pcJ News Briefs – Fonds de solidarité FTQ reported comprehensive income (profits) of $1.085 billion for the fiscal year ended May 31, 2017, breaking the $1 billion level for the first time in its history. Net assets grew to $13.1 billion.
Per share value is now $37.88, representing an annual shareholder return of 9.1%. The fund’ compound annual shareholder return (excluding tax credits) is 9.1% for 1 year, 7.7% for 3 years, 7.3% for 5 years and 4.1% for 10 years.
During the year, the fund invested $873 million in development capital in companies that have significant economic spinoffs for Quebec.
News Release
Fonds de solidarité FTQ Posts Annual Profits of Over $1 billion for the First Time in its History
Highlights:
Annual shareholder return: 9.1%
Share value at $37.88 (an increase of $1.77 over January 2017 and $3.15 over July 2016)
Comprehensive income (profits): $ 1.085 billion
Net assets grow to $13.1 billion
Investments of $873 million in the Québec economy
645,000 shareholder-savers, an increase of 27,000
Montréal, July 5, 2017 – For its fiscal year ended May 31, 2017, the Fonds de solidarité FTQ generated comprehensive income (profits) of $1.085 billion for its 645,000 shareholder-savers, breaking the $1 billion level for the first time in its history. Share value is now $37.88, representing an annual shareholder return of 9.1%. Net assets grew to $13.1 billion dollars.
The Fonds’ compound annual shareholder return (excluding tax credits) is 9.1% for 1 year, 7.7% for 3 years, 7.3% for 5 years and 4.1% for 10 years.
During the year, the Fonds invested $873 million in development capital in companies that have significant economic spinoffs for Quebec.
Quote
“Thanks to record profits this past year, the Fonds has provided an excellent return to our shareholders, all while investing $873 million for Québec’s economic development. With over 645,000 savers and 2,700 partner companies, the Fonds de solidarité FTQ is more active than ever in the Québec economy and plans to remain so for years to come.”
Gaétan Morin, President and CEO of the Fonds de solidarité FTQ.
Various ways to contribute to the Fonds de solidarité FTQ
Quebecers can contribute to the Fonds in various ways and benefit from the 30% in extra tax credits available to individuals who invest in labour funds. More specifically:
Through the Fonds’ local representatives in the workplace and through its field offices, where they can get help with enrolment and transactions;
On www.fondsftq.com, where with just one click they can choose their method of contribution and payment as well as access their account to make online transactions; or
By calling Saving Services at 1 800 567-FONDS (3663).
More flexible redemption criteria for the HBP
To better serve its savers, the Fonds has namely eased the redemption criteria associated with the Home Buyers’ Plan (HBP). Shareholders will no longer have to have cashed in all their other RRSPs before making a redemption request to participate in the HBP. The repayments, however, must still be made to the Fonds.
Share issue for 2017-2018
As has been the case in the past, to maintain a balanced business model, the Fonds de solidarité FTQ may limit the issue of shares for the current fiscal year.
In such a case, the Fonds will issue a press release explaining the terms and conditions of the share issue limitation. The Fonds will give priority to any existing subscription agreements involving payroll deduction, employer contributions or pre-authorized withdrawals and will continue issuing shares throughout the year in accordance with these agreements. For individuals who purchase their shares with a lump-sum payment, including by direct debit, the Fonds will issue shares on a first come, first served basis.
In order to make Fonds de solidarité FTQ shares accessible to the greatest number of savers, the Fonds will be limiting the annual contribution to $12,500 per shareholder as of January 1, 2018. Tax credits remain capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
Information about the redemption criteria and the issue of shares is available in the Simplified Prospectus (34th edition), available shortly on the Fonds’ website.
Self-directed RRSPs with a securities broker or a financial institution
As of September 1, 2017, individuals holding Series 1 shares in an RRSP or RRIF account with the Fonds de solidarité FTQ will no longer be able to transfer them to a self-directed RRSP or RRIF administered by a securities broker or a financial institution.
This decision stems from the fact that the federal government has already abolished any financial advantage associated with labour-fund shares held in self-directed RRSPs or RRIFs, and by the fact that share transfers to a self-directed RRSP or RRIF increase the Fonds’ administrative expenses as well as the fees charged to savers by securities brokers and financial institutions.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a development capital investment fund that channels the savings of Quebecers into investments. As at May 31, 2017, the organization had $13.1 billion in net assets, and through its current portfolio of investments has helped create and protect 186,440 jobs. The Fonds is a partner in more than 2,700 companies and has 645,664 shareholder-savers. Please visit fondsftq.com for more information.
Information for media representatives only:
Patrick McQuilken
Senior Advisor, Media Relations and Communications
Fonds de solidarité FTQ
Phone: 514 850-4835
Mobile: 514 703-5587
Email: pmcquilken@fondsftq.com
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 securityholder 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.