Focussed on Canada

2021 Annual Report

Certain financial information contained in this report, including

investment growth rates, rates of return and other such statistical

information, are historical values; past performance is no assurance or

indicator of future returns. Share prices, net asset values and investment

returns will fluctuate. Stated historical returns assume the reinvestment

of all distributions. Such financial information does not reflect any

broker commissions, transaction costs or such other fees and expenses

which may have been applicable nor income taxes payable by any

shareholder, which would have the effect of reducing such historical

returns. Stated returns for periods greater than one year are compound

average annual rates of return. Further information concerning risk can

be found in the Company’s Annual Information Form which is available

on the Company’s website at www.canadiangeneralinvestments.ca or

on SEDAR at www.sedar.com.

The Company is an investment fund, and as such, this annual report

to shareholders carries a variety of information concerning stocks

and other investments, all for informational purposes only. The reader

should assume that the Company and all individuals and entities

(including the Manager and members of its staff) who have contributed

to this publication may have a conflict of interest. Readers should

therefore not rely solely on this report in evaluating whether or not to

buy or sell securities discussed herein.

Benchmark of S&P/TSX Composite Index: This is an index of

the equity prices of the largest companies listed on the Toronto

Stock Exchange (TSX) and is comprised of about 70% of market

capitalization for all Canadian-based companies listed on the TSX.

Index returns cited are on a total return basis (including reinvestment

of distributions).

Cover: Light Through the Trees, Belmont Lake

Toronto artist Helen Pare works in acrylic paints in both impressionistic and abstract styles. She begins a landscape by referencing a photograph she has taken, embellishing the colours with distinct design as she

remembers it in her mind’s eye. Helen loves the beautiful colours and views that can be found in Ontario landscapes throughout the seasons.

“Light Through the Trees, Belmont Lake” is based on a photo taken in the Kawarthas, looking up from the dock through the large overhanging trees at the sun peeking through.

Helen is also a long-time employee of Morgan Meighen & Associates Limited.

The financial statements and management report of fund performance were approved by the Board of

Directors on February 17, 2022.

Vanessa L. Morgan

Chair

i. the financial statements have been

prepared in accordance with International

Financial Reporting Standards and give a

true and fair view of the assets, liabilities,

financial position and profit or loss of the

Company;

ii. the management report of fund

performance includes a fair review of the

development and performance of the

business and the position of the Company,

together with a description of the

principal risks and uncertainties that the

Company faces.

Responsibility Statement

In accordance with the Disclosure and Transparency Rules of the United Kingdom Financial Services

Authority, the Board of Directors confirms that to the best of its knowledge:

2021 Annual Report | Canadian General Investments, Limited

Dear Fellow Shareholders,

We are pleased to present the 2021 annual report for Canadian General Investments, Limited (CGI or the Company). In this report,

you will find information on the performance of CGI for 2021. The management report of fund performance contains a management

discussion of fund performance, a financial highlights section incorporating per share information as well as various financial ratios,

historical returns and a summary of investment portfolio which includes the top 25 holdings as at the end of the year. The full investment

portfolio as at December 31, 2021 is provided as part of CGI’s audited financial statements, which are included in this report.

For the 12 months ended December 31, 2021, CGI’s common shares recorded a net asset value per share (NAV) total return of 24.6%

and a share price total return of 29.4% (share price change plus dividends). By comparison, the total return of its benchmark, the S&P/

TSX Composite Index, was 25.1% during the same period.

During 2021, CGI paid two quarterly regular taxable dividends

aggregating to $0.44 per common share and two quarterly capital

gains dividends aggregating to $0.44 for an annual total of $0.88.

Based on the year-end market price of the common shares, aggregate

dividends paid represented a 2.0% yield to shareholders.

CGI has been managed by Morgan Meighen & Associates Limited (the

Manager) since 1956. D. Greg Eckel, Senior Vice-President of the

Manager, is the portfolio manager responsible for the management of

CGI’s investment portfolio.

Further information about CGI, including the most recent

NAV and market price, current performance, the portfolio’s

weekly top 10 holdings, historical dividend payments, as well

as various financial and regulatory reports, can be found at

www.canadiangeneralinvestments.ca.

We appreciate your investment in CGI.

Vanessa L. Morgan

Chair

Jonathan A. Morgan

President & CEO

From left to right:

Vanessa L. Morgan, Chair;

President & CEO of the Manager

Jonathan A. Morgan, President & CEO;

Executive VP & COO of the Manager

D. Greg Eckel, Portfolio Manager;

Senior VP of the Manager

Michael A. Smedley, Director;

Executive VP & CIO of the Manager

1 Year 3 Years 5 Years 10 Years

Compound Annual Returns For The

Periods Ending December 31, 2021

CGI NAV CGI Share Price S&P/TSX Composite Index

40%

35%

30%

25%

20%

15%

10%

2021 Annual Report | Canadian General Investments, Limited

CGI is a closed-end equity fund focussed on medium- to long-term

investments in primarily Canadian companies. It strives, through

prudent security selection, timely recognition of capital gains/

losses and appropriate income-generating instruments, to provide

better than average returns to investors.

CGI was established in 1930 and has been managed since 1956

by Morgan Meighen & Associates Limited

(www.mmainvestments.com).

The graph below is presented to illustrate the benefit of a long-

term investment In CGI’s common shares. A $10,000 investment

in CGI would have grown to over $121,000 over the 25-year

period ended December 31, 2021. This equates to a compound

annual average growth rate of 10.5%. By comparison, a $10,000

investment in the benchmark S&P/TSX Composite Index would

have grown to over $66,000 or a compound average annual

growth rate of 7.9%.

For the 50 years ended December 31, 2021, a $10,000 investment would have grown to over $3.0 milion, representing a compound

average annual return of 12.1%. The values for the benchmark for the same period were $994,000 and 9.6%, respectively.

Canadian General Investments, Limited

Corporate Profile

Growth of a $10,000 Investment – 25 Years to December 31, 2021

CGI Share Price S&P/TSX Composite Index

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

1996 2001 2011 2021

2006 2016

2021 Annual Report | Canadian General Investments, Limited

Management Report of Fund Performance

Investment Objective and Strategies

Canadian General Investments, Limited (CGI or the Company) is

a closed-end equity fund, focussed on medium- to long-term

investments in primarily Canadian corporations. Its objective is to

provide better than average returns to investors through prudent

security selection, timely recognition of capital gains/losses and

appropriate income-generating instruments.

The Manager, Morgan Meighen & Associates Limited (MMA),

utilizes a bottom-up investment strategy in an effort to achieve CGI’s

objective. With this type of investment strategy, the Manager first

seeks individual companies with attractive investment potential,

then proceeds to consider the larger industry, economic and global

trends affecting those companies. This investment style allows for

sector weightings that can differ from those of the benchmark, the

S&P/TSX Composite Index (S&P/TSX).

Risk

The risks associated with an investment in the Company

are as disclosed in the Company’s Annual Information

Form which is available on the Company’s website at

www.canadiangeneralinvestments.ca or on SEDAR at www.sedar.com.

Results of Operations

Performance

It was another year in which COVID-19 remained a dominant force

everywhere. After almost two years, this unprecedented global

phenomenon continues to disrupt lives and creates substantial

challenges around the world. Efforts to contain it were given a boost

with the important development of vaccines, but it is still too early to

determine their overall effect on the spread of the disease. Ultimately,

success will be influenced by the speed and scale of their deployment,

as well as their yet-to-be-determined durable effectiveness against the

virus’s innate mutability. Medical initiatives, in the form of therapeutics

and other treatments, are also being developed and will be required to

moderate the effects of COVID-19, even in a potential endemic phase.

These collective efforts, and likely more, will be needed to resume some

semblance of pre-pandemic activities in a safe and normal way. Despite

its persistence, there have been some notable changes in response

to the pandemic. Whereas in early 2020, quarantines and complete

lockdowns were used almost everywhere as the standard of defence,

a variety of approaches, not entirely science-based, have subsequently

been taken in different countries. This has had a noticeable effect on

regional economics, an important factor in global markets.

Equity markets have shown a remarkable resilience since the emergence

of COVID-19. After the initial checkback in early 2020, investors have

adopted a look-through approach and brushed off news that would

have derailed stocks in years past. This feat was aided primarily by

overwhelming support from massive government programs and various

policy initiatives which so far have mitigated the potential for devastating

and long-term damage to the economy on a global scale and might have

provided a steady underpinning going forward. Encouraged by these

developments, investors seemed to gain confidence and became more

optimistic that the world would be able to re-open in a manageable

manner without incurring excessive collateral damage. While 2020

could have been characterised as a very constructive year based on the

scale of the intra-year revival, 2021 was a year of decisive advancement

for developed markets around the world.

Management Discussion Of Fund Performance

This annual management report of fund performance contains financial highlights and should be read in conjunction with the complete audited annual

financial statements of the Company that follow this report. Securityholders may request a copy of the Company’s interim financial report, proxy voting

policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure, at no cost, by calling 416-366-2931 (Toll-free: 1-866-443-6097),

by writing to the Company at 10 Toronto Street, Toronto, Ontario M5C 2B7 or by visiting the Company’s website at www.canadiangeneralinvestments.ca.

The interim report is also available on SEDAR at www.sedar.com.

This report may contain forward-looking statements about the Company and markets that reflect the Manager’s current expectations of future events.

Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as

“expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, or similar expressions. Forward-looking statements are subject to risks, uncertainties

and assumptions with respect to the Company and economic factors and actual results may differ materially for many reasons, including, but not limited

to, market and general economic conditions, interest rates, foreign exchange rates, changes in government regulations and catastrophic events. As a

result, the reader is cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking information is current only as of

the date of this report and there should be no expectation that such information will be updated as a result of new information, changing circumstances

or future events, unless required by applicable law.

2021 Annual Report | Canadian General Investments, Limited

although over 70% of the index components had positive returns, less

than half matched the index return.

It was a comeback year for the Energy sector. The group is renowned

for it volatility and this was the case once again. The sector went from

worst to first in year-over-year overall rankings and the comparative

numbers were striking, down 30% in 2020 and then up more than

41% in 2021. These stocks were buoyed by increases in the prices of

oil and gas. Coming out of the most severe of self-induced pandemic

restrictions, many activities around the world have been re-started and

a natural demand for the commodities has begun to pick up. At the

same time, a disciplined effort by OPEC+ to better influence the supply/

demand balance has had more success than efforts of the past, while the

previous and prolonged lower price environment resulted in production

cutbacks and fiscal discipline on the part of non-OPEC producers. This

combination means it is unlikely additional supply will come to market,

drawing attention to the group. CGI has been underweight Energy, a

perennial laggard, since 2011. This stance has benefitted the portfolio

for a long time, but it worked against it this year.

