Fonds de solidarité FTQ


Created in 1983 by FTQ and its affiliated workers, the Fonds de solidarité FTQ is a development capital fund that calls upon the solidarity and savings of Quebecers to help fulfill its mission to contribute to Québec's economic growth by creating, maintain or protecting jobs through investments in small and medium-sized businesses in all spheres of activity. The Fonds also seeks to encourage Quebecers to save for retirement and to offer its over half a million shareholders-savers a reasonable return over and above the tax benefits they receive by purchasing Fonds shares.
The largest development capital network in the province, the Fonds de solidarité FTQ was created on the initiative of the FTQ, Québec's largest central labour body. Through its governance and codes of ethics, the Fonds is a socially responsible investor committed to sustainable economic development where people come first. Aside from investing capital, the Fonds is committed to supporting the growth of its partner companies by offering value-added services such as economic training.
As of November 30, 2019, the Fonds held $16.7 billion in net assets, had more than 700,000 owner-shareholders.

History

Headquartered in Montréal, the Fonds de solidarité FTQ has a network of independent organizations that includes 16 Fonds régionaux de solidarité FTQ , 16 Fonds locaux de solidarité FTQ and the Fonds immobilier de solidarité FTQ . Its investment network also includes 77 specialty funds.

Mission

Create, Maintain or Protect Jobs

Invest in companies impacting the Québec economy and offer them services to further their development and create, maintain or protect jobs.

Train Workers

Promote economic training for workers so they can increase their influence on the economic development of Québec.

Develop the Québec Economy

Stimulate the Québec economy through strategic investments that benefit both Québec workers and companies alike.

Prepare for Retirement

Make workers aware of the need to save for retirement and encourage them to do so, as well as encourage them to participate in the development of the economy by purchasing Fonds shares.

Constituting act

The Fonds de solidarité FTQ was constituted on June 23, 1983 by an act of the Québec National Assembly, then headed by the René Lévesque government. The initial capital came from workers affiliated to FTQ that was complemented by provincial and federal governments.

60% rule

In keeping with its mission, the Fonds makes investments in all types of businesses, with or without a guarantee. However, in any given year, the proportion of unsecured investments in eligible companies must represent, on average, at least 60% of its average net assets of the previous year.

Business financing

For the last 5 years, the Fonds had invested an average of $771 million per year in Québec companies. It is a partner, either directly or through one of its network members, in over 2,839 Québec companies.
The only development capital organization with sector expertise, the Fonds invests in the most important sectors of the Québec economy.

Sector expertise

The Fonds de solidarité FTQ specializes in 25 sectors of the Québec economy:
Fonds shares, which are eligible for the Registered Retirement Savings Plan, can be purchased by any Québec taxpayer either through payroll deduction – available in unionized companies or government organizations, – preauthorized withdrawals, or a lump sum payment. Anyone can purchase Fonds shares.
In its 36-year history, the Fonds has sold $16.7 billion in shares. The Fonds relies on a network of over 2,600 local representatives—unionized employees who promote the Fonds RRSP in their workplace.
Fonds shares are a popular investment because in addition to the tax benefits individuals obtain for buying an RRSP, they also receive two additional tax credits: 15% from each government on the first $5,000 invested each year. Fonds shares cannot be sold before retirement except under certain conditions such as loss of employment, participation in the federal government's Home Buyers’ Plan, and disability.