Fonds de solidarité FTQ Share Value Reaches $55.84 at the End of the First Half of 2023-2024
Montreal, December 21, 2023
Highlights for the 6-month period ended November 30, 2023:
- 6-month return of 2.0%;
- 12-month return of 4.7%;
- Annual compound return of 4.4% for 3 years, 6.1% for 5 years, and 6.7% for 10 years;
- Share value at $55.84 (up $1.11 over June 23, 2023 and $2.51 over December 23, 2022);
- 6-month comprehensive income (profit) of $377 million;
- Net assets grow to $18.9 billion;
- Investments of $343 million to support the Québec economy.
Montréal, December 21, 2023 – For the first half of fiscal 2023-2024, the Fonds de solidarité FTQ posted comprehensive income (profit) of $377 million for the benefit of its 769,459 savers. Share value is now $55.84, representing a shareholder return of 2.0% for the 6-month period ended November 30, 2023. During the period, the Fonds invested $343 million to support the Québec economy.
The Fonds' annual compound shareholder returns (excluding tax credits) as at November 30, 2023, are 4.7% for 1 year, 4.4% for 3 years, 6.1% for 5 years and 6.7% for 10 years.
"In these uncertain economic times, it's more important than ever to save, invest and believe in us. 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, in other words, that they create value for the community and make the world a better place. I'm particularly proud of our efforts to support the next generation of entrepreneurs and of our contribution to affordable housing," said Janie Béïque, President and CEO of the Fonds de solidarité FTQ.
Supporting the next generation of Québec SMEs
Whether it's a family buyout, a transfer to key employees or a sale to an outside party, the Fonds network has long been an ally of business owners looking to hand over their life's work and of buyers in search of a new challenge. During its last financial year, more than half of the investments made by the network of 17 Fonds régionaux de solidarité FTQ (FRS) were to help Québec sellers and buyers in order to ensure the continuity of SMEs in the regions.
One such SME is Nokomis, a maple syrup transformer that markets the production of over 200 maple syrup producers, mainly in the Bas-Saint-Laurent region. The company secured investments of $1.5 million from the FRS and $250,000 from the Fonds local de solidarité de la MRC des Basques for the acquisition of La Cabane à Mario, thus allowing it to continue introducing Europeans to Québec maple products through Christmas fairs and markets.
During the period, the Fonds de solidarité FTQ supported the succession plan of Production Lareault, Canada's largest producer of strawberry plants. With 185 hectares in the Lanaudière region, the Lavaltrie company founded in 1953 and run by Luc and Lyne Lareault was acquired by Antoine Casimir and Andrea Borodenko. In so doing, it remains a Québec operation as it celebrates its 70th anniversary this year.
Investing in affordable housing
With more than 30 years of experience in real estate, the Fonds immobilier de solidarité FTQ invested in several projects during the first half of the year to create and maintain affordable, social and community housing.
Alongside the Government of Québec and the City of Montréal, the Fonds immobilier supported Interloge in the acquisition and renovation of two buildings in the Ahuntsic-Cartierville borough to ensure the long-term affordability of 79 apartments. The Fonds immobilier's investment was made within the framework of an agreement concluded with the Government of Québec in June 2022 aimed at building or renovating 1,000 affordable housing units.
Together with the governments of Québec and Canada, the Fonds immobilier is supporting a long-standing partner, Han Logement, in the construction of eight accessible dwellings for people with disabilities in East Angus, a city in the Eastern Townships. Since 2017, the Fonds immobilier has supported Han Logement in 19 projects that led to the construction of 174 accessible units.
Also of note is the inauguration of L'Ardoise in Québec City, a 205-unit student housing project carried out by the Unité de travail pour l'implantation de logement étudiant (UTILE) and made possible by investments from the governments of Québec and Canada, Québec City, and the Fonds immobilier.
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 769,459 shareholders.
With net assets of $18.9 billion as at November 30, 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 social 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. 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. Under the 2023-2024 provincial budget, only individuals whose taxable income in Quebec for the 2022 taxation year was less than $112,656 will have access to 30% tax credits for the 2024 taxation year.