Exposure to the Energy sector was increased during the year with

the introduction into the portfolio of a new investment in Enerplus

Corporation. Enerplus is an oil and gas producer with a bias to liquids

production (70%) and has established a concentrated position in the

North Dakota Bakken basin known for its light oil. Other interests are

held in Canada and the United States but are non-core and could be

sold to concentrate and further consolidate this desirable focus area.

Almost 90% of its production comes from its U.S. operations which

differentiates it from most of its Canadian peers who have ongoing

takeaway capacity issues, pricing discounts and additional transport

costs. With a long-term drilling inventory, strong balance sheet and

resilient production, its future sustainable growth prospects should

allow for increased returns of capital to its shareholders. A dual listing

in Toronto and New York also allows for an expanded investor base and

trading liquidity, two attributes that are usually prized. An addition was

also made to the Tourmaline Oil Corp. position which has been a long-

term holding in the portfolio. Tourmaline is not an oil-based producer

as its name would suggest, rather it is the largest natural gas producer

in Canada and one of its senior E&P companies. It is dominant in the

Alberta Deep, Peace River High and the Montney basins and is the

lowest cost operator in these areas. Scale, operatorship, and integrated

infrastructure allows Tourmaline to move forward on its multi-year

production growth potential at a pace, influenced by the environment,

but controlled internally. Ranked highly by investors, Tourmaline offers

Canadian and most global markets saw one of the sharpest recoveries

on record in 2021. North American markets, in particular, were boosted

by strong economic growth in the region and led the way in terms

of performance. Part of the outperformance relative to their global

peers was due, not just to the strong GDP growth, as influenced by

COVID-19 case prevalence, but also to the divergent governmental

and societal responses. Whereas some developed markets were held

back in this regard, the United States was not and had its best year

of economic growth since 1984 while Canada had its third-best. This

provided added stimulus for equities in both markets.

Like many of its global peers, the S&P/TSX ascended steadily throughout

2021 and, in the process, recorded many new all-time highs. The

emergence of new COVID-19 variants and the ongoing battle with the

pandemic threw up some roadblocks along the way, but the markets

grew adept at discounting potential damage. By year end, the S&P/TSX

had added onto its 5.6% total return for 2020 with 25.1% in 2021. By

comparison, CGI followed up on its impressive 2020 net asset value

(NAV) return, with dividends reinvested, of 38.1% with 24.6% in 2021.

In Canada, the headline index returns are occasionally skewed by

the weightings of its top two sectors, Financials and Energy, which

represent about 45% of the S&P/TSX. For portfolios like CGI’s, that

consistently provide a different and more diversified exposure to

the Canadian market for its shareholders, this sometimes provides a

headwind on the relative measure. This happened in 2021 when more

than 60% of the total index return was attributed to these two groups.

Despite its relative underweighting in both of these sectors, CGI was

able to compensate for this difference in 2021.

The table below illustrates the weightings of the five largest sectors in

CGI’s portfolio at December 31, 2021, compared with year end 2020,

and with the S&P/TSX. The weightings for CGI represent the market

value of each sector as a percentage of the total investment portfolio.

At December 31, 2021 the portfolio was overweight Consumer

Discretionary, Industrials, Information Technology and Materials, and

underweight Financials, as compared to the sector weightings in the

S&P/TSX.

Overall, it was a good year for all sectors in the Canadian market except

for Health Care, which was negative, but this was insignificant to the

overall results, given that its index weighting is less than 1%. Of the

eleven index sectors, eight had double-digit positive returns but only

three, Energy, Real Estate and Financials, beat the index. A similar

dynamic carried through on the micro level as well. Higher individual

returns were dominated by energy and financial companies and,

CGI S&P/TSX

SECTOR

December 31,

2021

December 31,

2020

December 31,

2021

December 31,

2020

Information Technology

23.8% 28.1% 10.7% 10.3%

Industrials

20.2% 22.7% 12.0% 12.5%

Materials

17.7% 16.4% 11.5% 13.7%

Consumer Discretionary

11.7% 11.4% 3.6% 3.9%

Financials

10.6% 9.4% 32.2% 30.2%

2021 Annual Report | Canadian General Investments, Limited

the premium go-to play for Canadian gas exposure with good leverage

to increasing pricing levels. Profitable and sustainable growth with

increasing free cash flows allows for steady full-cycle dividend increases

and ample opportunity for additional capital returns to shareholders,

including a welcome corporate preference for distributions in the

desirable form of special dividends.

Uncharacteristically, Financials underperformed the general market

in 2020 but, led by the major Canadian bank stocks, bounced back

strongly in 2021. Affected at the onset of the pandemic by concerns for

the economy and related business considerations, the outlook for banks

was uncertain and their stocks were pressured by the introduction of

high loan loss provisioning and regulatory tightening measures. Over

time many of these initial concerns eventually faded away. Investors

returned to bid them higher in 2021. CGI did not fully participate in

either the downturn or the upturn, as it is underweight the large 22%

presence the banks hold in the index. However, two non-bank holdings

in the portfolio had particularly good returns and helped to offset this

relative positioning in the current year. Goeasy Ltd., a provider of non-

prime leasing and lending services, was a top performer in the portfolio,

up more than 70% and Brookfield Asset Management Inc. (+44%) had

another good year as one of the top performers in the entire Financials

group. Additions to both investments were made during the year.

CGI is overweight Materials, although its heavy bias to the non-precious

metals differentiates it from the index and avoided too much exposure

to the double-digit return downside of the Golds and Precious Metals

groups. Franco-Nevada Corp., CGI’s lone gold exposure and a top-ten

holding, did relatively well and had a positive return in excess of 10%,

one of the very few positives in these sub-groups. Copper and forestry

products have been in focus for the portfolio and Copper Mountain

Mining Corporation (-22%) was added. It has a low-cost, long-life mine

operating in Canada, as well as an exciting near-term development

project in Australia. With production expected to triple in five years,

the investment provides good leverage to the commodity price. In other

copper related holdings, results were mixed. First Quantum Minerals

Ltd., a top-ten holding, had a 30% plus return but Hudbay Minerals Inc.

was flat (+3%) and Lundin Mining Corporation negative (-9%). In the

forestry group, Interfor Corporation (+17%) was introduced into the

portfolio to provide additional exposure. It is the fourth-largest lumber

producer in North America, with a high exposure to the lucrative

U.S. market, and offers a unique, pure-play on lumber. West Fraser

Timber Co. Ltd. (+49%), one of the largest positions in CGI’s portfolio,

has established itself as the largest publicly traded forestry products

company available to investors, since its combination with Norbord Inc.,

and is considered the proven, high-quality name to own in the space.

The company expanded its investor reach with a new U.S. listing in

2021 and its return was in excess of 40%.

CGI was mismatched with the weighting and returns in the Canadian

market this year and overall results relied more on the Manager’s

bottom-up stock picking. Individual returns in the market varied widely,

even intra-sector, and provided for a diversification that was used to

advantage, but there were some disappointments. The so-called energy

transition themed stocks had a broad pullback globally and positions

in Ballard Power Systems Inc. (-47%), Westport Fuel Systems Inc.

(-56%) and Xebec Adsorption Inc. (-71%) counted among some of the

portfolio’s biggest losers for the year. The effect of COVID-19 on the

Canadian airline industry remained significant in 2021 and Air Canada’s

business plan and stock price suffered (-7%). It remains in the portfolio

as a good reopening play and should respond impressively when the

outlook improves. More positively, several holdings in the portfolio had

double-digit returns, well in excess of the index, and this provided a

driving force for CGI’s overall return numbers. At the top of the return

chart were a couple, NVIDIA Corporation and TFI International Inc.,

that had huge years and more than doubled. Other notable mentions

come from a variety of fields and included lesser-known names such

as StorageVault Canada Inc. (+79%), Descartes Systems Group Inc.

(+41%), FirstService Corporation (+43%) and, a new IPO addition this

year, Neighbourly Pharmacy Inc. (+65%).

Dividend and interest income was $14,763,000 for the year, down

1.9% from 2020. Management fees, dividends on preference shares,

and interest and financing charges, are the largest expenses of the

Company. Management fees increased by 36.5% to $15,190,000,

as a result of higher average monthly portfolio values compared to

2020. The dividends on preference shares were consistent year-over-

year. Interest and financing charges decreased 40.2%, as a result of

the borrowing facility carrying a lower interest rate compared to the

previous year.

Leverage

On May 12, 2021 the Company entered into a prime brokerage

services agreement with a Canadian chartered bank. Margin borrowing

of $100.0 million under this new agreement was used to extinguish

the $100.0 million borrowed under a one-year secured non-revolving

term credit facility that was scheduled to mature on May 12, 2021.

Amounts borrowed under this agreement bear interest at the one-

month Canadian Dollar Offered Rate (CDOR) plus 0.60% per annum.

The agreement requires the Company to pledge securities as collateral

for margin borrowings and may be terminated immediately by the

prime broker upon the occurrence and continuation of an event of

default, as defined in the agreement, or by either party with 30 days’

notice. The borrowing facility represented 7.8% of CGI’s net assets at

December 31, 2021 (December 31, 2020 – 9.6%).

In addition to the $100.0 million borrowed under the facility (December

31, 2020 – $100.0 million), CGI also has outstanding $75 million 3.75%

cumulative, redeemable Class A preference shares, Series 4, which

become redeemable, at par, to the Series 4 shareholders on or after

June 15, 2023 (December 31, 2020 – $75 million).

Both the borrowing facility and the preference shares act as leverage

to common shareholders. As at December 31, 2021, the combined

leverage represented 13.7% of CGI’s net assets (December 31, 2020 –

16.8%). This leverage served to increase the effect of overall portfolio

returns, positively impacting CGI’s NAV return in the years ended

December 31, 2021 and December 31, 2020.

