Capital régional et coopératif Desjardins announces a return of 2.5% for the first six months of 2012
A 7th consecutive increase that raises share value to $11.28
- Net income of $30.9 million
- Non-annualized return of 2.5%
- Increase of $0.26 in share value
- Net assets of $1,348.5 million
- Nearly $100 million in investments made in the first six months
Montréal, August 16, 2012 – Capital régional et coopératif Desjardins (CRCD) today released its financial results for the first six months of fiscal 2012, announcing a non-annualized return of 2.5% and net income of $30.9 million, compared with $11.9 million for the same period in 2011. Accordingly, as of noon today, per share value raises by $0.26 to $11.28, CRCD’s seventh consecutive semi-annual increase. Net assets are now $1,348.5 million and total commitments at cost amount to $672.2 million.
Asked to comment on this very strong performance, Chairman of the Board André Lachapelle stated, “These results – positive for more than three years now – are mainly due to the profitability of our portfolios and they prove the merit of our investment strategies. Our manager’s high level of skill is amply demonstrated by keeping our chosen strategies firmly in the crosshairs and maintaining a prudent stance against markets that remain highly volatile and persistent economic uncertainty.”
Driven by the solid profitability of the companies it holds, the Investments impacting the Québec economy portfolio produced a non-annualized return of 6.8% for the first six months of 2012, compared with 4.4% for the same period last year. The Other investments portfolio, made up mainly of bonds and whose performance is tied to changes in interest rates, yielded a non-annualized return of 2.2% for the first half of the year, compared with 1.8% for the same period in 2011.
Marie-Claude Boisvert, Chief Operating Officer of Desjardins Venture Capital, CRCD’s manager, confirmed that with almost $100 million in investments, CRCD had had one of the most active six-month periods in its history. “This significant amount, which is mainly attributable to two new major investments as well as a substantial reinvestment in La Coop fédérée, confirms our role as a regional economic driver. With its partners, CRCD now supports more than 300 companies, cooperatives and funds, helping to create and retain 44,000 jobs.”
Ms. Boisvert particularly emphasized the additional levers CRCD uses to advantage in carrying out its mission. “Over the last six months, in collaboration with the Québec government and other partners, we have contributed to a number of initiatives, including the Prêt à entreprendre program, to support new entrepreneurs. In addition, the Capital croissance PME fund, which has already backed the growth of close to 100 companies, is another fine example of the leverage we have for supporting our entrepreneurship, prioritizing Québec ownership, and growing the collective wealth of our regions. Last, but not least, Desjardins – Innovatech’s imminent creation of an ecosystem composed of various funds and partners will provide the environment to support Québec technology businesses through each stage of their development,” she explained.
High profile shares
The shares of Capital régional et coopératif Desjardins’ 2012 issue sold out in under five days. This outstanding pace once again demonstrates investor enthusiasm for a financial product that provides benefits not only for them, but for all of Québec. CRCD is proud to continue contributing to the economic development of every region of Québec.
About Capital régional et coopératif Desjardins
Capital régional et coopératif Desjardins is a publicly traded company managed by Desjardins Venture Capital. With close to 105,000 shareholders and net assets of $1,350 million, the Company contributes to economic development by valuing and nurturing the best of Québec entrepreneurship. Directly or indirectly through partner funds, CRCD supports the growth of more than 300 companies, cooperatives and funds in various industries spanning all Québec regions. (capitalregional.com)