envision expand enrich - Fonds de solidarité FTQ

Transcription

2008 Annual Report
Solidarity Fund qfl
2008 Annual Report / Solidarity Fund QFL
Suite 200
545 Crémazie Blvd. East
Montréal, Québec H2M 2W4
Telephone: 514 383-8383
Fax: 514 383-2502
Toll free: 1 800 361-5017
www.fondsftq.com
envision
expand
enrich
1. Mission
2. Message from the Chairman
of the Board of Directors
4. Message from the President
and Chief Executive Officer
6. Envision
10. Expand
14. Enrich
18. Financial information
100. Glossary
102. Board of Directors
103. Management Committee
Special Boards
Committees
Union
104. Permanent Employees
106. A Multitude of Expertise
2008 Annual Report
Solidarity Fund qfl
Suite 200
Telephone: 514 383-8383
Fax: 514 383-2502
Toll free: 1 800 361-5017
www.fondsftq.com
envision
expand
enrich
1. Mission
6. Envision
10. Expand
14. Enrich
100. Glossary
Special Boards
Committees
Union
126,035 jobs created, maintained
or protected in Québec by the Fund and its partners
Training activities
For the year ended May 31, 2008
As at May 31, 2008
Local representatives (LRs)
In the workplace
Network members
Students
Total
s
Fu
b
jo
ct
63
,7
67
it y
7 local
ar
lid
47 nd
So 3,
la
4 giona 110 unds
, yf
Re
20 ecialt 76
Sp ,1
4
re
Di
nd
FL
Participants
Courses
3,147
2,633
815
377
6,972
228
131
44
23
426
fu
bs
nd
s
s
ob
j
ed
18
uc
,0
27
d
In
jo
ct
54
,2
31
re
di
In
Q
Highlights
Key data
For the years ended may 31
2004
(in millions of dollars, except Class A shares, in thousands)
2005
2006
2008
2007
(11 months)
Redemption breakdown by criterion
With its partners, the Solidarity Fund QFL has helped create, maintain or protect nearly 110,000 direct jobs
since its creation.
Criteria
Number
Shareholder profile
As at May 31, 2008
7,239
284,628
1
1.5%
1.4%
1.4%
1.4%
4
1.8%2
1. The operating expense ratio does not include capital tax.
2. Annualized.
s
Ratio
Operating expenses/Average net assets
7,285
290,050
er
6,607
277,466
ld
5,955
264,845
ho
5,233
243,946
10
(89)
re
591
475
Retirement and
early retirement
Access to home
ownership
Death, disability,
redemption within
60 days
Unforeseen events
(job loss or other)
Return to studies
Other criteria
ha
463
366
5
373
271
un
96
n0, %
No
24 1.9
Balance Sheet
Net assets
Class A shares outstanding 347
247
fs
4
ro
be
39
m
5, d 2
Nu
57 ionize ,43
4 % ed
Un
33 8.1 ioniz 2
Statement of Earnings
Revenues
Net earnings (net loss)
(capital injection into
a business, emigration,
redemption of pension credits,
ineligibility for tax credits)
34,111
395
83
3,747
29
6
1,992
24
5
5,177
465
18
3
4
1
7
1
476 100
Change in investments
As at May 31
Net value per share
Rate of return of the Fund1,2
(in dollars)
21.37 22.41
23.74
25.36
25.05
Number of jobs created, maintained
or protected in Québec
by the Fund and its network
2004 2005
2006
2007
2008
96,000 105,596
116,644
122,460
126,035
Redemptions
2004*
2005
2006
2007
2008
(in millions of dollars)
* (11 months)
5.2 5.0
6.0
7.1
(1.2)
Number of shareholders
188 256
329
402
476
554,796 568,383
573,086
574,794
575,394
2004 2005
2006
2007
2008
2004 2005
2006
2007
2008
* (11 months)
554
706
614
571
611
(Fund and network)
2004 2005
2006
2007
2008
1,722
1,683
1,681
1,696
1,881
Investments3
2004* 2005
2006
2007
2008
Number of partner companies
Fair value of investments
in partner companies3
(at cost) 2007-20081
Balance as at May 31, 20072 Investments
Disinvestments
Share issues
(as a percentage)
2004 2005
2006
2007
2008
* (11 months)
%
549
46,041
Total
2004* 2005
2006
2007
2008
$M
2,695 2,901
3,343
3,742
3,962
1. Earnings (loss) per share divided by the share price at the beginning of the year.
2. This return does not take into account tax credits granted to shareholders.
3. These investments include funds committed but not disbursed as well as funds for guarantees and suretyships.
2004* 2005
2006
2007
2008
* (11 months)
405
492
643
668
730
Regions3
Western Québec
Montréal Region
Central Québec
Québec City Region
Eastern Québec
All of Québec
Outside Québec
Total
Sectors
Real estate
Regional development4
Industries, services,
natural resources
and consumer
Technology investments5
Total
No.
$M
Balance as at May 31, 2008
%
No.
$M
%
No.
$M
%
No.
$M
%
15 157
18
31
29
46
44
340
74 1,465
128
346
134
893
265
3,305
2
44
4
11
4
27
8
100
2
47
6
8
4
2
7
76
21
484
13
60
30
53
69
730
3
66
2
8
4
7
10
100
2
48
6
7
8
12
12
95
7
146
5
9
23
36
47
273
3
53
2
3
9
13
17
100
14
154
19
34
27
46
44
338
88
1,803
136
397
141
910
287
3,762
2
48
4
10
4
24
8
100
11
26
315
386
9
12
1
1
29
3
4
1
3
-
4
-
2
-
9
25
340
389
9
10
167
136
340
1,628
976
3,305
49
30
100
42
32
76
397
301
730
54
41
100
59
33
95
166
103
273
61
37
100
167
137
338
1,859
1,174
3,762
50
31
100
Editors
Suzanne Hamel
André McDonald
Writers
Suzanne Hamel
Sylvain Paré
Collaborators
Roch Dutil
Ricardo Espera
Sylvain Masse
Louise Sauvé
Translator
Jean Marois
Designer
Gauthier Designers
We would like to thank everyone who contributed to the production of this annual report.
1. This list excludes the portfolio of shares held in Entreprises publiques québécoises à faible capitalisation and includes funds committed but not disbursed,
as well as funds for guarantees and suretyships.
2. The breakdown by region and sector as at May 31, 2007 was changed to reflect reorganizations undergone by companies in the portfolio.
3. Regional groupings: Western Québec: Abitibi-Témiscamingue/Outaouais. Montréal Region: Montréal/Laval/Laurentides/Montérégie/Lanaudière. Central Québec: Estrie/Mauricie/
Centre-du-Québec. Québec City Region: Capitale-Nationale/Chaudière-Appalaches. Eastern Québec: Bas-Saint-Laurent/Saguenay–Lac-Saint-Jean/ Gaspésie–Îles-de-la-Madeleine/
Côte-Nord/Nord-du-Québec. All of Québec: Investments impacting more than one region. Outside Québec: Investments in companies headquartered outside Québec.
4. Regional funds, local funds, and regional investment companies.
5. Life sciences, information technologies, telecommunications, industrial innovations, and bio-food.
Printed by the unionized workers of Phipps Dickson Integria (PDI) on paper made in Québec
using biogas energy, Eco-Logo certified and containing recycled post-consumer fibre.
Legal Deposit – 3rd Quarter 2008,
Bibliothèque nationale du Québec,
National Library of Canada
Ce document est également disponible en français.
B-08-00-0196
Photographers
Shoot Studio
Pierre Manning
Jean-François Lemire
Jean-Sébastien Cossette 126,035 jobs created, maintained
Training activities
As at May 31, 2008
In the workplace
Network members
Students
Total
s
Fu
b
jo
ct
63
,7
67
it y
7 local
ar
lid
47 nd
So 3,
la
4 giona 110 unds
, yf
Re
20 ecialt 76
Sp ,1
4
re
Di
nd
FL
Participants
Courses
3,147
2,633
815
377
6,972
228
131
44
23
426
fu
bs
nd
s
s
ob
j
ed
18
uc
,0
27
d
In
jo
ct
54
,2
31
re
di
In
Q
Highlights
Key data
2004
2005
2006
2008
2007
(11 months)
since its creation.
Criteria
Number
Shareholder profile
As at May 31, 2008
7,239
284,628
1
1.5%
1.4%
1.4%
1.4%
4
1.8%2
2. Annualized.
s
Ratio
7,285
290,050
er
6,607
277,466
ld
5,955
264,845
ho
5,233
243,946
10
(89)
re
591
475
Retirement and
early retirement
Access to home
ownership
Death, disability,
redemption within
60 days
Unforeseen events
(job loss or other)
Return to studies
Other criteria
ha
463
366
5
373
271
un
96
n0, %
No
24 1.9
Balance Sheet
Net assets
247
fs
4
ro
be
39
m
5, d 2
Nu
57 ionize ,43
4 % ed
Un
33 8.1 ioniz 2
Revenues
34,111
395
83
3,747
29
6
1,992
24
5
5,177
465
18
3
4
1
7
1
476 100
As at May 31
Net value per share
(in dollars)
21.37 22.41
23.74
25.36
25.05
2004 2005
2006
2007
2008
96,000 105,596
116,644
122,460
126,035
Redemptions
2004*
2005
2006
2007
2008
* (11 months)
5.2 5.0
6.0
7.1
(1.2)
188 256
329
402
476
554,796 568,383
573,086
574,794
575,394
2004 2005
2006
2007
2008
2004 2005
2006
2007
2008
* (11 months)
554
706
614
571
611
(Fund and network)
2004 2005
2006
2007
2008
1,722
1,683
1,681
1,696
1,881
Investments3
2004* 2005
2006
2007
2008
(at cost) 2007-20081
Disinvestments
Share issues
(as a percentage)
2004 2005
2006
2007
2008
* (11 months)
%
549
46,041
Total
2004* 2005
2006
2007
2008
$M
2,695 2,901
3,343
3,742
3,962
2004* 2005
2006
2007
2008
* (11 months)
405
492
643
668
730
Regions3
Western Québec
Montréal Region
Central Québec
Québec City Region
Eastern Québec
All of Québec
Outside Québec
Total
Sectors
Real estate
natural resources
and consumer
Total
No.
$M
%
No.
$M
%
No.
$M
%
No.
$M
%
15 157
18
31
29
46
44
340
74 1,465
128
346
134
893
265
3,305
2
44
4
11
4
27
8
100
2
47
6
8
4
2
7
76
21
484
13
60
30
53
69
730
3
66
2
8
4
7
10
100
2
48
6
7
8
12
12
95
7
146
5
9
23
36
47
273
3
53
2
3
9
13
17
100
14
154
19
34
27
46
44
338
88
1,803
136
397
141
910
287
3,762
2
48
4
10
4
24
8
100
11
26
315
386
9
12
1
1
29
3
4
1
3
-
4
-
2
-
9
25
340
389
9
10
167
136
340
1,628
976
3,305
49
30
100
42
32
76
397
301
730
54
41
100
59
33
95
166
103
273
61
37
100
167
137
338
1,859
1,174
3,762
50
31
100
Editors
Suzanne Hamel
André McDonald
Writers
Suzanne Hamel
Sylvain Paré
Collaborators
Roch Dutil
Ricardo Espera
Sylvain Masse
Louise Sauvé
Translator
Jean Marois
Designer
Gauthier Designers
B-08-00-0196
Photographers
Shoot Studio
Pierre Manning
Jean-Sébastien Cossette 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 Fund shares.
2008 Annual Report / 1
The Solidarity Fund QFL: an
economic tool we can be proud of!
The Solidarity Fund QFL is a unique and innovative institution,
a heritage we are proud of and that should grow to enrich workers,
companies and the Québec economy.
Fiscal 2007-2008 will remain in our memories as the year the
Fund reached its 25th anniversary. It is in this happy context
that I address you for the first time as Chairman of the Board.
I would like to take this opportunity to thank our shareholders,
whose loyalty and commitment to the Fund and its mission over
the years have allowed us to maintain a healthy organization
that is looking to the future.
I would also like to thank our LRs for the extraordinary work they
have been doing, as volunteers, over all these years. If the Fund
enjoys such a solid reputation, it is because of the constant work
of the LRs in their respective circles. We have also reached
another record year for investments and set a new record for
subscriptions through systematic savings. Accordingly, I would
like to thank all our employees and the Fund’s management for
their exceptional contribution to this success!
Fundamental values
The Fund’s last fiscal year was not without obstacles. The stock
markets did not make our job easier, and the economic
conditions were problematic, particularly in the manufacturing
sector. That said, the important achievements of the Fund over
the last 25 years allow us to put specific economic difficulties
into perspective.
The Fund will persevere on its path as a unifying figure for
Québec’s SMEs and giving a hand to entrepreneurs looking
to grow their companies here. There have been numerous
takeovers by foreign interests over the last several years.
Clearly, the Fund cannot, alone, hold on to all the flagships
of the Québec economy that have been built over the years.
But our mission compels us to do all we can, which is what
we will be doing.
2 / 2008 Annual Report
If we do not take care of our own business, no one in the world
will do it for us! And I must highlight that the intervention of
the government remains necessary if we want to get through
this. The governments have been trusted allies of the Solidarity
Fund QFL since it was created, and we are happy to be able to
count on the tax credits they grant our shareholders. This
investment, that our governments quickly earn back – in two
years in Québec and in less than three years at the federal
level – represents a significant contribution to Québec’s
economic development.
The Fund also plays a determining role in starting up
companies. We have invested nearly $600 million in this area
since 2005. The strategy we have adopted – allying ourselves
with specialty private funds for the start-up phase for certain
companies and investing in others to help them grow – has
served us well and allowed us to maximize the development
and growth of our companies. This contribution is essential
in the heavier industries, such as manufacturing and lumber,
which are shrinking or slowing down. Hundreds of workers
count on the Fund to maintain and create jobs. We must never
lose sight of that mission, which was already rooted in the
Fund’s existence at its beginnings 25 years ago.
In closing, I would like to give special and heart-felt thanks
to my predecessor, Henri Massé, for the remarkable work he
has done in all his years at the helm of the Board of Directors
of the Solidarity Fund QFL.
Michel Arsenault
Chairman of the Board of Directors
“The important achievements of the Fund over the last 25 years allow us to put specific economic difficulties into perspective.”
The role that the Solidarity Fund QFL has played in our
economy – to create and maintain jobs in Québec, improve
retirement for workers, and grow our SMEs – is remarkable!
The Fund is unique: it is not by chance that today it is an
inspiration throughout the world. Together we have built an
innovative and solid model that can be adapted to the
economic particulars of many countries. It is a privilege to
have participated in the Fund’s mission, and it is with pride
that I held the position of Chairman of the Board of Directors.
Thanks to all my colleagues, and congratulations to all the
Fund’s employees and our irreplaceable LRs. In addition,
congratulations and good luck to Michel Arsenault, whose
values of integrity are a good match with the Fund’s mission.
Henri Massé
Chairman of the Board of Directors
December 1998 to November 2007
The Fund continues
to build Québec
In 25 years, the Solidarity Fund QFL became one of the flagships
of Québec’s economy. A past that speaks volumes about the future.
It required a lot of audacity 25 years ago to create the Solidarity
Fund QFL! But today, the Fund plays a huge role in making
workers aware of the importance of saving for retirement,
in creating jobs and in structuring the venture capital industry.
The Fund, through its patient capital, has contributed in
remarkable ways to the development of Québec’s economy.
But times are tough for many companies; the challenges,
particularly in the manufacturing sector, are crucial. However,
despite the slowdown of the North American economy, the
uncertainty of financial markets, and the rise of the Canadian
dollar, the Fund has succeeded in limiting the decline in its return.
The Fund’s return was -1.2% for the last fiscal year. The share
value settled at $25.05, down $0.31 compared to July 5, 2007
and $0.35 compared to January 5, 2008.
The Fund’s net assets still grew by $46 million compared to
the year ended May 31, 2007 to reach $7.3 billion. We have
maintained the operating expense ratio at 1.4% of average net
assets, which compares more than favourably with other
companies in the same sector.
“The Fund plays a huge role in making workers aware of the importance of saving for retirement, in creating jobs and in structuring the venture capital industry.”
