Capital régional et coopératif Desjardins's share price edges up to $17.80
Highlights as at June 30, 2024
- Share price: $17.80, up $0.21 over December 31, 2023
- Non-annualized return: 1.2%
- Non-annualized return for the Investments Impacting the Québec Economy portfolio: 2.8%
- Non-annualized return for the Other Investments portfolio: 1.1%
- New amounts committed by CRCD and its partner funds: $75.1 million invested in 47 SMEs, cooperatives and funds.
Montreal, August 15, 2024 – Following the results of the six-month period ending June 30, 2024, Capital régional et coopératif Desjardins (CRCD) is announcing that as of today its share price is $17.80, which marks a $0.21 increase compared with its value at December 31, 2023. CRCD ended the first six months of 2024 with net earnings of $30.3 million, representing a non-annualized return of 1.2%. CRCD had net assets of $2,542 million as at June 30, 2024.
The 2024 interim results are primarily from the Investments Impacting the Québec Economy portfolio and the Other Investments portfolio, which generated non-annualized returns of 2.8% and 1.1%, respectively.
Although the economy has recently picked up, the negative effects of the past year's challenging economic environment continue to weigh on some partner companies' profit margins, in turn affecting the performance of the Investments impacting the Québec economy portfolio. Meanwhile, most asset classes in the Other Investments portfolio contributed positively to performance, with the exception of bonds, which were affected by rising long-term interest rates in the first half of the year.
Over seven years, which is the minimum mandatory holding period for CRCD shares, the compound return on the share was 3.7%[i], plus the tax credit obtained at the time of acquisition.
During the first half of the year, share redemptions amounted to $55.1 million.
As at June 30, 2024, there were 756 businesses, cooperatives and funds benefitting from $2,230 million in commitments from CRDC and its partner funds, including $75.1 million committed during the six-month period.
"While the economy has started to rebound, we're still keeping an eye out for financial turbulence that could affect our partner companies. In the current environment, companies with strong results are highly sought-after and as a result their stock values remain high, which is making new investment opportunities harder to come by," said Nathalie Bernard, Chief Operating Officer of Desjardins Capital, manager of CRCD. "We remain attentive to business opportunities while maintaining a prudent management approach to protect the interests of our shareholders. At the same time, we help the businesses in our portfolios grow by providing them with proactive support and paying special attention to their unique needs."
To buy shares
In 2024, CRCD was authorized to issue $125 million in shares. As before, the maximum investment amount is $3,000 per issue year and the provincial tax credit is 30%. The annual pre-subscription period will run from 9 a.m. on August 26 to 4 p.m. on September 16, 2024. For more information, go to www.desjardins.com/CRCD.
For more information:
Media inquiries only Desjardins Group Public Relations 514-281-7000, ext. 5553436 | Investors Shareholder Relations 1-888-522-3222 |
[i] As at June 30, 2024, the share's compounded returns were 0.3% over one year, 0.6% over three years, 2.1% over five years, 3.7% over seven years and 4.1% over 10 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 of return do not take into account the income tax credits obtained by the shareholder upon acquisition or exchange of shares, or 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 future returns. Investment fees may apply. Please read the online prospectus before investing.