Montréal, March 11, 2009 – Following Alain Gravel’s newscast on Radio-Canada this evening, the Solidarity Fund QFL would like to set the record straight about certain Fund investments in the construction and real-estate industry and more specifically, about investments made in companies owned by Tony Accurso. The Fund would also like to point out that it adheres to strict governance rules in keeping with financial industry standards.
The business ties between the Solidarity Fund QFL and the managers of Simard Beaudry group, companies owned by Tony Accurso, date back to the 1990s. This company, which employs over 500 people and up to 3,000 people in peak season, is a leading construction firm in Québec. Over the years, the Fund has supported the company with its expansion and acquisition projects. Besides recovering its investments, the Fund also received dividends, interest and profits, translating into an annual return of 12.8% to the benefit of all Fund shareholders. In terms of ROI, Simard Beaudry Inc. ranks as a top Fund investment.
Second, through its real-estate arm Solim, the Fund has invested in a number of the construction firm’s building projects. Accounting for less than 15% of Solim projects, these investments all generated excellent profits, again to the benefit of Fund shareholders. As a matter of record, Solim invests in the real-estate projects of about more than ten other Québec builders/developers.
The Fund would like to underscore its rigorous governance practices. Indeed, all projects presented to the Fund, regardless of their source, must undergo a comprehensive analysis based on, among other things, job creation and return potential. All projects are thus subject to the same decision-making process, which is in keeping with the highest financial industry standards. Following analysis by a team of professionals, projects are then presented to a decision-making committee comprised primarily of individuals who have no ties to the QFL, and if valued at $5 million or more, to the Board of Directors for final approval.
It will be recalled that the Fund and its investments, including those of the regional solidarity funds, are audited twice a year by two major, well-known auditing firms. Moreover, the Autorité des marchés financiers is responsible for inspecting the Fund’s affairs on an annual basis to ensure that it complies with the requirements of its Incorporating Act.
Lastly, the Fund was surprised by Mr. Gravel’s newscast on Radio-Canada, particularly since in the spirit of transparency, the Fund had already accepted an invitation to meet with journalists Monique Dumont and Chantal Cauchy on Friday to discuss the Fund’s past transactions with Simard Beaudry Inc. That Mr. Gravel preferred to make statements about the Fund without speaking to us first is both unfortunate and regrettable.
About the Solidarity Fund QFL
With net assets of $6.2 billion as at November 30, 2008, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,881 companies. It currently has nearly 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 126,000 jobs. For more information, visit www.fondsftq.com.
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Note: The telephone number provided below is for the exclusive use of journalists and other media representatives.
Source : Josée Lagacé
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ
Telephone : 514 850-4835
Email :
jlagace@fondsftq.com