Clearly, we would have liked to obtain a higher return. But
given the current circumstances, we can state that the Fund
is performing honourably. We must also put this return into
perspective and take into consideration two important elements
in our mission: shareholder savings and investments in
companies. In this regard, we have reached two all-time highs.
First, out of $611 million, subscriptions through systematic
savings – payroll deductions or preauthorized withdrawals –
amounted to $446 million. This is a record that clearly
demonstrates that the efforts of the Fund and its LRs to
encourage systematic savings are working.
Second, our investments in companies also reached a record
of $730 million. If we include the regional funds, 140 companies
benefited from our infusion of capital! This result is proof of the
know-how our teams possess and the Fund’s credibility in
Québec business circles, as well as the effectiveness of our
patient capital in all sectors of activity.
We have also pursued our strategy of investing in specialty funds
that contribute to start-up companies, in addition to attracting
foreign capital to Québec. During the last fiscal year, the Fund
invested $109 million in five of these funds, bringing the total
of this type of investment to $495 million since 2004.
To develop, companies must take the road to growth, innovation
and competitiveness. The Fund, which for 25 years has provided
support that meets their needs, will continue to accompany
them on this road.
And to you, our shareholders, I extend my gratitude for
the trust you have in the Fund and for your interest in Québec’s
economic development. Additional thanks go to our personnel
and our entrepreneur partners for their contribution to the
Fund’s success over the last 25 years. We can truly be proud
of the results achieved and have faith in the future we are
building together.
Yvon Bolduc
President and CEO
Envisioning
our commitment
to the future
In the 1980s, in the midst of an economic crisis, Louis
Laberge had a brilliant idea: create a workers’ fund
to preserve jobs and provide financing to Québec
companies while creating a complementary way to save
for retirement. The QFL believed in this idea. Today,
the Solidarity Fund QFL’s net assets total $7.3 billion.
Daring to do
what no one would dare
Creating the Solidarity Fund QFL meant inventing a bold, risky,
and unique model. The Fund significantly changed Québec’s economic
landscape by establishing a new business partnership model and
groundbreaking communication practices within companies.
Today the Fund
has 575,394
shareholders
in Québec
Supporting
the competitiveness
of companies
These days the term “innovation” is on everyone’s lips. It’s
because innovation is one of the fundamental keys to
a company’s success, given the challenges presented by
international competition. Québec companies – particularly
those in the manufacturing sector – must distinguish themselves
to address market globalization. Therefore, they would like
to do things differently, exploit existing markets and penetrate
new ones. However, first they must ask themselves strategic
questions about their growth, and even about their survival.
What is the company’s main strength in its market, the
strength that allows the company to distinguish itself? What
products are offered by the company that the competition
cannot match? Do we have the technical, financial and human
resources necessary?
Even though the challenges are significant, Québec has an
extraordinary manufacturing potential. It can rely on the
creativity of its entrepreneurs as well as its pioneering culture
to continue on the impressive path that the Québec economy
has followed for the last 25 years.
Smart fabric made in Québec
Stedfast, a Solidarity Fund QFL partner company, is a good
success story that is based on innovation. Recognized today
as a North American leader in the technical fabric sector,
Stedfast develops products to make protective clothing. The
Armed Forces, paramedics, firefighters, police officers,
petrochemical industry and healthcare workers are among
the users of this clothing.
“I want to enjoy my retirement without any worries! I want to preserve my standard of living and keep on with my activities. In particular,
using payroll deductions to purchase Fund shares, I know that within five years I will be able to take advantage of a lovely retirement
without any financial worries.”
– Lise Boulais, Solidarity Fund QFL shareholder since 2003 and soon-to-be young retiree
Thanks to the determination of management, the regular
attendance of the workers, the motivation of highly specialized
personnel, the ongoing investments in research and technology,
and the company’s ability to penetrate new markets, Stedfast
is now enjoying a unique boom in its activity sector.
Stedfast bet on its strengths and maximized them to succeed
at innovating, distinguishing itself by offering competitive
products and thereby increasing its competitiveness.
Time and money
During the fiscal year ended May 31, 2008, the Solidarity
Fund QFL invested the record sum of $730 million in
companies. Present in all the sectors of economic activity,
the Fund is involved in all the stages of a company’s
development. It provides entrepreneurs with financial products
adapted to their needs and patient capital, because their
projects not only require sound financing, but time as well.
In addition to financial capital, the Fund provides “human”
capital. The value added that we bring to companies –
particularly by introducing experienced directors to sit on
their board of directors and by providing our expertise – often
makes a big difference. Today, business leaders seek out
and appreciate our work methods that are based on our
specialized economic sectors and our multidisciplinary teams.
Transparency
and communications
Economic training in the workplace is an integral part of the
Fund’s mission. On its own it represents a model of innovation.
Discussing the key indicators of a company’s financial position
in a transparent manner provides a common understanding
of the economic and social issues the company faces.
This transparency leads to implementing new practices for
communications between management and employees.
And healthy communications are a major asset to ensuring
the growth and future of a company. Entrepreneurs provide
confirmation: the transparency of exchanges resulting from
economic training in the workplace establishes a mobilizing
climate of trust that lets management more clearly discuss
the company’s development strategy.
Trusting employees and explaining to them the challenges
the company is facing means appealing to their intelligence.
This practice can be fruitful, allowing employees to suggest
innovative solutions that can reduce costs and increase
competitiveness, and even ensure the continuity of the
company and jobs. This is also how, little by little, a business
culture based on operations is transformed into a business
culture focused on innovation.
Expanding
the economy
Systematically contributing to a retirement
savings account improves the quality of
retirement. It is clear to us: this should be
possible for all workers. At the Solidarity
Fund QFL, these savings also contribute
to Québec’s economic development.
Expanding is increasing your
chances of success
Whether it’s your savings or your company, growth is at the center
of success. Finding new ideas, setting goals, overcoming obstacles;
it all leads to success.
Make acquisitions
and prosper
Stella-Jones, a Fund partner company
that produces and markets wooden poles
for telecommunications companies and
railroad ties, has seen remarkable growth.
For the last few years the company has
been pursuing a market positioning and
consolidation strategy that resulted in
major strategic acquisitions in Canada
and the United States.
Today, Stella-Jones is a leader in its
industry, and its success generates
hundreds of quality jobs. Stella-Jones’
goal: continue to expand!
“I have been an LR for almost two years, and my motivation continues to grow as I realize the importance of the role I play in improving the quality
of life that my colleagues will enjoy during retirement. Thanks to the regularly updated training provided by the Fund, I can intelligently answer
my colleagues’ questions about the Solidarity Fund QFL, its RRSP and its mission.”
– Kathia Lepage, Rimouski
Upward trend
For 25 years, the Fund has sensitized workers to the importance
of proper retirement planning. And its efforts have borne fruit!
In the course of the last fiscal year alone, more than 34,000
shareholders redeemed their shares of the Fund to retire. That
represents over 83% of the share redemption amount that was
concluded during the year. We consider ourselves privileged
to have contributed to improving the quality of retirement for
so many people, shareholders for whom the Fund RRSP was
often their first. We sincerely thank them for having chosen
the Fund and participated in developing the Québec economy.
And you?
There is also a large number of shareholders who redeem
their shares to take advantage of the Home Buyers Plan (HBP):
during the last fiscal year, 3,700 of our shareholders have
done so.
In addition – and we are glad of it – each year, the number of
shareholders subscribing shares of the Fund through payroll
deductions or preauthorized withdrawals continues to increase.
Many of these shareholders are between 25 and 35 years old.
During the last fiscal year, 73% of total subscriptions were made
through these two systematic savings methods which make
saving easy. We are also proud to have beaten a record this
year: $446 million worth of shares were subscribed through
systematic savings.
Improved tools
To develop our shareholders’ loyalty, we provide them efficient
and courteous service, among other things. To suitably meet
expectations, the Fund created, over the years, simple, efficient
and increasingly personalized tools. What’s more, in the last
fiscal year the Fund reviewed and improved its new shareholder
welcome process.
As at May 31, 2008, the Fund had 575,394 shareholders. Each
of them received a personalized Shareholder Booklet. This
tool includes useful information on their holdings as well as
interesting financial projections calculated based on their portfolio.
The Fund is one of the most innovative North American institutions
in this regard, which, over the years, has earned it the appreciation
of its shareholders as well as prizes, including the Flèche d’argent
en gestion de la clientèle (for the quality of the 2007 Shareholder
Booklet) in the prestigious competition of the Relationship
Marketing Association. The Shareholder Booklet also received
an honourable mention at the Gala Gutenberg 2008, organized
by the Artisans des arts graphiques de Montréal, for its innovation
in digital printing.
To finish, we should highlight the fact that, during the last fiscal
year, Fund personnel processed more than 360,000 shareholder
calls – always live and no recorded greeting!
Looking to
the future and
enriching it
The Fund contributes to enriching individuals,
our SMEs and the community. The solidarity that
has developed over the years between the Fund
and its shareholders has allowed us to establish
profitable business partnerships that contribute
to an even larger community enrichment.
Solidarity – at the heart
of enriching our community
A society’s wealth is conditional on the health and growth
of companies that offer quality jobs. There is no capital more
profitable than that which is based on the wealth created
through solidarity.
Human capital:
true wealth
Given the current demographics, economic growth in Québec
for the next few years largely rests on how companies will
manage their human capital. Therefore, a company that
would like to maximize its profit potential must meet several
challenges, including recruiting and retaining employees.
There are many aspects to what we call “the valorizing
elements of human capital.” Modernizing equipment, providing
more specific technical training and continuing education
in the workplace, motivating the younger generation to ensure
entrepreneurship succession, providing stimulating workplaces
and jobs to retain personnel, recognizing a job well done,
attracting talent and skills as well as training leaders – these
are some of the tasks companies will have to tackle if they want
to remain competitive.
High-value training
Education and training are at the heart of the conditions
fundamental to the economic development of society and
Québec’s companies. The government is primarily responsible
for ensuring quality education for all; the Fund contributes
with entrepreneurs through its economic training program in
the workplace.
Economic training transforms attitudes: everyone –
management and employees – learns to analyze situations
based on the interests and growth of the company.
In addition, it is a well-known fact that a climate of distrust
between management and employees very often leads
to problems that can have a negative financial impact on
the company. It is therefore a question, as the case may be,
to replace this distrust with trust.
Accordingly, if we achieve such changes in thousands
of Québec’s companies, this will become valuable leverage
for the overall economy!
In just the last fiscal year, the Fondation de la formation
économique has joined this movement. We have offered a total
of 426 courses to 6,972 participants. More specifically, through
the training program offered to companies, we have reached
2,633 people in 56 companies.
In addition, the Fondation also spent a great deal of effort to
provide training to board members of the Regional Funds
and SOLIDEs in the pursuit of our endeavours in local
and regional development.
In collaboration with the Fonds étudiant, we also organized
more than 20 two-day training sessions that were offered
to close to 400 Québec students completing internships in
unions, community groups and small companies. The goal is
to provide these students a better understanding of the
workplace in the context of globalization.
In collaboration with the Fund subscription coordinators,
the Fondation also proceeded with its continuing education
for members of our LRs, and developed a course to teach
them how to promote payroll deduction to their fellow workers
in their workplace.
“The Fund was one of the first to have faith in us. It believed in our plan to produce very high quality probiotic strains that would
contribute to the health of the entire planet’s population. The Fund is a partner that respects the entrepreneur’s freedom
to think and provides not only financial, but human support.”
– Francine Mondou, President and Chief Executive Officer of Harmonium International, a company created in 1999 whose sales
have now reached $20 million. Specialized in producing lactic bacteria strains, the company exports its products throughout
the world and employs approximately 50 people in Québec.
Solidarity that enriches
Beginning with the Fund’s first subscription campaign
in 1984, the LR network appeared as a key element in
the strategy to penetrate unionized workplaces. LRs are
unionized workers who voluntarily promote the Fund to
their co-workers. They make up an amazing network
of solidarity that has led hundreds of thousands of workers
to create sizable retirement savings that often supplement
the group plans offered by their employers.
Without the LRs, the Solidarity Fund QFL would not have
become the important economic tool that it is today. As
at May 31, 2008, the Fund had 2,134 LRs.
Financial
information
Fonds de solidarité des travailleurs du québec (f.t.q.)
/1
9
Management’s Discussion and Analysis
Investments made as at May 31, 2008
Financial Statements as at May 31, 2008 and 2007
/6
0
Schedule of investments at cost
/3
3
Management’s Report and Auditors’ Report
/3
4
Balance Sheets
/3
5
Statements of Earnings
/ 59
Auditors’ Report
Investments made by the specialty funds
as at May 31, 2008
/7
0
List of investments at cost made
by the specialty funds (unaudited)
/3
6
Statements of Changes in Net Assets
/3
7
Statements of Cash Flows
/3
8
Notes to Financial Statements
Fondation de la formation économique du fonds
de solidarité des travailleurs du québec (f.t.q.)
Financial Statements as at May 31, 2008 and 2007
/9
3
Auditors’ Report
/9
4
Statements of Financial Position
/9
5
Statements of Operations
/9
6
/9
7
Management’s Discussion and Analysis
for the year ended May 31, 2008
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader to assess the Fund’s results and financial
position and any material changes that occurred therein during the year ended May 31, 2008. To gain a thorough understanding
of events and uncertainties, this MD&A should be read together with our financial statements and the notes thereto.
This MD&A contains forward-looking statements about the Fund’s activities, results, and strategies that should be interpreted with
caution. Because, by their nature, forward-looking statements involve assumptions, uncertainties and risks, it is possible that a
number of factors may cause forecasts not to materialize. For example, legislative or regulatory changes, economic and business
conditions and the level of competition are just a few of the major factors that could influence the accuracy of the forward-looking
statements in this report. This MD&A is dated June 18, 2008.
Analysis of results
Overall results
The downturn in the North American economy, financial market uncertainties and significant disruptions affecting companies, especially
the appreciation of the Canadian dollar and the hike in oil prices, had a significant impact on the Fund’s performance for the year ended
May 31, 2008. Consequently, a net loss of $89 million was recorded for the last fiscal year, compared to net profits of $475 million for the prior
year. With this result, the Fund generated a negative return of 1.2%, down from the previous year’s positive return of 7.1% and below the
forecasts that were made last year. These forecasts neither anticipated the poor performance of the stock markets in the past year, especially
for smaller-cap companies, nor the effects of the credit crisis and the economic slowdown on our partner companies.
Investments and other investments sectors both significantly influenced the results for the year. The assets managed by the investments
sector are essentially mission-driven investments in public and private partner companies in the form of shares, units or loans. This
sector earned a negative gross return of 4.7% for fiscal 2007-2008, down from the positive gross return of 10.1% generated last year.
The average assets in this sector represented $2.8 billion or 39% of the Fund’s average assets under management (compared to 36% in
the prior year).
The other investments sector manages the remaining assets not invested in partner companies, which consist of bonds, money market
securities, sector-based shares, funds of hedge funds and a portfolio of high-revenue securities1. The gross return for this sector for the year
ended May 31, 2008 was 3.2%, a positive result, albeit lower than last year’s return of 7.9%. The average assets in this sector amounted
to $4.5 billion or 61% of the Fund’s average assets under management (compared to 64% one year ago).
Our concern with operational efficiency and operating expense control also contributed to our results, as evidenced by the ratio of
operating expenses to average net assets of 1.4% for the year ended May 31, 2008, which equaled last year’s ratio. Including income
and capital taxes, the ratio of expenses to average net assets remains at 1.4%. This improvement from the 1.7% ratio for fiscal 2006-2007
is explained by an income tax benefit following our results compared to an income tax expense for last year.
Return by sector
Years ended May 31
2008
Average
assets under Weight
Return
Contribution
management
$M
%
%
%
Investments
2,845
38.8
Other investments
4,490
61.2
7,335
100.0
Operating expenses
Income and capital taxes
Fund return
(4.7)
3.2
0.2
(1.4)
0.0
(1.2)
Average
assets under
management
Weight
Return
$M
%
%
(1.8)
2,452
36.2
2.0
4,327
63.8
0.2
6,779
100.0
(1.4)
0.0
(1.2)
10.1
7.9
8.8
(1.4)
(0.3)
7.1
2007
Contribution
%
3.7
5.1
8.8
(1.4)
(0.3)
7.1
1. The portfolio of high-revenue securities is comprised of preferred shares, high-dividend shares and income trust units.
