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Canadian General Investments: Edison

13:43, 30th October 2024
Edison Investment Research
Company Broker Research
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Investment companies - TSX - Mcap: C$840m - Price: C$40.25 - Review

Canadian General Investments

Potential for Canadian outperformance

Canadian General Investments (CGI) is managed by Greg Eckel at Morgan Meighen & Associates (MMA). He believes that investors could be rewarded by an allocation to Canada, rather than automatically heading to the US, which tends to be the default option for North American exposure. The manager highlights the very commendable returns that CGI has achieved over the long term, with 1.4pp annual share price outperformance versus the Canadian market over the last 25 years, and an even greater 2.3pp annual outperformance over the last 50 years. Eckel is unconstrained by the sector weightings of the S&P/TSX Composite Index benchmark, evidenced by a very long-term underweight to financial stocks. CGI has recently confirmed that 2024 will mark the 11th consecutive year of higher dividends. The company’s margin facility has recently been drawn down by a further C$25m to C$200m.

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Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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