CGI Outperforms Benchmark with 36% NAV Return, Leveraging Strategy Adjusts
Event summary
- CGI's NAV per share reached $89.49 as of May 31, 2026, with YTD and 12-month NAV returns of 11.7% and 36.0%, respectively, slightly underperforming the S&P/TSX Composite Index's 36.1% return.
- Leverage decreased to 12.1% of net assets, down from 14.4% a year prior but up from 11.9% at the end of 2025.
- Share price returns with dividends reinvested were 13.5% YTD and 44.0% over 12 months.
- Top sector allocations include Industrials (22.3%), Information Technology (18.5%), and Materials (16.7%).
- Top 10 holdings comprise 38.0% of the portfolio, led by Celestica Inc. (5.5%) and NVIDIA Corporation (4.6%).
The big picture
CGI's strong NAV and share price returns reflect a strategic focus on leveraging and sector diversification, particularly in high-growth areas like Industrials and Information Technology. The slight underperformance relative to the S&P/TSX Composite Index suggests potential room for optimization in its leveraging strategy. The company's ability to navigate sector-specific volatility will be critical in maintaining its competitive position in the Canadian investment landscape.
What we're watching
- Leverage Strategy
- Whether CGI can sustain its leveraging strategy amid fluctuating market conditions and maintain its competitive edge.
- Sector Allocation
- How shifts in sector weightings, particularly in Industrials and Information Technology, will impact long-term portfolio resilience.
- Top Holdings
- The performance of key holdings like NVIDIA and Celestica, which together represent over 10% of the portfolio, and their influence on overall returns.