Sector results
The performance of the investments sector is influenced by various factors, including the behaviour of the financial markets, the
economic and business conditions in which our partner companies operate, and the active management of our investments.
The negative gross return of 4.7% of the investments sector for the most recently ended year is largely explained by the following:
•The poor performance of the stock markets during the past year, especially for smaller-cap companies, which had a significant impact
on the results of the portfolio of listed securities of our investments sector. This portfolio generated a negative return of 18.2% on
average assets of $844 million, a performance clearly lower than the positive return of 10.4% achieved last year, when the stock
markets were much stronger;
•A positive return of 1.0% on an average portfolio of $2 billion of private securities and specialty funds. This performance follows
the positive return of 9.9% recorded in the previous year. This decrease is mainly attributable to the strength of the Canadian
dollar, which resulted in many companies in our portfolio of private securities losing their export competitive advantage; these
companies were also affected by the credit crisis and the slowdown of the U.S. economy. It is also worth mentioning the spike in
energy costs, which had negative repercussions on SMEs in the manufacturing sector.
The strategies adopted, combined with the evolution of interest rates and the performance of the stock markets, are the determining
factors in analyzing the performance of the other investments sector. Accordingly, the results achieved by this sector are influenced
by the behaviour of the financial markets and the conditions affecting the economic environment in which the Fund operates. The
gross positive return of 3.2% of the other investments sector for the year ended May 31, 2008 is largely explained by the following:
•A positive return of 4.3% on our fixed-income securities portfolio for the last year on average outstanding assets of $3.0 billion
in a Canadian financial market characterized by lower interest rates on securities issued by the Government of Canada, which
implies an increase in the fair value of the bonds held. Given this interest rate decrease, the hedging strategy implemented
to mitigate the impact of an anticipated interest rate hike was not as effective as last year. However, the performance generated
by this portfolio for the year is similar to that of last year, despite the widening of corporate credit spreads resulting from the
credit crisis;
•The positive results from our sector-based strategy, which was expanded from four to five sectors during fiscal 2007-20082.
In spite of the stock markets’ poor performance for the past year, this strategy, implemented to reduce our overall portfolio’s
volatility, delivered a positive return of 1.3% on average assets of $1.1 billion. This performance follows the positive return
of 18.3% achieved by this portfolio last year in markedly more favourable stock markets, both in Canada and abroad.
Return by asset class
Years ended May 31
Investments
Private securities
and specialty funds
Listed securities Other investments
Fixed-income securities
Sector-based shares2
and other investments3
2008
Average assets under
Weight
Return
Contribution
management $M
%
%
%
Average
assets under
management
Weight
Return
$M
%
%
2007
Contribution
%
2,001
844
27.3
11.5
1.0
(18.2)
0.3
(2.1)
1,716
736
25.3
10.9
9.9
10.4
2.6
1.1
2,995
40.8
4.3
1.8
3,186
47.0
4.4
2.1
1,495
7,335
20.4
100.0
1.0
0.2
0.2
0.2
1,141
6,779
16.8
100.0
17.8
8.8
3.0
8.8
2. The sectors are materials, energy, consumer staples, utilities and, since 2007-2008, telecommunications. Also in fiscal 2007-2008, the Fund modified
the allocation of its sector-based share portfolio between Canada and International.
3. Other investments include funds of hedge funds and the portfolio of high-revenue securities comprised of preferred shares, high-dividend shares, and income
trust units.
Analysis of cash flows, balance sheet, and off-balance sheet items
Cash flows from operating and financing activities totalled $268 million in 2007-2008, down from the $355 million recorded
in 2006-2007. The increase in shares redeemed, which amounted to $481 million for the year on a cash basis compared
to $400 million for the previous year, contributed to this decrease. On the other hand, shares issued totalled $611 million for
the year, up from the corresponding amount of $571 million reached a year ago. A record amount of $446 million was raised
through systematic savings during the past fiscal year.
With the Fund’s record direct investments in partner companies of $730 million for the year, an increase over the previous
investment record of $668 million achieved last year, the investments sector once again outperformed its historic milestones
and the goals set at the beginning of the year. Including the regional fund network, investments were made in 140 partner
companies this year, of which 65 were new partners. The proceeds from the disposal of direct investments (disinvestments)
amounted to $279 million in 2007-2008, down from the $459 million recorded last year (a year characterized notably by the
disinvestment of our joint interests with Hydro-Québec International).
Balance sheet investments increased from $3.1 billion as at May 31, 2007 to $3.3 billion as at May 31, 2008. This increase
essentially results from net investments made during the year (investments made less disinvestments), offset by the
reduction in the overall fair value of our investments recorded over the year.
Canada’s Venture Capital & Private Equity Association (CVCA) proposes classifying private equity investments into three
categories: buyout capital, venture capital and mezzanine capital4. Applying this definition, the following graph presents the
breakdown of our $2.8 billion investment portfolio, at cost.
Breakdown of investment portfolio5 by category (at cost)
As at May 31, 2008
re
l
ta
pi
tu
%
ca
.1
ne
ni
za
ez
M
36
n
Ve
l
ta
pi
ca
%
.4
33
l
%
ita
ap
tc
.5
30
ou
uy
B
Other investments decreased by some $186 million over the past year to settle at $4.3 billion as at May 31, 2008. This decrease
is mainly attributable to the rise in net investments made, offset by cash flows from operating and financing activities.
Thus, net assets rose by $46 million to reach $7.3 billion as at May 31, 2008. During the past year, the net value per outstanding
Class A share decreased by $0.31 to $25.05 as at July 5, 2008.
4. Based on the classification proposed by the CVCA, a buyout capital investment is made by purchasing shares of an established private or public
company looking to grow organically or through acquisition. A venture capital investment is made by purchasing shares of a company that is generally
unlisted and in the start-up or the early development stage. Mezzanine capital consists of subordinated debt or preferred shares with or without
a variable portion in equity warrants.
5. On a fund disbursement basis, excluding investments in real estate funds and in listed securities acquired on the secondary market.
Change in net value per Class A share
Years ended May 31
(in dollars)
2008
Net value at beginning
25.36
Change in accounting policy
-
Increase (decrease) due to operations
Interest and dividends
0.90
0.87
Gain on investments and other investments 0.35
0.61
Change in unrealized appreciation or depreciation
(1.22)
0.60
Operating expenses
(0.34)
(0.33)
Income and capital taxes
0.00
(0.31)
(0.07)
0.00
Variance due to share issues and redemptions
Net value at end
25.05
2007
23.74
(0.04)
1.68
(0.02) 25.36
Valuation of financial assets
Investments and other investments are recorded on the balance sheet at their fair value. The fair value of other investments was
established as at May 31, 2008, based on the closing bid price on the stock and bond markets, or, in the case of unlisted financial
instruments, by professional valuators using appropriate and acknowledged pricing models.
With regards to investments, listed securities were also valued based on their bid price at market close as at May 31, 2008. The value of
private securities and listed securities, for which the market price is exceptionally not representative of their fair value, was established
using accepted valuation techniques by specialized business valuators who possess the necessary expertise and experience. These
valuation techniques are based on international guidelines that ensure that fair value6 is established in a reliable manner. The specialized
valuators report to the Executive Vice-President, Finance, and follow a structured process comprising several verification and validation
steps to ensure the quality, uniformity and integrity of the work performed and of the resulting fair value.
The fair value of our investments in specialty funds is established based on the latest audited financial statements received from those
funds. The fair value may be adjusted, if necessary, by the specialized valuators employed by the Fund to incorporate more recently
available financial information.
Accounting policies
During the last fiscal year, the Fund applied new accounting standards issued by the Canadian Institute of Chartered Accountants
(CICA). These standards, which are described in Note 3 to the financial statements, did not affect net earnings and earnings per share
or net value per share as at May 31, 2008 and 2007.
The Fund does not anticipate adopting any new accounting policies that would materially affect next year’s net earnings or the value
of its net assets as at May 31, 2009.
Contribution to Québec’s economic development
It is not clear that the Québec economy can escape the recession threatening the U.S. economy. The position of manufacturing
SMEs has continued to deteriorate due to the rise in energy prices, the strength of the Canadian dollar and the competition from
countries with lower production costs. Confronted with a much weaker U.S. economy, Québec exporters had to revise their
strategies to target new, more promising markets. The Fund understands this new reality and its concern for it contributed
significantly to generating a record volume of investments reaching $730 million in 2007-2008.
Several new investments were made during fiscal 2007-2008. An investment of $5 million was made in Trimag s.e.c., a leader
in manufacturing car parts out of magnesium, subsidiary of Spectra Premium. In addition, to allow Québec-based construction
companies to take advantage of the boom in the Alberta economy, the Fund invested $20 million to create Québec-Alberta
Construction s.e.c.
Loyal to its mission, the Fund increased its investments in start-up companies in 2007-2008 to an amount reaching $198 million
in 23 projects.
As part of its strategic investment program7, in 2007-2008 the Fund invested $15 million in GLV inc. to support its expansion
projects in accordance with its global development strategy, mainly in the water treatment and recycling solutions market.
6. Using fair value is a best practice recognized by venture capital firms and private equity funds. Fair value is defined as the amount of the consideration
that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act.
7. The Québec 2003-2004 budget allowed the Fund the opportunity to move forward with strategic investments in large Québec companies with assets
under $500 million or a net worth of less than $200 million.
Fiscal 2007-2008 saw the Fund participate in developing the Québec mining sector. Investments of $20 million each were made in Osisko
Exploration ltée. and Canadian Royalties inc. to support their respective projects in Abitibi and Ungava Bay. Together, the value of these
projects has reached $602 million for these companies.
During the last fiscal year, the Fund increased by $25 million its investment in Stella-Jones inc., a leader in the production and marketing
of industrial pressure-treated wood products.
In the Québec City region, the Fund invested $4.5 million in Transport C.D.P. inc., a leader in the transportation and logistics sector.
In the financial services sector, where the Fund provides strategic support, an investment of $45 million was made in Addenda Capital,
as part of a transaction that led to its privatization and maintaining of its head office in Montréal.
In addition, the Fund also maintained its commitment to companies operating in the new economy sector, investing a total of $235 million,
of which $100 million was invested in Cogeco Cable to help it take advantage of capex or acquisition investment opportunities. These
investments also allowed the Fund to consolidate its support to the biotechnology industry by investing $48 million over the year, of which
$37 million was invested to help grow Atrium Innovations, a company that develops and markets value-added products for the cosmetic
and nutrition industries, and $4.2 million in ViroChem Pharma.
During this last year, the Fund also made large-scale investments in larger companies. This is how Groupe TransForce, a leader in the
transportation sector, benefited from an unsecured financing of $100 million for its acquisition plans.
Policy for investments outside Québec8
Investments made by the Fund over the years pursuant to the Policy for investments outside Québec have had significant economic
spin-offs for Québec as required by the policy. This year, a total of $71 million was invested in various eligible categories pursuant
to this Policy.
The eligibility of investments made by the Fund in foreign private funds, pursuant to the 60% rule, is conditional to reinvestment in
Québec companies of an amount at least equal to the amount the foreign private fund received. These private funds should also bring
to their partner companies a specific expertise and/or an international business network necessary for their development. In the last
year, the Fund invested CA$66 million in three foreign private funds, and anticipates that each of these funds, in addition to supporting
the Fund’s efforts in terms of Québec’s economic development, will invest in Québec companies an amount at least equal to the sums
received from the Fund.
In terms of investments in companies impacting the Québec economy, during fiscal 2007-2008, the Fund invested an amount equal
to CA$2.1 million through two investments. In addition, the Fund made its first investment in a company outside Québec that carries out
large-scale projects in Québec, for an amount equal to CA$2.6 million.
The Fund network
Since its inception in 1983, the Fund has built a solid investment network that provides entrepreneurs who follow their ambitions with
patient capital based on their needs. A veritable business hub brimming with ideas, talent and knowledge, this network offers the Fund’s
partner companies the opportunity to share common concerns with other SMEs, learn from past experiences and forge new business
ties. The Fund’s Investment network revolves around four levels of investment:
•The Solidarity Fund QFL offers $2 million and up for large companies.
•The 16 Regional Solidarity Funds QFL offer $100,000 to $2 million to meet the needs of businesses in every region of Québec.
The Equity Loan and the Growth Loan are the two main products offered by the regional funds.
•The 87 SOLIDEs (sociétés locales d’investissement dans le développement de l’emploi), created by the Fund and the Fédération
québécoise des municipalités, offer $5,000 to $100,000 to small businesses.
•The specialty funds form an investment network in Québec and abroad that invests in assorted industries. The Fund’s commitment
to this network continued in 2007-2008, which has allowed the Fund to increase the breadth of its various networks and to facilitate
Québec SMEs’ access to capital in all their stages of development. The Fund’s investments in specialty funds cover all the main
sectors of the economy, with a preponderance in the information technology, telecommunications and life sciences sectors.
8. Since 1998, the Fund has been authorized by the Québec Minister of Finance to invest outside Québec provided certain clearly defined conditions are met,
notably with regards to economic spin-offs. The main groups of eligible investments are private funds outside Québec, companies impacting the Québec economy
and large-scale investment projects (financing for expansion, modernization, productivity improvement).
The following graph shows the distribution of the Fund’s investments based on its various networks:
Distribution of investments by network (at cost)
As at May 31, 2008
80
FL
Q
nd
ds
Fu
un s)
lf E
ity
ca ID
ar
lo OL
lid
nd e S
So
l a th
na g
io din
eg u
R cl
s
(in
nd
fu
lty
.1
%
10
.0
%
ia
9.
ec
Sp
9%
Development capital industry, trends and competition
The 2007 data on the Québec development capital industry show that the growth that began a few years ago continued.
Accordingly, for 2007, an increase of 8% in the amounts disbursed compared to the previous year was reported. However, this
trend reversed in the first quarter of 2008, when disbursements decreased by half compared to the same quarter in 2007.
The marked presence of foreign investors in the Québec market is a trend that continued in 2007. In 2006, their share of investment
levelled off at 30%. In 2007, it climbed to 33%. The presence of these investors particularly allows the Québec companies they
finance to have access to a network and expertise that encourages their development on an international scale.
At the national level, we still see the strong presence of activities related to buyout capital, in part to the detriment of venture capital
activity. This situation is explained by the activity of a few very large U.S. funds, and also by the growing presence of sovereign
funds, which are investment funds held and controlled by governments. These players currently have large funds available for this
type of activity, but contrary to the Fund, they generally target large-scale investments.
In general, industry experts agree that investment levels will remain significant for the next few years. The increased globalization
of the economy and the expected arrival of technologies to replace fossil fuels will provide investors with many opportunities. In
Québec, we can add to this the fact that the challenge of business succession to the next generation will be the order of the day
more than ever.
Economic conditions and financial markets
2007-2008 review
The slowdown in the global economy began to be felt in the fourth quarter of 2007, mainly in industrialized countries, following
a period of expansion lasting for several years. Of the many factors that can explain this downturn, two key factors are the
weakened growth of the largest economy in the world – the United States – and the disruptions on international financial markets
caused by the sub-prime mortgage crisis in the United States. Since the fourth quarter of 2007, the U.S. economy has stagnated
under the weight of a large drop in consumer spending, which is partially offset by an increase in net exports resulting from a weaker
U.S. dollar. Consequently, the GDP annualized growth rate fell from 4.9% for the third quarter of 2007 to 0.6% for the fourth quarter
of 2007. Consumer confidence is at its lowest level in 15 years following a 14.4% drop in house prices, significant tightening of credit
terms, increasing gas, energy and food prices and the weakening job market. The unemployment rate currently sits at 5.5%, its
highest level since 2004. Since the beginning of the credit crisis in August 2007, the U.S. Federal Reserve lowered its discount rate
from 5.25% to 2.00% to try to boost the economy and ease access to credit. The ten-year Treasury bond rate declined from 4.89%
to 4.06%.