Taxation

As a corporate entity, CGI is subject to tax on its taxable income –

primarily realized gains on the sale of investments – at an effective rate of

approximately 20%. As a result of its investment corporation status under

Canadian tax law, CGI can recover taxes paid or payable on its realized

taxable capital gains through the payment of capital gains dividends

to shareholders. To the extent that taxes paid or payable on taxable

income and capital gains in a year are greater than taxes recovered on the

payment of capital gains dividends, there will be a negative impact on net

assets of the fund. For the year ended December 31, 2021, there was a

2021 Annual Report | Canadian General Investments, Limited

refundable income tax expense of $8,726,000, compared to $683,000 in

the prior year. Taxes paid or payable on realized taxable capital gains may

be recovered through the payment of capital gains dividends in future

years. As at December 31, 2021, the Company had federal refundable

capital gains taxes on hand of approximately $8,594,000 (December

31, 2020 – $2,995,000), which are refundable on payment of capital

gains dividends of approximately $61.0 million (December 31, 2020

– $21.3 million) and Ontario refundable capital gains taxes on hand of

approximately $4,313,000 (December 31, 2020 – $1,947,000), which are

refundable on payment of capital gains dividends of approximately $75.0

million (December 31, 2020 – $33.9 million).

Recent Developments

Outlook

The initial pressure from COVID-19 has receded somewhat and we could

slowly transition away from the potential for a catastrophic global event.

Unfortunately, the current Omicron variant has shown that the virus is

not ready to release its grip on the world just yet and so it remains a major

consideration for investors as a risk wildcard in 2022.

Government fiscal and monetary stimulus has played a key role in global

stabilization in recent years and the time for a pivot away from those

initiatives is approaching. Many of the fiscal supports have already expired

and attention is focussed on central banks. A delicate balance is required

so as not to disrupt economic recovery while removing the excesses of

past policy. Already, unprecedented supply bottlenecks and high demand

for goods has resulted in an inflation spike and investors are nervous that

the remedies for containment have the potential to tip economies and

markets into retreat mode. This must be carefully watched.

If 2021 could be categorized as a year of recovery, 2022 will likely prove

to be a year of moderation. Following record economic and spectacular

corporate earnings growth, to expect normalization is reasonable. As we

have distanced ourselves in time from the onset of the pandemic, some

issues and concerns have receded into the background while others

are just starting to emerge. This suggests this year could be different

from the last two, and it is likely that markets will have to adjust to new

and different challenges. Although this heightens the uncertainty, it

should not detract entirely from good fundamental underpinnings and

favourable trends. If the global economy maintains its growth trajectory,

Canadian markets should do well with their generous mix of late cyclicals

like Energy, Materials and Financials and CGI, as a proxy, could benefit as

a unique and diversified investment vehicle for Canada.

Related Party Transactions

The Company is managed by MMA, a company under common control

with CGI. MMA provides continuing advice and investment management

services, as well as administration, financial reporting and other ancillary

services required by a publicly listed company. For more details concerning

the services that are provided by MMA and the management fee that is

charged to the Company, see “Management Fees”.

Third Canadian General Investment Trust Limited (Third Canadian),

a private, Ontario-based corporation under common control with

the Company, has an approximate 37% (December 31, 2020 – 37%)

ownership interest in the Company. As a result of its ownership position

in the Company, during the year ended December 31, 2021, Third

Canadian received dividends from net investment income of $3,357,000

(2020 – $4,807,000) and dividends from net realized gain on investments

of $3,357,000 (2020 – $1,602,000).

2021 Annual Report | Canadian General Investments, Limited

(1) This information is provided as at the end of the year shown.

(2) Management expense ratio (MER) is based on total expenses (including leverage costs but excluding commissions and other portfolio transaction costs) for the stated period and is

expressed as an annualized percentage of daily average net asset value during the period.

(3) Excluding leverage costs (dividends on preference shares and interest and financing charges), the Company’s MERs were as follows: 2021 - 1.37%, 2020 - 1.48%, 2019 - 1.53%,

2018 - 1.48%, 2017 - 1.54%.

(4) The trading expense ratio represents total commissions and other portfolio transaction costs as an annualized percentage of daily average net asset value during the period.

(5) The Company’s portfolio turnover rate indicates how actively the Manager manages the Company’s portfolio investments. A portfolio turnover of 100% is equivalent to the Company

buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund

in the year. There is not necessarily a relationship between the turnover rate and the performance of a fund.

2021 2020 2019 2018 2017

Total net asset value (000’s)

(1)

$1,279,896 $1,043,463 $771,549 $602,163 $691,440

Number of shares outstanding

(1)

20,861,141 20,861,141 20,861,141 20,861,141 20,861,141

Management expense ratio

(2) (3)

1.72% 2.11% 2.27% 2.15% 2.31%

Trading expense ratio

(4)

0.03% 0.04% 0.05% 0.03% 0.04%

Portfolio turnover rate

(5)

6.17% 10.14% 8.00% 2.31% 10.36%

Net asset value per share

(1)

$61.35 $50.02 $36.98 $28.87 $33.14

Closing market price

(1)

$44.05 $34.81 $26.21 $20.51 $23.73

Ratios and Supplemental Data

(1) This information is derived from the Company’s audited annual financial statements.

(2) Net assets and dividends are based on the actual number of shares outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number

of shares outstanding over the financial period and may not match the financial statements due to rounding.

(3) Dividends were paid in cash.

(4) This is not a reconciliation of the beginning and ending net assets per share.

The Company’s Net Assets per Share

(1)

2021 2020 2019 2018 2017

Net assets – beginning of year $50.02 $36.98 $28.87 $33.14 $27.98

Increase (decrease) from operations

Total revenue

0.74 0.78 0.89 0.82 0.64

Total expenses (excluding common share dividends)

(0.99) (0.83) (0.80) (0.74) (0.70)

Realized gains for the year

3.95 1.81 1.61 1.36 1.73

Unrealized gains (losses) for the year

8.93 12.15 7.34 (4.91) 4.27

Refundable income tax expense

(0.42) (0.03) (0.13) (0.04) (0.02)

Total increase (decrease) from operations

(2)

12.21 13.88 8.91 (3.51) 5.92

Dividends paid to common shareholders

Taxable dividends

(0.44) (0.63) (0.40) (0.57) (0.36)

Capital gains dividends

(0.44) (0.21) (0.40) (0.19) (0.40)

Total dividends

(3)

(0.88) (0.84) (0.80) (0.76) (0.76)

Net assets – end of year

(4)

$61.35 $50.02 $36.98 $28.87 $33.14

Financial Highlights

The following tables show selected key financial information about the Company and are intended to help you understand the Company’s financial

performance for the past five years.

2021 Annual Report | Canadian General Investments, Limited

Past Performance

The performance information shown assumes that all dividends paid by CGI to common shareholders were reinvested in additional

common shares of the Company. The performance information does not take into account broker commissions or other fees potentially

payable by holders of the Company’s shares that would have reduced returns or performance. How the Company has performed in the

past does not necessarily indicate how it will perform in the future.

Year-by-Year Returns

The following bar charts show the Company’s performance for each of the years shown, and illustrate how the Company’s performance has

changed from year to year. The bar charts show, in percentage terms, how much an investment made on the first day of each year would

have grown or decreased by the last day of each year.

Annual Compound Returns

The following table shows the Company’s historical annual compound total returns for the periods indicated, compared with the S&P/TSX.

The Index return is also calculated on a total return basis, assuming that all distributions are reinvested.

1 Year 3 Years 5 Years 10 Years

Canadian General Investments, Limited – NAV

24.6% 31.1% 19.5% 14.5%

Canadian General Investments, Limited – Share Price

29.4% 32.8% 21.4% 14.8%

S&P/TSX Composite Index

25.1% 17.5% 10.0% 9.1%

The S&P/TSX Composite Index is a market capitalization-weighted index that provides a broad measure of performance of the Canadian equity market.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

40%

20%

-20%

-40%

The bar chart below illustrates CGI’s net asset value per share return, with dividends reinvested at net asset value per share.

31.0%

38.1%

24.6%

10.8%

21.0%

18.2%

21.5%

-7.2%

-10.9%

8.4%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

40%

20%

-20%

-40%

The bar chart below illustrates CGI’s share price return, with dividends reinvested at the market price.

8.2%

32.1%

37.0%

29.4%

3.4%

22.0%

26.3%

-10.8%

-2.7%

13.3%

Management Fees

The Company pays a management fee that is calculated and paid monthly at 1% per annum of the market value of CGI’s investments

adjusted for cash, portfolio accounts receivable and portfolio accounts payable. The Company’s management fees were used by

MMA to pay costs for managing the portfolio and making investment decisions, as well as the provision of administrative services

including making brokerage arrangements for the purchase and sale of securities, calculating the daily net asset value of the Company,

maintaining financial and corporate records, preparing financial statements and all required regulatory filings and assisting in promotion

activities. The officers of the Company are remunerated by MMA in their capacity as directors and/or officers of MMA and receive no

compensation from CGI.

2021 Annual Report | Canadian General Investments, Limited

Top 25 Holdings

Issuer

Sector

% of Net

Asset Value*

% of Investment

Portfolio

Shopify Inc.

NVIDIA Corporation

West Fraser Timber Co. Ltd.

First Quantum Minerals Ltd.

Canadian Pacific Railway Limited

Franco-Nevada Corporation

TFI International Inc.

Apple Inc.

WSP Global Inc.

The Descartes Systems Group Inc.

Amazon.com, Inc.

Bank of Montreal

FirstService Corporation

Mastercard Incorporated

goeasy Ltd.

Royal Bank of Canada

SiteOne Landscape Supply, Inc.

StorageVault Canada Inc.

Home Depot, Inc.

BRP Inc.

Toronto-Dominion Bank

Pool Corporation

Block, Inc.

Lightspeed Commerce Inc.

Neighbourly Pharmacy Inc.

