Canadian General Investments Reports 2005 Results.TORONTO -- Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. General Investments, Limited (CGI CGI in full Common Gateway Interface. Specification by which a Web server passes data between itself and an application program. Typically, a Web user will make a request of the Web server, which in turn passes the request to a CGI application program. )(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CGI)(TSX:CGI.PR.A)(TSX:CGI.PR.B)(TSX:CGI.WT)(LSE LSE - Language Sensitive Editor :CGI)(LSE:CG IW) fittingly celebrated its 75th anniversary year in 2005 with its third consecutive year of being among the top performing general equities funds in Canada. CGI's performance places it in the top ten Canadian equity funds for 2005. CGI's diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net asset value per share (NAV See navigation system and navigation bar. ) return for the year, with dividends reinvested, was 28.8%. By comparison, the benchmark S&P/TSX Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". (S&P/TSX) total return for 2005 was 24.1%. As a result of a significant decrease in the discount on the Corporation's shares from NAV, CGI's market return, including reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. of dividends, to common shareholders for the same period was a stellar 58.9%. Although strong performance was achieved across a broad range of stocks in CGI's investment portfolio, the maintenance of an overweighting in Energy relative to the S&P/TSX for most of the year, as well as the leverage provided by the $135 million in the Corporation's preference shares, were the primary contributors to CGI's overall return and out-performance of the S&P/TSX. At December 31, 2005, net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. were $588,146,000, up 23.6% from the 2004 year-end value of $475,976,000. The corresponding NAVs at December 31, 2005 and December 31, 2004 were $25.37 and $20.71. In addition to the payment of four regular quarterly income (taxable) dividends of $0.06 per common share, CGI paid a year-end special capital gains dividend of $1.00 per common share on December 30th. Based on the year-end common share price of $23.20, total dividend payments during 2005 represented a yield of 5.3%. As a result of cash dividends paid in excess of net income during 2005, the exercise price of CGI's outstanding warrants was reduced to $4.12 from $5.22 per common share effective February 7, 2006 pursuant to the warrant indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. . CGI is a closed-end equity fund, focused on medium- to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-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)
Twelve Months Ended
-------------------
December 31, December 31,
2005 2004
-----------------------------
Net investment income - 2,486
Net gain on investments 147,362 107,737
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Increase in net assets resulting
from operations 147,362 110,223
Increase in net assets resulting from
operations per common share - basic 7.18 5.38
Increase in net assets resulting from
operations per common share - diluted
(for warrants) 6.43 4.90
As at
-----
December 31, December 31,
2005 2004
-----------------------------
Net assets 588,146 475,976
Net asset value per common
share - basic 28.59 23.22
Net asset value per common
share - diluted (for warrants) 25.37 20.71
CGI's filings can be accessed at www.sedar.com, or on the Company's website at www.mmainvestments.com. 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 7NH. Phone 0117-305-1075. Canadian General Investments, Limited (TSX:CGI) (TSX:CGI.PR.A) (TSX:CGI.WT) (TSX:CGI.PR.B) (LSE:CGI) (LSE:CGIW) |
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