Investing your money in Québec to make a positive impact

When deciding where to invest your money, you take into account your savings goals, investment horizon, and risk tolerance. But what about where your money will go? Do your chosen investments align with your personal values? Do they have a positive impact on the economy and society? We spoke with three local specialists to help us understand what investing in Québec really means.

• Éric Desaulniers, General Manager, Fonds locaux de solidarité FTQ, S.E.C.
• Rosalie Vendette, B.B.A., M.A., Director at Quinn+Partners
• Sébastien Lafontaine, B.B.A., Financial Planner and Mutual Fund Representative, FlexiFonds de solidarité FTQ

Supporting and stimulating Québec's economy

By saving locally, you encourage local entrepreneurs and businesses. They might even be based nearby or employ your friends or family members. "It's much easier to identify with an organization we really know, that makes the products we consume every day and creates jobs throughout the province," says Éric Desaulniers. Supporting Québec's economic development by choosing local investment products means being part of a network of local culture. "It also affects entrepreneurs who are closer to their customers, markets, and investors," he says.

Éric Desaulniers, at the forefront of investments made in 93 regional county municipalities (RCMs) in Québec, attests to the strength of such a network. 'With Fonds Locaux, we not only invest money, but we also advise, equip, and train the stakeholders of local development organizations that support local businesses. We are often the spark or driving force behind many small- and medium-sized businesses that showcase Québec and actively participate in their region's economy."

Being part of this economic cycle also pays off for the Québec investor. "By choosing to invest locally, we make sure that the money we earn stays here, in Québec," says Sébastien Lafontaine. It's a way of supporting the regional economic fabric.

Respecting your values

When you choose to buy local, you instinctively think about how your money will contribute to the economy. When it comes to investing locally, the same principle applies: Do the savings product and companies you're investing in align with your values?

For some, these values or beliefs are environmental protection, sustainable development, social involvement, or positive economic impacts for a neighbourhood, city, province, or country. Others might want to support the development of a specific activity sector that interests them. Ultimately, keeping your money local is one investment option among many, but it seems to be drawing attention.

"People tend to worry about the return on their investments and where their money is going. But the social and economic impacts are just as important," says Rosalie Vendette. "Every investment decision we make will have consequences, whether it's today or in the long term."

Think about local investments like you do local purchasing

According to Rosalie Vendette, it's a question of making decisions for the future, today. "Spending is a concrete gesture, whereas investing is about building the economy of tomorrow. While there are immediate benefits, a big part of investing locally is ensuring future economic spin-offs in Québec, and not elsewhere. That makes it less tangible, but no less important."

"Young people are asking questions about the environmental, social, and local implications of their investments, and they're more demanding than previous generations," says Vendette. "With the generational transfer of wealth from parents to their children, young people will inherit and therefore take up more space on the financial market. Attitudes are changing. Now's a good time to develop sustainable consumption and investment habits."

Diversifying your investments

For Lafontaine, another advantage of investing locally is the diversification of your investment portfolio. "When you invest in the Canadian market as a whole, you invest primarily in resource and financial companies. By investing more specifically in Québec companies, you have access to the industrial and basic consumption sectors, among others." That's why he believes investing locally is a good way to diversify your investments. This is even more important when it comes to managing risk. "We're always looking for a good return, but we also have to limit the risk. Since each sector reacts differently to market fluctuations, investing in a mix of growth and defensive industries can help balance our portfolio," he says.

At the end of the day, investing locally is a win-win situation for businesses, the economy, and you. Looking to invest? Discover local savings products, ask questions, and learn about the positive effects your savings can have!