Staying the Course Together!
Well before the pandemic outbreak at the end of the financial year ended on March 31, 2020, this implicit motto guided our actions, thoughts, and strategies. We anchored and stabilized our team in the face of a full-blown market storm and STAYED THE COURSE TOGETHER.
CAE Capital assumed its select partnership role in assisting and financing businesses and managed to stand firm and to safeguard its achievements in an increasingly competitive market despite difficult conditions:
During the year ended March 31, 2020, CAE Capital weathered through a Canadian economy that was already in slowdown by the end of 2019. Our first three quarters (April 1 to December 31, 2019) were marked by the impacts of trade tensions and global market uncertainty, which adversely affected trade and business investments (fewer international orders and SR&ED investments), sectors that are particularly covered by CAE Capital.
The global drop in interest rates led to an abundance in liquidities. Many new foreign investment funds emerged in the Canadian and Quebec markets, bringing us strong competition.
During our final quarter (January 1 to March 31), we began to feel the effects of the confinement in China. Production shutdowns in China and Europe had an immediate on local business procurement and hence new orders and contracts.
Considering all of the aforementioned, our loan volume objective has not been met. However, we have STAYED THE COURSE by enforcing sound risk management. Our strategy, OPTIMIZING rather than maximizing, has enabled us to end the year with fewer investments indeed, but overall with a healthy portfolio in which losses were minimized and surpluses optimized.
