CGI's NAV Lags Benchmark Despite Strong Share Price Gains
Event summary
- CGI's NAV per share at July 31, 2026 was $85.03, with YTD and 12-month returns of 6.2% and 17.3%, respectively, trailing the S&P/TSX Composite Index's 12.5% and 32.3%.
- Leverage stood at 12.7% of net assets as of July 31, 2026, up from 11.9% at year-end 2025 but down from 13.0% a year prior.
- Share price returned 9.5% YTD and 29.0% over 12 months, outperforming NAV returns.
- Top holdings include Celestica Inc. (5.0%), NVIDIA Corporation (4.7%), and Franco-Nevada Corporation (4.3%).
The big picture
CGI's underperformance relative to the S&P/TSX Composite Index highlights the challenges of active management in a strong market. The company's leverage strategy, while modestly increased, suggests a cautious approach to enhancing shareholder returns. With significant exposure to industrials and technology sectors, CGI's portfolio positioning will be critical as macroeconomic trends evolve.
What we're watching
- Performance Discrepancy
- How CGI will address the gap between its NAV returns and the benchmark index's performance.
- Leverage Strategy
- Whether CGI can sustain its leverage strategy amid market volatility.
- Sector Allocation
- The pace at which CGI may rebalance its sector weightings to optimize returns.