Capital régional et coopératif Desjardins (CRCD) shares (Desjardins Quebec) - Any experiences?

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  • Sep 22nd, 2020 4:41 pm
Jan 3, 2019
12 posts

Capital régional et coopératif Desjardins (CRCD) shares (Desjardins Quebec) - Any experiences?

Has anyone had experience in buying/holding these Desjardins-issued shares? I'm maxed out in my TFSA and RRSP contributions so the 35% tax credit is appealing, but it's not clear to me the risk level of the product and whether the fairly unimpressive returns (4.4% annually over the last 10 years it appears) are in line with the risk and lack of liquidity. Also not entirely sure how the fees stack up year on year. ... munity.php

Any insights would be great!
3 replies
Jr. Member
Jun 17, 2018
122 posts
Hamilton, Bermuda
I had looked into this last year and decided not to invest. They mention the minimum holding period is 7 years. Considering the 35% tax credit, it looks like you could get a guaranteed 5% annually on top of the investment return.

Return so far: Return since inception (Dec 2001) has been 2.24% per year.
RRSP and TFSA: This product is only non-registered. In my opinion, anyone with TFSA or RRSP room should use it before considering this investment.
Fees: Prospectus mentions that fees are a maximum of 1.75% of NAV. MER has been stable at 1.6% for 2018 and 2019.
Liquidity: No withdrawal before 7 years. The other situations where a withdrawal is possible are pretty stringent. I'd also draw your attention to the table on page 20 in the prospectus. Once and if you withdraw after 7 years, that blocks you from ever investing again to earn that 35% tax credit. I'm assuming that's why people would "roll" their investments into Class B Exchange shares, but that locks in the money for a further 7 years.

For me, this product is far from clear cut. The tax credit is interesting, but the liquidity constraints are bad and I feel like, since Class B Exchange shares are horrible, the best return is obtained by investing the max amount over 7 years, then withdrawing over 7 years (staying exclusively with Class A shares). I would consider this close to retirement ideally. Hope this helps!
Deal Addict
May 13, 2005
3816 posts
Is these kind of government tax credit investments are similar as FTQ and CSN?
Government only giving max amount of tax credit regardless how many different types of these kind of investments.
For example, if we buy $5000 FTQ and $5000 of CSN, we could only declare tax for one of them, not both in the same year. ... ZRS8y.html
Product features
  • Available to all Québec taxpayers (deemed residents of Québec as at December 31 for tax purposes), members of Desjardins or not
  • Minimum annual purchase of $500 (and in units of $100 after that) up to a maximum of $3,000
  • Non-refundable tax credit in Québec of 35% of the amount invested
  • Tax credit may be transferred between spouses, but not carried forward to a subsequent tax year
  • Minimum seven-year holding period
  • Investment is independent of workers’ funds (which means investors can subscribe for shares in a workers’ fund as well as shares of CRCD)
  • Not eligible for TFSAs, RRSPs, RRIFs or any other registered plan
  • Return not guaranteed, potential capital gain or loss on redemption
  • On redemption, loss of tax credit on any new subscription
  • Administrative charges of $50 (taxes included) are payable on account opening and closing
Incentives for investing
  • You have a high taxable income
  • Your RRSP no longer gives you income tax savings
  • You're looking for ways to reduce your tax bill
  • You want to diversify your portfolio
  • You want an attractive tax credit and long-term return potential
  • You're interested in contributing to the growth and continuity of Québec companies and cooperatives ... ing-shares
Jan 3, 2019
12 posts
@gparadis01 thanks for this added detail. While i"m maxed on TFSA and RRSP, I'm still a long way off from retirement, so maybe something to think about for 10 years from now.

@X360 : Good questions. I don't invest through the FTQ or CSN so I didn't really look into it, but it's worth checking.

Thanks all!


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