On the one hand, Europe and Japan also felt the downturn in the U.S. economy in their exports to the United States. Credit terms in
Europe continued to tighten, affecting household and business spending. On the other hand, emerging economies such as China
were less challenged by the slowdown of industrialized economies, due to the strength of domestic demand. Consequently, raw
material, grain and energy prices continued to soar to record levels, as seen with oil prices that reached US$127 per barrel on
May 31, 2008. The rise in raw material prices is pushing up global inflation. Inflation in the United States reached 4.2% in May 2008.
This situation concerns central banks in Europe and the United States to the point that they may raise their discount rates by the end
of 2008.
In Canada, economic growth slowed down severely in the fourth quarter of 2007 because of a drop in exports and manufacturing
outputs, even against sustained consumer demand. The GDP annualized growth rate fell from 3.0% to 0.8% between the third
and fourth quarters of 2007. The reduced volume of Canadian exports, particularly machinery, equipment and consumer goods,
is explained by the cooling of the U.S. economy and the appreciation of the Canadian dollar compared to the U.S. dollar. This
same appreciation, combined with robust domestic demand, pushed Canadian imports up. The growth of household net worth, in
part due to higher house prices, stimulated household spending. In addition, the favourable financial results of businesses have
encouraged investments in equipment and machinery.
Globally, the increased price of gas, energy and food should be beneficial for the Canadian economy as exporter of these goods.
Despite accelerated price increases for raw materials, the appreciation of the Canadian dollar was less pronounced during fiscal
2008, increasing from 0.94 to 1.01 US$/CA$. While the global trend sees inflation rising, the appreciation of the Canadian dollar,
price concessions provided to consumers by retailers in certain sectors of the economy and strong competition in the agri-food
sector in Ontario have reduced pressure on rising prices. Canadian inflation dropped from 2.2% in April 2007 to 1.7% in April 2008.
Slower inflation also allowed the Bank of Canada to lower its discount rate from 4.50% to 3.00% between the end of November 2007
and May 31, 2008 to stimulate the economy, particularly the manufacturing sector. The ten-year Canadian bond rate also dropped
from 4.49% in May 2007 to 3.71% in May 2008.
During the year ended May 31, 2008, the variable return on the stock exchanges was attributable to the volatility of financial
markets, the credit crisis and the slowing of the economy. The energy and raw material sectors saw better returns while the
financial and discretionary consumption sectors saw negative returns. In this context, the Canadian stock market (S&P/TSX
composite) posted gains of 4.7%, the U.S. stock market (S&P 500) dropped by -8.5% (-14.9% in Canadian dollars), U.S. technology
stocks (NASDAQ composite) generated returns of -3.1% (-9.9% in Canadian dollars) and the world stock market (MSCI World)
posted a return of -10.8% (-12.2% in Canadian dollars). The lower interest rates prompted the Canadian bond market to post
returns of 6.6% over the 12-month period ended May 31, 2008, a higher performance than the majority of stock indexes.
Economic and financial outlook
The next twelve months will be difficult for U.S. households affected by banks tightening credit conditions, skyrocketing gas and
consumer goods prices and job losses. It is not likely that a quick expansion in the economy will be seen in the United States in 2008
since two-thirds of the economy is facing daunting challenges. The precarious financial health of households has been accentuated
in the first quarter of 2008 as their net worth sunk by US$1.7 trillion thanks to the nosedive in house prices and stock markets. The
mortgage default rate in the United States continues to rise since the beginning of the real estate crisis, reaching 6.35% in the first
quarter of 2008. The housing foreclosure rate was 0.99% for the first quarter of 2008. This trend can only be reversed when the high
inventories of unsold houses are reduced, which will cause house prices to stabilize. Stabilization in the housing market will likely not
be seen before the second half of 2009. On the one hand, the significant losses in the global financial markets since the beginning
of the credit crisis are estimated at some US$400 billion, which resulted in significant tightening in credit terms for both households
and companies. On the other hand, household purchasing power will continue to erode with the continued increase in the consumer
price index, and more specifically, energy prices.
The downturn in the economy will eat away at demand for raw materials in industrialized countries but will be offset by the growing
appetite for raw materials in emerging economies. Domestic demand in these countries should be stable despite global economic
cooling. The loss of jobs in the United States could increase during the next few months in cyclical sectors such as manufacturing,
finance, automobile and residential and commercial construction. A combination of anaemic economic growth and high inflation
is a worrisome scenario for the U.S. Federal Reserve because an increase in the discount rate will have no effect in restoring credit
terms, encouraging job creation or stabilizing the real estate market. We will very likely have to wait until 2010 before most of these
problems are solved and the U.S. economy begins to grow again.
The Canadian economy is directly affected by the slowdown of the U.S. economy due to the significant commercial trade between
the two countries. Exports to the United States will continue to stagnate in 2008 and 2009. However, domestic demand will remain
robust, as there has not been a correction in real estate markets, the tightening of credit terms is less pronounced than in the United
States, and the appreciation of the Canadian dollar offsets inflationary pressure. Nonetheless, a faster increase in the price of raw
materials could push the inflation rate upward in Canada. Job creation in the manufacturing sector will suffer due to slowing exports.
The residential construction sector will also be affected by a mild drop in investments. However, the drop in jobs will likely not be as
pronounced as in the United States thanks to the strong demand for Canadian natural resources.
Consequently, Canadian economic growth could pick up quicker than the United States. In the event that economic growth
remains anaemic, the Bank of Canada could still be forced to raise its discount rate to maintain inflation within the targeted range
of 1% to 3%. Globally, the fiscal position of the country’s governments should remain relatively healthy, despite the possibility
of a small deficit at the federal level, in Ontario and in Québec in 2009. The Canadian dollar should hover between US$1.05
and US$0.95.
The main risk of this scenario is related to emerging economies loosing steam, which could significantly affect raw material and
energy demand. In such an event, prices would plummet, which would harm the Canadian economy through lower exports, job loss
in the natural resources sector and the depreciation of the Canadian dollar.
We believe that the stock markets will continue to suffer losses in the United States in 2008, as companies’ profit margins will be
squeezed by increasing input prices and reduced household spending. During the next few quarters, the financial system will
continue to suffer losses related to their consumer and business loan portfolios. In 2009, the stock markets will be more attractive as
they will anticipate an economic boom for the United States in 2010. In Canada, the S&P/TSX composite index will benefit from the
continued upsurge in raw materials and energy. On the other hand, the growth of this index will be limited by the difficulties plaguing
the financial sector. During this period, the bond market will suffer, more in the United States than in Canada, because of raw
material prices pressuring an accelerating inflation rate.
2008-2009 outlook9
In light of this economic outlook, the Fund has implemented a strategy using derivative products to lessen the impact of the
anticipated interest rate hikes on its bond portfolio, which makes up approximately 33% of its assets under management. Given
the protection this strategy provides, we must sacrifice a part of the earnings resulting from an increase in the value of our bond
holdings should the rates of the bonds issued by the Government of Canada decline. This strategy is necessary to meet shareholder
expectations and to avoid, inasmuch as possible, a decline in the Fund share price. We also use other measures to reduce the
likelihood of the share price decreasing. For instance, we sometimes use derivative products to reduce the impact of an anticipated
fall in the value of certain sectors or specific securities on the stock markets. In such a case, we must also relinquish a part of the
increase in the price of our investment if the corresponding stock market price rallies.
In the long-term, based on the foreseeable economic and financial outlook and considering our mission and investment strategies,
we are projecting an average annual return around 4% for the next few years. This return does not take into account the tax credits
granted to shareholders for purchasing shares of the Fund and is subject to a significant volatility on a half-annual or annual basis.
Indeed, while the Fund is confident in meeting its return objective on a long-term basis, the annual return it earns is dependent on
the current economic conditions and on the vagaries of the stock and financial markets. Therefore, the Fund’s return over the next
year will be significantly influenced by stock market returns, especially for securities issued by smaller-cap companies. The return
of private securities may be lower than last year due to the persistent effects of increasing credit costs, a stronger Canadian dollar
in relation to the U.S. dollar, the slowdown in North American economic growth and the effects of foreign competition. The Fund is
targeting a ratio of operating expenses (before income and capital taxes) to average net assets comparable to the ratio for the year
ended May 31, 2008.
With projected share issues of $700 million10 and estimated share redemptions of $550 million for the year, net assets should not
change significantly during the next year. On the other hand, investments made by the Fund could be lower than the $730 million
recorded in 2007-2008 and the $668 million recorded in 2006-2007.
60% rule
The 60% rule set out in the Fund’s Incorporation Act stipulates that the Fund’s average unsecured investments in qualified business
enterprises must represent at least 60% of its average net assets of the previous fiscal year. The remaining assets may be invested
in other financial vehicles for asset diversification and sound management purposes. The calculation method for this rule is based on
the value of the Fund’s assets, which depends in part on interest rate fluctuations and on the performance of the stock markets and
the economy in general.
On November 9, 2007, the Government of Québec announced measures designed to promote the growth of the Fund by temporarily
modifying the application of the 60% rule. As at May 31, 2008, the value of our average qualified investments amounted to $4,251 million
or 62.0% of average net assets of the previous year (compared to 55.5% as at May 31, 2007).
Since the minimum percentage prescribed has been reached as at May 31, 2008, the rules governing the 60% rule will not limit the amount
of share issues for the year 2008-2009. Therefore, the Board of Directors of the Fund has set at a maximum of $700 million the value of the
shares giving rise to labour-sponsored fund tax credits to be issued during that year. This amount was set based on the balance we look
for between cash inflows, cash outflows and compliance with the 60% rule.
9. The outlook presented in this annual report reflects the Fund’s expectations with respect to future events, based on information available to the Fund
as of June 18, 2008, and presupposes certain risks, uncertainties and assumptions. Many factors, several of which are beyond our control, may cause
the Fund’s actual results, performance, or achievements to differ materially from explicit or implicit expected future results, performance, or achievements.
10.This amount represents the maximum value of shares giving rise to labour-sponsored funds tax credits that will be issued in 2008-2009. It was set by
the Board of Directors of the Fund after the announcement by the Government of Québec, in November 2007, of measures temporarily modifying
the application of the 60% rule.
Partner Vision and operational objectives
Partner Vision
The deployment work for our Partner Vision continued throughout 2007-2008. In September 2007, sixteen implementation teams
were launched with the mandate to start implementing action plans developed during the previous fiscal year.
We should note that the activities described in these plans mainly target continuous development of the savoir être and know-how
of all Fund employees.
Savoir être
With partnership as the key element of our Vision, all the Fund’s employees attended a training activity in which they discussed partnership
and developed common definitions and vocabulary. They then completed a questionnaire that we used to determine the level of
partnership among the employees of the Fund (PI partnership index) as well as in our relationships with external partners.
Using the results of this questionnaire, we began drawing up a corporate action plan targeting the improvement of our level of partnership.
Action plans were also developed in each of the Fund’s main organizational sectors.
Another important element of savoir être, quality approaches, was kicked off during the year in the Investments and Human Resources
sectors, while the Shareholder Services sector updated the approach implemented in 2001. The achievement of these actions bears
testimony to our continued concern to do everything we can to provide optimal, quality service to our various partners.
To encourage all our employees to play an active role in improving the different areas of their daily work, while improving the Fund’s
organizational efficiency, we have launched the Imagine program. This program, which aims to stimulate the creativity of our personnel,
is inspired from similar approaches that were proven in other organizations looking to develop “good ideas” for improvement.
Know-how
In terms of know-how, the actions to be implemented were principally aimed at the investments sector. Following is a short overview
of these actions.
We have worked to identify ways of doing business that will let us concretely improve the valorization of our investments. In this regard,
in collaboration with the regional funds, we launched in May 2008 a new approach for transferring Québec companies: SME Transfer
Solution. This global approach combines flexible financing solutions, legal and tax expertise, and strategic guidance.
We also set ourselves the goal of promoting best practices in governance adapted to SMEs. To that end, training for members of the
boards of directors of our partner companies is currently being designed. This training is being developed in collaboration with the
Institute for Governance of Private and Public Organizations (IGPPO), which will also provide the training.
In addition to investing in SMEs, the Fund, according to its Incorporation Act, can also make strategic investments in larger
companies. To adapt well our service proposal to the needs of these companies, we have held meetings with some of their
executives and market intermediaries. We have learned much about their expectations of a financial partner such as the Fund
as well as about the nature of the financing needs to continue to grow.
At the end of fiscal 2007-2008, implementation teams for both savoir être and know-how are still on the task. Other actions
will be implemented gradually throughout the next year so that our Partner Vision increasingly becomes part of the Fund’s
organizational culture.
Operational objectives
Other than the numerous daily objectives specific to each of the Fund’s units and those arising from our Partner Vision plan, we set
ourselves a certain number of operational objectives at the beginning of the year. The following is an overview of the key activities
achieved in this regard during the year.
Efficiently managing our financial assets
Having begun work during the previous year, we continued to take various actions to increase the diversification of the Fund’s financial
assets to optimize the overall risk-return profile. Accordingly, we increased the weight of our portfolio of high-revenue securities, which
is made up of preferred shares, high-dividend shares and income trust units.
Continuing with the goal of diversification, we also added the telecommunications sector to the portfolio of sector-based shares while
modifying the allocation between Canada and International, increased our interests in funds of hedge funds and authorized investments
in international infrastructure funds.
Meeting our market challenges
As previously mentioned, discussions with the Québec government during the year led to modifications to the calculations under the
60% rule. These changes have allowed us to increase to $600 million our target for subscriptions giving rise to tax credits for fiscal
2007-2008. Out of this amount, we note that $446 million were collected through systematic savings (payroll deduction or preauthorized
withdrawals), which sets a record in the Fund’s history that we are particularly proud of in this year that marks our 25th anniversary.
As for the local representatives (“LRs”), it is very important to us to provide them ongoing quality training so they can be more effective
in their role as ambassadors of the Fund to their co-workers. Once again, this year we have made improvements to the LR training
program. We have also provided a pilot group of LRs training which aims to provide guidance to shareholders who have decided to
cease their payroll deductions to provide them with alternatives.
Education on savings being one of the Fund’s main priorities, we have sought out shareholders who subscribe to Fund shares by lump
sum contribution and for whom employers already offer payroll deduction to show them the numerous advantages of subscribing through
payroll deduction. The results of this approach have greatly surpassed the objective we set for ourselves, as more than 14% of existing
subscribers signed up for payroll deduction.
Efforts were also made to modify the purchase-by-agreement policy to provide Fund shareholders more flexibility in redeeming
their shares during humanitarian situations. To that end, we added a new criterion, “Necessary expense when a shareholder or the
shareholder’s spouse acts as informal caregiver for a member of the family.” This new criterion and the other changes made to
the purchase-by-agreement policy became effective July 4, 2008.
In the investments sector, a new record was also reached at the end of the 2007-2008 year as the Fund invested more than $730 million
in partner companies. This exceptional result bears strong witness to the leadership role we play in the capital development arena of
the Québec economy.
In line with the Fund’s 25th anniversary, we organized a symposium for our partner companies focusing on innovation. This activity
is another concrete example of our willingness to very materially support our partners in the issues they must face on a daily basis.
Finally, at our Rendez-vous conseil in January 2008, we brought together non-employee directors who we are nominating to the board
of directors of our partner companies. This meeting allowed them to learn more about best governance practices to help them play their
role even more effectively.
For the next year, the concentrated efforts to improve our ways of doing business will continue as Partner Vision implementation teams
continue their work. In this way, we will come even closer to the ultimate goal of this evolution program which aims to provide our partners
the best services they need.
Risk management
Sound risk management practices are vital to the success of the Fund. We manage our risk within a framework taking into
account the nature of the Fund’s activities and the level of risk we can reasonably assume in light of the desired risk/return ratio
and shareholder expectations. To this end, a structured risk management process is used to determine, measure and control
the substantial risks with which the Fund must contend.
Our financial assets are managed in an integrated, comprehensive manner. Our objective is to enable our shareholders to
achieve their goals of reasonable return by optimizing the risk/return ratio while respecting the Fund’s mission. The overall
financial assets management policy sets goals, guidelines and limits that ensure the target risk/return profile is met on an
operational basis. It also states the main guidelines with respect to investments and other investments applicable to the Fund.
The overall financial assets management policy encompasses the policy concerning investments and the policies applicable
to the various asset classes of the other investments sector.
