Capital régional et coopératif Desjardins (CRCD) on Thursday adjusted the value of its share down by 3.7%. The fund posted a net loss of $95.8 million in the first half.
Posted at 3:33 p.m.
CRCD shares fell 67 cents to $17.23. CRCD explained that the profitability of “several” portfolio companies has declined due to economic disruptions, including inflation, labor shortages and supply chain disruptions. The rise in interest rates also had a negative effect on the bond portfolio.
Over seven years, which is the mandatory minimum holding period for CRCD shares, the compounded return on the share is 5.1%, to which is added the tax credit for the purchase of shares.
The chief operating officer of Desjardins Capital and manager of CRCD, Marie-Hélène Nolet, mentioned that the fund would continue to support projects “while taking into account the current context”. “We continue to provide the best possible support to businesses that face many challenges and need to demonstrate great resilience. “, she says in a press release.
During the first six months of the year, CRCD made a commitment to invest 329 million in 159 companies, cooperatives and funds. As of June 30, 2022, it supported a total of 750 businesses, cooperatives and funds with $2.18 billion committed in Quebec. CRCD’s net assets stood at 2,457 million as of June 30, 2022.
CRCD has announced that it will soon issue the equivalent of 140 million in new shares. The pre-subscription of the shares will take place from August 29 to September 19, 2022, at 5 p.m.
An investor can purchase up to $3,000 in shares, qualifying for a 30% provincial tax credit.