Montréal, December 31, 2019 – For the first six months of its 2019-2020 financial year, the Fonds de solidarité FTQ posted comprehensive income (profit) of $840 million for the benefit of its over 700,000 savers. Share value is now $46.20, representing a shareholder return of 5.2% for the 6-month period ended November 30, 2019 and a 12-month return of 11.0%. Net assets grew to $16.7 billion.
The Fonds’ shareholders’ annual compound returns (excluding tax credits) are 11.0% for 1 year, 8.6% for 3 years, 8.1% for 5 years and 7.0% for 10 years.
“The Fonds’ Québec partner companies continue to perform well and take advantage of economic growth, as we can see from the 5.6% return generated by this portfolio for the 6-month period,” said Fonds President and Chief Executive Officer Gaétan Morin.
Last spring, Lufa Farms opened a new distribution centre in Montréal’s Saint-Laurent borough to meet growing demand for their products. The company, which is celebrating its 10th anniversary this year, recently began construction on what will be the biggest rooftop greenhouse in the world on the same site. Thanks in large part to the Fonds’ $8 million investment, Lufa Farms continues to expand amid a transitioning economy.
The Fonds continued to support the tech sector by reinvesting in Coveo Solutions, a company that uses Artificial Intelligence technology to help businesses deliver more personalized digital experiences to their customers, business partners and employees. A backer of Coveo since its inception in 2005, the Fonds has watched the company grow into a powerhouse with more than 500 employees.
The Fonds also reinvested in Amos-based Forages M. Rouillier. With over 300 employees, family-owned business is engaged in surface and underground diamond drilling and is Québec’s largest private exploration drilling company. The Fonds’ support will allow the company to purchase new equipment for a recently acquired major contract in Nord-du-Québec, as well as to pursue its growth strategy.
Unsecured financing by the Fonds régionaux de solidarité FTQ for SMEs
The economy is changing, as are the needs of small and mid-sized enterprises. This is why going forward, the Fonds régionaux de solidarité FTQ (FRS) will be able to offer up to $5 million of unsecured financing. For needs in excess of $5 million, the FRS’ financing experts will guide entrepreneurs through the application process with the Fonds de solidarité FTQ.
“A recent Léger survey commissioned by QuébecInnove, the Fonds de solidarité FTQ and EY Canada shows that Québec business leaders, especially those in the regions, are confronted with many challenges, such as a need for specialized labour and the digital and technological shift. To better assist our SMEs in this new economic environment, the Fonds régionaux de solidarité FTQ can now offer as much as $5 million of unsecured loans or equity capital,” announced Mr. Morin.
One-time contributions suspended until May 31, 2020
In order to maintain a balanced business model, the Fonds announced on November 21, 2019 that it would stop accepting one-time contributions, also referred to as lump-sum contributions, until the end of its financial year on May 31, 2020. This freeze does not affect savers who contribute through payroll deduction or pre-authorized withdrawal. The freeze measure was announced in July 2019 and reiterated in other public communications thereafter.
Information on the Fonds’ share redemption criteria and share issuance can be found in its Short Form Prospectus (36th edition).
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Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained on the website 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.