Press releases
Shares of Capital régional et coopératif Desjardins grow in value to a new high of $12.61
Turning 15!
Highlights as at December 31, 2015
- Share price: $12.61 compared with $12.05 as at December 31, 2014
- Net income: $74.8 million
- Annual return: 4.9%
- Net asset value: $1,642.1 million
- Investments impacting the Québec economy portfolio return: 12.8%
- Other investments portfolio return: 2.3%
Montréal, February 18, 2016 – Capital régional et coopératif Desjardins (CRCD) announced today it has reached a new historic high as its share price has risen to $12.61, a gain of $0.56 compared with the price a year earlier. CRCD generated net income of $74.8 million in 2015 for an annual return of 4.9%. Net assets stood at $1,642.1 million as at December 31, 2015, up 9.3% compared with the previous year.
CRCD’s results stem primarily from Investments impacting the Québec economy and Other investments, which generated returns of 12.8% and 2.3%.
Says Jacques Plante, Chairman of the Board, “CRCD has generated positive returns for the last seven years thanks to our financial asset management strategy. We aim for balance between our mission to drive regional economic development and reasonable long-term return for our shareholders. As a result, over seven years, the minimum holding period for shares of CRCD, the compounded return of the share is 4.1%[i] — and that’s on top of the income tax credit claimed on purchase.”
In addition, as at December 31, 2015, CRCD and its partner funds supported the growth of 402 companies, cooperatives and funds, contributing to the creation and retention of some 67,500 jobs.
CRCD – Turning 15 and going strong
Marie-Claude Boisvert, Chief Operating Officer of CRCD’s manager, Desjardins Business Capital régional et coopératif, is proud of CRCD’s track record as it turns 15, noting, “With net assets of over $1.6 billion, we are able to step in at any stage in the development of Québec companies. Through our partner funds, in 2015 alone, 111 companies enjoyed the benefits of new commitments totalling $173 million. Startups and technology innovation projects accounted for 21% of that, expansion projects, 44%, and mature companies and business transfers, 35%.”
Information on shareholders for 2015 and sales of shares for 2016
During the fiscal year, subscriptions totalled $150 million compared with $63 million in 2014, the maximum authorized amounts for each of the two issues. The enhanced share distribution process enabled nearly 52,000 Québec taxpayers to acquire shares, including 12,400 new investors. Share redemptions amounted to $83 million for 2015. The balance of shares eligible for redemption as at December 31, 2015 totalled $491 million. Lastly, the number of shareholders rose to more than 102,000 as at December 31, 2015, up 6.2% compared with the end of fiscal 2014.
CRCD will issue a press release to advise investors of the terms of its 2016 share issue once the Québec government has announced its decisions in that regard.
About Capital régional et coopératif Desjardins
With more than 102,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,642 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Business Capital régional et coopératif. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Directly or indirectly through its ecosystem, CRCD supports the growth of over 400 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain 67,500 jobs. (www.capitalregional.com)
[i] Compounded return of the shares was 4.6% for one year, 3.2% for three years, 4.9% for five years and 2.0% for 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 and do not take into account income taxes payable by any shareholder that would have reduced returns. The CRCD shares are not guaranteed, their value fluctuates and their past performance is not indicative of their future returns.