Information Technology

Materials

Industrials

Materials

Industrials

Information Technology

Industrials

Information Technology

Consumer Discretionary

Financials

Real Estate

Information Technology

Financials

Industrials

Real Estate

Consumer Discretionary

Financials

Consumer Discretionary

Information Technology

Health Care

5.2

5.1

4.8

4.3

4.1

4.0

3.9

3.7

3.4

3.3

3.0

2.9

2.8

2.6

2.4

2.3

2.1

2.0

1.9

1.7

4.6

4.5

4.2

3.7

3.6

3.5

3.4

3.2

2.9

2.6

2.5

2.4

2.3

2.2

2.1

2.0

1.9

1.7

1.6

1.5

76.8* 67.0

Total Net Asset Value* ($000’s)

$1,279,896

Total Investment Portfolio* ($000’s)

$1,463,688

Summary Of Investment Portfolio

As at December 31, 2021

Sector Allocation

Asset Allocation

% of Net

Asset Value*

% of Investment

Portfolio

% of Net

Asset Value*

% of Investment

Portfolio

Information Technology

Industrials

Materials

Consumer Discretionary

Financials

Energy

Real Estate

Communication Services

Health Care

Cash & Cash Equivalents

27.2

23.2

20.2

13.4

12.1

6.8

6.2

2.2

1.7

1.3

23.8

20.2

17.7

11.7

10.6

5.9

5.5

1.9

1.5

1.1

Canadian Equities

Foreign Equities

Cash & Cash Equivalents

87.4

25.6

1.3

76.4

22.4

1.1

* Total Net Asset Value represents Total Investment Portfolio adjusted for leverage ($174.7 million) in the form of preference shares and a borrowing facility, other assets and other

liabilities. The Total Investment Portfolio includes a receivable on investments sold of $1.1M.

The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the Company. The most recent quarterly portfolio disclosure may be obtained by visiting

the Company’s web site at www.canadiangeneralinvestments.ca, by calling 416-366-2931 (Toll-free: 1-866-443-6097), or by writing to the Company at 10 Toronto Street, Toronto,

Ontario, Canada, M5C 2B7.

2021 Annual Report | Canadian General Investments, Limited

The Company maintains appropriate processes to ensure that

relevant and reliable financial information is produced. The

financial statements have been prepared in accordance with

International Financial Reporting Standards and include certain

amounts that are based on estimates and judgements. The

significant accounting policies, which Management believes are

appropriate for the Company, are described in note 3 to the

financial statements.

The Board of Directors is responsible for reviewing and approving

the financial statements and overseeing Management’s

performance of its financial reporting responsibilities. An

Audit Committee comprised of non-Management Directors

is appointed by the Board. The Audit Committee reviews the

financial statements, adequacy of internal controls, the audit

process and financial reporting with Management and the

external Auditor. The Audit Committee reports to the Board

of Directors prior to the approval of the audited financial

statements for publication.

PricewaterhouseCoopers LLP, the Company’s external Auditor,

who is appointed by the shareholders, audited the financial

statements in accordance with Canadian generally accepted

auditing standards to enable them to express to the shareholders

their opinion on the financial statements. Their report is set out

on pages 11 and 12.

Management Report

The accompanying financial statements have been prepared by Management and approved

by the Board of Directors of the Company. Management is responsible for the information

and representations contained in these financial statements.

Vanessa L. Morgan

Chair

Jonathan A. Morgan

President & CEO

February 17, 2022

Financial Reports

2021 Annual Report | Canadian General Investments, Limited

Our opinion

In our opinion, the accompanying financial statements present

fairly, in all material respects, the financial position of Canadian

General Investments, Limited (the Company) as at December

31, 2021 and 2020, and its financial performance and its cash

flows for the years then ended in accordance with International

Financial Reporting Standards (IFRS).

What we have audited

The Company’s financial statements comprise:

• the statements of financial position as at December 31, 2021

and 2020;

• the statements of comprehensive income for the years

then ended;

• the statements of changes in net assets for the years

then ended;

• the statements of cash flows for the years then ended; and

• the notes to the financial statements, which include significant

accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally

accepted auditing standards. Our responsibilities under those

standards are further described in the Auditor’s responsibilities for

the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the

ethical requirements that are relevant to our audit of the financial

statements in Canada. We have fulfilled our other ethical

responsibilities in accordance with these requirements.

Other information

Management is responsible for the other information. The

other information comprises the Management Report of Fund

Performance and the information, other than the financial

statements and our auditor’s report thereon included in the

annual report.

Our opinion on the financial statements does not cover the

other information and we do not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our

responsibility is to read the other information identified above and,

in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge

obtained in the audit, or otherwise appears to be materially

misstated.

If, based on the work we have performed, we conclude that there is

a material misstatement of this other information, we are required

to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged

with governance for the financial statements

Management is responsible for the preparation and fair

presentation of the financial statements in accordance with

IFRS, and for such internal control as management determines is

necessary to enable the preparation of financial statements that

are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, management is responsible

for assessing the Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting unless management

either intends to liquidate the Company or to cease operations, or

has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing

the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the

financial statements

Our objectives are to obtain reasonable assurance about whether

the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an

auditor’s report that includes our opinion. Reasonable assurance

is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with Canadian generally accepted

auditing standards will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and

Independent Auditor’s Report

To the Shareholders of

Canadian General Investments, Limited

2021 Annual Report | Canadian General Investments, Limited

are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions

of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally

accepted auditing standards, we exercise professional judgment

and maintain professional skepticism throughout the audit. We

also:

• Identify and assess the risks of material misstatement of the

financial statements, whether due to fraud or error, design

and perform audit procedures responsive to those risks,

and obtain audit evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a

material misstatement resulting from fraud is higher than for

one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the

override of internal control.

•

Obtain an understanding of internal control relevant to the

audit in order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Company’s internal control.

•

Evaluate the appropriateness of accounting policies used and

the reasonableness of accounting estimates and related

disclosures made by management.

•

Conclude on the appropriateness of management’s use of the

going concern basis of accounting and, based on the audit

evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant

doubt on the Company’s ability to continue as a going concern.

If we conclude that a material uncertainty exists, we are

required to draw attention in our auditor’s report to the related

disclosures in the financial statements or, if such disclosures

are inadequate, to modify our opinion. Our conclusions

are based on the audit evidence obtained up to the date of our

auditor’s report. However, future events or conditions may

cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of

the financial statements, including the disclosures, and whether

the financial statements represent the underlying transactions

and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding,

among other matters, the planned scope and timing of the audit

and significant audit findings, including any significant deficiencies

in internal control that we identify during our audit.

We also provide those charged with governance with a statement

that we have complied with relevant ethical requirements regarding

independence, and to communicate with them all relationships

and other matters that may reasonably be thought to bear on our

independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent

auditor’s report is Derek Hatoum.

Chartered Professional Accountants,

Licensed Public Accountants

Toronto, Ontario

February 17, 2022

Independent Auditor’s Report (continued)

2021 Annual Report | Canadian General Investments, Limited

Note

December 31,

2021

December 31,

2020

Assets

Current assets

Investments

5 1,445,969 1,210,828

Cash

16,599 6,932

Receivable on investments sold

1,120 -

Interest and dividends receivable

1,234 1,903

Other assets

193 134

Total assets

1,465,115 1,219,797

Liabilities

Current liabilities

Accounts payable and accrued liabilities

12 1,585 1,725

Accrued dividends on preference shares

123 123

Income taxes payable

8,828 773

Borrowing facility

6 100,000 99,239

Total current liabilities

110,536 101,860

Preference shares

7 74,683 74,474

Total liabilities

185,219 176,681

Net assets

1,279,896 1,043,463

Equity

Share capital

8 128,568 128,568

Retained earnings

1,151,328 914,895

Total equity

1,279,896 1,043,463

Net assets per common share

61.35 50.02

As at December 31, 2021 and December 31, 2020

(in thousands of Canadian dollars, except per share amounts)

Director Director

Approved by the Board of Directors

The accompanying notes are an integral part of these financial statements.

Statements of Financial Position

2021 Annual Report | Canadian General Investments, Limited

Statements of Comprehensive Income

Note 2021 2020

Income

Net gains on investments

Dividend income

14,762 15,027

Interest

1 24

Net realized gain on sale of investments

82,689 38,088

Net change in unrealized gain on investments

186,311 253,371

Net gains on investments

283,763 306,510

Securities lending revenue

669 1,316

Total net income

284,432 307,826

Expenses

Management fees

15,190 11,128

Dividends on preference shares

2,813 2,813

Interest and financing charges

6, 7

1,379 2,308

Transaction costs on purchases and sales

337 352

Listing and regulatory costs

288 270

Directors’ fees and expenses

234 245

Custodial fees

164 114

Withholding taxes

160 163

Investor relations

76 93

Legal fees

74 32

Security holder reporting costs

65 47

Audit fees

62 64

Independent review committee fees and expenses

30 36

Other

43 42

Total operating expenses

20,915 17,707

Investment income before income taxes

263,517 290,119

Refundable income tax expense 9

8,726 683

Increase in net assets from operations

254,791 289,436

Increase in net assets from operations, per common share 12.21 13.87

For the years ended December 31

(in thousands of Canadian dollars, except per share amounts)

The accompanying notes are an integral part of these financial statements.

2021 Annual Report | Canadian General Investments, Limited

Share Capital Retained Earnings Total

At December 31, 2019

128,568 642,981 771,549

Increase in net assets from operations

- 289,436 289,436

Dividends paid to common shareholders from

net investment income

- (13,142) (13,142)

Dividends paid to common shareholders from

net realized gain on investments

- (4,380) (4,380)

At December 31, 2020

128,568 914,895 1,043,463

Increase in net assets from operations

- 254,791 254,791

Dividends paid to common shareholders from

net investment income

- (9,179) (9,179)

Dividends paid to common shareholders from

net realized gain on investments

- (9,179) (9,179)

At December 31, 2021

128,568 1,151,328 1,279,896

For the years ended December 31

(in thousands of Canadian dollars)

The accompanying notes are an integral part of these financial statements.

Statements of Changes in Net Assets

2021 Annual Report | Canadian General Investments, Limited

Note 2021 2020

Cash flows from (used in) operating activities

Increase in net assets from operations

254,791 289,436

Adjustments for:

Amortization of financing charges

6, 7 249 315

Net realized gain on sale of investments

(82,689) (38,088)

Net change in unrealized gain on investments

(186,311) (253,371)

Purchases of investments

(83,227) (100,555)

Proceeds of disposition of investments

115,966 107,132

Interest on margin facility

657 -

Interest on loan facility

472 1,992

Dividends paid to preference shareholders

2,813 2,813

Interest and dividends receivable

669 (801)

Other assets

(59) 7

Income taxes payable

9 8,055 (1,755)

Accounts payable and accrued liabilities

240 242

Net cash flows from operating activities

31,626 7,367

Cash flows from (used in) financing activities

Proceeds from margin facility

100,000 -

Proceeds from loan facility (net of financing cost)

- 570

Repayment of loan facility (net of financing cost)

(99,279) -

Interest on margin facility

(568) -

Interest on loan facility

(941) (1,711)

Dividends paid to common shareholders

(18,358) (17,522)

Dividends paid to preference shareholders

(2,813) (2,813)

Net cash flows used in financing activities

(21,959) (21,476)

Net increase (decrease) in cash

9,667 (14,109)

Cash at the beginning of the year

6,932 21,041

Cash at the end of the year

16,599 6,932

Items classified as operating activities

Interest received

1 24

Dividends received, net of withholding taxes

15,302 13,882

Income taxes paid - net

9 671 2,438

For the years ended December 31

(in thousands of Canadian dollars)

The accompanying notes are an integral part of these financial statements.

