A yield of 3.8% in the six months to the Fund QFL

Photo: Jacques Nadeau Le Devoir
According to a strategic plan, the investments of the Fund FTQ must give priority to increasing its presence in the key sectors of forest products, among others.

The Fonds de solidarité FTQ is happy with his performance the last few months, but also to see quebec companies to adopt an attitude closer to that of the “predator” to “prey” in terms of the acquisition.


The return to the shareholder of the Fund amounted to 3.8 % for the first six months of its fiscal year 2017-2018, which was completed on 30 November, revealed on Friday, the fund of workers. If we add the performance registered the previous semester, we arrive at a yield of 8.9% in 12 months.

Photo: Fonds de solidarité FTQ

“It is very, very happy with this performance “, said in a telephone interview with the Duty of the president and chief executive officer of the Fund, Gaétan Morin. “It is so much more than this performance for the half-year came primarily from our investments in Québec “, which confirms, he says, the good performance of the québec economy.


This performance is good compared to mutual funds canadian balanced, which posted an average return of 2.1 % during the last semester, and even the canadian stock market, which has appreciated 9.2 % over 12 months. It bears the net assets of the Fund at $ 13.7 billion and the value of his action in 39,32 $, up to $ 1.44 compared to the month of July and 3.21 $ compared to the same time last year.


Of prey to predators


The Fund has been particularly active in recent months in terms of investments. These totaled $ 526 million for the last semester only, which is more than double of the semi-annual average of the past five years, from $ 225 million. Based on a strategic plan up to 2020, these investments must in particular give priority to the socio-economic infrastructure, support to the jewels of quebec, the support for innovation and an increasing presence in the key sectors of aerospace, agri-food, forest products and mining, as well as life sciences.


We feel, through their decisions to invest in the automation and improvement of productivity, the quebec entrepreneurs slowly take awareness of the challenge that arise with the ageing of the population and the problem of scarcity of labour, is pleased Gaétan Morin.


There was a lot seen as recently acquiring other companies, particularly abroad, and in spite of the relative weakness of the canadian dollar. “We often talk about the departure of our headquarters. But we have participated in many projects, these last few months, where québec firms were predators rather than prey. “He cited the example of the recent acquisition of a Spanish company by the company’s aerospace Héroux-Devtek, three acquisitions in the United States by the health products manufacturer Knowlton Development Corporation and two others in the same country by the manufacturer of plastic products, IPL.


“There are 25-30 years old, the quebec entrepreneur was hesitant to go outside of Quebec or Canada, but it is today part of its culture, its DNA,” congratulates Gaétan Morin. This is, according to him, in particular to their greater maturity, to the good example given by giants quebec as a CGI, and Couche-Tard, the supply of patient capital such as the Fund, and access to a québec workers ” highly skilled and a lot more mobile than in the past.


Subscriptions capped


The Fund was established this year a limit on its issuance of new shares 825 million, which should be reached well before the end of the current period of contribution to the RRSP, but will not affect the investors who have recourse to different forms of withholding at the source. We had raised last year’s 900 million. Wishing to remain accessible to the greatest number, it has also been established for the first time an annual limit on personal of $ 12,500, is far from the average of 2700 $.


The Fonds de solidarité FTQ is one of the investors to have recently participated in a recapitalization of the Duty. At the time announcing the news, the director of the newspaper, Brian Myles, had presented, at the end of last month, as one of the ” three historical partners “, with the Mouvement Desjardins and Fondaction, to have ” provided a substantial share of the $ 2.2 million in capital raised “, while ensuring that the journal had managed, in the operation, to preserve his independence.