Return of 7.8% for the Solidarity Fund

Helped by the improvement in the stock market, the Fonds de solidarité FTQ concluded the first half of its 2024-2025 financial year with a positive return of 7.8%, its share price climbing to $63.71.

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During the same period, the major financial indices recorded a spectacular performance, i.e. 16.9% for the Toronto S&P/TSX and 18.2% for the New York S&P 500.

The value of the fund's shares reached $63.71, up $4.60 since June 21, which represents a profit of $1.6 billion for the approximately 795,374 savers who entrusted part of their savings in the Solidarity Fund.

Excluding tax credits on contributions, the fund generated a return of 14.1% over 1 year, 4.5% over 3 years, 6.6% over 5 years and 7.3% over 10 years, according to the annual compound results to the shareholder of the fund.

$444 million in the economy

In a press release, the fund said it had deployed $444 million “to support the Quebec economy” over the last six months. For the 2023-2024 fiscal year, which ended on May 31, 2024, it had committed a total of $1.2 billion to the Quebec economy.

Remember that the Fonds de solidarité FTQ (like its equivalent Fondaction CSN) places nearly 60% of its portfolio in “development capital investments” in Quebec. The other 40% is committed to major markets, with approximately 22% in equities and 18% in fixed income securities, such as bonds.

The net assets of the Fonds FTQ now reach $21.7B. It supports nearly 4,000 businesses and manages the savings of nearly 800,000 contributors in Quebec.

“The results revealed today are representative of the evolution of the markets over the last half-year,” Janie Béïque, president and CEO of the Fonds de solidarité FTQ, said in a press release on Monday.

Focus on re-employment

The Solidarity Fund says it is making takeovers one of its priorities, while around 1,000 companies will be sold next year. According to estimates, 6 out of 10 entrepreneurs will sell their company in the next 10 years.

“It takes an ecosystem of takeover. We have a big role to play in that. There are a lot of small and medium-sized businesses in Quebec, and they are everywhere in all regions. It’s the lung of the regional economy,” Dany Pelletier, senior vice-president of private placements and impact investments at the Fonds de solidarité FTQ, told - last June.

He added that the fund kept a constant eye on potential transactions by Quebec companies.

“In addition to creating value for our savers, we are convinced that the current situation requires us more than ever to provide societal returns that improve our community,” added CEO Janie Béïque in her press release.