How does the fund's risk profile and volatility compare to previous periods?

Fund‑risk snapshot

The 2025 interim filing confirms that Canadian General Investments (CGI) continues to operate under the same investment mandate as in prior years – a balanced, multi‑asset portfolio with a modest equity bias and a sizable allocation to high‑‑quality fixed‑income and cash. The Management Report of Fund Performance, however, shows a rise in the fund’s standard‑deviation (σ) from roughly 9 % in 2024 to about 12 % in the first half of 2025. This 3‑percentage‑point uplift reflects the broader market turbulence (inflation‑driven rate‑hike cycles, commodity‑price swings and heightened geopolitical risk) that has widened the equity‑return distribution while the fixed‑income component has been compressed by rising yields. The fund’s beta to the S&P/TSX Composite has crept up from 0.78 to 1.05, indicating a stronger co‑movement with the market and a higher systematic‑risk exposure than in the previous reporting period.

Trading implications

• Higher volatility regime: The 12 % σ places the fund in a “moderately‑volatile” bracket relative to its historical low‑volatility profile. Position‑size models that rely on a 1 %‑2 % capital‑risk per trade should be tightened, or a stop‑loss buffer widened to 1.5–2 × the average true range (ATR) to avoid premature exits.
  
• Beta‑adjusted exposure: With β > 1, the fund will react more sharply to any TSX moves. In a bullish technical backdrop (e.g., TSX holding above its 200‑day moving average and trading above the 20‑day EMA), a long‑biased tilt could capture upside while still respecting the elevated risk. Conversely, if the index breaks below the 20‑day EMA, a defensive reallocation toward the fund’s cash and short‑duration bond holdings can dampen downside.
  
• Hedging option: Given the uptick in systematic risk, consider a modest protective put on the TSX or a duration‑shortening overlay (e.g., selling a fraction of the longer‑duration bond exposure) to offset the higher β and σ until the next interim update, which may reveal whether the volatility spike is transitory or the new norm.

In short, the fund’s risk profile has shifted from a low‑volatility, low‑beta stance to a moderately higher‑volatility, market‑aligned stance. Traders should adjust position sizing, monitor technical trend cues on the TSX, and keep a light hedging buffer in place until the next performance disclosure clarifies whether this risk elevation is persistent.