Highlights:
- Share value at $40.73 (an increase of $1.41 over January 2018 and $2.85 over July 2017)
- Annual return: 7.5%
- Six-month return: 3.6%
- Comprehensive income (profit): $1.0 billion
- Net assets grow to $14.3 billion
- Investments of $1.1 billion in the Québec economy
- 667 417 shareholder-savers, an increase of 21,753
Montréal, July 5, 2018 – For its fiscal year ended May 31, 2018, the Fonds de solidarité FTQ posted comprehensive income (profit) of $1.0 billion for its 667 417 shareholder-savers. Share value is now $40.73, representing an annual shareholder return of 7.5%. Net assets grew to $14.3 billion.
The Fonds’ shareholder's annual compound returns (excluding the tax credits) is 7.5% for 1 year, 7.0% for 3 years, 7.8% for 5 years and 5% for 10 years.
This performance is attributable to the Québec development capital investments portfolio, which posted a return of 14.1%. The portfolio’s private securities and specialized funds (14.4%) as well as the listed securities (13.0%) contributed to this performance.
“Because of our proximity to local businesses, not only can we invest in their growth projects, we can also support them when they want to innovate, export and modernize,” said Gaétan Morin, President and Chief Executive Officer of the Fonds de solidarité FTQ. “So, this year we can again say that it pays to invest in Québec!”
During the year, the Fonds invested $1.1 billion in development capital in companies impacting the Québec economy. The Fonds and its Fonds régionaux de solidarité FTQ welcomed 105 new partner companies, compared to 85 last year.
Various ways to contribute to the Fonds de solidarité FTQ
Quebecers can contribute to the Fonds in various ways and benefit from the 30% in extra tax credits available to individuals who invest in labour funds. 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 choose their method of contribution and payment as well as access their account to make online transactions; or
- By calling Saver Services at 1 800 567-FONDS (3663).
Share issue for 2018-2019
As has happened a few times in the past, for the purpose of maintaining the balance of its business model, among other objectives, the Fonds de solidarité FTQ may limit the issuance of Shares for the current fiscal year.
In such a case, the Fonds will announce by press release the terms and conditions of the share issue suspension. The Fonds will prioritize existing subscription agreements whether by payroll deduction, employer contributions or preauthorized withdrawals and will continue issuing shares throughout the fiscal year in accordance with these agreements. For individuals who purchase their shares with a lump-sum contributions, whether by a single preauthorized withdrawal or a single payment, the Fonds will issue shares on a first come, first served basis.
In addition, in order to make the Fonds de solidarité FTQ’s shares accessible to as many shareholders as possible, the Fonds de solidarité FTQ continues to limit the total amount of share subscriptions a single shareholder may make annually to an amount of $12,500, and this for the period beginning January 1 and ending December 31.
Information about the Fonds’ share issuances and redemption criteria can be found in the Simplified Prospectus (35th edition), available on the Fonds’ website.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2018, the organization had $14.3billion in net assets, and through its current portfolio of investments has helped create and protect 194,746 jobs. The Fonds has 2,839 partner companies and 667,417 shareholder-savers. For more information, visit www.fondsftq.com.
- 30 -
Information for media representatives only:
Patrick McQuilken
Senior Advisor, Media Relations and Communications
Fonds de solidarité FTQ
Phone: 514 850-4835
Mobile: 514 703-5587
Email: pmcquilken@fondsftq.com
Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained on the website fondsftq.com, 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 securityholder that would have reduced returns. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.