CRCD generated a return of 6.4% in 2017
Proud to contribute to the economic development of all regions across Québec
Highlights as at December 31, 2017
- Share price: $14.09, up $0.83 compared with $13.26 as at December 31, 2016
- Net earnings: $112.8 million
- Annual return: 6.4%
- Net assets: $1,945.3 million
- Amounts committed by CRCD and its partner funds: $1,076 million in 450 SMEs and cooperatives
- Solid return of the Investments impacting the Québec economy portfolio: 12.7%
Montréal, February 15, 2018 - Capital régional et coopératif Desjardins (CRCD) announced that its share price has increased by $0.83 to $14.09, compared with the price a year earlier. CRCD generated net earnings of $112.8 million in 2017 for an annual return of 6.4%. These results stem primarily from Investments impacting the Québec economy and also from Other investments, which generated returns of 12.7% and 4.2%, respectively. Over seven years, the minimum holding period for shares of CRCD, the compounded return of the share is 5.2% (i) -- and that's on top of the income tax credit claimed on purchase.
CRCD's net assets stood at $1,945.3 million as at December 31, 2017, up 8.7% compared with the previous year.
Our mission: value, support and nurture businesses and cooperatives across Québec
As at December 31, 2017, CRCD and its partner funds had commitments of $1,076 million in 450 companies, cooperatives and funds, contributing to the creation and retention of some 67,000 jobs. Of these companies, 74% were located in administrative regions other than Montréal and Capitale-Nationale and represent total assistance of $599 million. Furthermore, 18 cooperatives received commitments totalling $196 million.
"As CRCD's manager, we're constantly on the lookout for innovative means to better support our entrepreneurs, and the partnership with Desjardins Private Wealth Management (DPWM) entered into in fall 2017 is a reflection of this ambition. It extends CRCD's mission by allowing its shareholders and DPWM's clients to join forces and offer patient capital for supporting growth in businesses across Québec," stated Luc Ménard, Chief Operating Officer, Desjardins Capital.
Investors once again demonstrate their support for growth in regional businesses
Last fall, pre-subscription applications exceeded the maximum authorized amount of $135 million for the 2017 issue. All available shares were allocated to investors selected under the established process. During fiscal 2017, share redemptions totalled $89.3 million compared with $70.4 million in 2016.
The pre-subscription details for the 2018 issue will be announced in a press release at a later date.
About Capital régional et coopératif Desjardins
With more than 105,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,945 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 an entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Through its network, CRCD supports the growth of 450 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 67,000 jobs. (www.capitalregional.com)
(i) The share's compound returns were 6.3% over one year, 5.3% over three years, 4.2% over five years and 3.6% 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.