Annual Return of 8.3% and Investments of $548 Million Attest to the Financial Stability and Relevance of the Fonds de solidarité FTQ
Highlights of the year ended May 31, 2014:
- Net assets of $10.1 billion;
- Share value reaches $30.29, an increase of $1.08 since January 2014 and $2.31 since July 2013;
- Record net earnings of $774 million;
- Fonds annual return: 8.3%;
- $787 million of shares issued, the third best year in the Fonds' history;
- 613,958 shareholders;
- Investments of $548 million to support Québec entrepreneurs.
MONTREAL, July 4, 2014 /CNW Telbec/ - The Fonds de solidarité FTQ is pleased to announce that its share value is now $30.29, an increase of $1.08 over the value announced in January. Net earnings for the year ended May 31, 2014 are a record $774 million, resulting in an annual return of 8.3%. Net assets reached a new high of $10.1 billion. During the year, the Fonds invested $548 million to support Québec entrepreneurs.
"I have taken over the chairmanship of the Board of a clearly solid institution that is more relevant than ever in Québec," said Robert Parizeau, the Fonds' Chair of the Board. "SMEs have no shortage of challenges, and the Fonds, with its presence throughout the regions, is there to supply them with the long-term capital they need to tackle them all: growth, succession, modernization, job creation and wealth creation."
"With its patient capital, the Fonds de solidarité FTQ is an important backer for Québec businesses, particularly in these tough economic times," said newly appointed Fonds President and Chief Executive Officer, Gaétan Morin. "Although lagging business investment is undermining economic growth, the Fonds continued to make hefty investments that exceeded $500 million this past year. This clearly shows that the Fonds remains a partner of choice for Québec companies."
"The Fonds has implemented a number of new measures in recent months as part of its plan to modernize its governance. We were pleased to see that Minister Leitão's budget contains a proposal to quickly adopt legislation that will allow the Fonds to finish implementing its new governance structure," continued Mr. Parizeau.
Systematic savings to avoid being affected by the limit on share issuance
In the 2014-2015 Québec Budget, the government limited at $650 million the value of Fonds de solidarité FTQ shares giving rise to a tax benefit that can be issued for the current fiscal year, which will end May 31, 2015.
To avoid being affected by this limit and to take full advantage of the tax credits, workers are encouraged to sign up for payroll deduction or pre-authorized withdrawals, which has the added benefit of allowing them to save systematically. Since shares are set aside for individuals who contribute through one of these two methods, those who do so will not be impacted by the limit. Note that the 30% in tax credits remains unchanged for the shareholder's 2014 tax year. As well, the limit will have no effect on the Fonds' return or on its ability to redeem shares.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $10.1 billion as of May 31, 2014, the Fonds is a development capital fund that channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and further Québec's development. The Fonds is a partner, either directly or through its network members, in more than 2,450 companies. With 613,958 shareholder-savers, the Fonds helps create, maintain and protect more than 172,000 jobs.
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