To value and nurture the best of Québec entrepreneurship

CRCD’s strategies

Back to homepage

STRATEGIC DIRECTIONS

Carrying out CRCD’s mission and vision is driven by the following four strategic goals:

  • Strengthen regional economic development
  • Ensure reasonable return on capital
  • Ensure adequate capitalization to meet our business objectives
  • Optimize the impact of our distribution network

To achieve this, CRCD’s manager organizes its teams to optimize efficiency and control of management fees. This administrative approach is designed to appropriately fulfil our mandate of driving regional and cooperative development and Québec’s economic development in general.

FINANCIAL ASSET MANAGEMENT STRATEGY

To better manage operations, CRCD now monitors changes in asset allocation and performance by investment profile. Each investment profile includes the assets held by CRCD and similar assets held by the funds in its entrepreneurial ecosystem according to their respective interests.

CRCD also has the mandate to maximize total shareholder returns while maintaining their capital value. Using a global approach to managing its financial assets, CRCD manages its portfolio of Investments impacting the Québec economy jointly with its Other investments portfolio. This management method allows us to obtain a more balanced overall portfolio, limiting volatility while we actively carry out our mission.

Investments impacting the Québec economy
Assets allocated to Investments impacting the Québec economy drive our mission of promoting the economic development of Québec regions and cooperatives by injecting development capital into Québec companies and cooperatives. The investment profiles related to this activity are:

Debt

  • These are investments in the form of advances and/or mainly unsecured loans and/or preferred shares.

Equity

  • These are investments comprising common shares that may be combined with advances and/or mainly unsecured loans in companies other than those included under the “Venture Capital” profile.

External funds

  • CRCD also invests in funds outside our entrepreneurial ecosystem.

Venture Capital

  • These are investments in companies specializing in technological innovations.

Return and allocation for CRCD’s entrepreneurial ecosystem by investment profile is as follows:

CRCD_rendement_écosystème_2016-12-31_ANG

The asset classes in the Investments impacting the Québec economy portfolio represent a substantial portion of CRCD’s financial assets. This portion will rise gradually to around 65% (35% for the Other investments portfolio).

Other investments
Other investments represents the balance of funds not invested in partner companies. This portfolio, consisting primarily of bonds (the majority being government-guaranteed), money market instruments, preferred shares and real estate funds, was established to provide steady current revenue for CRCD and ensure the necessary liquidity to fund share redemptions and investments.