The principles of our risk management approach did not change materially during the year ended May 31, 2008. In April 2008,
the Board of Directors approved an overhaul of the overall financial assets management policy aimed mainly at clarifying roles
and responsibilities and facilitating its implementation and updating. The “Risk Governance” section describes the main changes
to the policy.
In the normal course of business, the Fund is exposed to different risks; the main ones are presented below.
Market risk
Market risk is inherent to the Fund’s participation in financial markets and represents the risk of losses arising from fluctuations in
and the volatility of interest rates, exchange rates and prices of listed financial instruments. More specifically, this risk varies with the
financial markets’ conditions and relates to the potential negative effects of market conditions on the organization’s balance sheet
or income statement as well as variations in market parameters, such as volatility, that may lower the value of the Fund’s financial
assets. Consequently, difficult economic conditions could have a negative impact on the value of our shares.
The Fund’s financial assets are especially sensitive to fluctuations in bond interest rates (Canada bond rates, credit spreads) and
listed stock prices. Since most of its transactions are in Canadian dollars, the Fund’s direct exposure to exchange risk is relatively
low. However, common hedging mechanisms are used for our other investments made in a foreign currency.
The Fund manages market risk by allocating its financial assets across several classes (money market, bonds, income trusts,
preferred shares, investments in private companies, listed shares, funds of hedge funds, infrastructure funds, etc.) and by
diversifying the industries (life sciences, financial services, manufacturing, industrial goods and services, etc.) and geographic
areas in which it invests, within the limits allowed by its Incorporation Act.
Sensitivity of the Fund’s return to market risk*
(based on net assets as at May 31)
(%)
2008
2007
1% increase in bond interest rates
1% decrease in bond interest rates
10% increase in the stock market
10% decrease in the stock market
(0.8)
0.8
2.6
(2.4)
(1.2)
1.2
2.7
(2.7)
* The Fund applies a hedging strategy using derivatives to reduce the sensitivity of the Fund’s return to rising interest rates and falling stock prices.
Sensitivity analyses and simulations are used to inform senior management of our level of market risk exposure. The Fund then
uses derivatives to reduce its market risk exposure and safeguard the value of its assets.
On average, our hedging strategy prompted us to hedge $1.3 billion of bonds against the consequences of an interest rate hike
in 2007-2008. Given the fall in interest rates during fiscal 2007-2008, the hedging strategy implemented to mitigate the potential
impact of an expected interest rate increase did not have the effects that were anticipated.
Credit and counterparty risk
The Fund’s exposure to credit risk stems mainly from development capital activities associated with its mission. Its other investment
activities entail less of this risk since the counterparties concerned are typically more financially solid (governments, banks, etc.).
Credit risk is the potential for loss due to the failure of a partner company, issuer or counterparty to honour its contractual
obligations or due to a degradation of its financial position. The Fund manages this risk and maintains a sound diversification
of its assets through its overall financial assets management policy, which sets guidelines and limits by asset class. This policy
therefore allows us to manage the concentration risk associated with exposure to an issuer or group of issuers with common
characteristics (regions, industries, credit ratings).
Sector-based targets are approved each year for the investment sector. These targets are set using risk budget management. Based
on an optimal risk level defined for the entire investment portfolio, risk budget management allows us to more effectively monitor
and control the portfolio profile and sector allocation by risk level. The investment portfolio’s risk-return balance is thus achieved
through sector-based allocation of risk budgets in order to offset the higher risk of our investments in certain sectors.
A few years ago, the Executive Vice-President, Investments, formed multidisciplinary teams and a due diligence committee to
ensure an acceptable level of credit risk for the Fund. The Fund acquired specialized tools to calculate the probability of default
by our debt-financed partners, thus improving our ability to assess credit risk for these instruments. Moreover, to deal with more
difficult situations, the Senior Vice-President, Turnaround Management and Special Projects, together with the Vice-President, Legal
Affairs, monitors very closely investments that entail greater credit risk.
In the case of the other investments portfolio, our assets are carefully diversified following strict criteria pertaining to issuer and
counterparty credit ratings and exposure limits by borrower or counterparty, thus ensuring that our results will not be materially
affected in the event of a payment default. These criteria are set based on the risks specific to each asset class.
Exposure to credit and counterparty risk
(as a percentage of net assets as at May 31)
2008
2007
Weight of the five largest investments
Weight of the five largest issuers or counterparties (other investments) 12.1
22.5*
10.8
27.4*
* Of this percentage, the governments of Québec and Canada represented 15.0% as at May 31, 2008 (May 31, 2007: 20.1%).
Liquidity risk
The Fund must make disbursements on a daily basis, mainly when shareholders redeem their Class A shares or when the Fund
invests in companies. The Fund must be able to obtain the cash and cash equivalents required to meet its commitments. Liquidity
risk is therefore related to the potential for loss due to the inability of the Fund to meet such commitments. In certain cases, securities
acquired on the market by the Fund may be subject to resale restrictions, thus potentially reducing their liquidity.
The Incorporation Act of the Fund provides that part of the financial assets may be invested in securities traded on organized markets
that are easily convertible into cash. The Fund also has access to bank credit facilities for additional sources of liquidity.
As at May 31, 2008, the ratio of liquid financial assets as a percentage of financial assets was 56.1% (May 31, 2007: 62.5%),
demonstrating that the Fund has the required liquidities to fulfill all its obligations.
Operational risk
Inherent to all the Fund’s activities, operational risk is the risk of sustaining losses as a result of the inadequacy or failure of certain
processes or systems in place or due to human factors or external events. This risk also includes legal risk.
Effective policies, standards and procedures are implemented to manage this risk. Control principles and mechanisms are monitored
and periodically revised as part of a continuous improvement process. The Fund’s operational risk management and the effectiveness
of its management framework are underpinned by the following guiding principles:
•Competent, well-trained staff;
•A culture of integrity;
•Segregation of incompatible duties and delegation of decision-making authority;
•Control of technology development and information security;
•A planning process for resumption of activities in the event of business interruption;
•Monitoring of changes in applicable legislation, regulations and standards as well our compliance therewith;
•Risk identification and assessment when new products or activities are introduced.
The Codes of Ethics and Conduct for management and unionized staff and for directors of the Fund were revised and their new versions
were approved by the Board of Directors in April 2008. These Codes define, among other things, the rules of conduct to be followed
by employees, officers and directors to avoid, for instance, conflict of interest situations. Employees who are members of a Board or
a decision-making Committee of the Fund must put the interest of the Fund ahead of their own or those of third parties. Such employees
must also avoid placing themselves in a conflict of interest situation, either real, potential or apparent. The Codes of Ethics and Conduct
for management and unionized staff prohibit, among others, certain personal trading deemed conflictual, including receiving certain
gifts and using any advantage, information or interest related to the Fund that would be incompatible with the professional duties and
responsibilities of an employee. In addition, the Codes forbid the disclosure by directors and employees, for purposes other than the
execution of their duties, of confidential information obtained through such execution, and the use of this information to get or provide to
a third party an undue benefit or advantage, or its use at the expense of the Fund, its shareholders or its business partners.
Each year, all employees must complete a statement of interests held and a statement on the compliance of their conduct with the Code.
To diversify its financial assets management, the Fund also calls upon the services of specialized external managers and acquires
equity stakes in specialty funds. Where appropriate, the Fund purchases insurance that transfers certain components of operational risk
to insurers.
Other risks
The Fund is also exposed to other risks such as strategic and reputation risks, which could result in negative financial consequences.
Strategic risk, which includes competitive risk and risk associated with regulatory changes, refers to the possibility of incurring
losses as a result of ineffective strategies, lack of integrated business strategies or the inability to adapt the strategies to changes
in the business environment. We manage this risk through a strategic and operational planning process that seeks input from all
levels of the organization before being submitted to the Board of Directors for approval. The Management Committee then
periodically monitors each sector’s business plan. Any strategic decision or change to the Fund’s orientations that could have
a material impact is authorized beforehand by the appropriate authorities, based on the powers delegated to them.
Reputation risk is the risk that negative publicity, whether founded or unfounded, will or may cause losses, a decrease in liquidity
or a decline in the customer base. In order to control and manage reputation risk, the Fund has formulated and implemented Codes
of Ethics and Conduct for its directors, officers and employees. It also ensures its employees are properly trained, and applies
sound governance practices, policies and procedures. The Fund is a responsible corporate citizen that takes ethical, social and
environmental aspects into consideration when making investment decisions. We have also adopted a voting rights policy with
regards to public companies and a code of conduct for international business dealings. The Fund also ensures that any financial
information released outside the organization is accurate and validated beforehand.
To that end, the Management Committee of the Fund approved during the past fiscal year a new disclosure policy concerning
all financial and non-financial information issued and/or disclosed externally and the information that is communicated internally
to a large number of employees. The main objectives of this policy are to provide disclosure framework and standards, to ensure
that information disclosed is rigorously prepared and validated, to make the Fund’s employees aware of disclosure principles,
and to specify the roles and responsibilites of the main participants in the disclosure process.
Accordingly, the Fund formed a Disclosure Committee composed of members of management. The main responsibilities of this
Committee are to set disclosure guidelines, to implement and keep up to date the disclosure policy and ensure it is complied with,
and to ensure that relevant and effective disclosure controls and procedures are in place. The Disclosure Committee reports its
activities to the Management Committee.
Governance
Risk governance
The Management Committee, comprised of the President and CEO and executives, is responsible for the global management of
the Fund’s operations. Because risk management is an essential part of overall financial assets management, the Fund has put in
place a management framework to ensure that risk management and control strategies and resulting operational decisions take
the established level of acceptable risk into account. This management framework is as follows:
Board of Directors
Audit Committee
Financial Assets
Management Committee
Shareholders’ expectations
in terms of return and volatility
Executive Committee
Overall financial assets
management by the Fund
Special Boards
Risks inherent
to the Fund’s activities
Overall financial assets
management policy, guidelines and
procedures, standards, etc.
Our risk governance structure comprises a series of policies approved by the Board of Directors. Policies, standards, guidelines, and
procedures are regularly reassessed to ensure that we rely on only the best possible practices. It should be noted that the functions
of Chairman of the Board and President and CEO are separate.
The overall financial assets management policy defines a target allocation of financial assets. It is a key policy that allows the Fund to fulfill
its mission while meeting its desired risk/return ratio through sound diversification. This policy also provides objectives, guidelines, and
limits within which our managers and professionals perform their duties and carry out their mandates.
The overall financial assets management policy was overhauled in April 2008; the main objectives were clarifying roles and
responsibilities of each of the investments and other investments sectors and facilitating its implementation and updating. The main
changes are as follows:
•the adoption of a Financial Assets Management Committee charter;
•the separation of the former policy into many policies covering the general principles, orientations, limits and guidelines
for the various asset classes, including a separate policy for the investments sector;
•the formalization of detailed guidelines and procedures for managing financial assets on an operational basis.
The Fund’s Board of Directors is responsible for making investment decisions, for adopting risk management policies and for
approving the Codes of Ethics and Conduct for Board members and for management and unionized staff. In this context,
it delegates part of its responsibilities to the following committees:
Audit Committee
The Audit Committee is comprised entirely of independent members, and its mandate includes recommending the audited financial
statements for approval by the Board of Directors, enquiring about the effectiveness of internal controls implemented by management
and the fact that they are not overridden, as well as enquiring about the compliance and risk management process and providing
feedback. The Committee also ensures the Fund complies with the statutes, regulations and agreements that govern its operations
and that have a material financial impact. The Audit Committee reports its activities to the Board of Directors and makes
recommendations to it when necessary.
Financial Assets Management Committee
The Financial Assets Management Committee is responsible for monitoring the implementation and updating of, and compliance
with, the overall financial assets management policy, including the investment policy and the policies applicable to the various asset
classes of the other investments sector. Its primary mandate is to ensure that asset management is coordinated and linked.
In this capacity, it recommends the financial vision and orientation for financial assets management to the Board of Directors. This
committee also monitors performance, changes in the risk/return ratio and the Fund’s compliance with all its financial assets
management policies, and ensures that the Fund has adequate and sufficient guidelines and procedures. The Committee reports
twice yearly its activities to the Board of Directors and makes recommendations to it when necessary.
Executive Committee, Special Boards and other Delegate Boards
In addition to the Board of Directors, investment decisions are entrusted to Delegate Boards such as the Executive Committee and
the Mining Portfolio Steering Committee, and Special Boards created for the Turnaround and the Technology Investments sectors.
Further, an Ethics Committee, comprised of members of management, supports the Executive Committee by overseeing the application
of the Fund’s Codes of Ethics and Conduct.
New regulation of the Autorité des marchés financiers
The Autorité des marchés financiers issued the Regulation Respecting Development Capital Investment Fund Continuous Disclosure.
The Fund will apply these new requirements to its financial statements and Management Discussion and Analysis as at May 31, 2009.
Generally speaking, this regulation requires the disclosure of additional items, essentially in the balance sheet, the statement of earnings
and the notes to the financial statements. In addition, the Fund will have to disclose more information about its derivative financial
instruments and issue a detailed schedule of its other investments. The regulation also clarifies the investment valuation process and
specifies the contents of the Management Discussion and Analysis and the Annual Information Form.
Financial governance
The Fund continued its work over the last fiscal year aiming to develop a financial compliance program commonly known
as Confor. While not required to apply MI 52-109 issued by the Canadian Securities Administrators, the Fund has decided to base its
work upon the principles stated in this rule, thereby demonstrating its willingness to respect best practices in financial governance.
This framework applies to controls providing reasonable assurance that the financial information prepared and reported is reliable
and that the financial statements are prepared in accordance with Canadian Generally Accepted Accounting Principles.
Management is responsible for designing and maintaining internal control over financial reporting and disclosure controls and
procedures. It must also periodically evaluate their design and effectiveness.
During the year, the Fund completed its evaluation of the design of internal control over financial reporting and its evaluation of the
effectiveness of disclosure controls and procedures.
In fiscal 2008-2009, the Fund will deploy its evaluation process of the effectiveness to all controls in order to be ready, when the time
comes, to certify their effectiveness. Management’s conclusions on the design of internal control over financial reporting and the
design and effectiveness of disclosure controls and procedures are presented below.
Management’s report on internal controls
Management is responsible for designing and maintaining internal control over financial reporting and disclosure controls and
procedures. It must also periodically evaluate their design and effectiveness.
Conclusions on the design of internal control over financial reporting
As at May 31, 2008, management evaluated the design of internal control over financial reporting. Based on the work done,
management can conclude that internal control over financial reporting is adequately designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements in accordance with Canadian Generally
Accepted Accounting Principles.
During the year ended May 31, 2008, there was no change in the Fund’s internal control over financial reporting that has materially
affected, or is reasonably likely to affect, the Fund’s internal control over financial reporting.
Conclusions on the effectiveness of disclosure controls and procedures
As at May 31, 2008, management evaluated the design and effectiveness of disclosure controls and procedures. Based on the
work done, management can conclude that disclosure controls and procedures are adequately designed and operate effectively
to provide reasonable assurance that information disclosed is recorded, processed, summarized and presented within the time
periods specified in the regulations and that it is communicated to management on a timely basis for decision-making purposes.
The evaluation of control design and effectiveness was performed based on the COSO Framework (Committee of Sponsoring
Organizations of the Treadway Commission), a recognized financial governance framework.
Financial Statements
Management’s Report
The financial statements of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) and the other financial information in this annual
report are the responsibility of the Board of Directors, which has delegated the responsibility of their preparation to management.
The Board of Directors carries out its responsibility for financial statements through the Audit Committee, made up of outside, unrelated
directors. The auditors mandated by shareholders have unrestricted access to the Audit Committee, with or without management’s presence.
To fulfill its responsibility about the accuracy and reliability of the financial information, management has a system of internal controls to
provide assurance the financial information is reliable, form a proper basis for preparing the financial statements, and the Fund’s assets are
properly accounted for and safeguarded.
These financial statements, audited by Samson Bélair/Deloitte & Touche s.e.n.c.r.l., Chartered Accountants, and Raymond Chabot Grant
Thornton LLP, Chartered Accountants, present the financial information available as at June 18, 2008, and have been prepared in accordance
with Canadian Generally Accepted Accounting Principles.
