Highlights as at December 31, 2022
- Share price: $17.28, down $0.62 from December 31, 2021
- Annual return: -3.4%
- Return on Investments impacting the Québec economy portfolio: -0.1%
- Return on Other investments portfolio: -3.4%
- New amounts committed by CRCD and its partner funds: $476 million in 232 SMEs, cooperatives and funds
Montréal, February 16, 2023 – Capital régional et coopératif Desjardins (CRCD) released its financial results. Following difficult economic conditions, CRCD reported a net loss of $87.9 million and a negative return of 3.4% for fiscal 2022. Net assets stood at $2.559 million as at December 31, 2022, down 1.4% compared with the previous year. With these results, share value amounted to $17.28, effective noon today. These annual results were mainly generated from investments in companies and market investments.
While the return on Investments impacting the Québec economy increased significantly in 2021, due to a rapid economic recovery following the pandemic, its negative return of 0.1% in 2022 resulted from the uncertain economic context, which negatively affected the profitability of businesses in some sectors.
The Other investments portfolio's negative return of 3.4% was mainly attributable to the decline in bond prices caused by the rise in long-term interest rates during the first half of the year. On the upside, real estate funds and market-neutral equity strategy funds performed well.
Amid great turbulence in the stock and bond markets in 2022, CRCD’s financial asset management strategy, which aims to maintain a balanced profile overall, was fully vindicated, allowing it to mitigate fluctuations in value during periods of high volatility. CRCD aims for a balance between its mission to drive regional economic development and reasonable long-term return for the shareholders. It is therefore important to consider performance over a longer period of time. Over seven years, the minimum holding period for shares of CRCD, the compounded annual return of the share is 4.6%,1 — and that’s on top of the income tax credit claimed on purchase.
Capital subscriptions during fiscal 2022 reached $140.1 million, while share redemptions totalled $87.8 million.
As at December 31, 2022, CRCD and its partner funds supported 757 companies, cooperatives and funds with commitments of $2.275 million, of which $476 million was committed during the fiscal year. Some 74% of those SMEs are located in regions other than Montréal and the Capitale-Nationale.
“Despite the unstable economic environment, 2022 was a good year in terms of investment, thanks to a very active first six months. I’m proud of our support for more than 750 SMEs, to ensure their sustainability and continuity in Québec. As always, we remain attentive to entrepreneurs by adapting our solutions to their needs, with as much flexibility as the situation requires,” noted Marie-Hélène Nolet, Chief Operating Officer of Desjardins Capital, CRCD’s manager.
The 2022 issuance allowed more than 48,000 investors to buy shares in the maximum authorized amount of $140 million. Moreover, total shareholder demand for the share exchange was triple the authorized amount of $50 million with applications accepted in early 2023 prorated to demand.
About Capital régional et coopératif Desjardins
With more than 113,600 shareholders, CRCD is a public company with $2.559 million in net assets. It 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 December 31, 2022, $2.275 million in commitments had been made through CRCD’s ecosystem to support the growth of 750 businesses, cooperatives and funds in various industries spanning all Québec regions. (www.capitalregional.com)
1 As at December 31, 2022, the share’s compound returns were -3.5% over one year, 2.7% over three years, 4.2% over five years, 4.6% over seven years and 4.2% 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.
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