 |
Message
from the
Chairman
of the Board |
IMPRESSIVE
ACHIEVEMENTS AND FAVOURABLE MEASURES
2007
was a milestone year for Capital régional et coopératif Desjardins.
In the fall, the Québec Ministère des Finances introduced new
measures to secure appropriate, permanent capitalization of
the fund, and modified investment standards to reflect changing
market conditions. As of March 1, 2008, annual share issues
of $150 million are authorized as long as total capitalization
of new and outstanding shares does not exceed $1 billion.
Ensuring fund continuity will allow our manager, Desjardins
Venture Capital, to align its management approach more closely
with the venture capital sector, given that coaching businesses
and cooperatives generally extends over more than five years.
These improved measures position Capital régional et cooperative
Desjardins to fulfil its regional economic development mission
through patient capital investment in Québec businesses and
cooperatives.
This
initiative also held a boon for shareholders. As of November 10,
2007, the tax credit for share purchases increased from 35%
to 50% and the yearly eligible maximum doubled from $2,500 to
$5,000. This is great news for investors looking for a vehicle
that gives them both tax benefits and attractive returns.
I
would be remiss in not underscoring the exceptional contribution
of the Desjardins caisse network in this regard. Following the
government announcement, share sales were suspended to allow
our fund manager to make the necessary changes to the issue
prospectus and related documents and systems. This was done
in record time and the caisse network quickly resumed sales
of available shares. Their extraordinary promotional effort
resulted in the sale of some $50 million in just three
days, confirming that the new measures make our shares both
attractive and popular.
Difficult
economic conditions during the year had an impact on our investment
portfolio and on share value. Nonetheless, Capital régional
et coopératif Desjardins’ manager maintained investment activity
in all Québec regions with great success. These astute investments,
which assure the growth and continuity of promising Québec businesses
and cooperatives, would not have been possible without the management
expertise of Desjardins Venture Capital. I would like to thank
Louis L. Roquet and his team for the tremendous support
they provide Québec entrepreneurs and for the strategic balance
of growth and stability they bring to our portfolio. Their dedicated
crafting of flexible, customized solutions allows us to fulfil
our development role even in periods of economic turbulence
and volatility.
I
would also like to highlight the establishment of the Bruno
Riverin Awards, created in tribute to his role in founding and
growing Capital regional et coopératif Desjardins. These Awards
honour outstanding businesses and cooperatives in our portfolio.
Capital
régional et coopératif Desjardins stems from an initiative implemented
and championed by Alban D’Amours, President and Chief Executive
Officer of Desjardins Group. On behalf of the Board of Directors
and myself, I would like to salute Mr. D’Amours for this outstanding
visionary achievement that, as of 2007 year-end, has made possible
capital raising from 120,652 investors, supported 195 businesses
and cooperatives in all regions of Québec and created nearly
30,000 jobs for Quebecers!
André
Lachapelle
Chairman of the Board of Directors
