Highlights of the year ended May 31, 2019:
• Share value at $43.90 (an increase of $2.29 over January 2019 and $3.17 over July 2018);
• Annual return of 7.8%;
• 6-month return of 5.5%;
• Annual comprehensive income (profit) of $1.134 billion;
• Net assets grow to $15.6 billion;
• Investments of $1.2 billion in the Québec economy;
• 694,357 shareholders-savers, an increase of 26,940.
Montréal, July 5, 2019 – For its financial year ended May 31, 2019, the Fonds de solidarité FTQ posted comprehensive income (profit) of $1.134 billion for the benefit of its 694,357 shareholders-savers. Share value is now $43.90, representing an annual shareholder return of 7.8%. Net assets grew to $15.6 billion.
The Fonds’ shareholder's annual compound returns (excluding tax credits) is 7.8% for 1 year, 8.1% for 3 years, 7.7% for 5 years and 7.3% for 10 years.
All asset classes generated positive returns. In particular, the Québec development capital investments portfolio posted a return of 12.4% for the year thanks to the 14.6% return generated by the private securities and specialized funds components.
“Québec overall, and our savers in particular, continue to benefit from this long growth period,” said Fonds President and CEO Gaétan Morin. “However, we must not sit on our laurels because our economy is in transition, meaning there are as many challenges as there are opportunities for businesses and workers. Despite essentially sound economic fundamentals, we must continue to support businesses to make Quebec's economy stronger.”
During the year, the Fonds invested $1.2 billion of development capital in companies impacting the Québec economy. The Fonds and its Fonds régionaux de solidarité FTQ welcomed 107 new partner companies.
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 2019-2020
As has been the case in the past, in order to maintain a balanced business model, the Fonds de solidarité FTQ may have to stop issuing shares during the financial year.
In such a case, the Fonds will issue a press release explaining the conditions of the share issue cap. The Fonds will give priority to any existing subscription agreements involving payroll deduction, employer contributions or direct debit and will continue issuing shares throughout the year in accordance with these agreements. For individuals who purchase shares with a lump-sum payment, the Fonds will issue shares on a first come, first served basis.
The Fonds de solidarité FTQ reminds the public that in order to make its shares accessible to the greatest number of shareholders, the annual contribution will be limited to $12,500 per shareholder for the period of January 1 to December 31.
Information on the Fonds’ share redemption criteria and share issuance can be found in its Short Form Prospectus (36th edition), available on its website.
New announcement dates for financial results
Share value, which is the same for issues, redemptions and purchases-by-agreement, is generally determined twice a year on the basis of the Fonds de solidarité FTQ's net assets as at November 30 and May 31. For the first time, beginning in the current six-month period, and for subsequent six-month periods, the share value will be published through a press release around December 31 and June 30 each year. Previously, the share value was published around January 5 and July 5.
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, 2019, the organization had $15.6 billion in net assets, and through its current portfolio of investments has contributed to create and protect 215,104 jobs. The Fonds has 3,126 partner companies and 694,357 shareholders-savers.
Information on the Fonds’ redemption criteria and share issuance can be found in its Short Form Prospectus.
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Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained online at 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 security holder 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.