This is what we were able to learn by consulting the financial results of the two labor-sponsored funds, released over the past few days.
For its 2019-2020 fiscal year which ended on May 31, the Fonds de solidarité FTQ received share buyback requests totaling just over $ 3 billion.
By comparison, the Fonds de solidarité FTQ had received redemption requests of $ 733 million during its 2018-2019 fiscal year.
From 2015 to 2018, these buybacks varied from $ 614 million to $ 678 million annually.
Main consequence of these buy-back requests four times larger than usual: the net assets under management of the Solidarity Fund QFL went from $ 15.6 billion in fiscal year 2018-2019 to 13 , 8 billion for the 2019-2020 fiscal year.
The decrease in assets under management in the second half of the year is explained in particular by the significant increase in redemption requests, it said in a press release.
On the Fondaction side, redemption requests reached $ 287.5 million in the 2019-2020 fiscal year, compared to $ 136 million in the previous fiscal year, which represents an increase of 136%.
Fondaction maintains thatyears to withdraw their funds before the announcement of the new share value “,” text “:” the uncertainties caused by the volatility of the financial markets prompted some shareholders in retirement or over 65 years to withdraw their funds before the announcement of the new value of the action “}}” lang = “fr”>the uncertainties caused by the volatility of the financial markets have prompted some shareholders in retirement or over 65 to withdraw their funds before the announcement of the new share value.
From 2015 to 2018, requests for share buybacks ranged from 80 to 105 million.
The share value of the two funds increases
Despite these redemption requests, the two funds performed well.
For its 2019-2020 fiscal year ended May 31, the Solidarity Fund QFL generated a profit of $ 230 million, which earned its shareholders a return of 0.8%. This return was 7.8% in the previous year.
The share value of the Fund was established at $ 44.24, compared to $ 43.90 at the end of the 2018-2019 fiscal year.
Despite the buyout requests, the number of shareholders increased from 694,357 to 707,935.
In fact, during the 2019-2020 fiscal year, the Fund issued $ 961 million in shares, a record. For the year, savings through the deduction at source or the direct debit represented 79% of cash inflows, at 759 million.
For its 2019-2020 fiscal year, which also ended on May 31, Fondaction generated a profit of $ 85.7 million, which gave its shareholders a return of 3.6%.
The value of Fondaction’s share was established at $ 12.59, slightly down compared to the previous semester, while the share value was $ 12.67. At the end of the 2018-2019 fiscal year, the action was worth $ 12.15.
Net assets under management reached $ 2.26 billion on May 31, 2020, up 3.8% during the year. Equity issues, at $ 284.1 million, advanced 4.2%. Fondaction also has more shareholders – + 4.2% – to 176,488 people.
COVID-19 se sont fait sentir partout dans l'économie et sur les marchés financiers, mais grâce à la diversification de son portefeuille et à ses choix d'investissement dans des entreprises visant une croissance durable, Fondaction a enregistré un recul limité de la valeur de son action au second semestre, de -0,6% “,” text “:” The effects of the COVID-19 health crisis were felt everywhere in the economy and on the financial markets, but thanks to the diversification of its portfolio and its investment choices in of companies aiming for sustainable growth, Fondaction recorded a limited decline in the value of its shares in the second half of -0.6% “}}” lang = “fr”>The effects of the COVID-19 health crisis were felt everywhere in the economy and on the financial markets, but thanks to the diversification of its portfolio and its investment choices in companies aiming for sustainable growth, Fondaction recorded a limited decline in the value of its share in the second half of -0.6%
, we explain in a press release.
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