Statements of Cash Flows

2021 Annual Report | Canadian General Investments, Limited

Industrials (20.2%)

70,000

Air Freight & Logistics

Cargojet, Inc.

13,027 11,660

920,000

Airlines

Air Canada

4,739 19,440

65,000

100,000

Commercial Services & Supplies

Boyd Group Services Inc.

Waste Connections, Inc.

13,064

11,183

12,975

17,240

235,000

Construction & Engineering

WSP Global Inc.

10,389 43,153

725,000

Electrical Equipment

Ballard Power Systems Inc.

15,253 11,519

21,000

Industrial Conglomerates

Roper Technologies, Inc.

10,060 13,072

2,200,000

3,220,000

Machinery

Westport Fuel Systems Inc.

Xebec Adsorption Inc.

13,135

14,313

6,622

8,082

332,000

Marine

Algoma Central Corporation

2,555 5,654

90,000

575,000

350,000

Road & Rail

Canadian National Railway

Company

Canadian Pacific Railway Limited

TFI International Inc.

10,947

6,352

5,029

13,984

52,314

49,655

100,000

Trading Companies &

Distributors

SiteOne Landscape Supply, Inc.

8,233 30,662

Total Industrials

138,279 296,032

As at December 31, 2021

Number

of Shares Investment Cost

Fair

Value

Financials (10.6%)

275,000

245,000

260,000

210,000

76,900

185,000

Banks

Bank of Montreal

Royal Bank of Canada

Toronto-Dominion Bank

Capital Markets

Brookfield Asset Management

Inc., A LV

Economic Investment Trust Ltd.

Consumer Finance

goeasy Ltd.

10,640

10,190

5,599

10,149

3,851

17,140

37,452

32,89 1

25,215

16,042

9,767

33,165

Total Financials

57,569 154,532

Consumer Discretionary (11.7%)

145,000

Auto Components

Magna International Inc.

5,244

14,841

35,000

Distributors

Pool Corporation

9,651 25,071

9,000

Internet & Direct Marketing Retail

Amazon.com, Inc.

7,516 37,978

230,000

Leisure Products

BRP Inc.

14,551 25,484

310,000

Multiline Retail

Dollarama Inc.

1,065 19,626

8,000

52,000

Specialty Retail

AutoZone, Inc.

Home Depot, Inc.

4,864

8,740

21,225

27,312

Total Consumer Discretionary

51,631 171,537

Number of

Shares Investment Cost

Fair

Value

Communication Services (1.9%)

440,000

Diversified

Telecommunication Services

TELUS Corporation

6,057

13,108

250,000

Wireless

Telecommunication Services

Rogers Communications Inc., B NV

3,505

15,057

Total Communication Services

9,562 28,165

(in thousands of dollars) (in thousands of dollars)

Health Care (1.5%)

557,000

Health Care Providers &

Services

Neighbourly Pharmacy Inc.

13,552

22,247

Total Health Care

13,552 22,247

Energy (5.9%)

275,000

1,350,000

950,000

226,000

295,000

1,263,661

Oil, Gas & Consumable Fuels

Enbridge Inc.

Enerplus Corporation

Parex Resources Inc.

TC Energy Corporation

Tourmaline Oil Corp.

Whitecap Resources Inc.

2,830

12,038

11,085

6,260

9,930

11,827

13,588

18,009

20,530

13,296

12,048

9,465

Total Energy

53,970 86,936

Schedule of Investment Portfolio

2021 Annual Report | Canadian General Investments, Limited

Materials (17.7%)

240,000

3,000,000

1,800,000

290,000

2,000,000

1,200,000

410,000

500,000

507,125

Containers and Packaging

CCL Industries Inc., B NV

Metals & Mining

Copper Mountain Mining

Corporation

First Quantum Minerals Ltd.

Franco-Nevada Corporation

Hudbay Minerals Inc.

Lundin Mining Corporation

Teck Resources Limited, B SV

Paper & Forest Products

Interfor Corporation

West Fraser Timber Co. Ltd.

Total Materials

6,628

13,173

11,567

13,259

11,199

8,182

12,327

17,879

26,691

120,905

16,279

10,260

54,486

50,733

18,320

11,856

14,936

20,255

61,200

258,325

Number of

Shares Investment Cost

Fair

Value

Information Technology (23.8%)

120,000

78,000

38,400

177,000

9,000

400,000

470,000

330,000

16,738

208,000

IT Services

Block, Inc.

Mastercard Incorporated, A

Shopify Inc.

Semiconductors &

Semiconductor Equipment

NVIDIA Corporation

Software

Constellation Software Inc.

The Descartes Systems Group Inc.

Lightspeed Commerce Inc.

Open Text Corporation

Topicus.com Inc.

Technology Hardware,

Storage & Peripherals

Apple Inc.

10,613

5,467

2,031

3,118

11,598

10,317

9,858

4,916

1,971

24,528

35,470

66,881

65,882

21,122

41,848

24,008

19,813

1,943

46,743

Total Information Technology

59,889 348,238

Number

of Shares Investment Cost

Fair

Value

(in thousands of dollars)(in thousands of dollars)

LV: limited voting

NV: non-voting

SV: subordinate voting

Total investments (98.8%)

550,035

Cash (1.1%)

Receivable on investments sold (0.1%)

Investment Portfolio (100.0%)

Transaction costs

(973)

1,445,969

16,599

1,120

1,463,688

As at December 31, 2021

Schedule of Investment Porftolio

Real Estate (5.5%)

80,000

145,000

4,000,000

Real Estate Management

& Development

Colliers International Group Inc.

FirstService Corporation

StorageVault Canada Inc.

Total Real Estate

14,699

20,352

10,600

45,651

15,070

36,047

28,840

79,957

2021 Annual Report | Canadian General Investments, Limited

Canadian General Investments, Limited (CGI or the Company) is

domiciled in Canada and incorporated under the laws of Ontario,

Canada. The address of its registered office is 10 Toronto Street,

Toronto, Ontario, Canada, M5C 2B7.

CGI is a closed-end equity fund focussed on medium- to long-

term investments in primarily Canadian corporations. Its objective

is to provide better than average returns to investors through

prudent security selection, timely recognition of capital gains and

appropriate income-generating instruments.

The Company’s investment and administration activities are

managed by Morgan Meighen & Associates Limited (the Manager).

The Company’s common and preference shares are publicly listed

and trade on the Toronto Stock Exchange (symbols CGI, CGI.PR.D).

The common shares also trade on the London Stock Exchange

(symbol CGI). The closing price of the common shares on December

31, 2021 was $44.05.

These financial statements were authorized for issue by the Board

of Directors on February 17, 2022.

The Company’s financial statements have been prepared in

accordance with International Financial Reporting Standards (IFRS).

For the years ended December 31, 2021 and 2020

Notes to the Financial Statements

General Information

Basis of Presentation

The principal accounting policies applied in the preparation of these

financial statements are set out below. These policies have been

consistently applied to all the periods presented.

3.1 Financial Assets and Financial Liabilities

Classification

The Company recognizes financial instruments at fair value upon

initial recognition, plus transaction costs in the case of financial

instruments measured at amortized cost. Investment transactions

are recorded on the trade date. The Company measures securities

at fair value through profit or loss (FVTPL). The portfolio of

financial assets is managed and performance is evaluated on a fair

value basis. The Company and the Manager are primarily focussed

on fair value information and use that information to assess the

assets’ performance and to make decisions. The Company has not

taken the option to irrevocably designate any equity securities as

fair value through other comprehensive income. Consequently, all

investments are measured at FVTPL.

All other financial assets and liabilities are classified at amortized cost

or financial liabilities, as applicable, and are measured at amortized

cost and reflect the amount to be received or paid, discounted,

when appropriate, at the contract’s effective interest rate.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants

at the measurement date.

When available, the Company measures the fair value of an instrument

using quoted prices in an active market for that instrument. A market

is regarded as active if quoted prices are readily and regularly available

and represent actual and regularly occurring market transactions on an

arm’s length basis. Publicly listed securities are valued at the last traded

market price on the reporting date, where the last traded price falls

within the day’s bid-ask spread. In circumstances where the last traded

price is not within the bid-ask spread, the Manager determines the

point within the bid-ask spread that is most representative of fair value

based on the specific facts and circumstances. The Company’s policy is

to recognize transfers into and out of the fair value hierarchy as of the

date of the event or change in circumstances giving rise to the transfer.

Unlisted securities that trade on an over-the-counter market and other

securities, in special circumstances where a market quotation is not

readily available or is considered inappropriate (such as a stale price),

are valued using available sources of information and commonly used

valuation techniques, using primarily observable inputs. The Company

considers observable inputs to be market data that is readily available,

regularly distributed or updated, reliable and verifiable, and provided by

independent sources.

The best evidence of the fair value of a financial instrument at initial

recognition is the transaction price, i.e. the fair value of the consideration

given or received, unless the fair value of that instrument is evidenced

by comparison with other observable current market transactions in

the same instrument (i.e. without modification or repackaging) or

based on a valuation technique whose variables include only data from

observable markets.

Summary of Significant Accounting Policies

2021 Annual Report | Canadian General Investments, Limited

Summary of Significant Accounting Policies (continued)

3.2 Foreign Currencies

Assets and liabilities denominated in foreign currencies are translated

into Canadian dollars at period-end exchange rates. Purchases and

sales of investments, investment income and expenses are calculated

at the exchange rates prevailing on the dates of the transactions. The

Canadian dollar is the Company’s functional and presentation currency.

3.3 Investment Income

Dividend income is recorded on the ex-dividend date. Interest

is recognized on an accrual basis. Securities lending revenue is

recognized as earned.

3.4 Securities Lending

Securities lent are not derecognized in the Company’s statement of

financial position as the Company retains substantially all the risks

and rewards of ownership.