The financial information presented elsewhere in this annual report conforms with the Fund’s financial statements, which have been approved
by the Board of Directors.
Michel Pontbriand, CA
Executive Vice-President, Finance
Montréal, June 18, 2008
Auditors’ Report
To the Shareholders of the
Fonds de solidarité des travailleurs du Québec (F.T.Q.)
We have audited the balance sheets of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as at May 31, 2008 and 2007, and
the statements of earnings, changes in net assets and cash flows for the years then ended. These financial statements are the responsibility
of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with Canadian Generally Accepted Auditing Standards. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fund as at May 31, 2008 and 2007, and
the results of its operations and its cash flows for the years then ended in accordance with Canadian Generally Accepted Accounting Principles.
Samson Bélair/Deloitte & Touche s.e.n.c.r.l.
Chartered Accountants
Raymond Chabot Grant Thornton LLP
Balance Sheets
AS AT MAY 31
(In thousands, except net value per share)
Assets
Investments (Note 5)
Other investments (Note 6)
Accounts receivable and other assets
Cash
Capital assets (Note 8)
Future income taxes (Note 15)
Liabilities
Amounts under management (Note 9)
Accounts payable
Income taxes
Future income taxes (Note 15)
Net assets
Number of outstanding Class A shares (Note 11)
Net value per Class A share
Contingencies (Note 12)
The accompanying notes form an integral part of these financial statements.
On behalf of the Board of Directors,
Yvon Bolduc, Director
Michel Arsenault, Director
2008
$
2007
$
3,309,777
4,290,391
259,618
6,673
61,633
7,928,092
3,056,834
4,476,784
360,895
9,408
65,282
720
7,969,923
390,685
234,773
14,999
2,721
643,178
7,284,914
290,050
25.05
361,423
347,546
21,166
740
730,875
7,239,048
284,628
25.36
Statements of Earnings
FOR THE YEARS ENDED MAY 31
(In thousands, except earnings per share)
Revenues (Note 13)
Realized revenues
Interest
Dividends
Gain on investments and other investments
Change in unrealized appreciation or depreciation
Operating expenses (Note 14)
Corporate expenses
Investment and other investment expenses
Shareholder development and administration
and economic training expenses
Capital tax
Amortization of information systems development
and other capital assets
Earnings (loss) before income taxes
Income taxes (Note 15)
Net earnings (loss)
Weighted average number of Class A shares
Earnings (loss) per Class A share
2008
$
2007
$
205,210
55,779
101,925
(353,171)
9,743
199,468
49,706
171,922
169,445
590,541
31,265
31,334
30,579
28,906
31,343
4,214
30,919
4,096
5,704
103,860
6,046
100,546
(94,117)
(4,950)
(89,167)
289,665
(0.31)
489,995
14,950
475,045
282,335
1.68
(In thousands)
2008
Balance at beginning of year
Share issues
Net change in share subscriptions
Realized net earnings
Change in unrealized appreciation
or depreciation
Share redemptions
Transfers (Note 11)
Balance at end of year
2007
Share issues
Net change in share subscriptions
Realized net earnings
Change in unrealized appreciation
or depreciation
Share redemptions
Transfers (Note 11)
Share
Capital
Contributed
Surplus
(Note 11)
(Note 11)
$
6,370,141
611,026
(12)
$
368,883
Unrealized
Total
285,810
214,214
500,024
$
$
(353,171)
(423,357)
128,000
6,685,798
6,065,763
570,695
43
$
264,004
(353,171)
(475,981)
7,284,914
305,600
6,595,599
570,695
43
305,600
169,445
(35,974)
(100,000)
500,024
169,445
(402,334)
7,239,048
368,883
(138,957)
(353,171)
(52,624)
(128,000)
230,233
368,883
116,184
44,769
160,953
169,445
368,883
(35,974)
(100,000)
285,810
214,214
$
7,239,048
611,026
(12)
264,004
(52,624)
(128,000)
369,190
305,600
(366,360)
100,000
6,370,141
Net Assets
Realized
264,004
Retained Earnings
Statements of Cash Flows
(In thousands)
Operating activities
Cash inflows – investment and other income
Cash outflows – suppliers and compensation
Income taxes paid
Financing activities
Contribution of amounts under management
Withdrawal of amounts under management
Shares issued and subscribed
Shares redeemed
Cash flows from operating and financing activities
Investing activities
Acquisition of investments
Proceeds on disposal of investments
Acquisition of other investments
Proceeds on disposal of other investments
Information systems development
Other capital assets
Cash flows used in investing activities
Increase (decrease) in cash
Cash at beginning of year
Cash at end of year
2008
$
2007
$
250,094
(91,606)
(33,660)
124,828
260,330
(83,668)
(12,768)
163,894
103,045
(90,392)
611,014
(480,765)
142,902
267,730
119,083
(99,174)
570,738
(400,033)
190,614
354,508
(1,092,378)
626,631
(12,660,491)
12,857,828
(1,219)
(836)
(270,465)
(2,735)
(976,317)
790,218
(8,752,352)
8,589,800
(1,126)
(1,404)
(351,181)
3,327
9,408
6,673
6,081
9,408
AS AT MAY 31, 2008 AND 2007
1. Incorporation Act
Statutes and Objectives of the Fund
The Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the “Fund”), incorporated by an Act of the Québec National Assembly, is a
joint-stock company with the following objectives:
a) to invest in Québec business enterprises and provide them with services in order to create, maintain or protect jobs;
b) to promote the training of workers in economic matters to enable them to increase their influence on Québec’s economic development;
c) to stimulate the Québec economy by making strategic investments that will be of benefit to Québec workers and business enterprises;
d) to promote the development of Québec business enterprises by inviting workers to participate in that development by purchasing the
Fund’s shares.
To this end, the Fund endeavours to concentrate most of its investments in unsecured investments, mainly in small and medium-sized
enterprises (“SMEs”), located in Québec. As a general rule, the Fund will take a minority interest in the projects in which it invests.
60% rule
The Fund may invest in any business enterprise with or without security. However, in any given fiscal year, the proportion of unsecured
investments made in qualified business enterprises must represent an average of at least 60% of the Fund’s average net assets of the
previous year.
If the Fund fails to reach this percentage, the share issues of the following fiscal year are limited to a prescribed percentage of the total
value of shares issued in the preceding year, except for shares acquired through payroll deduction and employer contributions stipulated in
agreements concluded at the end of the preceding year.
The percentage of average qualified investments to the average net assets of the preceding year is 62.0% as at May 31, 2008 (2007: 55.5%).
On November 9, 2007, the Government of Québec announced measures designed to promote the growth of the Fund by temporarily
modifying the application of the 60% rule. These measures include a temporary relaxation with respect to the calculations for the 60% rule.
Since the minimum percentage prescribed by the 60% rule has been reached as at May 31, 2008, the amount of share issues will not be
limited for the year 2008-2009. Therefore, the Board of Directors of the Fund has set at a maximum of $700 million the value of the shares
giving rise to labour-sponsored fund tax credits to be issued.
2. Significant Accounting Policies
The Fund is an investment company as defined in the Accounting Guideline on investment companies and, as such, applies the accounting
principles stated therein.
A Statement of Comprehensive Income is not provided since net earnings and comprehensive income are the same.
Use of estimates
The preparation of financial statements in accordance with Canadian Generally Accepted Accounting Principles (“GAAP”) requires
management to make estimates and assumptions, in particular when determining allowances and the fair value of investments and
other investments, that affect the reported amounts in the financial statements. Actual results could differ from those estimates.
Recognition of financial instruments
Financial instruments are recognized on the transaction date, and cost represents historical cost.
2. Significant Accounting Policies (continued)
Measurement of financial instruments
All investments and other investments are measured at fair value, established as follows:
a) Unlisted financial instruments
Unlisted financial instruments consist of shares, partnership units, loans and advances, guarantees and suretyships, bonds and money
market instruments. The fair value established is based, for all factors that could have a significant impact on fair value, on reasonable
assumptions that would be considered by parties to an arm’s length transaction. The main assumptions include those used to determine
indicated cash flows and the level of risk associated with them. Units of funds of hedged funds are valued at the value set by their
respective manager at the date closest to the Fund’s year-end.
b) Listed financial instruments
Listed financial instruments consist of shares, partnership units and bonds. These instruments are valued at bid price at the close of
trading. In exceptional instances, when this price does not adequately reflect the fair value of an instrument, these securities are then
valued using appropriate valuation techniques, including the techniques used for unlisted financial instruments.
c) Derivative financial instruments
These instruments are valued using appropriate valuation techniques, including option pricing models using in particular the bid
price for assets and the ask price for liabilities at the close of trading.
All other financial assets and liabilities are also measured at fair value.
Securities lending
To generate additional revenues, the Fund carries out securities lending transactions on its portfolio of short-term securities, stocks and
bonds. These revenues are recorded under Realized revenues – Interest in the Statements of Earnings.
Capital assets
Capital assets are stated at cost and are amortized over their estimated useful life using the following methods and annual rates:
Buildings
Office furniture and equipment
Computer hardware and software
Methods
Rates (%)
straight-line
diminishing balance
straight-line
straight-line
2.5
20.0
25.0
33.3
Capital assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not
be recoverable. An impairment loss is recorded when their carrying amount exceeds the undiscounted cash flows that would result from
their use and eventual disposition. The recognized impairment loss is measured as the amount by which the carrying amount of the
asset exceeds its fair value.
Revenue recognition
Dividends
Dividends are recorded as income when they are declared, except for cumulative dividends which are recorded on an accrual basis.
Gains and losses on investments and other investments
Gains and losses on disposals of investments and other investments, including derivative financial instruments, are recorded at the time
of sale and presented under Gain on investments and other investments. The amount is the difference between the proceeds from the sale
and the average cost, without considering the unrealized appreciation or depreciation recorded in prior years, which is reversed and taken
into account under Change in unrealized appreciation or depreciation.
Notes to Financial Statements (continued)
AS AT MAY 31, 2008 AND 2007
2. Significant Accounting Policies (continued)
Income taxes
The Fund uses the asset and liability method of accounting for income taxes. Under this method, future income taxes are recognized
based on the expected future tax consequences of differences between the carrying amounts of balance sheet items and their tax bases,
using the enacted or substantively enacted income tax rates for the years in which the differences are expected to reverse. Future income
tax assets are recognized to the extent that it is more likely than not that they will be realized.
Foreign currency translation
Monetary assets and liabilities and assets and liabilities measured at fair value are translated into Canadian dollars at the year-end
exchange rate. Revenues and expenses denominated in foreign currencies are translated at the exchange rate prevailing at the transaction
date. Foreign exchange gains and losses are recognized in the Statement of Earnings.
Employee future benefits
The cost of pensions and other retirement benefits earned by managers and employees is actuarially determined using the projected
benefit method prorated on service and management’s best estimate of expected return on plan assets, salary escalation and retirement
ages of employees.
For the purposes of calculating the expected return on plan assets, those assets are valued at fair value.
Net actuarial gains or losses which are greater than 10% of the accrued benefit obligation or the fair value of the plan assets, whichever
is higher, are amortized over the average remaining service period of active employees. The average remaining service period of covered
active employees is between 9.8 and 14.5 years for 2008 and 2007.
3. Changes in accounting policies
Financial Instruments – Disclosure and Presentation
In accordance with Section 3861 of the Canadian Institute of Chartered Accountants (“CICA”) Handbook, Financial Instruments –
Disclosure and Presentation, Note 18 to the financial statements, Financial instruments, includes a description of the financial risk
management policy.
Accounting changes
In accordance with Section 1506 of the CICA Handbook, Accounting Changes, Note 4 to the financial statements, Future changes
in accounting policies and other regulation, includes a description and the impact of new accounting standards issued but not yet
applied given their effective date.
4. Future changes in accounting policies and other regulation
Financial instruments
The CICA issued Sections 3862, Financial Instruments – Disclosures, 3863, Financial Instruments – Presentation, and 1535, Capital
Disclosures, which apply to years beginning on or after October 1, 2007. The first two sections replace Section 3861, Financial
Instruments – Disclosure and Presentation. Section 3862 places increased emphasis on disclosures about the risks associated with
both recognized and unrecognized financial instruments and how these risks are managed. Section 3863 carries forward unchanged
the requirements of Section 3861. Section 1535 establishes standards for disclosing information about capital and how it is managed.
These standards, which relate to disclosures, will be applied by the Fund as of June 1, 2008 and will have no impact on its results.
Goodwill and intangible assets
The CICA issued Section 3064, Goodwill and Intangible Assets, which will apply to years beginning on or after October 1, 2008.
This section establishes standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets.
These standards will be applied by the Fund as of June 1, 2009 and will have no impact on its results.
4. Future changes in accounting policies and other regulation (continued)
International Financial Reporting Standards (IFRS)
The Accounting Standards Board of Canada confirmed that Canadian GAAP will be replaced by IFRS for the years beginning on or after
January 1, 2011 for publicly accountable enterprises. The Fund is currently assessing the impact of the adoption of IFRS on its financial
statements.
Regulation of the Autorité des marchés financiers
The Autorité des marchés financiers issued the Regulation respecting development capital investment fund continuous disclosure.
This regulation essentially requires the disclosure of additional items, in particular in the Balance Sheet, the Statement of Earnings and the
Notes to the financial statements.
In addition, the Fund will have to disclose more information about its derivative financial instruments and issue a detailed schedule of the
other investments portfolio. The regulation also clarifies the investment valuation process and specifies the contents of the Management
Discussion and Analysis and the Annual Information Form.
The Fund will apply these new requirements to its financial statements as at May 31, 2009.
5. Investments
2008
(In thousands)
Unsecured
Listed shares and units
Unlisted shares and units
Loans and advances
Secured
Loans and advances
Derivative financial instruments
2007
Cost
Fair value
Cost
Fair value
721,706
1,549,928
1,119,361
716,914
1,544,130
1,021,253
614,715
1,457,019
826,251
847,426
1,413,497
776,137
31,921
3,422,916
3,422,916
24,635
3,306,932
2,845
3,309,777
26,641
2,924,626
2,924,626
13,624
3,050,684
6,150
3,056,834
$
$
$
$
Investments include securities denominated in foreign currencies, mainly the U.S. dollar, with a fair value of $169.7 million
(2007: $209.8 million).
Investment agreements may include clauses providing for conversion and redemption options.
AS AT MAY 31, 2008 AND 2007
5. Investments (continued)
Interest rate risk
Loans and Advances at Fair Value
Variable rates
Maturity
(In thousands)
$
Fixed rates
Less than
1 year
$
1 to
5 years
$
Total
5 years
and more
$
$
2008
Unsecured
Average effective rate
48,554
9.2 %
262,097
1.11 %
205,565
10.5 %
505,037
7.5 %
1,021,253
Secured
1,513
6.8 %
12,462
13.6 %
6,910
11.2 %
3,750
10.8 %
24,635
2007
Unsecured
17,491
10.4 %
260,003
1.81 %
132,073
9.5 %
366,570
8.9 %
776,137
Secured
2,252
7.9 %
6,545
10.7 %
4,827
11.2 %
13,624
1. This average rate includes non-interest bearing advances repayable on demand of $256.3 million (2007: $227.4 million) to a wholly-owned company. Excluding
these advances, the average effective rate would be 10.5% (2007: 7.3%).
Derivative financial instruments1
Maturity
(In thousands)
2008
Fair value
Stock futures
Stock option contracts
Written call options
Purchased put options
Written put options
Bond futures
Bond option contract
Interest rate swap
Foreign currency forward contract
Notional amount
Stock futures
Written put options
Bond futures
Bond option contract
Interest rate swap
Foreign currency forward contract
2007
Fair value
Written put options
Bond futures
Notional amount
Written put options
Bond futures
Less than
6 months
$
6 months
and more
$
32
(2)
1,824
(1,070)
(544)
956
1,196
79,000
24,855
(8,084)
36
(6)
4,770
(3,284)
33,939
30,733
25,575
100,000
$
32
(16)
49
(6)
498
(59)
466
78
6,048
4,514
4,082
Total
(18)
1,873
(1,076)
498
(544)
(59)
956
1,662
78
211
201
110
79,000
6,259
4,715
4,192
79,000
25,000
79,000
25,000
24,855
(10,160)
1,344
(347)
(9,163)
58,633
53,080
43,260
(18,244)
1,380
(353)
4,770
(12,447)
92,572
83,813
68,835
100,000
1. The net fair value of these derivative financial instruments is $1.7 million (2007: $-12.4 million). The fair value of instruments with positive values is $2.8 million
(2007: $6.2 million) and is presented under Investments, whereas the fair value of those with negative values is $1.1 million (2007: $18.6 million) and is presented
under Accounts payable.
