it`s now or never! - Caisse d`économie solidaire Desjardins

2014 ANNUAL REPORT
RESPONSIBLE FINANCING
THE BALL IS IN YOUR COURT
IT’S NOW OR NEVER!
WINDS OF AUSTERITY
Winds of change are on the
horizon but not the kind that fill
our sails and propel us forward.
The present storm has brought
about destruction and upheav­
al in its path. We’ve spent years
patiently building a develop­
ment infrastructure accessible to
youths, women, rural and urban
citizens, etc. It took only a few
weeks for the winds of austerity to destroy our youth employ­
ment centers (Carre­fours jeunesse-emploi), halt the develop­
ment of new Centres de la petite enfance (public daycare cen­
tres), eradicate Solidarité rurale du Québec (SRQ), and annihilate
our local development centres (CLDs) and Community Econo­
mic Development Corporations (CDECs). We were taken by sur­
prise as mention of these cutbacks was conveniently left out
during elections.
A CALL TO ACTION
Though our infrastructure has been attacked, our collectively
acquired expertise and democratically managed tools remain
unscathed. Within this arsenal, the Caisse d’économie solidaire
Desjardins is a power tool.
We, at the Caisse, take it upon ourselves to play an even greater
role in developing Quebec’s socially responsible finance sector.
Rest assured that the Caisse is aware of its growing respons­
ibility to encourage innovative ventures and support the
development of economic projects that have social, environ­
mental, and ethical objectives. The Caisse hopes to meet
these challenges along with its network of financial partners.
BUILDING A BETTER TOMORROW
Our cutting edge strategies are sharper than ever! We see a
growing population of investors looking to make a difference.
These conscientious members of society need loans to see
their socially productive projects through. They want the
reassurance that their money will go towards building a
better tomorrow. The Caisse shares these goals and wants to
do even more!
RESPONSIBLE FINANCING
AT THE HEART OF OUR OPERATIONS
Socially responsible investing (SRI) is making headlines.
Responsible financing is at the heart of the Caisse’s operations.
We act as guides for those seeking to contribute to society
through loans, savings and investment solutions. It is our
duty to help all individuals and organizations to discover
investment solutions tailored to their needs.
The 2015 Rendez-vous solidaire (AGM) will mark the starting
line for the Caisse’s increased support of responsible financing.
Now is the time to turn towards responsible financing as the
foundation of a strong, just, democratic society and as a shelter
against the winds of austerity.
Gérald Larose
Gérald Larose
President
2014 ANNUAL REPORT > CAISSE D’ÉCONOMIE SOLIDAIRE DESJARDINS
Continued Improvement
in 2014
PHOTO : PAUL LABELLE
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The social and political
context of 2014 proved
challenging for many of our
members and partners, and
the Caisse certainly felt the
impact. This is especially true
seeing as we work within a
network as does the entire
cooperative and associative
movement. Together, we
contribute towards the
development and support of
social economy businesses
throughout the province. The major reforms now seen have
weakened this ecosystem and led to repercussions within
our area of expertise.
No matter the cost, we’ve rolled up our sleeves and
gotten to work to ensure that you, our members, may
continue enriching our society by making your dreams
come true and your projects come to life.
The following report is a result of this changing climate
and a testament to the commitment of all those involved
in the Caisse’s cooperative project. Overall, the results are
impressive. If 2013 was a year of transition, 2014 was one of
continued improvement.
Focusing on our wish to continue better serving our
members, we were able to quickly implement a way to
continuously and systematically evaluate your level of
satisfaction.
This will allow for quicker access to a clearer picture of how
the quality of our services has improved and to pro-actively
seek out new solutions.
As for our Cooperative Support division, they have had
more of an impact on the Caisse’s team in terms of
mobilization, consultation, and innovation thanks to a
clearer vision. Once again, they have proven to be a unique
and integral part of our team and we will continue to develop their role in our decision making.
We have also undertaken a participative evaluation
process to take the pulse of our workplace. The results
were better than expected, considering we are working
with an all new management team.
None are spared by the current state of the economy,
the Caisse included. However, these relative setbacks
have not halted the Caisse’s impressive performance.
Changes must be brought to the current sociopolitical
infrastructure if our cooperative project is to remain.
Regardless of the current state of affairs, the Caisse
continues to progress. We will continue to support
your endeavors through top-notch services.
Together, through solidarity and responsibility,
we will build a fair, human economy!
Happy reading!
