Other options available for those who wish to contribute
Montréal, May 10, 2021 – The Fonds de solidarité FTQ (“Fonds”) is prolonging the suspension of lump-sum contributions for share purchases, announced January 11, beyond May 31, 2021. Only contributions through payroll deduction (including employer contributions) and preauthorized withdrawals, including new sign-ups, will be accepted as of June 1, 2021, enabling savers to benefit from the extra 30% in tax credits.
“The Fonds regularly re-evaluates its capital inflow needs, which now must take into account estimated investments for the next year. This measure also allows Quebecers to develop good saving habits by saving systematically,” said Serge Cadieux, Executive Vice-President, Business Development, Savings Market and Economic Training, at the Fonds de solidarité FTQ.
This suspension does not apply to contributions made through payroll deduction or preauthorized withdrawals or to reimbursements to be made to the Fonds under the HBP and LLP, and is provided for in the Short Form Prospectus.
Savers interested in purchasing Fonds shares should contact the Fonds to discuss their options for systematic saving. It should be noted that in contrast to payroll deduction agreements, new agreements for preauthorized withdrawals and agreements to increase existing contributions could be subject to a suspension later in the Fonds’ next fiscal year. In such a case, the suspension would be announced publicly by way of a press release.
Savers who have questions can contact their Local Representative (LR) in the workplace or the Fonds’ Saving Services, Monday to Friday, 8:30 a.m. to 5:00 p.m., at 1-800-567-3883 (toll free).
Using a TFSA to invest locally with FlexiFonds
Those who wish to save through a lump-sum payment and support the local economy at the same time can purchase FlexiFonds mutual fund units. With 70% of the assets linked to the Québec economy, FlexiFonds products reflect the Fonds’ mission to encourage the local economy.
In addition to being eligible for the RRSP and the RRIF, FlexiFonds’ three mutual funds (Conservative, Balanced, Growth) are now eligible for the TFSA. However, the purchase of FlexiFonds units does not entitle the holder to the tax credits for contribution to a labour-sponsored fund.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 700,000 shareholders into development and risk capital investments to help Québec transition to a green economy, to a human-centred world of work, and to a healthier society. The Fonds offers businesses unsecured financing and strategic support. With $15.6 billion in net assets as at November 30, 2020, the Fonds has supported more than 3,300 partner companies and over 220,000 jobs.
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 shares of the Fonds de solidarité FTQ are not guaranteed; their value changes and past performance may not be repeated.
The Fonds de solidarité FTQ’s shareholders will receive 15 % in tax credits from the Québec government and 15 % from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
FlexiFonds de solidarité FTQ Inc. is a wholly owned subsidiary of the Fonds de solidarité FTQ. FlexiFonds de solidarité FTQ Inc. acts as the principal distributor of the funds’ units and is a mutual fund dealer registered with the Autorité des marchés financiers.
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