Morgan Meighen & Associates
Toronto, Canada, July 24, 2006 - Third Canadian General Investment Trust Limited (Third Canadian) (TSX:THD)continues to have strong performance in 2006. Net asset value per share (NAV) returns, with dividends reinvested, for the six and twelve month periods ended June 30, 2006 were 7.4% and 34.5%, respectively. By comparison, the total returns of the benchmark S&P/TSX Composite Index for the same periods were 4.2% and 19.6% . Third Canadian's market return for shareholders was 8.9% year to date and a substantial 48.8% over the twelve months to June 30, 2006.
Net assets at June 30, 2006 were $235,210,000, an increase of 7.1% from the 2005 year-end value of $219,701,000. This increase was largely attributable to the year-to-date market value return of 9.0% in the principal asset segment of the Company's portfolio, consisting of holdings in Canadian General Investments, Limited (CGI) and Canadian World Fund Limited.
At the end of June, Third Canadian tendered its holding in CGI warrants to a substantial issuer bid announced by that company on May 23, 2006. CGI issued these warrants to all its common shareholders on a no cost basis in early 1995. Tendering to the bid resulted in a realized gain on investments, before income taxes, of $34.1 million for Third Canadian. The proceeds are being invested in assets which will increase the non-principal asset segment of the portfolio. Non-principal assets represented 34.3% of the investment portfolio at June 30, up from 24.0% at the end of 2005.
During each of the first two quarters of both 2006 and 2005, Third Canadian paid regular dividends of $0.075 per share.
Third Canadian, established in 1928, is the second oldest North American listed closed-end fund. The Company's non-principal assets consist primarily of Canadian income trusts and Canadian equities, as well as foreign equities.
FINANCIAL HIGHLIGHTS
(in thousands of dollars, except per share amounts)
Six Months Ended
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June 30, June 30,
2006 2005
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Net investment income for the period 940 1,100
Net gain on investments 15,431 24,792
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Increase in net assets resulting
from operations 16,371 25,892
Increase in net assets resulting
from operations-
per share 3.41 5.39
As at
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June 30, December 31,
2006 2005
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Net assets 235,210 219,701
Net asset value per share 48.94 45.71 |
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