Canadian General Investments - CGI - Share Chat

This investment trust invests in companies listen in Canada

Always trades on a huge discount 30% is not unusual.
They can invest 15% in US don’t quote me on the percentage.
There maybe a withholding tax as it trades on the Canadian stock market. Check.
Furthermore they have preference shares which only trade on the Canadian stock market. As there gearing (debt) is 15% this may represent the preference shares. No idea what the interest rate is or if they have redemption date. As they have been around for a while the interest rate should be high. Debt gets paid before shareholders.
52.5% insider ownership. So they control the directors. 50% vote can remove the directors

“As the company is deemed an investment corporation under Canadian law, capital gains are only taxed at the shareholder level, allowing them to be paid as dividends. However, to maintain this favourable tax status, CGI is unable to repurchase its shares to help manage the share price discount to net asset value (NAV).”
Not a bad share price total return superb if the discount narrowed. Last time was 2006 so highly unlikely.

There is a withholding tax.
There is also a lot of special dividends which are not represented in the headline dividend. Overall if you consider them and the withholding tax the total returns is not as good.

30% withholding tax if you don’t sign a w8-ben. 15% if you do and nought if it’s held in a sipp.

I can’t seem to find this, so I’m guessing it’s been pulled because it’s a relatively complicated product.

CGI might be the most underrated/underappreciated investment trust out there. It’s delivered a near-14% annual return over the past 30 years – which is beaten only by SMT and TRY.