Marc Picard
Marc Picard
General Director
2014 ANNUAL REPORT > CAISSE D’ÉCONOMIE SOLIDAIRE DESJARDINS
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Catering to Our
Members’ Needs
“Our goal is to become better in all we do by being attentive to your
every need. Together, we can see your project become a reality! Your
satisfaction is our main focus and responsibility. To reach this goal,
meetings, trainings and seminars are put in place to fine-tune our
staff. We do everything in our power to go above and beyond your
expectations.”
Yves Savard, Carole Verreault and Daniel Fortin, Management Committee,
Personal and Collective Business Services
Right by Your Side, Throughout Quebec
We are eager to follow up on each visit because we value your thoughts regarding our services.
We believe that by providing you with face-to-face communication and rapid assistance, a strong
partnership will ensue. We prove our commitment to you through personalized care.
Expanding Social Economy
Social economy plays an important role in Quebec’s economic development boasting 7 000 businesses, 150 000 jobs and
5% of Quebec’s gross domestic product. In 2014, we had the privilege of participating in numerous member endeavors.
PROMOTING UNTAPPED
COLLECTIVE WEALTH
Carole Verreault was honorary president of
the 6th edition of Semaines de l’économie sociale,
held throughout the Capitale-Nationale and
Chaudière-Appalaches regions.
VISAGES DE L’ÉCONOMIE SOCIALE
A traveling
exposition dedicated
to the Lanaudière
region’s many
social economy
organizations.
RECOGNIZED
EXPERTISE
Serge Kirouac, Table régionale d’économie sociale
de Chaudière-Appalaches (TRÉSCA);
Carole Verreault, Caisse d’économie solidaire Desjardins;
Sylviane Pilote, La Nef, Coopérative de solidarité
Notre-Dame-de-Jacques-Cartier;
Charles Demers, Pôle régional d’économie sociale
de la Capitale-Nationale.
The Caisse de dépôt et
placement du Québec
entrusted the Caisse
d’économie solidaire
with a portfolio
contain­ing 29 cooperative hous­ing mortgage
loans. Their confidence is a result of the Caisse
d’économie solidaire’s well-known expertise in
the field of community housing, a field which
now has $12 million more at its disposal thanks
to this loan portfolio.
NEWCOMERS
TO THE AFIC PROGRAM
The Fédération des coopératives d’habitation
de l’Estrie (FCHE) became the sixth regional
federation to
adhere to the
Avantage financier
intercoop (AFIC)
program (Inter-coop
Financial Advantage
Program).
FCHE general meeting,
November 14th, 2014
FINANCING
NEW PREMISES
By joining
the My Plan program, the Fédération des
OBNL en habitation de Montréal (FOHM)
will benefit from over $600 000 in funding
for its new premises.
To view complete financial statements, click on the following link: http://www.caissesolidaire.coop/bilan/2014/telechargez
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2014 ANNUAL REPORT > CAISSE D’ÉCONOMIE SOLIDAIRE DESJARDINS
Providing Homes:
Refinancing Cooperatives
$292 million
and Housing NPOs
$30 million more then in 2013
59%
Over
half of
our corporate
loans finance
community housing
In 2014 alone, the Caisse’s team of experts granted financial support to over 32 community
housing projects whose loan agreements with the Canada Mortgage and Housing Corporation
(CMHC) were coming to term. That number increases to 70 projects if we include 2013.
One out of every three housing cooperatives in Quebec (which represents 10 000 housing
units) has a business account with the Caisse d’économie soldiaire. Since 1971, the Caisse has
earned the well-respected title of pioneer in the field of affordable housing.
Carefully Planned Refinancing
THE MARQUIS
DE NICOLET CO-OP
“With the end of its CMHC
operating agreement fast
approaching, the Marquis
de Nicolet cooperative,
encompassing 24 housing
units in six buildings, was able
to refinance its debt while
maintaining rental fees at current
indexed rates by taking on a
loan with the Caisse solidaire. The co-op was thus able to complete maintenance
projects to prolong the life expectancy of its buildings. Seeing as the loan’s
monthly fees were less than previous debt servicing costs, the cooperative
decided to continue providing households with assistance, to increase its
contribution to the replacement reserve fund and to make
necessary improvements to its buildings.”
Striking an Agreement With
the Regional Co-op Housing
Federations
In order to ease the refinancing process for housing co-ops
nearing the end of their CMHC operating agreement, the
Caisse d’économie solidaire struck a collaborative agreement
with the Fédération des coopératives d’habitation intermunicipale
du Montréal métropolitain (FECHIMM), as well as with the Fédération
des cooperatives d’habitation montérégiennes (FECHAM).
