For the year to the end of December 2014, Canadian and General’s net asset value per share total return was 8.4% and the return to shareholders was 13.3%. By comparison, the total return of its benchmark, the S&P/TSX Composite Index, was 10.6% during the same period.
During 2014, CGI paid two regular quarterly taxable dividends that aggregated to $0.24 per common share, two quarterly capital gains dividends that aggregated to $0.24, as well as a year-end special capital gains dividend of $0.28 per share, for an annual total of $0.76.
The falling oil price took its toll on the portfolio with Calfrac Well Services Ltd. (-24.7%) and Bellatrix Exploration Ltd. (-30.0%) but, by contrast, the pipeline sub-sector wasn’t hit as badly and indeed Enbridge, a top ten holding, was one of the biggest gainers in the portfolio with a 28.7% return, while TransCanada was up 17.6%.
The Materials sector was the only other sector to post a negative return for the year. but CGI’s holdings in forest products companies such as West Fraser Timber Co. Ltd. (+23.1%) and Canfor Corporation (+11.0%) did OK. However, they say Methanex Corporation (-13.4%) succumbed to fears of a global slowdown and a rising correlation to the energy outlook. Gold miners suffered in general but Franco-Nevada Corporation posted a positive 34.2% return, compared to its peer group return of -4.2%.
Within the Consumer Discretionary sector, Dollarama Inc. (+35.4%), the Company’s number one holding, led the way by producing the largest gain in absolute dollars in the portfolio and Magna International Inc. (+46.5%) also had an extremely good year. Alimentation Couche-Tard Inc., of the Consumers Staples sector, also made a major contribution on the plus side with its 83.5% return.
Within Industrials Canadian Pacific Railway Limited generated a 40.1% return and Air Canada, had a remarkable 60.2% uplift.
CGI : Oil price fall hurts Canadian and General