The portfolio of private Québec companies continues to perform well
Highlights as of November 30, 2018:
- 12-month return: 5.8%
- 6-month return: 2.2%
- Share value at $41.61 (+$0.88 since July 2018 and +$2.29 since January 2018)
- Comprehensive income (profit) for the 6-month period: $314 million
- Net assets grow to $14.8 billion
Montréal, January 5, 2019 – In the first six months of its 2018-2019 financial year, the Fonds de solidarité FTQ posted comprehensive income (profit) of $314 million for the benefit of its 667,000 savers. Share value is now $41.61, for a shareholder return of 2.2% for the six-month period ended November 30, 2018, and a 12-month return of 5.8%. Net assets grew to $14.8 billion.
“Once again, these results were possible in thanks to our investments in private Québec companies, as well as the continued efforts of all our team throughout Québec,” said Gaétan Morin, President and Chief Executive Officer, Fonds de solidarité FTQ.
The Fonds’ compound annual shareholder return (excluding tax credits) is 5.8% for 1 year, 7.4% for 3 years, 7.3% for 5 years and 7.0% for 10 years.
During the six-month period ended November 30, 2018, the Fonds invested $464 million in development capital for companies impacting the Québec economy. A $55.8 million investment in Québec City-based Groupe Océan will contribute to the company’s expansion in Canada and its growth in international markets. Another $50 million investment in Montréal’s Stingray contributed to the company’s acquisition of NCC, one of Canada’s largest radio broadcasters.
During their first semester, the Fonds régionaux de solidarité FTQ invested $61.1 million, namely in 33 new partner companies.
“Our economy is changing, and Québec companies must continue to invest and to adapt to new realities. Our entrepreneurs must have access to the necessary resources to better deal with the new challenges they will face. The Fonds will be at their side to help them support good quality jobs, right here in Québec, as we have been for 35 years,” concluded Mr Morin.
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 it has been the case in the past, as well as stated in its Short Form Prospectus published last July, the Fonds may limit the number of shares it issues. In light of its capital-raising objectives for the current financial year, the Fonds will announce by press release a share issue cap in the weeks ahead. For this reason, the Fonds will not be accepting post-dated cheques until June 1, 2019. The announcement will only affect shareholders who make lump-sum contributions. The Fonds will continue to accept deposits from shareholders enrolled in payroll deduction and pre-authorized withdrawals.
Information on the Fonds’ redemption criteria and share issuance can be found in its Short Form Prospectus (35th edition).
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