Every month, This Money puts a senior fund or investment manager to task with difficult questions for us I am a fund manager series to learn how to manage your own money.
We want to know where they will invest for the next year – or even the next 10 years – and what they should do.
This week, we spoke with Greg Eckel, portfolio manager of Canadian General Investments (CGI).
In the hot seat: We quiz Greg Eckel on backed companies, are Bitcoin and Tesla worth it and the age-old question of growth versus value
Canadian General Investments is a closed-end equity fund established in 1930.
Close to half of the investment is in the information technology sector and the industrial sector. The largest individual owner is Nvidia.
1. If you could invest in only one company for the next 10 years, what would it be?
In the fast-paced digital world, patience seems to be a lost virtue. However, for the savvy investor, the long-term perspective remains the cornerstone of wealth creation.
Franco-Nevada Corporation, which is one of the largest investments since its 2007 IPO, reflects this long-term strategy.
As a global leader in gold royalties and streaming, Franco-Nevada offers investors a unique combination of yield and commodity exposure – making it the ‘go-to’ gold stock for generalists.
We look forward to continuing to deliver good results for the next decade and beyond.
The ‘go-to’ gold stock for generalists? Franco-Nevada Corporation has been one of the largest investors in Canadian Public Investment since its 2007 IPO
2. How about the next 12 months?
When considering investments, we are more interested in stable, reliable returns than short-term market fluctuations or event-driven bets.
That said, the market environment has drawn our attention to the real estate sector, and Colliers International Group, a leading global commercial real estate services company, is well positioned to benefit from the sector’s revival.
Colliers has produced impressive results historically, but the cycle of rising interest rates and the ongoing effects of the pandemic have weighed on its share price.
As the economy stabilizes and the real estate market recovers over the next 12 months, we expect stock prices to experience significant growth.
Real estate winner: Eckel reckons Colliers International Group, a global commercial real estate services company, is well-positioned to benefit from the sector’s revival
3. What sector are people most interested in?
Innovation is a constant force that improves results in the industry.
Modernization and the drive for improvement do not stop, and companies that lead this cost are often concentrated in the engineering and technology sector, making the area very attractive.
4. What sectors would you avoid and why?
We have reduced our exposure to the communications sector.
In Canada, it is a mature industry that remains highly competitive with limited growth opportunities.
Greg Eckel, Canadian General Investments portfolio manager
5. Do you think the US market is expensive and why?
As always, what matters is the individual companies that invest rather than the broad market view.
With about 24 percent of the portfolio allocated to the US market, we remain bullish on US holdings.
6. Which country offers the best value for investors?
Currently, the Canadian market is one of the most undervalued, with the S&P/TSX Composite Index trading at a historic discount compared to the US S&P 500.
While often overlooked, Canada will be the fastest growing G7 economy by 2025, providing stability in an uncertain time.
As a commodity-rich country, the country is well-positioned to benefit from the potential bull run in raw materials, further fueled by the global nuclear revival.
Coupled with its deep economic ties with the US, Canada offers attractive investment opportunities for UK investors.
7. Should investors focus on growth or value stocks?
We don’t usually get hung up on labels like growth or value to determine where we should be looking.
Good investments can be found in almost any category and sentiment towards one or the other changes over time.
8. What about active or passive investing?
There will always be different investment styles. Investors should create a portfolio that matches their risk appetite and financial goals.
Active and passive strategies have their place, as does diversification across asset classes.
Eckel thinks the Canadian market stands out as one of the most undervalued
Keep an open mind and prioritize performance over single factors like cost.
While passive strategies have taken center stage in recent years, history shows the success of active management.
9. Tesla – will it finally boom or bust?
Tesla has certainly benefited from early adoption and adoption in the electric vehicle space but, over time, its leadership will be challenged by others and the space will become more normal.
Of course it will remain the main specialist with others using some technology but, eventually, the playing field will level out and success or failure will depend on the competitive offering in the general car industry.
10. Nvidia – will you buy, hold, or sell?
Nvidia has once again surpassed Apple to become the most valuable company in the world.