3.5 Cash

Cash is comprised of demand deposits with reputable financial

institutions.

3.6 Preference Shares

The Company classifies financial instruments issued as financial

liabilities or equity instruments in accordance with the substance

of the contractual terms of the instruments.

The Company has one series of its Class A preference shares in

issue: Series 4. The preference shares have priority over the

common shares with respect to the payment of dividends and

the return of capital and the distribution of assets in the event of

liquidation. The preference shares provide investors with the right

to require redemption, or the right for the Company to redeem, for

cash at values and dates set out in the table in note 7 and also in

the event of the Company’s liquidation.

The preference shares are classified as financial liabilities and

are stated at amortized cost using the effective interest method.

3.7 Increase (Decrease) in Net Assets From

Operations, Per Common Share

The increase (decrease) in net assets from operations, per

common share is calculated by dividing increase (decrease)

in net assets from operations by the weighted-average

number of common shares outstanding during the period.

3.8 Taxation

The Company qualifies as an investment corporation under Section

130 of the Income Tax Act (Canada) (the Act) and, as such, is subject

to a reduced rate of income tax on its net investment income other

than dividends received from taxable Canadian corporations. Taxes

paid on taxable dividends paid from corporations resident in Canada

are refundable on the payment of taxable dividends to shareholders

related to these dividends.

Income taxes are paid by the Company on net capital gains realized

at the rate of approximately 20%. These income taxes are recoverable

by the Company as long as it continues to qualify as an investment

corporation and pays out sufficient dividends related to these realized

gains. Refundable income taxes paid or recovered are recorded as an

expense or recovery in the period in which such tax becomes payable

or receivable.

In addition, temporary differences between the carrying values of

assets and liabilities for accounting and income tax purposes give

rise to deferred income tax assets and liabilities. The most significant

temporary difference is that between the reported fair value of the

Company’s investment portfolio and its adjusted cost base (ACB)

for income tax purposes. To the extent that the fair value of the

Company’s portfolio exceeds its ACB, a deferred tax liability arises

which is fully offset by the future refundable taxes available to the

Company as an investment corporation. Conversely, when the

ACB exceeds the fair values of the portfolio, a deferred tax asset is

generated. A deferred tax asset is also generated to the extent that

the Company has available and unutilized capital and non-capital

tax losses. However, these net deferred tax assets have not been

recorded in the statements of financial position since, with the

exception of refundable income taxes described above, the Company

does not record income taxes since it is, in substance, not taxable.

3.9 Investment in Associates and Subsidiaries

The Company has determined that it meets the definition of

“investment entity”. An investment entity is an entity that (i) obtains

funds from one or more investors for the purpose of providing them

with investment management services; (ii) commits to its investors

that its business purpose is to invest funds solely for returns from

capital appreciation, investment income, or both; and (iii) measures and

evaluates the performance of substantially all of its investments on a

fair value basis. The most significant judgement that the Company has

made in determining that it meets this definition is that fair value is

used as the primary measurement attribute to measure and evaluate

the performance of substantially all of its investments.

Subsidiaries are entities over which the Company has control through

its exposure or rights to variable returns and has the ability to affect

those returns through its power over the entities. As the Company

meets the definition of an investment entity, all subsidiaries, if any,

2021 Annual Report | Canadian General Investments, Limited

are measured at FVTPL. The Company’s investments may also include

associates over which the Company has significant influence and these

are measured at FVTPL. As at December 31, 2021 and December 31,

2020, the Company has no investment in associates or subsidiaries.

3.10 New standards

The International Accounting Standards Board issued amendments

to various standards, including IFRS 9 Financial Instruments, IFRS 7

Financial Instruments: Disclosures and IFRS 16 Leases, to address the

accounting impacts and treatment in relation to the effects of transition

from benchmark interest rate. The amendments are applicable for

financial years commencing on or after January 1, 2021. The Company

has determined the amendments did not have a material impact on

its financial statements. The Company continues to monitor future

accounting standards and analyze the effect the standards may have

on the Company’s operations.

The preparation of the financial statements in conformity with IFRS

requires management to make judgements, estimates and assumptions

that affect the application of accounting policies and the reported

amounts of assets, liabilities, income and expenses. Actual results may

differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognized in the period in which

the estimates are revised and in any future periods affected.

5.1 Financial Risk Factors

In the normal course of operations, the Company’s activities

expose it to a variety of financial risks: credit risk, liquidity risk

and market risk (including interest rate risk, currency risk and

price risk). Market prices and the fair value of investments in the

Company’s portfolio fluctuate on a daily basis as a result of changes

in interest rates, economic conditions, market and company

news, political conditions, natural disasters, and public health

emergencies, including an epidemic or pandemic. In general, the

Manager seeks to minimize the potential adverse effects of these

risks on the Company’s performance by employing professional,

experienced portfolio managers, by ongoing monitoring of the

Company’s positions and market events, and by diversifying the

investment portfolio within the policies and guidelines set by the

Board of Directors of the Company, in a manner consistent with

the investment objective. Pursuant to the Manager’s bottom-up

selection mandate, security selection is the primary criteria for

managing risk. In order to mitigate risk, depending on conditions,

the Manager considers other criteria such as asset class, industry,

country and currency.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause

a financial loss for the other party by failing to discharge an obligation.

The Company’s main exposure to credit risk may consist of investments

in debt instruments, including short-term securities, bonds, preferred

shares, interest and dividends receivable, amounts due from brokers,

securities on loan as part of the Company’s securities lending program, as

well as securities held in a separate control account with the Company’s

custodian, as part of its margin facility. The fair value of debt instruments

includes consideration of the creditworthiness of the debt issuer. The

carrying amount of cash, interest and dividends receivable and other

assets represents the maximum credit risk exposure as at December 31,

2021 and December 31, 2020. As at December 31, 2021 and December

31, 2020, the Company had no investments in debt instruments.

Credit risk related to cash is considered low as it is held at AA-rated

Canadian banks (consistent with prior year). All transactions in securities

are settled/paid for on delivery using approved brokers. The risk of

default is considered minimal, as delivery of securities sold is only made

once the Company’s custodian has received payment. Payment is made

on a purchase once the securities have been received by the Company’s

custodian. The trade will fail if either party fails to meet its obligation.

Credit risk with respect to the Company’s securities lending program

is considered minimal given the nature of the collateral, as well as

the indemnification provided by the agent administering the program

(note 13).

Credit risk related to the Company’s margin facility is considered low

given the nature of the tri-party agreement between the Company, its

custodian, and the bank (note 6).

Critical Accounting Estimates & Judgements

Financial Risk Management

Summary of Significant Accounting Policies (continued)

2021 Annual Report | Canadian General Investments, Limited

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in

meeting obligations associated with financial liabilities.

As the Company is a publicly traded, closed-end investment fund with

a fixed number of common shares outstanding, unlike an open-ended

mutual fund, it is not exposed to the liquidity risk associated with

daily cash redemptions of securities. However, as part of a leverage

strategy, the Company currently has one series of Class A preference

shares outstanding: Series 4 for $75 million with a redemption date of

June 15, 2023 and $100 million borrowed through a margin facility

(which replaced a $100 million loan facility in May 2021). Included in

the Series 4 preference share provisions is a restriction which precludes

payment of a common share dividend unless, after giving effect thereto,

the ratio of assets to obligations (both as defined in the preference

share prospectus) exceeds 2.5 times. At December 31, 2021 the ratio

was 8.4 times (December 31, 2020 – 7.0 times). As at December 31,

2021, the combined leverage represented 13.7% of CGI’s net assets

(December 31, 2020 – 16.8%), while the borrowing facility represented

7.8% of CGI’s net assets (December 31, 2020 – 9.6%).

Liquidity risk is managed by investing the majority of the Company’s

assets in investments that are traded in an active market and which can be

readily disposed of, and by retaining sufficient cash and cash equivalent

positions to maintain liquidity. Restricted and unlisted securities, if any,

are identified in the schedule of investment portfolio. There are no

restricted securities as at December 31, 2021 or December 31, 2020.

Leverage decisions, whether in the form of a borrowing facility or bond

or preference share issues from treasury, are at the discretion of the

Company’s Board of Directors.

As at December 31, 2021 and December 31, 2020, all financial liabilities

of the Company, except for the Class A preference shares, Series 4, fall

due within twelve months.

Market risk

The Company’s investments are subject to market risk which is the risk that

the fair value or future cash flows of a financial instrument will fluctuate

because of changes in market prices. The following include sensitivity

analyses that show how the net assets would have been affected by a

possible change in the relevant risk at each reporting date. In practice, the

actual results may differ and the differences could be material.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a

financial instrument will fluctuate because of changes in market interest

rates. The Company’s interest-bearing financial assets and financial

liabilities expose it to risks associated with the effects of fluctuations in

the prevailing levels of market interest rates on its financial position and

cash flows.

Although the Company may invest in interest-bearing financial

instruments, the substantial majority of the Company’s financial assets

are non-interest bearing or have short maturities. As a result, the

Company is not subject to significant amounts of risk on its investments

due to fluctuations in the prevailing levels of market interest rates.

As at December 31, 2021 and December 31, 2020, the Company had no

investments in debt instruments.

The Company’s most significant financial liabilities are its Class A

preference shares and a borrowing facility.

The Company’s Class A preference shares outstanding have a fixed

coupon rate. While they themselves do not subject the Company to

interest rate risk, any new issues, whether or not in connection with

the redemption date of the preference shares, will be subject to the

prevailing interest rate environment at that time.

With respect to the Company’s borrowing facility, interest rates on these

borrowings are short-term. For the year ended December 31, 2021,

a 1% increase or decrease in the interest rate, with all other variables

held constant, would have resulted in the interest and financing charges

increasing or decreasing, respectively, by approximately $1,000,000

(December 31, 2020 – $993,000).

Currency risk

Currency risk arises from financial instruments that are denominated

in a currency other than the Canadian dollar. The Company is

exposed to the risk that the value of securities denominated in

other currencies will fluctuate due to changes in exchange rates.

Securities trading in foreign markets are also exposed to currency

risk, as the price in local terms in the foreign market is converted to

Canadian dollars to determine fair value. The Company’s policy is

not to enter into any hedging arrangements.

As at December 31, 2021, the Company`s investment portfolio had

a 22.4% (December 31, 2020 – 21.8%) weighting in U.S. dollars.

