The first half of 2023 was marked by support for our partner companies in an uncertain economic environment
Highlights for the six-month period ended June 30, 2023
- Share price: $17.75, up $0.47 from December 31, 2022
- Non-annualized return: 2.7%
- Non-annualized return of Investments impacting the Québec economy portfolio: 4.3%
- Non-annualized return of Other investments portfolio: 2.5%
- New amounts committed by CRCD and its partner funds: $150 million in 79 SMEs, cooperatives and funds
Montréal, August 17, 2023 – Following the six-month period ended June 30, 2023, Capital régional et coopératif Desjardins (CRCD) announced that its share price is set today at $17.75, an increase of $0.47 compared with December 31, 2022. CRCD ended the first six months of 2023 with net earnings of $68.5 million, representing a non-annualized return of 2.7%. As at June 30, 2023, CRCD’s net assets stood at $2,586 million.
The compounded return of the share is 4.6%1 over seven years, the mandatory minimum holding period for shares of CRCD, plus the income tax credit claimed on purchase.
The 2023 interim results stem primarily from the Investments impacting the Québec economy and Other investments portfolios, which generated non-annualized returns of 4.3% and 2.5%, respectively.
The positive return from the Investments impacting the Québec economy portfolio was fuelled mainly by the overall solid performance of portfolio companies and the changes in interest rates. The Other investments portfolio’s performance was attributable to the turnaround in stock markets as well as to bonds, which provided satisfactory income while generating gains in a relatively stable rate environment.
During the first six months, share redemptions totalled $42.0 million.
Supporting entrepreneurs – a priority
As in the last six-month period, an overall slowdown in investment activities was observed. Some sectors were more affected than others by the inflationary economic environment as well as labour and supply chain issues, which are however slowly improving. Meanwhile, some sectors had the wind in their sails even though for most organizations the period was more favourable to a tightening of controllable expenditure.
As at June 30, 2023, CRCD and its partner funds supported 770 companies, cooperatives and funds with commitments of $2,301 million, of which $150 million was committed during the six-month period.
"In the current economic environment, it’s essential that we continue to offer our support to our partner companies. The results announced today demonstrate that we are acting as responsible fund managers while offering Québec SMEs the tools to grow and meet the many challenges they are facing. With a mission to support entrepreneurship in Québec, we back promising projects by adapting our solutions to the needs of entrepreneurs. This is reflected in particular in the consultancy services provided in the area of sound governance, succession planning, more sustainable business processes and much more," stated Nathalie Bernard, Chief Operating Officer of Desjardins Capital, CRCD’s manager.
The next pre-subscription period to purchase shares will run from August 28 to September 18, 2023. The authorized amount for the CRCD's 2023 issuance is $59,751,100.
1. As at June 30, 2023, the share’s compounded returns were 3.0% over one year, 5.6% over three years, 3.9% over five years, 4.6% over seven years and 4.5% 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 online before investing.
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