value (unaudited) per common share: $25.19
Closing market price per common share: $17.16
Discount to net asset value per common share: 31.9% |
I think that SalvorHardin is quite correct.
I hold these in a Halifax ISA and the quarterly dividends appear to have 15% tax deducted, the annual Capital Gains distribution suffers from no deductions.
However, I also hold these in a HL SIPP, and I suspect that they have deducted 25%,(I'm currently investigating this).
And, as he states, it is not uncommon for withholding taxes to be applied to capital payments.
You need to keep an eye on how your broker treats the payments, but if they refuse to treat them correctly, I'm not sure what you can do, other than switching your service provider. |
The general rule is that withholding taxes are charged by countries against the income earned by foreign investors and they cannot be reclaimed.
So your dividends should be charged 15% Canadian withholding tax which you cannot reclaim even though the holding is in an ISA.
Investors used to be able to reclaim the tax credit on UK dividends paid on shares in ISAs but that hasn't been the case for many years (another Gordon Brown stealth tax).
The tax exemptions nowadays for shares held in ISAs are that there is no higher rate tax liability on dividends and no capital gains tax to pay.
Capital distributions, such as the year-end capital gains distribution, should not have any withholding taxes deducted because they are capital payments and are thus not income. Unfortunately overzealous brokers can sometimes deduct withholding taxes from capital payments. |
Can anyone confirm the position on withholding tax of 15% on dividends including capital distributions (posts 37 to 47) and does this apply to Isa accounts. I have a French holding in a TDW Isa and TDW withhold 25% and refuse to make any claims for refunds! |
Looks like a roll-over of one Pref into another. |
Tilts - what do you make of that announcement today - the piece about the redemption of prefs and issuance to a dealer group? |
Added @ 1021p today. I was at 20% cash and finding it really difficult to find value anywhere, so adding to existing holdings. |
Moi! Ramp - perish the thought....
At least I now know why they're not standing at the usual discount to the Canadian price! |
SKYSHIP,
Calm down!!
I'm steadily picking them up, so happy to see the discount stay wide for the time being.
I will let you know when to ramp them!!! |
Hit the same discount c6 weeks ago - bizarre really. Good discount, good currency, good yield - yet here we rest whilst MCT trade at a small premium!
They are bid proof of course with the managere owning c35%; but they really ought to do something to close that discount without bleating they can't make buybacks as to do so would breach Trust regulations by raising their stake. APPLY FOR AN EXEMPTION!!!! |
First time I've seen CGI discount over 30% |
Yes, ISA'able. |
Dual listing - so I assume so; but Tilts will know for sure... |
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