Annual Return to the shareholder at 4.4% and Share Value at $34.73
Highlights:
- Annual return to the shareholder: 4.4%
- Share value: $34.73 (an increase of $1.14 over January 2016 and $1.47 over July 2015)
- Comprehensive income: $498 million
- Net assets:$11.7 billion
- Development capital investments: $686 million
- Tax credits: 30% for the 2016 tax year
Montréal, July 5, 2016 - The Fonds de solidarité FTQ announced today a new record for its share value, now at $34.73. Comprehensive income for the year ended May 31, 2016 is $498 million, and net assets increased to $11.7 billion. The annual return to the shareholder is 4.4%. This past year, the Fonds invested $686 million in development capital in companies impacting the Québec economy.
“Our portfolio of Québec companies returned 8.8%, once again confirming that it pays to invest in Québec,” said Gaétan Morin, President and Chief Executive Officer of the Fonds de solidarité FTQ. “This past year, we added several new partners to this portfolio, including Serres Lefort, Groupe Canam, Pelican International and Orckestra, attesting to the role the Fonds plays in economic development and employment in Québec.”
The Fonds’ annual compound returns (excluding the tax credits) to shareholders are 4.4% for 1 year, 7.5% for 3 years, 6.0% for 5 years and 3.9% for 10 years.
The Fonds’ new strategic orientations
In order to better respond to shareholder expectations and to the needs of the Québec economy, the Fonds de solidarité FTQ has undertaken a strategic planning process, of which certain details were recently made public.
“By 2020, the Fonds de solidarité FTQ plans to invest $1.4 billion to further support key sectors of the economy, bringing our total investments in Québec to approximately $3 billion during this period. Bolstered by our renewed partnership with the federal government following the reinstatement of the tax credit, as well as the support of the Government of Québec, which has been our partner from day one, the Fonds is starting a new chapter in its history,” added Mr. Morin.
As such, the Fonds will boost its support for Québec flagship companies and help fill the infrastructure gap with more investments. It will stimulate local innovation and increase its activities in four sectors of excellence – aerospace, agri-food, forest products and life sciences – which alone account for nearly 600,000 jobs, over $38 billion in economic activity and 36% of Québec’s exports.
How to contribute to the Fonds de solidarité FTQ
Quebecers can contribute to the Fonds in various ways and benefit from the extra 30% in labour fund tax credits for the 2016 tax year, more specifically:
- Through the Fonds’ local representatives in the workplace and through its field offices, where they can get help with enrolment and transactions;
- On www.fondsftq.com, where with just one click they can select their method of contribution and payment as well as access their account to make online transactions; or
- By calling Shareholder Services at 1 800 567-FONDS (3663).
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital fund that channels the savings of Quebecers into investments. As at May 31, 2016, the organization had $11.7 billion in net assets, and through its current portfolio of investments has helped create and protect 187,414 jobs. The Fonds is partner in more than 2,600 companies and has 618,551 shareholder-savers.
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Information for media representatives only:
Patrick McQuilken
Senior Advisor, Media Relations and Communications
Fonds de solidarité FTQ
Telephone: 514 850-4835
Mobile: 514 703-5587
Email: pmcquilken@fondsftq.com
Please read the prospectus before investing. Copies of the prospectus may be obtained on the Fonds’ Website, from a local representative or at the offices of the Fonds de solidarité FTQ. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends and do not take into account income taxes payable by any security holder that would reduce returns. Fonds de solidarité FTQ shares are not guaranteed, their value changes and past performance may not be repeated.