Highlights as at December 31, 2021
- Share price: $17.90, up $1.68 compared with $16.22 as at December 31, 2020
- Annual return: 10.3%
- Record net earnings: $234.5 million
- Return on Investments impacting the Québec economy portfolio: 18.5%
- Return on Other investments portfolio: 4.4%
- Record amounts committed by CRCD and its partner funds in 2021: $698 million in 249 SMEs, cooperatives and funds
Montréal, February 10, 2022 — Capital régional et coopératif Desjardins (CRCD) announced that its share price today reached a new high at $17.90, up $1.68 from a year earlier. CRCD generated net earnings of $234.5 million in 2021 for an annual return of 10.3%. Net assets stood at $2,595 million as at December 31, 2021, up 14.2% compared with the previous year.
“Records for share price and net earnings are the cherry on top of the pride we feel celebrating CRCD’s 20th anniversary as an outstanding fund that supports vitality in Québec's regions year after year,” said Bernard Bolduc, Chair of CRCD’s Board of Directors.
Over seven years, the minimum holding period for shares of CRCD, the compounded return of the share is 5.8%1 — and that’s on top of the income tax credit claimed on purchase.
The annual results were mainly driven by Investments impacting the Québec economy, which generated a return of 18.5%, as the majority of portfolio companies and cooperatives performed very strongly in a recovery environment.
The Other investments portfolio generated a return of 4.4%, due mainly to strong performance by the equity funds held in the portfolio, fuelled by stock market advances. Securities in the bond market, which represented significant portfolio weight, felt the impact of interest rates once again on the rise, dragging returns lower.
Capital subscriptions during fiscal 2021 reached $140 million, while share redemptions totalled $53 million.
Record value for commitments supporting all regions across Québec
As at December 31, 2021, CRCD and its partner funds supported 672 companies, cooperatives and funds with commitments of $1,975 million, of which $698 million was committed in 2021, smashing the previous record of $400 million set in 2019. Nearly 73% of those SMEs are located in regions other than Montréal and the Capitale-Nationale.
“The amounts committed in 2021 allowed us to significantly surpass our target,” noted Marie-Hélène Nolet, Chief Operating Officer of Desjardins Capital, CRCD’s manager. “With our strong presence in the regions, over 75% of our transactions represented investments of $2 million or less. We also completed six transactions of over $25 million, or nearly 38% of the year’s commitments. We plan to build on our momentum in 2022 to help Québec entrepreneurs successfully meet their challenges such as labour shortages, supply chain issues, business transfers that keep ownership in Québec, automating production, e-commerce, and prospecting for new markets locally and abroad.”
Investor appetite still strong after 20 years
Shareholder interest in purchasing shares of the 2021 issue remained high as the maximum authorized amount of $140 million was fully subscribed. Moreover, shareholder demand for the 2021 share exchange exceeded the authorized amount of $50 million, with applications accepted in early 2022 prorated to demand.
1The share’s compound returns were 10.4% over one year, 5.3% over three years, 6.2% over five years, 5.8% over seven years and 5.0% 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. Please read the prospectus online before investing.