As at December 31, 2021, had the Canadian dollar strengthened

or weakened by 5% in relation to all currencies represented in the

portfolio, with all other variables held constant, net assets would

have decreased or increased, respectively, by approximately

$16,397,000 or approximately 1.3% (December 31, 2020 –

$13,256,000 or approximately 1.3%).

Price risk

Price risk is the risk that the fair value of financial instruments will

fluctuate as a result of changes in market prices (other than those

arising from interest rate risk or currency risk), whether these

changes are caused by factors specific to an individual investment

or its issuer, or by factors affecting all similar instruments traded

in a market or market segment. All securities present a risk of

loss of capital. The Manager moderates this risk through careful

selection of securities and other financial instruments within the

parameters of the investment strategy and by maintaining a well

diversified portfolio. The maximum risk resulting from financial

instruments is equivalent to their fair value. The Company’s equity

Financial Risk Management (continued)

2021 Annual Report | Canadian General Investments, Limited

and debt (if any) instruments are susceptible to other price risk

arising from uncertainty about future prices of the instruments.

As at December 31, 2021, a 5% increase or decrease in market

prices in the investment portfolio, excluding cash and short-term

securities, with all other variables held constant, would have

resulted in the Company’s net assets increasing or decreasing,

respectively, by approximately $72,298,000 or approximately 5.6%

(December 31, 2020 – $60,541,000 or approximately 5.8%).

Concentration

risk

Concentration risk arises as a result of the concentration of

exposures within the same category, whether it is geographical

location, product type, industry sector or counterparty type. The

following is a summary of the Company’s concentration by sector in

the investment portfolio:

Industry Sector

December 31,

2021

December 31,

2020

Information Technology

23.8% 28.1%

Industrials

20.2% 22.7%

Materials

17.7% 16.4%

Consumer Discretionary

11.7% 11.4%

Financials

10.6% 9.4%

Energy

5.9% 4.3%

Real Estate

5.5% 3.4%

Communication Services

1.9% 2.1%

Health Care

1.5% 1.1%

Cash

1.1% 0.6%

Utilities

0.0% 0.5%

Receivable on investments sold

0.1% 0.0%

100.0% 100.0%

Sensitivity analyses are provided for information purposes only. In practice, the actual trading results may differ from this sensitivity

analysis and the difference could be material.

5.2 Capital Risk Management

The Company considers capital to be composed of its equity, as

well as its outstanding preference shares and borrowing facility. The

Company’s primary objective when managing its capital is to ensure

that activities are carried out in accordance with the investment

objective of the Company, as described in note 1. In addition, the

Company monitors its adherence to the provisions of its outstanding

Class A preference shares and borrowing facility. In particular, included

in the preference shares provisions is a dividend payment restriction,

which provides that the Company shall not pay a dividend on its

common shares unless after giving effect thereto, the ratio of assets

to obligations (both as defined in the preference share prospectus)

exceeds 2.5 times. All common share dividend payments made in

2021 and 2020 were in compliance with this provision. With respect

to the margin facility, the Company is required to maintain sufficient

collateral in the form of securities in a separate control account with

the Company’s custodian, based on margin requirements established

by the prime broker. There has been no event of default since the

prime brokerage services agreement was entered into effective May

12, 2021.

5.3 Fair Value Measurements

The Company classifies its investments within a fair value hierarchy,

based on the inputs used in their fair value measurement. The hierarchy

of inputs is summarized below:

Level 1: Unadjusted quoted prices at the measurement date in active

markets for identical assets

Level 2: Directly or indirectly observable inputs other than quoted prices

included in Level 1, such as quoted prices for identical or similar assets in

markets that are not active

Level 3: Inputs for the assets that are not based on observable market data

Financial Risk Management (continued)

2021 Annual Report | Canadian General Investments, Limited

Financial Risk Management (continued)

Level 2 investments include positions that are not traded in active markets

and/or subject to transfer restrictions, and valuations may be adjusted to

reflect illiquidity and/or non-transferability, which are generally based on

available market information and commonly used valuation techniques.

All other financial instruments of the Company, which may include cash,

receivable on investments sold or payable on investments purchased,

interest and dividends receivable, accounts payable and accrued

liabilities, accrued dividends on preference shares, borrowing facility and

preference shares are carried at amortized cost.

(in thousands of dollars)

Level 1 Level 2 Level 3 Total

As at December 31, 2021

Financial assets at FVTPL:

Investments

1,445,969

- -

1,445,969

As at December 31, 2020

Financial assets at FVTPL:

Investments

1,210,828

- -

1,210,828

During the year ended December 31, 2021, there were no investments transferred between the levels.

During the year ended December 31, 2020 an investment with a fair value of $1,360,000, was transferred from Level 2 to Level 1 following the

listing and commencement of trading for those securities.

The Manager is responsible for performing fair value measurements included in the financial statements of the Company, including Level 3 mea-

surements, if any. The Manager obtains pricing from a third party pricing vendor.

Subject to approval by the Board of Directors, the Company may

use various forms of leverage, including by way of a margin facility

with a prime broker or a loan facility with a bank.

Margin facility

On May 12, 2021 the Company entered into a prime brokerage

services agreement with a Canadian chartered bank. Margin borrowing

of $100 million under this new agreement was used to extinguish the

$100 million borrowed under a one-year secured non-revolving term

credit facility that was scheduled to mature on May 12, 2021.

Amounts borrowed under this agreement bear interest at the one-

month Canadian Dollar Offered Rate (CDOR) plus 0.60% per annum.

The agreement requires the Company to pledge securities as collateral

for margin borrowings and may be terminated immediately by the

prime broker upon the occurrence and continuation of an event of

default, as defined in the agreement, or by either party with 30 days’

notice.

As at December 31, 2021, the Company had pledged securities

as collateral to the prime broker equal to $114,637,000 on the

borrowings of $100,000,000 plus accrued interest of $89,000.

Loan facility

On May 12, 2020, the Company received notice from its lender,

a Canadian chartered bank, that its $100 million one-year non-

revolving term credit facility, was being converted into a fixed-

term facility with a maturity date of May 12, 2021. This facility

had included an evergreen feature, which allowed the Company to

continue use of the facility indefinitely (beyond the initial one-year

term), provided the bank had not given the Company one-year’s

notice of terminating the facility.

As at December 31, 2020, $93,000 of debt-issuance costs incurred on

the facility had been capitalized and was being amortized. Amounts

were borrowed under this facility through prime-rate loans, which

bore interest at the greater of the bank’s prime rate and the CDOR

plus 1.00% per annum, or bankers’ acceptances, which bore interest

at CDOR plus 0.75% per annum. Accrued interest as of December 31,

2020 amounted to $469,000.

The facility was secured with a first-ranking charge on the Company’s

property and assets, including the investment portfolio and required

the Company to comply with certain covenants including maintenance

of asset coverage ratios. The Company was in compliance with all

of the covenants as at December 31, 2020. On May 12, 2021, this

facility was repaid.

Borrowing Facility

2021 Annual Report | Canadian General Investments, Limited

(in thousands of dollars)

December 31, 2021 December 31, 2020

Bankers’ acceptances, maturing March 4, 2021

- 99,281

Less: Unamortized debt-issuance costs

- 42

- 99,239

The loan facility consisted of the following:

The Company may redeem for cash, the Series 4 shares, in whole or in part, at the following prices during the defined periods:

Subsequent to December 31, 2021, the Company declared a quarterly dividend of $0.23438 per share payable on March 15, 2022 to

Series 4 shareholders of record at the close of business on February 28, 2022.

The Company is authorized to issue, in series, a class of preference shares of which the following are outstanding:

Class A

preference

December

31, 2021

Number

of shares

December

31, 2020

Number

of shares

Stated

amount

per share $

Cumulative

annual

dividend

rate %

Date

of issue

December

31, 2021

Amount $

(In thousands)

December

31, 2020

Amount $

(In thousands)

Series 4 3,000,000 3,000,000 25.00 3.75 May 30, 2013 75,000 75,000

Deferred issuance costs

(net of amortization of $1,561,000 (December 31, 2020 – $1,352,000))

75,000

317

75,000

526

74,683 74,474

$25.25 $25.00

Series 4

June 15, 2021 to

June 14, 2022

June 15, 2022

and thereafter

(1)

The holders may require the Company to redeem the Series 4 shares on or after June 15, 2023 for a cash price of $25.00 per share.

Preference Shares

Common Shares

The Company is authorized to issue an unlimited number of

common shares. As at December 31, 2021, there are 20,861,141

(December 31, 2020 – 20,861,141) common shares issued and

outstanding with no par value.

Subsequent to December 31, 2021, the Company declared

a quarterly dividend of $0.23 per share payable on March 15,

2022 to common shareholders of record at the close of business

on February 28, 2022.

Share Capital

Borrowing Facility (continued)

2021 Annual Report | Canadian General Investments, Limited

As at December 31, 2021, the Company had federal refundable capital

gains taxes on hand of approximately $8,594,000 (December 31, 2020 –

$2,995,000), which are refundable on payment of capital gains dividends

of approximately $61.0 million (December 31, 2020 – $21.3 million)

and Ontario refundable capital gains taxes on hand of approximately

$4,313,000 (December 31, 2020 – $1,947,000), which are refundable

on payment of capital gains dividends of approximately $75.0 million

(December 31, 2020 – $33.9 million).

The Company is also subject to a special tax of 38-1/3% on taxable

dividends received from corporations resident in Canada. This special

tax is refundable on payment of taxable dividends to shareholders at

the rate of $0.3833 for each $1 of such dividends paid. The Company

has $2,208,000 of refundable dividend tax on hand as at December 31,

2021 (December 31, 2020 – $1,287,000).

The Company incurs withholding taxes imposed by certain

countries on investment income. Such income or gains are

recorded gross of withholding taxes in the statements of

comprehensive income. Withholding taxes are shown as a

separate item in the statements of comprehensive income.

During year ended December 31, 2021, the average withholding

tax rate paid by the Company was 15.0% (December 31, 2020

- 15.0%).

In accordance with the Act, a corporation can qualify as an

investment corporation if certain tests are satisfied. One of the

tests is that the corporation cannot have specified shareholders.

A specified shareholder is generally a shareholder, who, along

with certain persons to whom the shareholder is considered

to be related, has a greater than 25% shareholding. The

Company has had specified shareholders since June 20, 1996.

