13 Questions for Canadian General Investments’ Greg Eckel

Which
Sector
Shows
the
Biggest
Promise
in
2023?

In
the
general
sense,
technology
always
holds
the
biggest
promise
but
is
not
limited
to
any
particular
sector.
Advancements
are
accelerating
in
pace
and
diversity
and
now
include
almost
every
touchpoint
in
our
everyday
lives.
From
the
mundane
to
extraordinary,
discovery
to
application,
technology
remains
a
key
differentiator
and,
as
it
has
in
the
past,
will
have
a
profound
impact
on
our
future.

As
a
generalist
rather
than
a
specialist,
it
would
follow
that
for
us
the
general
technology
sector
as
a
whole
offers
the
most
tempting
of
choices.
We
tend
to
invest
in
more
mature
technology
businesses,
but
for
those
who
may
have
greater
insight
into
potential
transformational
change
in
any
particular
field,
the
choice
may
be
more
granular,
and
may
allow
them
to
deliver
good
returns
by
investing
in
earlier
stage,
more
binary
opportunities
which
we
would
find
too
risky
for
CGI’s
portfolio.

What’s
the
Biggest
Economic
Risk
Today?

This
largely
depends
on
the
timeframe.
In
the
near
to
medium
term,
it
is
likely
interest
rate
policy.
We
are
currently
in
a
period
of
flux,
transitioning
from
a
prolonged,
extremely
low
interest
rate
environment
with
a
recently
elevated
inflation
rate
to
a
somewhat
indeterminable
future.

A
delicate
balancing
act
is
required
of
Central
Banks
to
stabilise
economic
activity
without
catastrophic
consequences.
In
the
longer
term,
the
biggest
risk
to
the
economy
is
geopolitical.
Along
with
risks
associated
with
conflict,
the
use
of
trade
as
a
political
tool
has
increased
substantially.
An
escalation
in
either
of
these
issues
has
been
shown
to
have
a
greater
impact
on
the
supply-demand
dynamic
as
well
as
on
the
theoretical
efficiency
metric
as
the
world
has
become
more
integrated
over
time
and
would
disrupt
and
bridle
economic
growth
potential.

Describe
Your
Investment
Strategy

Canadian
General
Investments
Limited
provides
investors
with
an
easy
and
unique
opportunity
to
obtain
a
broad
exposure
to
the
Canadian
equity
market
and
can
be
viewed
as
a
“proxy”
for
Canada.
The
portfolio
is
actively
managed
so
is
different
than
its
benchmark
but
maintains
similarities
as
to
incorporating
diversification.
Focussed
on
the
long
term,
we
select
investments
using
a
combination
of
top-down
and
bottom-up
strategies. 

We
are
biased
to
bottom-up
because,
over
time,
this
has
been
shown
to
uncover
opportunities
that
have
contributed
outperformance.
Portfolio
turnover
is
kept
extremely
low
and
holdings
are
held
in
a
moderate
range
of
50-65
in
an
effort
to
beat
the
market
rather
than
just
become
the
market.
We
keep
cash
at
minimal
levels
and
are
committed
to
maintain
a
fully
invested
positioning
in
the
portfolio.  

Which
Investor(s)
Do
You
Admire?

There
have
been
many
and
the
number
will
continue
to
grow.
The
best
investors
observe
and
learn
from
various
sources
in
formulating
their
own
perspectives
and
ideas.

Name
Your
Favourite
‘Forever
Stock’

Forever
would
depend
on
one’s
definition.
We
have
held
a
few
investments
in
the
fund
for
over
a
decade
including
representation
in
our
world
class
Canadian
banking
sector
such
as
Royal
Bank
of
Canada
and
Bank
of
Montreal
and
Toronto
Dominion
Bank.
In
addition,
we
have
others
like
Franco-Nevada
Corporation
and
Canadian
Pacific
Kansas
City
Limited.
Although
there
is
no
current
intent
for
elimination
of
any
of
our
holdings
of
this
type,
I
wouldn’t
be
able
to
put
the
“forever”
tag
on
anything
as
the
pace
of
change
in
the
world
continues
to
accelerate
and
the
ability
to
adapt
remains
key.

What
Would
You
Never
Invest
In? 

I
would
never
invest
in
anything
that
I
can’t
formulate
a
reasonable
understanding
relative
to
the
investment
perspective.

Growth
or
Value?

There
are
opportunities
in
both
growth
and
value
but
our
long-term
focus
leads
us
to
favour
growth
in
return
in
respect
of
both
capital
and
income
metrics.

House
or
Pension?

In
Canada,
owning
a
house
has
not
only
provided
shelter
but
has
also
been
shown
to
be
a
very
good
investment
so
the
combination
probably
edges
the
pension
alone.

Crypto:
Brilliant
or
Bad?

The
underlying
Blockchain
technology
as
a
platform
is
brilliant
but
the
Crypto
application
at
this
stage
is
not
at
a
place
where
we
would
consider
it
a
viable
investment.

What
Can
be
Done
to
Improve
Diversity
in
Fund
Management?

There
are
a
number
of
initiatives
underway
to
address
diversity
in
many
industries
and
everyday
life,
including
Fund
Management,
but
it
will
take
time
to
evolve.
It
would
help
to
have
more
industry
initiatives
to
introduce
investing
ideas
and
fund
management
as
a
career
into
schools
and
colleges.

While
professional
investing
is
a
rewarding
and
stimulating
career,
all
individuals
need
to
understand
how
to
manage
their
financial
goals
and
liabilities
–
in
that
sense,
a
good
understanding
of
finance
and
investment
is
also
an
important
life
skill.
Engaging
while
children
are
still
at
school,
particularly
at
compulsory
school
age,
which
in
Canada
is
up
to
18,
would
tackle
both
industry
and
national
needs.

Have
you
Ever
Engaged
With
a
Company
and
Been
Particularly
Proud
(or
Disappointed)
of
the
Outcome?

We
tend
to
be
more
of
a
passive
investor
regarding
direct
engagement.
We
take
meetings
and
follow
companies
through
a
network
of
brokerages,
analysts
and
other
investors
in
order
to
make
our
initial
assessment
decision
as
well
as
monitoring
events
and
issues
that
may
arise
subsequent
to
making
an
investment.

It
is
our
belief
that
we
are
buying
into
and
aligning
ourselves
with
the
skills,
expertise
and
operational
capabilities
that
reside
within
the
companies
themselves
but
also
consider
and
incorporate
corporate
culture
and
behaviour
so
as
to
ensure
high
standards
are
kept
in
agreement
with
our
principles.

We
rarely
see
benefit
in
engaging
publicly
–
that
tends
to
encourage
emotion
which
can
cloud
rational
decision
making
for
both
companies
and
investors.
It
is
better
to
remain
rational: 
if
a
conflict
or
issue
should
arise,
we
would
investigate
to
see
if,
when
and
how
it
is
to
be
resolved
and,
if
not
satisfied,
we
would
prefer
to
exit
the
position. 

What’s
the
Best
Advice
You’ve
Ever
Been
Given?

The
best
advice
given
to
me
comes
from
childhood
Boy
Scout
days
and
is
the
motto
“Be
Prepared”.
Simple
but
extremely
effective
and
something
anyone
can
apply
to
almost
any
life
situation
including
investing
–
even
the
best
performing
stocks
can
have
their
negative
surprises.

What
Would
You
be
if
You
Weren’t
a
Fund
Manager?

Disappointed.

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