This project, started by FECHIMM and completed after more
than a year of team efforts, combines FECHIMM’s strength
and FECHAM’s planning and work assistance as well as
management assistance teams.
Michel Legault, President of the Marquis de Nicolet cooperative
THE BOURRET
COOPERATIVE
“In order to receive financing for
much needed repairs, we found
ourselves under the obligation
to reimburse our CMHC loan.
What originally appeared to be a
financial setback, proved to be a
business opportunity.
The loan granted to us by the
Caisse d’économie solidaire
allowed the completion of major
renovations ensuring the preservation of our building as well as
the longevity of our co-op.”
Mikhail Babenko-Gofman
The Montreal Coopérative
d’habitation Bourret
Ghislaine Pion, Management Support Director for FECHIMM;
Moussa Beye, Advisor for the Caisse d’économie solidaire;
Francine Néméh, Executive Director of FECHIMM; Daniel Fortin,
Director of Personal and Collective Business Services for the Caisse
d’économie solidaire’s Montréal-Lanaudière Service Centres;
Yvan Pedneault, Collective Business Services Coordinator at the
Caisse d’économie solidaire; Sophie Rousseau-Loiselle, Executive
Director of FECHAM; Nathalie Livernois, Liaison and Members Services
Representative at FECHAM; Daniel Fortin, Director of Personal and
Collective Business Services and Lamia Belmedroum, Advisor, both at
the Caisse d’économie solidaire; Loïc Nigen, Projects Officer at FECHAM.
To view complete financial statements, click on the following link: http://www.caissesolidaire.coop/bilan/2014/telechargez
2014 ANNUAL REPORT > CAISSE D’ÉCONOMIE SOLIDAIRE DESJARDINS
Loans: $646 Million
in Loans to Help Finance
Your Projects
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Corporate and individual loans as of December 31st, 2014
Cultural
Sector
Our total loans amount to $678 million, including
$32 million shared with other branches and affiliates
of the Desjardins Group.
Unions Other
8%
2% 3%
Individuals
23 %
Cooperatives
32 %
The majority of this amount, $494 million, was lent to cooperatives and
associations. Furthermore, $146 million* went towards helping adherents of the
Caisse’s cooperative projects such as affordable housing, daycares, union offices,
reorganization of a social integration organization, theatres, museum exhibits,
summer camps, etc. The Lasting Sustainable Development: Taking Action
brochure is available at: actions2014.coop
Associations
and social initiatives
32 %
* Excluding accrued interest
Savings: $651 Million
in Savings Help Finance Co-ops and NPOs
It’s all thanks to our Social Return Investment plan, with over 80% of adherents
being collective organizations, that we are able to finance your projects
As a whole, savings and investments account for $782 million including $131 million from mutual funds and
Capital régional et coopératif Desjardins funds offered by Desjardins.
PHOTO : PERCOLAB
THEY CHOSE THE SOCIAL RETURN INVESTMENT.
“Why choose the Social Return Investment?
To see what my values are worth! In all
seriousness, I believe in having a strong set
of values that guide my actions. The Social
Return Investment lets my values shine
through in my financial decisions.”
Stéphanie Guico, Montreal
“The Social Return Investment is my way of
contributing to a better tomorrow… The
recipe for success is incomplete without
a pinch of idealism. My vision includes
helping those in need. In other words, I try
to give back.”
Lorraine Leduc, Quebec
85 % OF OUR SAVINGS PRODUCTS
chosen by our members are responsible investment (RI) products.
ISR PRODUCTS
As of December 31st, 2014
Distribution of Our Individual Members’ Portfolios
1%
2 %
g Social Return Investment
15 %
g Solidarity Based Savings
67 %
15 %
g Capital régional et coopératif Desjardins
g SocieTerra Portfolios and
Desjardins Environment Funds*
g Other Desjardins Funds*
* Desjardins Funds and other investment funds are offered by such registered dealers as the
Desjardins Financial Services Firm, a mutual fund dealer belonging to the Desjardins Group
To view complete financial statements, click on the following link: http://www.caissesolidaire.coop/bilan/2014/telechargez
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2014 ANNUAL REPORT > CAISSE D’ÉCONOMIE SOLIDAIRE DESJARDINS
Ensuring
Economic Stability
“We display promising results while continually striving to improve.
The Caisse d’économie solidaire enjoys excellent capitalization while conforming
to the recommendations and regulations of the Basel II Accord whose aim is
to ensure the stability of financial institutions. The previous decade has proven
kind to the Caisse d’économie solidaire Desjardins as our assets have doubled.
