Solidarity Fund QFL - MESSAGE FROM THE PRESIDENT

MESSAGE FROM THE PRESIDENT

Yvon Bolduc
Pr�sident-directeur g�n�ral du Fonds de solidarit� FTQ

The Fund Does a Great Job Driving the Local Economy

Despite an extremely difficult economic and financial context, 2009 brought some pleasant surprises.

A solid performance

First, with an 8% return in the first six months of the current financial year, the Fund continued the strong rebound begun in the second half of 2008-2009. Thus, we posted a return of 11.5% for the 12-month period from December 1, 2008 to November 30, 2009, and our assets grew to $7 billion. Moreover, as at January 5, 2010, our share value was $23.51, up $1.73 from July 5, 2009.

Another excellent achievement is the $848 million the Fund invested in the Qu�bec economy in 2009. A huge amount, it’s also the most we have ever invested in our 26-year history. Moreover, in the last six months, our other investments portfolio performed extremely well, returning 10.2%. And the portfolio devoted to SME development capital investments returned 7.6%, a result of which I am particularly proud since it once again attests to the careful analyses conducted by our expert teams and demonstrates the drive of Qu�bec entrepreneurs.

The Fund’s shareholders now have a stake in the Montr�al Canadiens!

I am extremely grateful to our 571,000 shareholders, who place their trust in the Fund and therefore allow us to play a vital role in Qu�bec society. We can honestly say that we have earned this trust by working tirelessly to further Qu�bec’s economic development, help create and protect quality jobs, and build wealth for everyone.

For example, we recently made substantial investments in companies such as GLV, Groupe Bermex, Premier Tech and Bombardier. But the investment that made the biggest headlines is probably the one in the Montr�al Canadiens hockey club, the Bell Centre and the Gillett Entertainment Group. I have no doubt that this investment, which brought the Club’s ownership back to Qu�bec, will generate positive economic spin-offs for our shareholders, many of whom I’m sure are very proud to now own a part of this legendary hockey team.

The highest standards

To keep the trust of our shareholders and partners, we must always respect the highest governance and management standards. For the Solidarity Fund QFL and its Board of Directors, the Fund must be absolutely beyond reproach. It bears reiterating that this is why, as part of its continuous governance improvement process, the Fund has adopted measures to ensure stricter application of its operating rules. In so doing, we are more tangibly demonstrating our adherence to the principles set out by the United Nations Global Compact. For more information on this matter, please refer to our annual report, available on this site.

This year, max out your Fund RRSP!

To do its work, the Fund relies on the savings of Qu�bec workers, which at the same time guarantee them a better retirement. I would therefore like to once again mention the importance of contributing to your RRSP, especially this year. Savings, particularly retirement savings, tend to suffer during an economic crisis like the one we have just been through. However, now that the recovery is underway, I hope that if you had to temporarily stop contributing, you will start again and that if you had to reduce your contribution, you will bring it back up to its previous level.

Because retirement often seems so far away, we tend to forget about it, but all the recent data shows that inadequate and late planning for retirement can significantly compromise your financial security when the time comes. It’s important to start contributing regularly at a young age. That’s why the Fund encourages you to contribute through payroll deduction (with an immediate tax reduction on each pay) or through pre-authorized withdrawals, two methods that greatly simplify the task. And remember that when you contribute to the Fund’s RRSP, you are entitled to an additional 30% in tax credits – no small amount when you have a tight budget.

Last but not least, remember that by contributing to the Fund’s RRSP, you’re helping our local economy by doing your part to further the growth of Qu�bec SMEs, which ultimately creates wealth all around.

Although economically, 2010 promises to be a better year, we have to be realistic: the recovery will not be spectacular and there are still many challenges ahead. For its part, the Fund will continue to fulfill its mission and work with its partners on projects in promising sectors with a view to carving ourselves a place of choice in tomorrow’s economy for the benefit of all Quebecers.

Yvon Bolduc
President and Chief Executive Officer

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