7 things to know about CRCD shares


Before the purchase process is launched, it's important to check whether the product is a good fit for the investor.

Marie-Christine Daignault | Desjardins Group

Each year, Capital régional et coopératif Desjardins (CRCD) shares are very popular among Quebec investors. Here's why:

1. The tax credit is 40% 
First launched in 2001, this financial product offers a Quebec tax credit of 40% and is non-RRSP eligible. It is especially beneficial for individuals who have a high taxable income or an RRSP that no longer gives them income tax savings.

2. The annual purchase amount is $3,000 per person
In 2017, $135 million in CRCD shares were made available for sale. To ensure increased availability of the shares, the annual maximum subscription is $3,000 per person. This year, these shares will be divided among at least 45,000 investors.

3. The minimum holding period is 7 years
Before the purchase process is launched, it's important to check whether the product is a good fit for the investor. CRCD shares offer an obvious tax advantage, but investors need to make sure that the product matches well with their investment horizon.
  
4. The current price of the share is $13.78
The CRCD share price has increased to $13.78, up $0.52. The compounded rate of return (without tax credit) is 5.0%  over 7 years, which is the mandatory minimum holding period for CRCD shares. At the current price of $13.78, shareholders who invested 7 years ago would earn an after-tax annual return of over 13.3%, taking into account the tax credit they received, which was 50% in August 2010.

5. CRCD shares offer development capital
The price of shares can fluctuate, so the value and returns are not guaranteed. That's why it's important to learn more about buying CRCD shares based on a tax and investment strategy. This non-RRSP product is mainly beneficial for individuals who can no longer contribute to an RRSP, but can accept a certain level of risk in their investments. 

6. CRCD shares offer concrete benefits, like creating and maintaining 68,800 jobs 
CRCD shares don't just offer tax advantages. By investing in CRCD shares, investors also contribute to their region's economic development. As at June 30, 2017, 430 Quebec businesses and cooperatives were benefiting from the support of the CRCD shares. With $1,065 million invested across Quebec, these SMEs help create and maintain 68,800 jobs. 

7. The online subscription period is from September 5 to 25 
Investors interested in buying CRCD shares have to fill out the secure online form during the 3-week pre-subscription period, from 9:00 a.m. on September 5, 2017 to 12:00 a.m. on September 25, 2017. 

Investors who don't have Internet access can go to a caisse, where a staff member will help them fill out the form.

The share's compounded rates of return are 6.6% for 1 year, 4.9% for 3 years, 4.1% for 5 years and 3.3% for 10 years. Each of these rates of return are the historical annual compounded total returns--including changes in share value and reinvestment of all dividends, if applicable--and do not take into account the income taxes payable by a shareholder that would have reduced returns. CRCD shares are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns.

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