Net assets grow by $1.1 billion since November 30, 2023, and stand at $20 billion

Highlights as at May 31, 2024

• Share value: $59.11 (up $3.27 since December 21, 2023, and $4.38 Since June 23, 2023)
• Annual return: 8.0%
• 6-month return: 5.9%
• More than 785,000 shareholders-savers
• Annual compound return: 8.0% (1-year), 3.6% (3-year), 6.1% (5-year) and 6.9% (10-year)
• Comprehensive income: $1.5 billion
• Net assets: $20 billion
• Investments of $ 1.2 billion to support the Québec economy

MONTRÉAL, June 21, 2024 /CNW/ - For its fiscal year ended May 31, 2024, the Fonds de solidarité FTQ posted comprehensive income (profit) of $1.5 billion. The annual return to shareholders is 8.0% (including 5.9% in the second half of the fiscal year). The value of the Fonds share is now $59.11. Net assets stand at $20 billion, up $1.1 billion over the last 6 months, while the number of shareholders-savers is over 785,000.

The Fonds' compound shareholder return (excluding tax credits) as at May 31, 2024, is 8.0% for 1 year, 3.6% for 3 years, 6.1% for 5 years and 6.9% for 10 years.

"These results reinforce our conviction that societal returns can very well go hand in hand with financial performance. With $1.2 billion invested during the year, we clearly have an impact on the Québec economy. This kind of commitment speaks to our ability to mobilize the retirement savings of Quebecers to achieve our mission of socio-economic development," said Janie Béïque, President and CEO of the Fonds de solidarité FTQ.

"Although the economy appears to be back on track, we remain cautious. A number of socio-economic challenges persist, and the Fonds is thoroughly committed to helping Québec companies navigate them. Each challenge offers an opportunity for us to make a difference in the day-to-day lives of SMEs, for example, by assisting with business transfers or a just transition, and of Quebecers, be it in the area of housing or retirement planning. In 2024, the Fonds was there to support Québec workers, businesses and the regions, as it has done for over 40 years," continued Ms. Béïque.

Business transfers and sustainable growth

Among other things, the Fonds has a concrete impact on the long-term growth of SMEs by keeping the ownership of local companies in Québec hands and keeping their head offices in the province. For example, during the year, the Fonds invested in the acquisition of window and door manufacturer Novatech by the Gendreau family, owners of Garaga, and the company's management. For their part, the Fonds régionaux de solidarité FTQ invested $98 million for the transfer of 57 regional SMEs, which accounted for almost half of their files during the year.

The Fonds de solidarité FTQ also launched an initiative, in which National Bank, Desjardins Group and the Ministère de l'Économie, de l'Innovation et de l'Énergie participated, to support the EEB in the creation of Mouvement Propulsion Repreneurship, a program aimed at preparing and training 1,000 buyers and sellers over the next five years.

Affordable, social and community housing

In June 2022, the Government of Québec and the Fonds announced an agreement for 1,000 affordable, social and community housing. This partnership was enhanced in December 2023 and the objective increased to 1,250 units.

Following the successful launch of the initiative, the Government of Québec a recently announced a new agreement with the Fonds for 1,000 more units. The governmental financing for this new deal was made through the Canada-Québec agreement for housing.

"Over 30 years ago, the Fonds made the choice to support the development of affordable, social and community housing, and we have delivered. With the support of both levels of governments, we are excited to support even more housing initiatives in the coming years," 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 more than 40 years ago. Since then, the Fonds has rallied Québec into action thanks to the retirement savings of over 785,000 shareholders.

With net assets of $20 billion as at May 31, 2024, the Fonds supports thousands of 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. 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. On March 1, 2024, The Government of Québec announced in Information Bulletin 2024-3 that tax legislation would be amended to postpone by three years the rule providing that the tax credit would be available only to individuals whose taxable income for a given taxation year was below the highest tax rate.

SOURCE Fonds de solidarité FTQ