We first bought Nvidia in 2016 and it has been a good investment for us.
We have been profitable every year since then, except for one, to keep our holdings within our risk tolerance for a single stock.
It is now the largest holding, with 7.6 percent of the portfolio.
Greg Eckel said the company has invested in Nvidia since 2016 and is now its largest shareholder.
11. Is gold a part of everyone’s portfolio?
Again, this depends on the financial goals of the investor. Gold has proven itself to be a useful hedge during market corrections, but as long-term investors, we see greater value in building a diversified portfolio of high-quality cash-generative companies.
12. What about bitcoin?
To me, Bitcoin is a mystery. If you can determine, trust the security of something intangible, ignore the lack of structured regulation, and grasp the unique investment dynamics, have fun.
Maybe one day I will be proven wrong. But for now, I stick with what I know and trust to generate long-term returns.
Compare the best DIY investment platforms and stocks & shares Isas
Investing online is easy, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When choosing a DIY investment platform, a stocks & shares Isa or a general investment account, some of the options can seem overwhelming.
Each provider has a slightly different offering, charging more or less to trade or hold shares and giving access to a variety of stocks, funds and investment trusts.
When considering which one is right for you, it’s important to look at the services offered, along with administration fees and dealing fees, plus other additional fees.
To help you compare the best investment accounts, we’ve rounded up the facts and created a comprehensive guide to choosing the best and cheapest investment accounts for you.
We highlight the main players in the table below, but would advise you to do your own research and consider the points in the full guide linked here.
>> This is Money’s complete guide to the best investment platforms and Isas
The platforms presented below were independently selected by This is Money specialist journalists. If you open an account using a link with an asterisk, This Money will earn you an affiliate commission. We do not allow this to affect our editorial independence.
| Admin fills | Expense records | fund transactions | Standard shares, trusts, trading ETFs | Regular investment | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell* | 0.25% | Max £3.50 per month for shares, trusts, ETFs. | £1.50 | £5 | £1.50 | £1.50 per offer | more details |
| Bestinvest* | 0.40% (0.2% for pre-made portfolios) | Account fees are cut to 0.2% for ready-made investments | It’s free | £4.95 | Free to fund | Free for income funds | more details |
| Charles Stanley Live * | 0.35% | There is no platform fee for shares if traded within the month and the annual maximum is £240 | It’s free | £11.50 | n/a | n/a | more details |
| fidelity* | 0.35% in funds | £7.50 per month up to £25,000 or 0.35% with a regular savings plan. | It’s free | £7.50 | Free fund £1.50 a share, trust ETF | £1.50 | more details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for shares, trusts, ETFs | It’s free | £11.95 | £1.50 | 1% (£1 min, max £10) | more details |
| Interactive Investor* | £4.99 per month under £50k, £11.99 above, £10 extra for Sipp | Free trading costs £3.99 per month (not applicable to £4.99 plans) | £3.99 | £3.99 | It’s free | £0.99 | more details |
| iWeb | £100 one-off fee (expired until December 2024) | £5 | £5 | n/a | 2%, max £5 | more details | |
| Accounts that have some limitations but attractive offers | |||||||
| Etoro* No investment funds or Sipp | It’s free | Investment accounts offer stocks and ETFs. Beware of high risk CFDs. | Not available | It’s free | n/a | n/a | more details |
| Trade 212* | It’s free | Investment accounts offer stocks and ETFs. Beware of high risk CFDs. | Not available | It’s free | n/a | It’s free | more details |
| Freetrade* No investment funds | Basic account free, Standard with Isa £5.99, Plus £11.99 | Freetrade Plus with other investments and Sipp is £9.99/month inc. fee Isa | There is no funding | It’s free | n/a | n/a | more details |
| Vanguard Only Vanguard’s own products | 0.15% | Only Vanguard funds | It’s free | Free only Vanguard ETFs | It’s free | n/a | more details |
| (Source: ThisisMoney.co.uk July 2024. Admin fee % can be purchased monthly or monthly | |||||||
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