CGI's NAV Lags Benchmark Despite Strong Share Price Gains

Event summary

  • CGI's NAV per share at January 31, 2026 was $83.73, with YTD and 12-month NAV returns of 3.8% and 20.0%, respectively, underperforming the S&P/TSX Composite Index's 0.8% and 28.3% returns.
  • Leverage decreased to 11.5% of net assets as of January 31, 2026, down from 11.9% at the end of 2025 and 13.5% a year prior.
  • Share price returns for the same periods were 4.6% YTD and 27.7% over 12 months, outperforming NAV returns.
  • Top sector allocations included Industrials (20.6%), Information Technology (17.9%), and Materials (16.9%).
  • Top 10 holdings comprised 35.9% of the portfolio, with Franco-Nevada and NVIDIA as the largest individual positions at 4.7% and 4.5%, respectively.

The big picture

CGI's latest update highlights a strategic tension between its NAV underperformance and stronger share price gains, suggesting potential market mispricing or portfolio inefficiencies. The company's measured approach to leverage reduction and concentrated sector allocations reflect a balancing act between risk management and return enhancement. Against a backdrop of volatile commodity and tech sectors, CGI's positioning will be closely watched by investors tracking Canadian equity market trends.

What we're watching

Performance Discrepancy
How CGI will address the gap between its NAV performance and share price returns, particularly against a strong benchmark.
Leverage Strategy
Whether CGI's gradual reduction in leverage will continue and its impact on future returns.
Sector Allocation
The pace at which CGI may rebalance its sector exposures, particularly in Industrials and IT, given market dynamics.