First half of 2022 impacted by the economic environment
Highlights for the six-month period ended June 30, 2022
- Share price: $17.23, down $0.67 from December 31, 2021
- Non-annualized return: -3.7%
- Non-annualized return of Investments impacting the Québec economy portfolio: -1.8%
- Non-annualized return of Other investments portfolio: -4.9%
- New amounts committed by CRCD and its partner funds: $329 million in 159 SMEs, cooperatives
and funds
Montréal, August 11, 2022 – Following the six-month period ended June 30, 2022, Capital régional et coopératif Desjardins (CRCD) announced that its share price is set today at $17.23, down $0.67 compared with December 31, 2021. CRCD ended the first six months of 2022 with a net loss of $95.8 million, representing a negative non-annualized return of 3.7%. As at June 30, 2022, CRCD’s net assets stood at $2,457 million.
The compounded return of the share is 5.1%1 over seven years, the mandatory minimum holding period for shares of CRCD, plus the income tax credit claimed on purchase.
The results for the first half of 2022 stem primarily from the Investments impacting the Québec economy and Other investments portfolios, which generated negative non-annualized returns of 1.8% and 4.9%, respectively.
Investments impacting the Québec economy portfolio performance resulted primarily from the higher interest rates during the six-month period and the lower profitability of several companies that were impacted by the economic turbulence, mainly inflation, higher raw material costs, labour shortage and supply issues.
The Other investments portfolio's return was mainly attributable to the decline in bond prices caused by the significant rise in interest rates during the six-month period. On the upside, real estate funds and market-neutral equity strategy funds generated positive returns.
In the current economic environment, the global management approach for financial assets adopted by CRCD since a number of years, which aims to limit share price volatility in periods of market turbulence or unfavourable events at partner companies, clearly demonstrated its effectiveness during the last six months.
Share subscriptions amounted to $0.2 million during the first half of 2022, which is the remainder of the 2021 issue, while redemptions totalled $42 million.
An active presence among entrepreneurs
During the first six months of fiscal 2022, CRCD and its ecosystem recorded $329 million in new commitments in 159 companies, cooperatives and funds. As at June 30, 2022, the ecosystem supported a total of 750 companies, cooperatives and funds through $2,181 million committed across Québec.
"We're supporting socio-economic development throughout Québec and backing promising projects while taking into consideration the current context. We know that we're going through turbulent times so we make sure to make the best business decisions by acting as a responsible fund manager. We continue to offer the best solutions possible to companies that need to show resilience in the face of numerous challenges," noted Marie-Hélène Nolet, Chief Operating Officer of Desjardins Capital, CRCD’s manager.
$140 million in new shares for sale in the 2022 issue, with a Québec tax credit of 30%
Pre-subscription for the shares will take place from August 29 (9 a.m.) to September 19 (5 p.m.), 2022, through AccèsD or via the secure online form available during that time at www.desjardins.com/crcd. For 2022, the maximum amount per investor remains $3,000. Investors selected at the end of the pre-subscription period will have until October 31, 2022 to complete their subscription.
Exchanges of shares in 2022
The 2022 registration period for the exchange of shares will run from November 28, 2022 to January 6, 2023. Eligible shareholders requesting the exchange of their shares will continue to benefit from a tax credit of 10%. As in the past year, the authorized amount of $50 million will be distributed on a pro-rata basis to total demand. All shareholders affected by the measure will be contacted by mail to let them know to express their interest using an online form.
About Capital régional et coopératif Desjardins
With more than 111,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $2,457 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, 2022, $2,181 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 June 30, 2022, the share’s compounded returns were -1.5% over one year, 2.5% over three years, 4.6% over five years, 5.1% over seven years and 4.3% 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 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 their future returns. Investment fees may apply. Please read the prospectus onlinebefore investing.
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Marc-Antoine Lavoie
Capital régional et coopératif Desjardins
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