Highlights of the six-month period ended November 30, 2015:
- Share value at $ 33.59 (up $0.33 from July 2015)
- Comprehensive income: $112 million
- 6-month return: 1.0%
- 12-month return: 7.1%
- Net assets increased to $11.2 billion
- Development capital investments in Québec: $324 million
- Tax credits: 25% for the 2015 tax year1
MONTRÉAL, Jan. 5, 2016 /CNW Telbec/ - The Fonds de solidarité FTQ announced today a record share value of $33.59. The $0.33 increase over the value in July 2015 translates into a six-month return of 1.0% and a 12-month return of 7.1% (from December 1, 2014 to November 30, 2015). These returns do not factor in the tax credits or RRSP deductions.
Comprehensive income for the six months ended November 30, 2015 was $112 million, and net assets increased to $11.2 billion. The Fonds invested $324 million throughout Québec in unsecured risk capital during the six-month period.
"The tax credits granted to our shareholders are essential in order for the Fonds to continue supporting Québec businesses and encouraging middle class workers to save for retirement. The Fonds is working with the newly elected government to help restore the federal tax credit," said Robert Parizeau, Chairman of the Fonds de solidarité FTQ.
"Thanks to their resourcefulness, our private Québec companies have been able to weather the economic turbulence. Posting a 4.8% return, this asset class helped lift our share price for the 14th consecutive time. With total investments of almost $1 billion over the past 18 months, the Fonds supported Québec businesses," said Gaétan Morin, President and CEO of the Fonds de solidarité FTQ.
During the six-month period, the Fonds invested $32 million in Manac of St-Georges to help restore ownership to Québec interests. The organization also invested $4 million is Montréal-based NoviFlow, a leader in high-performance networking technology. In order to support succession and ensure the future of Technosub in Rouyn-Noranda, the Fonds also reinvested in the company, a Canadian leader in the sale, repair and manufacture of pumps and pump components serving the mining industry.
Various ways to contribute to the Fonds de solidarité FTQ
Quebecers can contribute to the Fonds in various ways and benefit from the extra 25% in labour fund tax credits for the 2015 taxation year,1 more specifically:
- 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;
- Through the Fonds' local representatives in the workplace and through its field offices, where they can get help with enrolment and transactions; or
- By calling Shareholder Services at 1 800 567-FONDS (3663).
The limit on the issue of Fonds de solidarité FTQ shares eligible for tax credits was lifted as of June 1, 2015.
Shareholders' compound annual return
The Fonds' compound annual return (excluding the tax credits) to shareholders is 7.1% for 1 year, 7.3% for 3 years, 6.1% for 5 years and 3.8% for 10 years.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $11.2 billion as of November 30, 2015, 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 2,550 companies. With more than 600,000 shareholder-savers, the Fonds helps create, maintain and protect more than 176,000 jobs. For more information, visit www.fondsftq.com.
Please read the prospectus before acquiring Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Fonds' Website, 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 reduce returns. Fonds de solidarité FTQ shares are not guaranteed, their value changes and past performance may not be repeated.
1 For contributions made by February 29, 2016, if reported for the 2015 taxation year. If reported for the 2016 taxation year, the tax credit will be 20%, as the federal credit will be decreased by 5%.
SOURCE Fonds de solidarité FTQ
For further 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: [email protected]; For Fonds de solidarité FTQ shareholders: Shareholder Services, Fonds de solidarité FTQ, Montréal: 514 383-3663, Québec: 418 628-3663, Toll Free: 1 800 567-3663