Share Value Increases by $0.72 to $53.33
Highlights for the semester ended November 30, 2022:
- 6-month return of 1.4%
- 12-month return of -4.4%
- Compound annual shareholder return of 4.9% for 3 years, 6.3% for 5 years and 7.0% for 10 years
- Share value at $53.33 (up $0.72 over June 30, 2022, and down $2.44 over December 31, 2021)
- 6-month comprehensive income (profit) of $245 million
- Net assets grew to $17.8 billion
- $688 million in investments to support the Québec economy (a record for a first semester)
- Number of shareholder-savers up to 753,125
Montréal, December 23, 2022 – For the first six months of its 2022-2023 financial year, the Fonds de solidarité FTQ posted comprehensive income (profit) of $245 million for the benefit of its 753,125 savers. Share value is now $53.33, representing a shareholder return of 1.4% for the 6-month period ended November 30, 2022. Net assets grew to $17.8 billion. During the semester, the Fonds invested $688 million to support the Québec economy, a record for the first half of a financial year.
"Our financial results for the first half of the year reflect a period of great economic uncertainty in which our portfolio management strategy succeeded in generating $245 million in profits. Québec has everything it needs to meet the challenges ahead. We can therefore be confident about the future, even if the next few months will probably not be easy. Confidence means being clear-headed and ready to make every effort," said Janie C. Béïque, President and CEO of the Fonds de solidarité FTQ.
The Fonds' compound annual shareholder return (excluding tax credits) is -4.4% for 1 year, 4,9% for 3 years, 6.3% for 5 years and 7.0% for 10 years.
A return that encompasses human values
"Although achieving a financial return is essential, it's not everything. We also look for what is known as societal return on investment. What this means for us is that while real value is created in moving companies forward, we also want to move society forward. This is the path we will pursue over the next few years," continued Ms. Béïque.
The Fonds has identified six societal return themes for which it will measure its impact: dignity in retirement, attracting and retaining talent, sustainable real estate, sustainable SME growth, just technology transition and just environmental transition.
The Fonds invested in WorkJam as part of a US$50-million funding round to support the development of talent attraction and retention products. Founded in 2014, the company is a global leader in digital frontline workplaces. WorkJam combines communication, task management, scheduling tools, learning and more, all in one app. It is the only complete and unified system designed to revolutionize the way head offices and their frontline work together, boosting efficiencies and productivity. Available in over 45 languages, the app helps organizations bridge language barriers and create a more inclusive working environment for all.
Alongside the Fonds régionaux de solidarité FTQ Centre-du-Québec, the Fonds became a shareholder of GRYB, a Victoriaville-based company specialized in equipment for heavy-machinery. This investment enabled GRYB to pursue its expansion plan and acquire RAD Technologies, Dalkotech and Eco-trak. These acquisitions, which will provide GRYB with a doorway to the OEM market as well as a high-tech product line (Eco-trak), are part of an important series of recent acquisitions that strengthen its position as an industry leader.
The Fonds also invested in Groupe Charbonneau, a company specializing in building mechanical systems, injecting $8 million to support its expansion. During its 104-year history, the family-owned business, which has been run by three generations of Charbonneaus, has been involved in numerous large-scale projects, such as the Metropolitan expressway, the Expo 67 pavilions and, more recently, the CHUM and the MUHC. Today, with nearly 300 employees, Groupe Charbonneau is looking to launch an ambitious growth plan that will take the company to new heights.
Savings as a driver of economic growth
In the area of savings, the Fonds recently launched onsite workshops in order to reach more workers who do not have access to a pension plan or who earn less than $55,000 per year. This is one of the measures put in place so that the Fonds can attain its goal of attracting, within the next five years, 100,000 new shareholders who fall into one of the two aforementioned categories.
"The Fonds helps ensure a dignified retirement for hundreds of thousands of Quebecers who would otherwise be at risk of aging in poverty. Let's never forget that. The Fonds' mission is then to invest their money in companies that contribute to Québec's economic growth. Thanks to our shareholders' confidence in us, the Fonds has invested an average of more than $1.3 billion per year, in the last five years," continued Ms. Béïque.
"None of this would have been possible without our employees and local representatives. On the eve of the Fonds' 40th anniversary, I would like to acknowledge their contribution, which has allowed the Fonds to become what it is today, a key driver of social and economic development."
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ invests to build a better society by channelling the savings of its 753,125 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 $17.8 billion in net assets as at November 30, 2022, the Fonds has supported more than 3,600 partner companies and over 296,000 jobs.
Please read the prospectus before buying shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained on the website 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. RRSP-related deductions may also apply.
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