Montréal, January 16, 2007 – Commencing today and until May 31, 2007, the Solidarity Fund QFL will no longer accept
lump-sum payment contributions, since the limit set for the current year by the Fund’s Incorporating Act has now been attained. Lump-sum payments received by mail will be accepted only if they are postmarked on or before January 16, 2007, on the condition that the cheques are also dated on or before this date.
This measure will not affect Fund shareholders who contribute through payroll deductions, contributions negotiated with an employer or pre-authorized withdrawals. The Solidarity Fund will continue to accept all contributions by shareholders who use one of these contribution methods.
According to the limit set by the Act, the Fund may issue approximately $555 million worth of shares during the financial year ending May 31, 2007. “We would have liked to satisfy the demand, but under the Fund’s Incorporating Act we are now obliged to stop share sales by lump-sum payment for the current year,” said Yvon Bolduc, President and CEO of the Fund. “I would like to take this opportunity to thank all our shareholders once again for the confidence they have shown in the Fund. It goes without saying that the Fund will continue all its usual activities, both in terms of services to shareholders and investments in companies and financial markets.”
A solid financial position
“This restriction has no effect on the Fund’s financial health, as we hold highly diversified assets,” continued Mr. Bolduc. “It has no effect on share redemptions, either, nor on our return, which is based on the performance of our partner companies and financial markets. The Fund’s ability to invest in SMEs remains strong; we intend to invest $555 million this year. This is a significant amount, and it is in addition to the $643 million we invested in the fiscal year ended May 31, 2006.”
Strong semi-annual results
As at November 30, 2006, the Fund reported its eighth consecutive six-month period of growth, including posting a 2.7% return. This represents very good performance, and it drove share value to $24.32 as at January 5, 2007.
About the Solidarity Fund QFL
With assets of over $6.8 billion, the Solidarity Fund QFL is a development capital fund that invests the savings of Quebecers, particularly through its RRSP. In addition to preparing for a better retirement, Fund shareholders help create and maintain jobs and contribute to Québec’s economic development.
The Fund currently has close to 570,000 shareholders and has helped, on its own or with financial partners, create, maintain and support over 116 000 jobs.
For more information, please consult one of the Fund’s local representatives in the workplace or call Shareholder Services (1 800 567-3663).
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For more information:
Mario Tremblay
Vice-president, Public Affairs and Communications
Solidarity Fund QFL
Telephone: 514 383-8383
Toll free: 1 800 361-5017
Email:
mtremblay@fondsftq.com