$1.4 billion invested for the benefit of businesses and
$3.0 billion in redemption requests received from shareholders-savers
Highlights as at May 31, 2020:
- Share value at $44.24 (a decrease of $1.96 from December 31, 2019 and an increase of $0.34 over July 5, 2019);
- Annual return of 0.8%;
- 6-month return of -4.2%;
- Comprehensive annual income of $230 million (profit);
- Net assets of $13.8 billion;
- 707,935 shareholders-savers.
MONTRÉAL, June 30, 2020 /CNW Telbec/ - For its financial year ended May 31, 2020, the Fonds de solidarité FTQ posted comprehensive income (profit) of $230 million for the benefit of its shareholders-savers. The shareholder's annual return is positive at 0.8% despite a negative 4.2% return during the second semester. Share value is brought back to $44.24. Net assets are now $13.8 billion.
The Fonds' shareholders' compound annual return (excluding tax credits) is 0.8% for 1 year, 5.3% for 3 years, 5.9% for 5 years and 6.4% for 10 years.
"The Fonds de solidarité FTQ has managed to generate a positive return for its shareholders this past financial year despite a second semester marked by COVID-19," said Fonds President and CEO Gaétan Morin. "Our record-breaking investment volume speaks to the Fonds' relevance during these unprecedented times when access to capital is more important than ever for businesses. The Fonds is here to help employers and their workers get through this crisis and then to help drive the recovery."
Share issues and redemptions
The Fonds received $3 billion in share redemption requests in 2019-2020. Thanks to its solid financial position and prudent liquidity management, the Fonds can meet the needs of its shareholders in difficult times. The decrease in assets under management in the second half of the year is explained primarily by the sharp increase in redemption requests.
"We're very proud to have been here for these savers throughout their working years and thank them, because their contributions helped support jobs in Québec," continued Gaétan Morin.
In 2019-2020, the Fonds issued $961 million in Class A shares, a new record. The organization welcomed more than 46,000 new shareholders, of which 61% are under age 40 and 18% under age 25. Automatic saving through payroll deduction or automatic bank withdrawals accounted for 79% of inflows ($759 million).
"The fact that a growing number of shareholders are opting for automatic saving, combined with the arrival of new savers under 40, are two encouraging signs for retirement savings," added Mr. Morin.
"Thanks to the confidence shown by our savers, the Fonds is solid, ready for the recovery and more committed than ever to building a fairer, greener and more prosperous economy."
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a capital development fund that channels the savings of Quebecers into investments. With $13.8 billion in net assets as at May 31, 2020, the Fonds has 3,329 partner companies and 707,935 shareholders-savers.
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.
SOURCE Fonds de solidarité FTQ
For further information: for media representatives only: Patrick McQuilken, Senior Advisor, Media Relations and Communications, Fonds de solidarité FTQ, Mobile: 514 703-5587, Email: [email protected]