Capital régional et coopératif Desjardins share price continues to rise, reaching $14.67 from $14.09
Non-annualized return of 4.1% for the six-month period
Highlights for the six-month period ended June 30, 2018
- Share price: $14.67, up $0.58 from December 31, 2017
- Non-annualized return: 4.1%
- Net earnings: $77.9 million
- Non-annualized return of the Investments impacting the Québec economy portfolio: 8.8%
Montréal – For the first half of the year ended June 30, 2018, Capital régional et coopératif Desjardins (CRCD) reported a non-annualized return of 4.1% and net earnings of $77.9 million. As a result, effective noon today, the share price is up $0.58, to $14.67. Net assets amounted to $1,977 million.
These results are largely attributable to very favourable performance by the companies in the Investments impacting the Québec economy portfolio, which recorded a non-annualized return of 8.8%. The Other investments portfolio ended the first half of the year with a non-annualized return of 0.9%. The combined performance of these portfolios generates reasonable long-term shareholder returns. Accordingly, the compounded return of the share is 5.6%[i] over seven years, the mandatory minimum holding period for shares of CRCD, plus the income tax credit claimed on purchase.
A regional presence, making a difference
“During the first six months of fiscal 2018, we committed a full $109 million to 70 companies and cooperatives,” noted Luc Ménard, Chief Operating Officer of Desjardins Capital, CRCD’s manager. “These investments by CRCD and the funds in its entrepreneurial ecosystem, along with the guidance offered by our teams to a wide range of entrepreneurs, help them expand their businesses, and create and maintain invaluable jobs.”
As at June 30, 2018, the ecosystem nurtured 462 companies, cooperatives and funds through $1,099 million committed across Québec. Of these companies, 76% are located in administrative regions other than Montréal and the Capitale-Nationale. And of the portfolio as a whole, 19 cooperatives benefited from commitments amounting to $196 million.
$140 million in shares for sale in the 2018 issue, with a Québec tax credit of 35%
Pre-subscription for the shares will take place from September 4 (9 a.m.) to September 24 (5 p.m.) via the secure online form available during that time at www.desjardins.com/crcd or through AccèsD.
For 2018, the maximum amount per investor has been set at $3,000. After the pre-subscription period, selected investors will have until November 9, 2018 to complete their subscriptions.
A new 10% tax credit for shareholders who defer redemption for another seven years
The Québec government has granted CRCD an annual amount of $100 million to allow shareholders to defer redemption of their eligible shares, or shares they have held for at least for seven years, for an additional seven years, in consideration for a new 10% tax credit. Accordingly, shareholders may exchange their existing shares, up to a value of $15,000 annually, for a new class of shares which they must also hold for at least seven years. All shareholders affected by the new measure will be contacted by mail to advise them of the registration period for expressing their interest.
About Capital régional et coopératif Desjardins
With more than 103,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,977 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Capital. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Through its network, CRCD supports the growth of over 460 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 67,000 jobs. (www.capitalregional.com)
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For journalists only
[i] The share’s compound returns were 6.4% over one year, 6.3% over three years, 5.0% over five years and 4.1% over ten years. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends or distributions and do not take into account any income taxes payable by any shareholder that would have reduced returns. The CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns. Investment fees may apply. Please read the prospectus before investing.