Fonds de solidarité FTQ Annual General Meeting: Economic Challenges Among the Priorities as the Organization Celebrates Its 40th Anniversary
Reinstatement of lump-sum contributions in 2024-2025 under conditions to be announced in the coming months
Montréal, September 16, 2023
At the Annual General Meeting of Shareholders of the Fonds de solidarité FTQ, management reviewed the results of its 2022-2023 financial year and of the past 40 years, with an eye firmly focused on the economic challenges of today and tomorrow. It also presented the 2023 Operations and Sustainability Report.
"It took boldness in 1983 to create the Fonds de solidarité FTQ and rally partners with sometimes divergent positions around a common vision, but it clearly paid off," said Board Chair Claude Séguin. "That said, it's not enough to look to the past; we must also to look to the future. The Fonds has always managed to demonstrate the agility and clear-sightedness needed to maintain its relevance as a key player in a constantly changing society. More than ever, this is what enables it to look to the future with confidence."
"Last year, we set ourselves an ambitious five-year vision. We started from the premise that, while financial performance is essential, it should not be our only goal. We must also deliver societal returns. We firmly believe that investing should be a way of making the world a better place," said Fonds President and CEO Janie C. Béïque.
"We can be proud of the progress made over the past year by the Fonds and its network. For example, our investment in CMP Advanced Mechanical Solutions, a company that engages in the electrification of transportation, the affordable housing projects carried out by the Fonds immobilier together with its partners, the support provided by the Fonds régionaux teams in keeping companies in Québec through business transfers, and the Fonds' creation of a new network member, Fonds de solidarité FTQ Bioénergie, a company dedicated to investments in bioenergy in order to speed up Québec's shift to a low-carbon economy. This past year we achieved the first big milestones in our strategic vision," continued Ms. Béïque.
The Fonds' strategic vision has three five-year targets:
- 100,000 new savers with no other savings product or with a yearly salary below the average wage in Québec
- $12 billion in sustainable development assets
- 100,000 impact actions by our employees
To define its area of action and measure the influence of its social interventions, the Fonds has defined six societal return themes that will serve as a basis for measuring and tracking progress:
- Decent retirement - Improve people's quality of life by enabling them to have sufficient income in retirement and by encouraging them to stay healthy so that they can fully enjoy their golden years.
- Long-term SME growth – Help SMEs achieve sustainable growth to promote their success and survival, and maintain their head office in Québec.
- Sustainable real estate - Support the development of social and community real estate projects while improving the environmental performance of our real estate projects.
- Attract and retain talent - Foster a healthy, stimulating and diversified workplace to attract, develop and retain talent, enabling everyone to contribute to a sustainable economy.
- Just technology transition - Modernize Québec SMEs through the integration of technology solutions while ensuring a just transition for employees.
- Just environmental transition - Fight against climate change and protect and restore the environment while ensuring a just transition for employees.
Reinstatement of lump-sum contributions in 2024-2025
During the year, 41,549 shareholders-savers contributed to the Fonds for the first time. Of these, about 23,350 have no other savings product or have an annual salary below the average salary in Québec.
"Considering the high inflation and soaring cost of living, I am particularly proud that the Fonds has attracted more than 40,000 first-time savers," said Ms. Béïque.
However, tens of thousands of people head into retirement with barely any savings. Just under 40% of retirees in Québec receive the Guaranteed Income Supplement, which is reserved for low-income earners.
To help more Quebecers better prepare for retirement, the Fonds will announce, in the coming months, the conditions for the reinstatement of lump-sum contributions in its 2024-2025 financial year.
"Saving for retirement remains one of the cornerstones of the Fonds de solidarité FTQ's mission. This was recognized in the Québec government's latest budget. We are committed to helping Quebecers retire with dignity. The reinstatement of lump-sum contributions in 2024-2025, combined with the vital work of our 1,700 local representatives, will enable us to reach even more Quebecers who have no savings solution or who earn below the average salary," concluded Ms. Béïque.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a source of pride in Québec, fulfilling its mission through a unique business model created 40 years ago. Since then, the Fonds has rallied Québec into action thanks to the retirement savings of 765,721 shareholders.
With net assets of $18.4 billion as at May 31, 2023, the Fonds supports more than 3,700 companies through venture and development capital investments based on the belief that impact is created as much by financial as societal returns. For more information, visit fondsftq.com or our company page on LinkedIn.
Please read the prospectus before buying shares 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.
1 Employment and Social Development Canada: Old Age Security (OAS) - Number of Persons Receiving OAS Benefits, by Province and by Type, August 2022.