Capital régional et coopératif Desjardins (CRCD) retains share value in first half of 2013, despite bond market disruptions.
Performance of CRCD company portfolio maintains share value
Highlights as at June 30, 2013
- Share value: $11.47
- Net income: $2.0 million
- Non-annualized return: 0.1%
- Net asset value: $1,472.7 million
- Share issuance: $150.0 million
- Share issue expenses, net of related taxes: $1.7 million
- Non-annualized return of Investments impacting the Québec economy portfolio: 4.1%
- Non-annualized return of Other investments portfolio: -0.9%
Montréal, August 15, 2013 – Capital régional et coopératif Desjardins (CRCD or the Company) today released its financial results for the first half of fiscal 2013, announcing that its share value remained unchanged. This resulted primarily from a recent increase in bond rates in June 2013, which affected its Other investment portfolio return. CRCD ended the period with $2.0 million in net income for a non-annualized return of 0.1%. Net income combined with share issue expenses (net of related taxes) of $1.7 million recognized in share capital resulted in the retention of net assets per share at $11.47, as of noon today.
CRCD Chairman André Lachapelle provided perspective for the Company’s results for the first six months of 2013. “The shift in bond rates was unavoidable. Over the past few years, that market, which accounts for a significant portion of our Other investment portfolio, has been favourable for us. We took calculated risks — a strategy that has paid off, as it long benefited shareholders,” said Mr. Lachapelle. In that regard, to optimize the Other investment portfolio returns, Mr. Lachapelle added that the manager continually reviews and adjusts the investment strategy as needed in light of market conditions.
Consisting mainly of bonds whose yields are tied to changes in interest rates, the Other investment portfolio reported a negative non-annualized return of 0.9% for the first half of fiscal 2013, compared with a positive return of 2.2% for the same period of 2012.
Marie-Claude Boisvert, Chief Operating Officer of Desjardins Venture Capital, the manager of Capital régional et coopératif Desjardins, highlighted the performance of CRCD’s Investments impacting the Québec economy portfolio. “We generated a non-annualized return of 4.1% for the first six months of the year, compared with 6.8% for the same period last year. In other words, the performance of our partner companies helped retain CRCD’s share value at its current level,” said Ms. Boisvert.
Net assets now stand at $1,472.7 million with total commitments at cost amounting to $734.1 million. Including indirect investments by partner funds Capital croissance PME and Desjardins–Innovatech, CRCD helped maintain and create nearly 48,000 jobs throughout Québec with over 343 companies, cooperatives and funds.
Invariably prized shares
Once again this year, the brilliant success of CRCD’s share issuance is proof of shareholder commitment to the economic development of Québec’s regions. Over 34,000 investors from all across the province took part in the $150 million capital raising campaign.
About Capital régional et coopératif Desjardins
With over 104,000 shareholders and $1,473 million in net assets, Capital régional et coopératif Desjardins is a publicly traded company managed by Desjardins Venture Capital. The Company contributes to Québec economic development through several levers developed with its manager, with CRCD as the driving force. These levers form CRCD’s entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 390 companies, cooperatives and funds in various industries spanning all Québec regions. (capitalregional.com)