A return of 9.1% on private equity investments
Highlights as at May 31, 2022:
- Share value at $52.61 (down $3.16 from December 31, 2021 and $0.60 from June 30, 2021);
- Annual return of -1.1%;
- Annual compound return to shareholders of 6.2% for 3 years, 6.8% for 5 years and 7.1% for 10 years;
- Comprehensive annual income of -$0.2 billion;
- Net assets of $17.4 billion;
- Investments of $1.4 billion to support the Québec economy;
- 748,371 shareholders-savers.
Montréal, June 30, 2022 – For its fiscal year ended May 31, 2022, the Fonds de solidarité FTQ posted comprehensive income of $-0.2 billion. The annual return to shareholders is -1.1% (including -5.7% in the second half of the fiscal year). The value of the Fonds share is now $52.61. Net assets stand at $17.4 billion, representing growth of $0.2 billion over last year, while the number of shareholders-savers is 748,371, an increase of more than 24,000 in one year.
The Fonds’ annual compound return to shareholders (excluding tax credits) as at May 31, 2022, is -1.1% for 1 year, 6.2% for 3 years, 6.8% for 5 years and 7.1% for 10 years.
“The annual return of 9.1% generated by the private equity portfolios helped offset some of the impact of the equity and bond markets,” explained Fonds President and CEO Janie C. Beïque. “Despite the economic turmoil, we remain confident in the Fonds’ ability to deliver a reasonable long-term return.”
Investments of $1.4 billion for the Québec economy thanks to Quebecers’ savings
During the year, the Fonds invested $1.408 billion to support economic development in Québec. This is the fifth consecutive year that the Fonds has invested more than $1 billion in the Québec economy.
“One of the Fonds’ fundamental characteristics is to take the long view. Because they’re building a nest egg for retirement, our savers are investing with us for the long term. And we invest for the long term in Québec companies, for the benefit of all Quebecers,” continued Ms. Béïque.
“We know how important it is to take the long view, not only for financial returns but so that our investments can also generate a societal return. Our organizational DNA is unique. The Fonds was born during a major economic crisis, almost 40 years ago. The social and human values that were at the heart of the Fonds’ creation and that still drive our actions to this day give us the tools we need to measure our financial performance but also our social impact, which is just as important to us,” concluded Ms. Béïque.
During the year, the Fonds invested in CarbiCrete, a Montréal-based company that uses industrial by-products while permanently capturing CO2 in the resulting concrete. This type of investment is in keeping with the Fonds’ goal to reach $12 billion in sustainable assets within five years.
The Fonds also supported the succession project of the consulting engineering firm GCM Consultants. This investment was made through the Fonds régionaux de solidarité FTQ, the gateway for many SME owners in search of financing solutions.
Lastly, the Fonds reinvested in Worximity, which develops Industry 4.0 solutions for the manufacturing industry, and backed the launch of Accelia Capital to propel innovative companies and accelerate female leadership in technology.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 748,371 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 $17.4 billion in net assets as at May 31, 2022, the Fonds has supported 3,620 partner companies and 296,927 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.
The acquisition of shares of the Fonds de solidarité FTQ may give rise to labour-sponsored fund tax credits. The tax credits amount to 30%, namely 15% at the Quebec level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
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