Investments of $1.1 billion to support the Québec economy
Highlights as at May 31, 2021:
- Share value at $53.21 (up $4.10 from the December 31, 2020, share value, and an increase of $8,97 over June 30, 2020)
- Annual return of 20.3%
- Annual compound returns to the shareholder of 9.3% for 3 years and 8.9% for 5 years
- Comprehensive annual income of $2.9 billion (profit)
- Investments of $1.1 billion to support the Québec economy
- Net assets of $17.2 billion
- 723,501 shareholders-savers
Montréal, June 30, 2021 – For its fiscal year ended May 31, 2021, the Fonds de solidarité FTQ posted comprehensive income (profit) of $2.9 billion for the benefit of its shareholders-savers. The annual shareholder return is 20.3% (8.3% in the second half of the fiscal year). Share value is now $53.21 and net assets stand at $17.2 billion.
The Fonds’ annual compound returns to the shareholder (excluding tax credits) as at May 31, 2021, are 20.3% for 1 year, 9,3% for 3 years, 8,9% for 5 years and 7.5% for 10 years.
This performance reflects the quick economic recovery, the strength of the Fonds’ portfolio companies and the stock market surge. The Québec development capital portfolio posted a return of 30.1% for the year (27.5% generated by private securities and specialized funds, and 44.5% for listed securities).
“We’re happy to report that we generated an excellent return for our savers this year. But beyond our financial results, what we’re most proud of is the Fonds’ impact throughout Québec. Because what motivates us, besides encouraging workers to save, is investing in companies that energize our regions and strengthen our communities, companies that help the Québec economy become more innovative, greener and more sustainable,” said Janie C. Béïque, President and CEO of the Fonds de solidarité FTQ.
“With financing and support, we’ve been there for our partner companies since the beginning of the pandemic to help them through the crisis. As we’ve been doing for 38 years, we help them better prepare for the future in order to ensure their growth and to support quality jobs,” continued Ms. Béïque.
Investments of $1.1 billion
During the year, the Fonds invested $1.1 billion in the Québec economy.
“The Fonds continues to support the most ambitious dreams of Québec entrepreneurs, who face many obstacles: global competition, a labour shortage, the fight against climate change, technology transition and more. The challenges are many, but so are the opportunities,” continued Ms. Béïque.
To support the energy transition, the Fonds has invested in AddÉnergie, a major charging network operator for electric vehicles. With this financial support, AddÉnergie will be able to speed up its growth strategy and expand FLO®, its North American EV charging network.
In terms of regional economic development, the Fonds has also reinvested an additional $200 million in the Fonds régionaux de solidarité FTQ (FRS). Celebrating its 25th anniversary this year, the FRS network had a record year with total investments of $150.9 million in 123 SMEs across Québec.
At the initiative of the Fonds immobilier de solidarité FTQ, a group of government and private investors committed $151 million in patient capital (including $30 million from the Fonds immobilier) for the construction, acquisition, and renovation of 1,500 affordable housing units, a project that is good for the Fonds’ shareholders and for Québec families.
“The recovery is well underway, but there is still a ways to go to strengthen our economy, create quality jobs and build a better society. With the confidence of our shareholders, partner companies and governments, the Fonds intends to remain a key ally in Québec’s socio-economic development,” concluded Ms. Béïque.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 723,501 shareholders into development and venture 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 $17.2 billion in net assets as at May 31, 2021, the Fonds has supported more than 3,437 partner companies and 247,612 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 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.
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