Canadian General Investments (CGI) Q2 2024 earnings summary

Executive summary

• First-half 2024 NAV return with dividends reinvested was 13.3%, versus 6.1% for the S&P/TSX Composite Index; portfolio outperformance was driven largely by NVIDIA.

• Net assets rose to $1.304B at June 30, 2024 from $1.160B at year-end 2023; increase in net assets from operations was $153.8M.

Financial highlights

• Total income was $177.8M for H1 2024 versus $176.9M in H1 2023; net investment income before income taxes was $163.6M versus $164.7M.

• Increase in net assets from operations was $153.8M, or $7.37 per common share, versus $164.9M, or $7.90 per share, in H1 2023.

• Net realized gains on investment sales were $77.4M versus $6.1M; net change in unrealized gains was $89.3M versus $158.9M.

• Dividend and interest income was $10.9M, down 5.1% YoY, reflecting reduced or absent special distributions from Tourmaline Oil and Constellation Software.

• Refundable income tax expense was $9.8M versus a $0.2M recovery in H1 2023.

Outlook and guidance

• Outlook was cautiously optimistic; global trade tensions, geopolitical events, inflation and monetary policy remain potential market influences.

• Bank of Canada rate cuts were viewed as supportive of investor confidence, while Canadian growth and equity markets had lagged the U.S. amid rate-sensitive household debt and housing conditions.