These results clearly demonstrate the pertinence of our distinct service offer
tailored to meet our members’ needs.”
Ghislaine Boutin, Director of Conveniences, Finances and Risk Management.
Highlights
Through strong commitment, our team gave the very best of itself in order to provide unrivaled member
satisfaction. Whether it be welcoming our members or ensuring high quality operational risk management,
following the rules and regulations is always a priority.
Track Record
The Caisse solidaire Desjardins, your
financial cooperative, boasts total assets
of $757 907 000, a $20 362 000 increase
in regards to last year.
Liabilities amount to $693 599 000,
a 2.3% increase.
Borrowings have decreased by
a staggering 40.8% and are currently
at $28 466 000.
As of December 31st, 2014, your
cooperative’s total equity experienced
an impressive 7% increase, reaching
$64 308 000. Besides capital stock, total
equity counts $5 370 000 in distributable
surplus earnings and $41 312 000
EQUITY FUNDS
With the investments it holds in equity funds,
the Fédération des caisses Desjardins du Québec
has the means to manage the regional
investments and Desjardins Group branch
investments. As a result of their work, branches
enable Caisses to expand their scope of activity
by offering a wide array of financial products
and services to businesses, groups and
individuals. The following chart presents the
Caisse’s participation and yield in each equity
fund at year’s-end.
in reserves. The stabilization reserve
amounts to $3 031 000. Furthermore,
your Caisse has amassed $2 107 000
in its Community development fund.
At year-end, the Caisse’s capitalization
ratios were in compliance with those
required under the standard established
by the Federation.
Equity Funds
PROVINCIAL FUNDS
As of December 31st, 2014
HELD SHARES AS OF DECEMBER 31 ST, 2014
AVERAGE
YIELD
14 565 236 $
7,19 %
0 $
0 %
Desjardins Capital de risque (INV)
138 969 $
47,78 %
NordOuest & Ethiques, VMD (RF1)
0 $
7,80 %
11 354 456 $
12,95 %
Caisse centrale Desjardins (CCD) Société de Services
des caisses Desjardins (SER)
Desjardins société financière (FIN4) To view complete financial statements, click on the following link: http://www.caissesolidaire.coop/bilan/2014/telechargez
Earnings Statement
Over the course of the previous year, your Caisse achieved
an operating surplus of $5 865 000, a 42.6 % increase over the preceding year.
We are
‘‘Econo-Unified’’
The Caisse d’économie solidaire Desjardins is a one-ofa-kind hub for its 14 794 members striving to build a
better economic and financial structure.
In 2014, the Caisse counted 2 796 social economy
collectives across trade union, cooperative, associative
and cultural networks. In addition to said collectives,
11 754 individuals have made the Caisse their home.
1137
Members of the Associative and Civic Sector
669
Cooperatives
630
Trade Union
Organizations and Groups
Basic Unions
Federations and Groups
Housing Cooperatives
Consumer and Service Cooperatives
Producer Cooperatives
Solidarity Cooperatives
Worker Cooperatives
Employee-Shareholder Cooperatives
Funeral Services Cooperatives
School Cooperatives
2 796
+
244 = 3 040
+ 11 754
= 14 794
Right
by Your Side,
Throughout
Quebec
International Development Organizations
Federations, Groups, Coalitions and Collectives
Science Research Centers
Teaching and Training Centers
Environmental Projects
Foundations
Technical Resource Groups (TRG)
Community Housing
Community Action Organizations
(assistance, human rights, foster homes)
Local Development Organizations
Early Childhood Centers
Social Integration Organizations
Recycling Depots
Development Funds
Religious Communities
360
Members of the
Cultural Sector
Artist Centers
Editorial Projects
Cultural Events
Community Media
Museums
Musical Projects
Theatres
Social Economy Collectives
Socially Engaged Private Companies
Businesses
Individual Members of which
4 167 are from Nunavik
Members
Quebec Service Center
155 E Charest Blvd
Suite 500
Quebec QC G1K 3G6
Phone: 418-647-1527
or 1-877-647-1527
Fax: 418-647-2051
Montreal Service Center
2175 E De Maisonneuve Blvd
Suite 150
Montreal QC H2K 4S3
Phone: 514-598-2122
or 1-877-598-2122
Fax: 514-598-2055
Lanaudière Service Center
206 Baby Street
Suite 200
Joliette QC J6E 2V5
Phone: 450-753-7055
or 1-866-753-7055
Fax:450-752-5589
[email protected]
www.caissesolidaire.coop
Graphics: Brunel Design. May 2015