Canadian General Investments, Limited Reports Audited 2012 Financial Results
13 Fevereiro 2013 - 7:04PM
Marketwired
Canadian General Investment, Limited's
(TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) net asset value at
December 31, 2012 was $456,150,000, representing a 7.0% increase
from the $426,413,000 at the end of 2011. CGI's net asset value per
share (NAV) at December 31, 2012 was $21.87, up from $20.44 at year
end 2011. The NAV return, with dividends reinvested, for the year
ended December 31, 2012 was 10.8%, and the market value total
return to shareholders was 3.4% compared with a 7.2% total return
for the benchmark S&P/TSX Composite Index (S&P/TSX).
A degree of optimism spurred the S&P/TSX to a good start for
the year and drove the Index to its 2012 daily peak in late
February. This initial rally soon subsided and was replaced with an
increasing amount of pessimism, causing markets to descend steadily
in the following couple of months. This trend took its performance
return numbers firmly into negative territory and established a
bottom in May, followed by a choppy recovery by year end. Despite
these ups and downs, the Index traded in a narrow range, which was
indicative of the cautious mood permeating markets throughout the
year. There were few, if any, dramatic catalysts that caused
dynamic and permanent shifts in the market outlook during the year.
Most of the global, macro issues of recent years are still
outstanding and, as a result, investment decisions based entirely
on fundamentals remained difficult. In 2012, as it turned out,
investors were rewarded for their patience and commitment to stay
the course. For example, the net price gain in the entire final
quarter of the year of the S&P/TSX was decided on the final
trading day of the year. A couple of CGI's portfolio disciplines
were of benefit in this type of market - low relative turnover
rates and full investment positioning.
Canadian markets were held back by returns in the resource
sector in 2012. Uncertainty about global demand resulted in
generally weakened pricing for most commodities and negatively
influenced most related equities. The Energy and Materials sectors
were the two worst performing groups in the Index with -3.6% and
-6.9% price returns in the year, respectively, and combined with
their mid-40s percentage weighting, had considerable influence on
overall results. These groups also negatively impacted CGI's
results as well in spite of actions taken to reduce the Energy
weighting in the early part of the year and to make dispositions in
Materials.
However, the bottom-up selection process produced some
differentials with a few holdings in these areas producing large
returns and helping to offset a portion of the general decline.
Franco-Nevada Corporation, one of the Company's biggest holdings,
was the largest dollar-value gainer for the year and its 40% return
made a significant contribution to the portfolio's overall net
gains. In the Energy group, Pacific Rubiales Energy Corp, the
largest Energy holding, posted gains greater than 20% for the year,
a clear outperformer amongst its peers. Long-term holdings
TransCanada Corporation and Enbridge Inc. continue to grow in size
and provided stability, income and capital appreciation once again.
They also were positive differentiators for the Company in this
area.
Many other individual holdings assisted in the Company's beating
the benchmark. Catamaran Corporation (formerly named SXC Health
Solutions Corp.) had another spectacular year. Since CGI's initial
purchase in early 2009, exceptional growth in the company's
operations has been reflected in its stock price appreciation,
resulting in its current status as second largest position in the
portfolio. A one-year return in excess of 60% would be difficult to
repeat in 2013, but its outlook remains extremely positive.
Transportation stocks Canadian Pacific Railway Limited and
TransForce Inc. each provided gains greater than 45%, unique
retailer Dollarama Inc. returned 32%, technology behemoth Apple
Inc. 31%, premier quality REIT Brookfield Canada Office Properties
20% plus and recent up-and-coming financial Element Financial Corp.
at 48%. Expectations are high that these companies will be able to
add to their records in the future. Conversely, Poseidon Concepts
Corp., BMTC Group Inc., and Labrador Iron Ore Royalty Corp., with
returns of -88%, -22%, and -7%, respectively, all contributed
negatively to the 2012 performance, after being noted good
performers in past years. Tempur-Pedic International Inc., added to
the portfolio in early 2012, also negatively impacted CGI's overall
performance with its return of -70%.
In addition to the payment of four regular quarterly dividends
of $0.06 per common share, CGI paid a year-end special capital
gains distribution of $0.52 per common share on December 28, 2012.
Based on the year-end common share price of $15.75, total dividend
payments during 2012 represented a yield of 4.8%.
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/losses and
appropriate income generating instruments.
FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share amounts)
For the Year Ended
December 31, December 31,
2012 2011
-------------------------------
Net investment income (loss) 192 (1,899)
Net gain/(loss) on investments 44,907 (58,631)
-------------------------------
Increase/(decrease) in net assets resulting
from operations 45,099 (60,530)
Increase/(decrease) in net assets resulting
from operations per share 2.16 (2.90)
As at
December 31, December 31,
2012 2011
-------------------------------
Selected data(1)
Net asset value 456,150 426,413
Net asset value per share 21.87 20.44
Selected data according to GAAP(1)
Net assets 454,782 424,875
Net assets per share 21.80 20.37
(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 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
are available from the National Storage Mechanism
(http://www.hemscott.com/nsm.do). PDF versions are also available
at www.mmainvestments.com and at www.sedar.com.
Contacts: Canadian General Investments, Limited Jonathan A.
Morgan President & CEO (416) 366-2931 (416) 366-2729
(FAX)cgifund@mmainvestments.com www.mmainvestments.com
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