The specified shareholder rules of the Act generally allow the

Company to maintain its investment corporation status as long

as it does not have any specified shareholders other than those

specified shareholders existing on June 20, 1996. In addition,

the specified shareholders as at June 20, 1996 cannot, after

that date, contribute capital or acquire additional shares of the

Company other than through certain specified transactions.

(in thousands of dollars)

2021 2020

Provision for income taxes on investment income before income taxes

Provision for income taxes based on combined Canadian federal and

provincial income tax rate of 39.5%

104,090 114,598

Increase (decrease) in income taxes resulting from:

Dividends from taxable Canadian companies

(5,409) (5,506)

Dividends on preference shares

1,111 1,111

Net change in unrealized gain

(73,593) (100,082)

Non-taxable portion of net realized gain on sale of investments

(16,331) (7,522)

Increase (decrease) in refundable dividend tax on hand

921 (1,149)

Differences arising from use of different cost bases for income tax and

accounting purposes and other items

(250) 98

Income taxes recoverable on dividends from net realized gains on investments

(1,813) (865)

Refundable income tax expense

8,726 683

Income Taxes

Withholding Taxes

The Company’s refundable income tax expense during the year is determined as follows:

2021 Annual Report | Canadian General Investments, Limited

All of the Company’s financial assets were carried at amortized cost, with the exception of investments which is carried at FVTPL. All

the Company’s financial liabilities were carried at amortized cost. All gains and/or losses recorded on the statement of comprehensive

income relate to investments measured at fair value through profit or loss.

Third Canadian General Investment Trust Limited (Third Canadian)

owns 36.6% of the common shares of the Company, and is

therefore considered a related party. Jonathan A. Morgan and

Vanessa L. Morgan, both directors and executive officers of the

Company, beneficially own directly or indirectly or exercise control

or direction over an aggregate of 100% of the common shares

of Third Canadian. Including the holding by Third Canadian, Mr.

Morgan and Ms. Morgan together own directly or indirectly or

exercise control or direction over an aggregate of 52.5% of the

outstanding common shares of the Company, making them the

ultimate controlling party.

Transactions With Related Entities

Management fees

The Company’s activities are managed by the Manager pursuant

to a management agreement dated July 18, 2018. Mr. Morgan and

Ms. Morgan together own directly or indirectly 85%, and are both

directors and executive officers, of the Manager. Management

fees are paid monthly to the Manager for services received in

connection with the management of the Company’s financial

accounts and investment portfolio, among other services. These

fees are calculated monthly at 1% per annum of the fair value of

the Company’s investments adjusted for cash, portfolio accounts

receivable and portfolio accounts payable. Values for fee calculation

purposes are determined on the basis of the financial statements of

the Company as at the last day of the applicable month.

During the year ended December 31, 2021, $15,152,000 (2020 –

$11,002,000) was paid to the Manager with $1,379,000 accrued and

included in accounts payable and accrued liabilities as at December

31, 2021 (December 31, 2020 – $1,148,000).

Dividends

As a result of its ownership position in the Company, during the

year ended December 31, 2021, Third Canadian received dividends

from net investment income of $3,357,000 (2020 – $4,807,000)

and dividends from net realized gain on investments of $3,357,000

(2020 – $1,602,000).

Key management personnel compensation

No compensation was paid or is payable by the Company to any

executive of the Manager in his or her capacity as a director or officer

of the Company.

During the year ended December 31, 2021, the independent directors

of the Company received directors’ fees aggregating $225,000 (2020

– $233,000) from the Company. No other compensation was paid

or is payable to the directors of the Company for the year ended

December 31, 2021, except for compensation paid by the Company in

respect of such persons acting as members of the Independent Review

Committee for the Company, aggregating $29,000 (2020 – $35,000).

Financial Instruments by Category

Related Party Information

2021 Annual Report | Canadian General Investments, Limited

The Company participates in a securities lending program with its

custodian, CIBC Mellon Trust Company. Collateral is held by the

custodian as agent for the Company and generally comprises Canadian

or provincial government-guaranteed securities or obligations of other

governments with appropriate credit ratings, and other short-term

securities, of at least 105% of the fair value of securities on loan. In the

event that any of the loaned securities are not returned to the Company

and the value of the collateral held is less than the fair value of the

securities not returned, the custodian shall indemnify the Company for

any such shortfall.

At December 31, 2021, the Company had loaned securities with a

fair value of $151,388,000 (December 31, 2020 – $81,874,000) and

the custodian held collateral of $161,963,000 (December 31, 2020

– $84,029,000). This collateral is not reflected in the statements of

financial position and consisted of the following:

A reconciliation of the gross earnings from securities lending to the net earnings from securities lending is as follows:

December 31,

2021

December 31,

2020

Securities lending collateral

Federal government debt securities

36.3% 51.5%

Provincial government debt securities

14.4% 29.5%

U.S. government debt securities

49.3% 17.5%

Foreign government debt securities

0.0% 1.5%

100.0% 100.0%

(in thousands of dollars)

December 31, 2021 December 31, 2020

Gross securities lending earnings

1,172 100.0% 2,091 100.0%

Fees

(289) (24.7%) (712) (34.1%)

Withholding taxes

(214) (18.2%) (63) (3.0%)

Net securities lending earnings

669 57.1% 1,316 62.9%

Securities Lending

CORPORATE INFORMATION

BOARD OF DIRECTORS

James F. Billett

President, J.F. Billett Holdings Ltd.

Marcia Lewis Brown

Board Director

A. Michelle Lally

Partner, Osler, Hoskin & Harcourt LLP

Jonathan A. Morgan

Executive Vice-President and Chief

Operating Officer,

Morgan Meighen & Associates Limited

Vanessa L. Morgan

President & Chief Executive Officer,

Morgan Meighen & Associates Limited

R. Neil Raymond

President, Feejay Corporation Canada Ltd.

Michael A. Smedley

Executive Vice-President & Chief Investment

Officer, Morgan Meighen & Associates Limited

AUDIT COMMITTEE

James F. Billett (Chair)

A Michelle Lally

R. Neil Raymond

CORPORATE GOVERNANCE

COMMITTEE

Marcia Lewis Brown

Jonathan A. Morgan

R. Neil Raymond (Chair)

INDEPENDENT DIRECTORS

COMMITTEE

James F. Billett

Marcia Lewis Brown

A. Michelle Lally (Chair)

R. Neil Raymond

OFFICERS

Vanessa L. Morgan, CFA

Chair

Jonathan A. Morgan, CIM

President & CEO

Frank C. Fuernkranz, CPA, CA, CFA

Secretary & CFO

Christopher J. Esson, CPA, CA, CFA

Treasurer

OFFICE OF THE COMPANY

10 Toronto Street

Toronto, Ontario, Canada M5C 2B7

Telephone: (416) 366-2931

Toll Free: 1-866-443-6097

Fax: (416) 366-2729

e-mail: cgifund@mmainvestments.com

website: www.canadiangeneralinvestments.ca

MANAGER

Morgan Meighen & Associates Limited

Toronto

AUDITOR

PricewaterhouseCoopers LLP

Toronto

INDEPENDENT REVIEW COMMITTEE

James F. Billett

Marcia Lewis Brown

A. Michelle Lally

R. Neil Raymond (Chair)

CANADIAN REGISTRAR

AND TRANSFER AGENT

Computershare Trust Company of Canada

100 University Avenue, 8th Floor

Toronto, Ontario, Canada M5J 2Y1

Telephone:

Canada & U.S.: 1-800-564-6253

Overseas: 1-514-982-7555

Fax:

Canada & U.S.: 1-888-453-0330

Overseas: 1-416-263-9394

website: www.computershare.com/investor

To change your address, eliminate multiple

mailings or for other shareholder account

inquiries, please contact Computershare at

the above address. We are pleased to offer

you the convenience of Direct Registration

System (DRS), a system that allows you to

hold securities in ‘book entry’ form without

the need for a physical certificate. To

participate, simply send your share certificate to

Computershare along with a letter requesting

the deposit of the shares into DRS.

U.K. TRANSFER AGENT

Computershare Investor Services PLC

P.O. Box 82

The Pavilions, Bridgwater Road

Bristol, BS99 6ZY United Kingdom

Telephone: +44 (0) 370 702 0003

Fax: +44 (0) 370 703 6101

website: www.computershare.com/investor

STOCK EXCHANGE LISTINGS

The Toronto Stock Exchange

Trading Symbols:

Common Shares CGI

Preference Shares,

Series 4 CGI.PR.D

The London Stock Exchange

Trading Symbol:

Common Shares CGI

PUBLICATION

Net asset value per share (NAV) and/or market

price and market return are published daily/

weekly in various media in Canada and the U.K.

The Company posts ongoing top 10 portfolio

investments (priced at market), together with

current NAV and market return information

on its website. CGI also posts its top 25

holdings on its website on a quarterly basis.

Similar information is available directly from

the Company upon request.

DIVIDEND REINVESTMENT AND

SHARE PURCHASE PLAN

The Plan, administered by the Company’s

Canadian Transfer Agent, offers an efficient

method of acquiring additional shares. As well

as with reinvested dividends, shareholders

may purchase additional shares for cash

(minimum $100 – maximum $5,000) every

quarter. Shares are purchased on the open

market, with participants paying the average

cost while the Company pays all administrative

charges, including commissions. The Plan

may be used for self-directed RRSPs. Also, a

number of Canadian brokers offer dividend

reinvestment plans to CGI shareholders. Note:

U.S. shareholders are eligible for the dividend

reinvestment segment of the plan only.

ANNUAL MEETING OF

SHAREHOLDERS

The Annual General Meeting of shareholders

of Canadian General Investments, Limited will

be held Thursday, the 14th day of April, 2022

at 9:00 a.m. (Toronto time) solely as a virtual

meeting by way of live webcast at https://

web.lumiagm.com/445460698. Information

concerning how registered shareholders

and duly appointed proxyholders may

attend, participate and vote at the Meeting,

and guests may attend the Meeting, can

be found in the Management Information

Circular dated February 28, 2022 which is

available on the Company’s website at www.

canadiangeneralinvestments.ca or SEDAR at

www.sedar.com.

Managed by:

CANADIAN GENERAL INVESTMENTS, LIMITED

10 Toronto Street, Toronto, Ontario, Canada M5C 2B7

Telephone: (416) 366-2931 Toll Free: 1-866-443-6097 Fax: (416) 366-2729

e-mail: cgifund@mmainvestments.com

website: www.canadiangeneralinvestments.ca