AS AT MAY 31, 2008 AND 2007
Breakdown of investments by industry segment and maximum risk
Industry Segment
Technology
(In thousands)
2008
Investments at cost
Unrealized appreciation (depreciation)
Fair value
Allocation of investments made by
the regional or local funds
Funds committed but not disbursed1
Guarantees and suretyships2
Maximum risk
2007
Investments at cost
Unrealized appreciation (depreciation)
Fair value
Allocation of investments made by
the regional or local funds
Funds committed but not disbursed1
Guarantees and suretyships2
Maximum risk
$
Manufacturing
and primary
$
Services and
tourism
Regional or
local and real
estate funds
$
$
Total
$
871,083
(301,977)
569,106
778,879
(137,130)
641,749
1,116,095
205,953
1,322,048
656,859
120,015
776,874
3,422,916
(113,139)
3,309,777
10,537
360,890
940,533
64,388
95,741
4,023
805,901
43,407
118,167
925
1,484,547
(118,332)
50,520
21,500
730,562
625,318
26,448
3,961,543
803,456
(208,623)
594,833
576,375
(49,230)
527,145
925,301
310,350
1,235,651
619,494
79,711
699,205
2,924,626
132,208
3,056,834
8,062
257,440
56,728
144,819
5,673
734,365
36,667
197,743
1,500
1,471,561
(101,457)
56,427
21,500
675,675
656,429
28,673
3,741,936
860,335
1. Funds committed but not disbursed represent investments that have already been agreed to and for which amounts have been committed by the Fund but have
not been disbursed as at year-end.
2. Under Section 17 of its Incorporation Act, when the Fund makes an investment in the form of a guarantee or a suretyship, it must establish and maintain a reserve
equal to at least 50% of the guarantee or suretyship amount for the term thereof. This reserve has been established from Other investments.
The Fund granted guarantees and suretyships that do not generally include a specific maturity and that are irrevocable commitments
by the Fund to make the payments of partner companies that cannot meet their obligations to third parties for an undiscounted total
maximum amount and for the following purposes:
(In thousands)
Loans on real estate projects
Operating activities and operating lines of credit – without recourse
Maximum amount
2008
$
2007
$
21,500
4,948
26,448
21,500
7,173
28,673
As at May 31, 2008 and 2007 there was no unrealized depreciation related to guarantees and suretyships.
As well, in the normal course of business, the Fund enters into various indemnification agreements, usually related to transfers of
investments for the representations and warrantees made as well as to the liability of the Fund’s directors, officers or representatives
toward partner companies. The latter liability is covered, subject to certain conditions, by liability insurance. Due to the nature of
these agreements, it is impossible to reasonably estimate the maximum amount that the Fund may have to pay to counterparties.
In management’s opinion, it is highly unlikely that these commitments will result in material additional expenses, taking into consideration
the provisions recorded.
6. Other investments
2007
2008
(In thousands)
Shares and units
Units of funds of hedge funds
Bonds
Money market instruments
Cost
Fair value
1,246,442
248,018
2,584,658
79,445
4,158,563
13,350
4,171,913
1,367,519
246,094
2,580,832
75,353
4,269,798
20,593
4,290,391
$
$
Cost
$
1,048,467
93,917
3,114,550
7,810
4,264,744
(984)
4,263,760
Fair value
$
1,219,156
102,411
3,100,648
7,829
4,430,044
46,740
4,476,784
Other investments include securities denominated in foreign currencies, predominantly the U.S. dollar, with a fair value of $1,060.6 million
(2007: $636.3 million).
AS AT MAY 31, 2008 AND 2007
6. Other investments (continued)
Breakdown by maturity
Bonds
Maturity
(In thousands)
2008
Fair value
Cost
Par value
Average nominal rate
2007
Fair value
Cost
Par value
Average nominal rate
Less than
1 year
1 to
5 years
5 to
10 years
10 to
20 years
20 to
30 years
30 years
and more
Total
213,936
216,123
919,476
919,620
801,445
807,688
177,484
176,764
402,527
398,569
65,964
65,894
2,580,832
2,584,658
$
213,081
4.2 %
5.3 %
560,520
567,155
558,245
4.3 %
5.7 %
$
903,586
4.8 %
5.2 %
1,124,392
1,139,283
1,113,804
4.5 %
5.1 %
$
800,968
4.8 %
4.9 %
764,701
776,162
754,042
4.8 %
5.1 %
$
166,057
5.4 %
6.0 %
206,795
204,421
190,256
5.3 %
6.0 %
$
370,113
5.5 %
6.0 %
384,842
369,011
338,558
5.6 %
6.2 %
$
61,268
5.1 %
5.5 %
59,398
58,518
54,118
5.1 %
5.6 %
$
2,515,073
4.9 %
5.3 %
3,100,648
3,114,550
3,009,023
4.8 %
5.4 %
Money market instruments
Maturity
(In thousands)
Less than
1 month
$
1 to
6 months
$
6 months
and more
$
Total
$
2008
Fair value
52,559
3.3 %
14,986
2.4 %
7,808
2.7 %
75,353
3.1 %
2007
Fair value
3,437
4.2 %
3,474
3.9 %
918
4.2 %
7,829
4.1 %
Breakdown by maturity (continued)
Derivative financial instruments1
Maturity
(In thousands)
2008
Fair value
Written put options
Bond option contracts
Bond futures
Stock index option contracts
Written put options
Foreign currency forward contracts
Notional amount
Written put options
Bond futures
Written put options
Less than
1 month
$
(15,333)
-
368
1 to
6 months
$
6 months
and more
$
(2,325)
2,999
(1,816)
(976)
567
(23,793)
2
(16,803)
(55,559)
(3,455)
3,257
(1,449)
586
(2,612)
62,285
57,414
49,973
36,097
33,657
28,609
910,150
232,600
481,700
107,058
100,000
90,000
1,611,931
49,160
46,377
39,420
1,273,633
Total
$
(17,658)
2,999
(1,816)
(2,414)
(4)
(3,390)
931
(2,418)
(27,248)
3,259
(1,449)
(16,217)
(60,589)
98,382
91,071
78,582
215,000
146,700
447,600
1,538,550
156,218
146,377
129,420
2,885,564
1. The net fair value of these derivative financial instruments is $-60.6 million (2007: $31.6 million). The fair value of instruments with positive values is $20.6 million
(2007: $46.7 million) and is presented under Other investments, whereas those with negative values is $81.2 million (2007: $15.1 million) and is presented under
Accounts payable.
AS AT MAY 31, 2008 AND 2007
Breakdown by maturity (continued)
Derivative financial instruments (continued)
Maturity
(In thousands)
2007
Fair value
Bond futures
Stock index futures
Written put options
Notional amount
Bond futures
Stock index futures
Written put options
Less than
1 month
$
1 to
6 months
$
6 months
and more
$
Total
$
(13)
35,498
-
1,321
(377)
(13)
36,819
(377)
(2,544)
443
(149)
2,899
2,899
(6,017)
815
(359)
101
(4,516)
(8,561)
1,258
(508)
3,000
31,618
33,235
150,000
945,000
40,627
15,000
485,735
25,000
165,000
1,430,735
65,627
27,750
24,375
21,250
79,601
55,500
48,125
42,500
563,010
83,250
72,500
63,750
642,611
Breakdown of fair value by industry segment1
(In thousands)
2008
Government and government agencies
Financial institutions
Technology
Manufacturing and primary
Services and tourism
2007
Government and government agencies
Financial institutions
Technology
Manufacturing and primary
Services and tourism
Shares and
Units
Bonds
191,761
202,667
849,101
370,084
1,613,613
1,137,625
996,836
66,141
256,173
124,057
2,580,832
26,720
22,932
38,640
110,773
781,286
390,868
1,321,567
1,550,226
1,031,616
52,246
201,523
265,037
3,100,648
2,807
4,913
$
$
Money market
instruments
$
25,701
75,353
109
7,829
Total
$
1,164,345
1,211,529
268,808
1,130,975
494,141
4,269,798
1,553,033
1,075,169
163,019
982,809
656,014
4,430,044
1. This breakdown does not take into account changes in asset allocation resulting from derivative financial instruments.
7. Securities lending
In the normal course of business, the Fund carries out securities lending transactions in order to generate additional revenues. These
loans are secured by guarantees or assets equivalent to the minimum percentage prescribed by law or to a percentage that may vary
according to best practices. As at May 31, 2008, this percentage is between 100% and 105%, (2007: between 102% and 105%) and
the fair value of the securities loaned is $340 million (2007: $379 million).
AS AT MAY 31, 2008 AND 2007
8. Capital assets
(In thousands)
2008
Buildings
2007
Buildings
Cost
Accumulated
amortization
Net book
value
66,767
16,389
7,466
12,445
103,067
10,223
14,296
5,387
11,528
41,434
56,544
2,093
2,079
917
61,633
66,767
16,213
7,361
17,307
107,648
8,416
12,918
4,832
16,200
42,366
58,351
3,295
2,529
1,107
65,282
$
$
$
The net book value of the portion of buildings held for rental amounts to $23.6 million (2007: $26.4 million).
9. Amounts under management
Amounts under management are repayable on demand and renewable monthly. They bear interest at a rate based on the rate of return of
Other investments. Consequently, the fair value of these amounts under management from the specialty and regional funds corresponds to
their carrying amount. As at May 31, 2008, the interest rate is 4.25% (2007: 4.75%).
10. Credit facilities
The Fund has credit facilities amounting to $50 million (2007: $40 million), bearing interest at prime rate and renewable annually. As at
May 31, 2008 and 2007, these facilities are unused.
11. Net Assets
Share capital
Authorized
Class A shares
Unlimited number of Class A shares to be issued in Series 1 and 2, without par value, voting, redeemable and inalienable unless approved
by a resolution of the Board of Directors.
Class A shares, Series 1 and 2, can be exchanged for shares of another series and rank pari passu. However, Class A shares, Series 1 may
be issued only to an individual requesting their transfer to a trustee under a registered retirement savings plan.
Class G shares
Unlimited number of Class G shares, without par value, non-voting, without dividends, non-transferable and non-redeemable. In the
event of a dissolution, liquidation or any other distribution of the Fund’s assets in whole or in part, these shares entitle their holders the
right to be reimbursed after all Class A and B shareholders have been reimbursed.
Class B shares
Unlimited number of Class B shares, without par value, non-voting, entitled to a preferential dividend at the rate determined by the Board
of Directors. In the event of liquidation, the Class B shares rank prior to Class A and G shares.
Subscribed
Subscribed capital is money cashed but for which no Class A share can be issued in consideration thereof pursuant to the Fund’s
purchase-by-agreement policy. These Class A shares will be issued at the time set out in the policy at the share price in effect at that date.
Redemption terms
Class A shares are generally redeemable only when the shareholder who has purchased them from the Fund reaches the age of 55
and avails him/herself of his/her right to an early retirement or retirement, or has reached 65 years of age. The redemption price is
determined semi-annually based on the value of the Fund.
Shareholders may also withdraw their initial investment in the Fund within 60 days of the subscription date or the date of the first payroll
deduction. This withdrawal, however, cancels the right to the tax credit.
The Fund can redeem Class A shares only in cases provided under the purchase-by-agreement policy voted by the Board of Directors
and approved by the Minister of Finance.
Transfers
During the year, the Board of Directors approved resolutions to increase the issued and paid-up capital on Class A shares, Series 1 by
$128 million (2007: $100 million) through transfers from retained earnings.
As at May 31, 2008, the Fund had transferred a cumulative amount of $1,252 million from retained earnings to share capital.
AS AT MAY 31, 2008 AND 2007
11. Net Assets (continued)
Issued, paid-up and subscribed capital
Share Capital
Issued
Subscribed
Class A
Series 1
(In thousands)
2008
Balance at beginning
of year
Share issues
Net change in share
subscriptions
Share redemptions
Transfers
2007
Balance at beginning
of year
Share issues
Net change in share
subscriptions
Share redemptions
Transfers
Class G
Total
Class A
Series 2
Number
$
Number
$
280,932
23,713
6,272,301
598,986
3,696
479
77,326
12,040
(18,261)
286,384
(412,529)
128,000
6,586,758
3,666
78,538
20,125
377
273,754
23,471
5,968,803
561,092
3,712
405
76,489
9,603
20,125
346
6,065,763
570,695
43
(16,293)
(357,594)
100,000
6,272,301
43
(366,360)
100,000
6,370,141
280,932
(509)
(421)
3,696
$
$
$
20,125
389
6,370,141
611,026
(12)
(12)
(423,357)
128,000
6,685,798
Number and
(10,828)
(8,766)
77,326
20,125
389
Contributed surplus
Contributed surplus results from a reduction in issued and paid-up capital and the excess of the average value of share capital over
the redemption price.
12. Contingencies
In the normal course of business, the Fund is party to claims and litigations. The Fund records provisions for such contingencies when
necessary. Management believes that the contingent liabilities, net of the provisions recorded, would not have a material adverse effect
on the Fund’s financial position.
13. Revenues
The change in unrealized appreciation or depreciation in unlisted financial instruments for the year is a negative amount of $90.5 million.
Interest on amounts under management totalling $17.8 million (2007: $17.0 million) is recorded against Realized revenues – Interest and
is capitalized to Amounts under management.
14. Operating expenses
(In thousands)
Salaries and benefits
Occupancy expenses and rent
Advertising and information
Professional fees
Management fees
Travel and entertainment
Stationery and office supplies
Fees and other income
Rental income
Capital tax
Amortization of information systems development
Amortization of other capital assets
2008
$
60,841
10,717
10,422
6,902
8,244
2,591
2,357
(4,220)
(3,912)
4,214
1,409
4,295
103,860
2007
$
58,784
11,027
9,278
8,906
5,427
2,805
2,425
(4,920)
(3,328)
4,096
1,722
4,324
100,546
15. Income taxes
Income taxes are as follows:
(In thousands)
Current (recovered)
Future
2008
$
(7,652)
2,702
(4,950)
2007
$
5,585
9,365
14,950
The above income taxes are different from the amounts that would be obtained by applying the combined basic tax rate (federal and
provincial) to earnings (loss) before income taxes. The difference is explained as follows:
(In thousands)
Income taxes based on combined income tax rate of 45.8% (2007: 45.7%)
Non-taxable dividends
Capital gain or loss and change in unrealized appreciation or depreciation
Additional provincial income taxes
Rate difference and non-deductible (non-taxable) portion
Refundable federal tax
Provincial tax deduction
Refundable dividend tax on hand
Large corporations tax
Other items
2008
$
2007
$
(43,106)
(19,384)
223,928
(11,949)
(15,150)
64,434
28,925
21,501
(42,467)
297
(4,950)
18,394
(95,531)
(44,512)
(26,220)
(48,715)
(1,519)
1,074
14,950
AS AT MAY 31, 2008 AND 2007
15. Income taxes (continued)
Items giving rise to future income tax assets are as follows:
(In thousands)
Capital assets
Investments and other
2008
$
2007
$
-
557
163
720
2008
$
2007
$
(153)
2,874
2,721
397
343
740
Items giving rise to future income tax liabilities are as follows:
(In thousands)
Capital assets
Investments and other
At the federal level, the Fund is taxed according to the rules for mutual fund corporations. Income taxes paid on capital gains are
recoverable following share redemptions or an increase in paid-up capital when a portion of retained earnings is transferred to issued
and paid-up capital. The balance of this tax paid on capital gains amounting to $19.1 million (2007: $16.9 million) is included in Accounts
receivable and other assets.
