Highlights for the six-month period ended June 30, 2021
- Share price: $17.49, up $1.27 from December 31, 2020
- Non-annualized return: 7.8%
- Net earnings: $175.8 million
- Non-annualized return of Investments impacting the Québec economy portfolio: 14.1%
- Non-annualized return of Other investments portfolio: 1.8%
- New amounts committed by CRCD and its partner funds: $284 million in 130 SMEs, cooperatives and funds
Montréal, August 12, 2021 - For the six-month period ended June 30, 2021, Capital régional et coopératif Desjardins (CRCD) announced that its share price was set today at $17.49, up $1.27 compared with December 31, 2020. For the first six months of fiscal 2021, CRCD realized net earnings of $175.8 million for a non-annualized return of 7.8%. As at June 30, 2021, CRCD's net assets stood at $2,423 million.
Over seven years, the mandatory minimum holding period for shares of CRCD, the compounded return of the share is 5.6%,1 plus the income tax credit claimed on purchase.
Results for the six-month period were mainly attributable to the Investments impacting the Québec economy portfolio, which generated a non-annualized return of 14.1% powered by the excellent performance of portfolio companies. In fact, SMEs intensified their reopening activities, approaching near-normal following the slow-down brought on by the pandemic, although some in certain fields continue to lag.
"During the first six months of 2021, investments by CRCD and its partner funds reached $284 million," said Marie‑Hélène Nolet, Chief Operating Officer of Desjardins Capital, CRCD's manager. "The data reflects a dynamic corporate finance market, supported by a strong recovery in the Québec economy. I'd like to thank entrepreneurs for their confidence in us, year after year. And hats off to the Desjardins Capital teams that every day embody our mission to value and nurture the best of Québec entrepreneurship."
$140 million in new shares on sale in the 2021 issue, with a Québec tax credit of 30%
Pre-subscription for the shares will take place from August 30 (9 a.m.) to September 20, 2021 (5 p.m.) through AccèsD or via the secure online form available during that time at www.desjardins.com/investCRCD. For 2021, the maximum amount per investor remains $3,000. Investors selected at the end of the pre-subscription period will have until November 1, 2021 to complete their subscription.
Exchanges of shares in 2021
The 2021 registration period for exchange of shares will run from November 29, 2021 to January 7, 2022. Eligible shareholders who request a share exchange are now guaranteed a 10% tax credit. This year, the authorized amount of $50 million will be distributed prorated to total demand. All shareholders affected by the measure will be contacted by mail to notify them to express their interest via an online form.
About Capital régional et coopératif Desjardins
With nearly 109,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $2,423 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. As at June 30, 2021, commitments across the CRCD network totalled $1,625 million to support the growth of 610 businesses, cooperatives and funds in various industries spanning all Québec regions. (www.capitalregional.com/en)
1As at June 30, 2021, the share's compounded returns were 16.1% over one year, 6.0% over three years, 6.2% over five years, 5.6% over seven years and 5.7% 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, as applicable. These rates do not take into account any income taxes payable by any shareholder that would have reduced returns. 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 online before investing.