Photo: Michaël Monnier Duty
The better the Fund’s performance is essentially attributable to its private investments in quebec companies.
The Fonds de solidarité FTQ is usually better pulled that investors on the stock markets over the last few months and sees the following things in a rather positive way to the economy of québec and its shareholders.
The return to the shareholder of the Fund amounted to 2.2 % for the first six months of its fiscal year 2018-2019, which were completed last November 30, has revealed Friday, the funds of workers, which marked a decline compared with a return of 3.6 per cent registered during the previous semester. In this way we arrive at a 12-month performance of 5.8 %, as against 8.9 % at the same date last year, a share value that is passed to 39,32 $ 41,61 $ starting from January 2018 and the net assets which now stands at $ 14.8 billion.
“We are very proud of these results. Especially in this period of great turbulence “, was provided in telephone interview to the Duty of the president and chief executive officer of the Fund, Gaétan Morin, referring to the collapse of the stock markets in the end of the year. Saying he did not love to be compared to mutual funds that do not have the same mission of SME financing and economic development in Quebec, it lacks, however, not noted nevertheless that the canadian balanced funds have suffered negative returns of 1.7 % for the twelve different months and 1.4% during the last six months only.
We are very proud of these results. Especially in this period of great turbulence.
— Gaétan Morin
This improved the Fund’s performance is essentially attributable to its private investments in quebec companies, its portfolio of private securities, which generated an impressive return of 8.2 % in the last six months compared to a loss of 9.1% for shares of SMES listed on a stock Exchange and a drop of 0.5 % to the simple equity investments.
“It is a reflection of an economy that is doing fundamentally well,” said Gaétan Morin. In spite of the escalation of trade tensions on the world stage, the rise in interest rates by central banks, signs of an economic slowdown in several countries, including emerging economies, and the increased volatility in equity markets, ” the economies of québec, canadian, american… are going relatively well “, says the p.-d. g. of the Fund.
Good weather, bad weather
That is not to say that war of the tariffs does not hurt, for example, the québec-based manufacturer of trailers and tanks, Tremcar, who suddenly saw prices of its stainless steel to increase from one day to the next day.
That is not to say that quebec businesses do not suffer as more and more harshly the problem of scarcity of labor, continues to Gaétan Morin. “We feel especially for the past year, particularly in the regions. Previously, each region is said to be taken with four or five problems that were often different. Today, the shortage of labour comes back all the time, everywhere. “
Nothing indicates, however, that a severe economic downturn or even a recession is at our door. This will, however, probably inevitably happen. But even there, the solidarity Fund is expected to achieve well. “It is in these periods that the Fund is more distinct. […] Our record investment of $ 1.3 billion in a year, it was in 2009 that it has realized, at the worst time of the last economic crisis. “
The Fund has once again set a limit to its issue of new shares this year. 875 million, this limit is higher than that of last year (833 million) and should also believed to the Fund, to be reached more quickly than last year, or before February 15. As every time, this limit will not apply to investors who make use of the various forms of withholding at the source.