As a private company, the Fund is eligible for the refundable dividend tax on hand (RDTOH). The RDTOH is recoverable by the Fund
through the increase in paid-up capital from transfers of a portion of retained earnings to issued and paid-up capital. Of the tax amount
of $42.9 million (2007: $33.6 million), $42.7 million (2007: $33.3 million) was applied to reduce income taxes following transfers approved
by the Board of Directors during the year to recover this tax. The balance is included in Accounts receivable and other assets.
16. Employee future benefits
On January 1, 2001, the Fund implemented funded and unfunded defined benefit pension plans, which guarantee pension benefits to
most of its employees. Pension benefits under these plans are based on years of service and average annual salary, which represents
the average annual salary over the period of 36 months of consecutive service which results in the highest average.
Also, since July 1, 2003, the Fund has had an optional personal insurance plan for retired employees.
The accrued benefit obligation of these plans as determined by independent actuaries and the fair value of plan assets are as at
March 31, 2008. The most recent actuarial valuation of the pension plans for funding and solvency purposes was as of December 31,
2006 and the next valuation will take place on December 31, 2009 at the latest.
16. Employee future benefits (continued)
Information about the plans is as follows:
2008
(In thousands)
Pension
plans
$
Insurance
plan
$
2007
Pension
plans
$
Accrued benefit obligation
Current service cost
Interest cost
Benefits paid
Past service gain
Actuarial loss (actuarial gain)
60,680
10,904
3,451
(907)
1,281
87
68
(9)
46,176
8,441
2,769
(1,233)
(2,970)
71,158
(54)
1,373
4,527
60,680
Plan assets
Fund contributions
Employee contributions
Benefits paid
Actual return on plan assets
47,674
4,859
4,737
(907)
(1,034)
55,329
Reconciliation of accrued benefit obligation
and plan assets
Funded status – deficit
Unamortized net actuarial loss
Unamortized past service cost (gain)
Accrued benefit liabilities
(15,829)
7,791
54
(7,984)
9
(9)
-
(1,373)
483
(297)
(1,187)
37,920
3,788
3,221
(1,233)
3,978
47,674
(13,006)
6,637
61
(6,308)
Insurance
plan
$
1,741
135
98
(6)
(1,049)
362
1,281
6
(6)
-
(1,281)
572
(336)
(1,045)
These accrued benefit liabilities are presented under Accounts payable.
AS AT MAY 31, 2008 AND 2007
Additional information about plan assets
Funded plan assets are held in trust and their breakdown is as follows:
Equity mutual funds
Bond mutual funds
Cash and other
2008
%
2007
%
59.5
39.8
0.7
100.0
59.6
39.8
0.6
100.0
2008
2007
Costs recognized in the year were as follows:
(In thousands)
Current service cost, net of employee contributions
Interest cost
Actual return on plan assets
Past service gain
Actuarial loss (actuarial gain)
Cost before adjustments to recognize the
long-term nature of employee future benefits
Difference between actual and expected
return on plan assets
Difference between actuarial loss recognized and
actual actuarial loss or gain on accrued benefit obligation
Difference between amortization of past
service cost or gain and actual plan amendments
Amortization of transitional obligation
Costs recognized in the year
Pension
plans
Insurance
plan
6,167
3,451
1,034
87
68
5,220
2,769
(3,978)
(2,970)
(54)
4,527
(1,049)
362
7,682
101
8,538
(454)
$
$
(4,280)
3,126
7
6,535
Pension
plans
$
Insurance
plan
$
135
98
1,360
89
(39)
151
(4,512)
6
5,392
(359)
1,049
71
307
Cash payments for employee future benefits, which comprise contributions made by the Fund to these funded pension plans and
amounts paid directly to members under unfunded pension plans totalled $4.9 million (2007: $3.8 million).
Significant actuarial assumptions
The significant actuarial assumptions used to determine the accrued benefit obligation and the costs recognized for the plans are as follows:
2008
Pension
plans
Insurance
plan
Pension
plans
Insurance
plan
5.25
3.50
5.25
5.00
3.50
5.00
5.00
6.25
3.50
5.00
5.25
6.50
3.50
5.25
%
Accrued benefit obligation
Rate at end of year
Discount rate
Rate of compensation increase
Accrued benefit costs recognized
Rate at end of previous year
Discount rate
Expected rate of return on plan assets
Rate of compensation increase
2007
%
%
%
As at May 31, 2007, the Fund set a maximum annual insurance premium it will assume per retiree. This amount will not be increased in
the future.
17. Related Party Transactions
In the normal course of business, the Fund conducts transactions with related companies that are either controlled by the Fund or
subject to significant influence by the Fund. Many of the investments that the Fund makes in enterprises are of such an amount and
nature that the investee is considered a related entity. These transactions consist predominantly of interest and dividend revenues on
investments and certain operating expenses, in particular premiums paid under insurance plans.
The Fund, of which a majority of directors are elected by the QFL, paid $1.3 million to the QFL in each year for the years ended May 31,
2008 and 2007 under a protocol and agreements that call for compensation to be paid for services rendered in respect of economic
training, social audits, shareholder development, and support and guidance of certain activities. These transactions are measured at
the exchange amount, which is the amount of consideration established and agreed to by the related parties.
The Fund incorporated the Fondation de la formation économique du Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the
“Fondation”) under Part III of the Québec Companies Act and appoints the members of the Fondation’s Board of Directors. The Fund
granted a loan of $5 million to the Fondation at a variable, contingent interest rate, with a fair value of $3.7 million (2007: $3.5 million).
The Fund granted non-interest bearing loans of $20 million with a fair value of $18.8 million (2007: $17.9 million) to the Fonds étudiants
solidarité travail du Québec (FESTQ), which are considered related entities because the Fund appoints some of their directors together
with the Government of Québec.
The loans are presented in the Balance Sheet under Accounts receivable and other assets.
AS AT MAY 31, 2008 AND 2007
18. Financial instruments
Risk management
Risk is managed within a framework taking into account the nature of the activities and the level of risk the Fund considers reasonable
to assume in light of the desired risk/return ratio and shareholder expectations. Financial instruments are managed in an integrated,
comprehensive manner. In the normal course of business, the Fund is exposed to different risks, and the main ones are as follows:
Market risk
Market risk is inherent to the Fund’s participation in financial markets and represents the risk of losses arising from fluctuations in and the
volatility of interest rates, exchange rates and listed financial instrument prices. The Fund’s financial instruments are especially sensitive
to fluctuations in bond interest rates and listed stock prices.
This risk is managed by allocating financial instruments across several classes (money market, bonds, income trusts, preferred shares,
investments in private companies, listed shares, funds of hedge funds, etc.) and by diversifying the industries and geographic areas,
within the limits allowed by the Incorporation Act of the Fund. In addition, given the exchange risk the Fund is exposed to, common hedging
mechanisms are used.
Credit and counterparty risk
Credit risk is the potential for loss due to the failure of a partner company, issuer or counterparty to honour its financial obligations. This risk
is managed in accordance with a policy that, among other things, sets guidelines and limits by asset class and issuer.
Sector-based targets are approved each year for the investment sector. Other investments are carefully diversified based on criteria
pertaining to issuer and counterparty credit ratings and exposure limits by borrower or counterparty, thus ensuring that the Fund’s results
will not be materially affected in the event of a payment default.
Liquidity risk
Liquidity risk is the potential for loss due to the inability of the Fund to honour its obligations to make the required cash payments.
The Fund must honour certain disbursements on a daily basis, mainly when shareholders redeem their Class A shares and when the Fund
invests in companies.
This risk is managed by investing a part of the financial assets in securities traded on organized markets, in accordance with
the Incorporation Act and the overall financial assets management policy.
Derivative financial instruments are used only to preserve the value of assets, to facilitate changes in asset allocation, to manage a portion
of the portfolio through indexing, to facilitate portfolio management and to enhance the yield within the allocated risk limits.
19. Comparative figures
Certain comparative figures have been reclassified to be comparable with those of the current year.
20. Additional information
The Schedule of investments at cost and the List of investments at cost made by the specialty funds are available at the Fund’s head office,
on its website at www.fondsftq.com and on SEDAR at www.sedar.com.
Auditors’ Report
To the Directors of the
We have audited the schedule of investments at cost of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as at May 31, 2008. This
financial information is the responsibility of the management of the Fonds de solidarité des travailleurs du Québec (F.T.Q.). Our responsibility
is to express an opinion on this financial information based on our audit.
We conducted our audit in accordance with Canadian Generally Accepted Auditing Standards. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial information is free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial information. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial information.
In our opinion, this schedule presents fairly, in all material respects, the investments at cost of the Fonds de solidarité des travailleurs du Québec
(F.T.Q.) as at May 31, 2008 in accordance with Canadian Generally Accepted Accounting Principles.
June 18, 2008
AS AT MAY 31, 2008
(In thousands $)
Investments
Unsecured
Year of
Initial Investment
1988
1989
1990
1991
Ê
Ê
1992
1993
Ê
£{Ê
Ê
1995
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Fonds de développement emploi-Montréal inc.
Les Nordiques de Québec 1988,
société en commandite
Transforce inc.
Entreprises publiques québécoises à faible
capitalisation
Bestar inc.
Transat A.T. inc.
B.M.B. (Îles-de-la-Madeleine) inc.
Société en commandite Baseball Montréal
UÊ -VjÌjÊiÊV>`ÌiÊLmÀiÊ-Ê
UÊ -"+]ÊÃVjÌjÊiÊV>`ÌiÊ
Polycor inc.
European Medical Ventures Fund S.C.A.
Groupe Robert inc.
Le Devoir inc.
Société d’investissements Capimont enr.,
UÊ -VjÌjÊiÊV>`ÌiÊLmÀiÊ-ÊÊ
SSQ, Société d’assurance-vie inc.
Ê À«À>ÌÊ>VmÀiÊÀiÊV°Ê
Ê ÀÕ«iÊ*iÀÀiÊiÛj`mÀiÊV°Ê
Labopharm inc.
Château M.T. inc.
CryoCath Technologies inc.
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊLÌL/jÃV>}Õi]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ
Ìi À`]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊÃÌÀi]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊiìÌÀj>]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>>Õ`mÀi]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>ÕÀiÌìÃ]Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>Û>]Ê
Industry
Segment
Listed
Shares
and Units
F
S
S
TI/M/P/S
M
S
S
S
,Ê
Ê
P
TI
S
S
F
,Ê
S
-Ê
-Ê
TI
S
TI
Unlisted
Shares
and Units
Secured
Loans
and
Advances
Loans
and
Advances
1,338
1,338
1
1
19,220
19,220
284,069
1,499
20,438
ÊÊ
ÊÊ
675
750
7,000
Ón]ÇxÊÊ
Îä]äääÊÊ
150
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
36,100
Î]äääÊÊ
£]£ääÊÊ
ÊÊ
ÊÊ
10,761
68
10,975
1,315
ÊÊ
ÊÊ
ÊÊ
Total
1
Óx]äääÊÊ
29,413
£]x£ÊÊ
Î£ÎÊÊ
16,095
3,000
4,638
6,500
284,069
2,174
20,438
900
7,000
Ón]Çx
Îä]äää
10,761
68
17,475
1,315
1
Óx]äää
65,513
{]x£
£]{£Î
16,095
3,000
4,638
F
13,105
13,105
F
12,985
12,985
F
20,114
20,114
F
25,090
25,090
F
12,587
12,587
F
21,532
21,532
F
18,524
18,524
Investments
Unsecured
Year of
Initial Investment
£xÊ UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>ÕÀVi]Ê
Jonview Canada inc.
MethylGene inc.
Mines Virginia inc.
RESO Investissements inc.
Société en commandite de placements
iÊ}ViÊ/jjÃÞÃÌmiÊ
1996
3552853 Canada inc.
(Les Enductions Répulpables Rétec)
Ê
UÊ `ÃÊ`½ÛiÃÌÃÃiiÌÊìÊ>ÊVÕÌÕÀiÊiÌÊìÃÊ
communications, société en commandite
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>Ã->Ì>ÕÀiÌ]Ê
Ê
>Õ`mÀi««>>ViÃ]Ê
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ>Ã«jÃiqÊ
Îles-de-la-Madeleine, société en commandite
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊÌjÀj}i]Ê
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ"ÕÌ>Õ>Ã]Ê
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ+ÕjLiV]Ê
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ->}Õi>ÞqÊ
Lac-Saint-Jean, société en commandite
Gestion Renaud-Bray inc.
GBO inc.
Groupe Solmax inc.
Mines Richmont inc.
Roctest ltée
Ê
Ê -Ì>}iiÊ-VmiÊLiÊV°Ê
Ê
Ê -ÞÃÌmiÃÊj`V>ÕÝÊ-Ê
>>`>®ÊÌjiÊ
1997
Biorthex inc.
Corporation GMAT Capital
Fonds de capital de risque
GeneChem Technologies, s.e.c.
Fonds d’investissement de Montréal (F.I.M.),
Ê
UÊ `ÃÊÀj}>ÊìÊÃ`>ÀÌjÊ À``Õ+ÕjLiV]Ê
Industry
Segment
F
S
TI
P
F
Listed
Shares
and Units
Unlisted
Shares
and Units
Secured
Loans
and
Advances
Loans
and
Advances
12,708
12,708
3,156
16,651
186
1,251
3,156
16,651
186
1,251
/Ê
ÊÊ
£]£xnÊÊ
ÊÊ
Total
ÊÊ
£]£xn
M
823
823
S
20,000
20,000
F
13,160
13,160
F
12,574
12,574
F
12,573
12,573
F
18,478
18,478
F
30,478
30,478
F
18,976
18,976
F
S
M
M
P
M
Ê
/Ê
TI
S
24,971
1
12,392
500
24,971
1
24,337
3,800
2,242
4,124
ÇÓÎ
Ó]ÎÈÇ
12,392
500
TI
6,771
6,771
R
1,982
F
12,000
24,337
3,800
2,242
4,124
ÊÊ
Ó]ÎÈÇÊÊ
ÊÊ
ÊÊ
ÇÓÎÊÊ
ÊÊ
52
ÊÊ
ÊÊ
2,034
12,000
Schedule of investments at cost (continued)
AS AT MAY 31, 2008
(In thousands $)
Investments
Unsecured
Year of
Initial Investment
1997
Gespro Technologies inc.
Glendyne inc.
GSM Capital Limited Partnership
Infosoft société en commandite d’investissement
Les Mines McWatters inc.
Mines Aurizon ltée
Oxford Bioscience Partners II L.P.
Polyvalor, société en commandite
1998
3539491 Canada inc. (ADF industries lourdes)
Biotechnologies ConjuChem inc.
Ê
Ê À«À>ÌÊ`½iÝ«Ì>ÌÊmÀiÊLiÃÌ>ÀÊ
Corporation Eatsleepmusic.com
Exploration Azimut inc.
Ê
iÌÀi`Õ+ÕjLiV]Ê
Le Groupe Tecnum inc.
Madelimer inc.
Malaga inc.
Multi-Ind. Capital inc.
Niocan inc.
Société en commandite Manoir Richelieu
Tranzyme Pharma inc.
TSO3 inc.
1999
A. & R. Belley inc.
Advitech inc.
Æterna Zentaris inc.
Ê
UÊ >«iÝ]ÊÃVjÌjÊiÊV>`ÌiÊ
ForAction Chili inc.
Harmonium International inc.
Ê
Ê >Ê>VmÀiÊìÃÊiÌÀi«ÀÃiÃÊVÕÌÕÀiiÃÊ
®]Ê
Le Groupe Cambium inc.
Ê
Ê iÃÊ-ÞÃÌmiÃÊìÊ}iÃÌÊ,>Þ>ÀÊ8«iÀÌÊV°Ê
Manitoba Science & Technology Fund
Limited Partnership
Minéraux Maudore ltée
Osisko Exploration ltée
Réseaux Simpler inc.
Industry
Segment
TI
P
TI
TI
P
P
TI
TI
M
TI
*Ê
TI
P
F
TI
M
P
S
P
S
TI
TI
S
TI
TI
-Ê
M
TI
Listed
Shares
and Units
1,676
1,557
1,128
6,550
3,444
305
Loans
and
Advances
Loans
and
Advances
3,825
1,343
1,416
5,082
1,513
2,579
ÎäÊÊ
ÊÊ
ÊÊ
ÊÊ
3,000
201
9,616
1,750
522
253
1,177
21
2
339
44,709
7,532
1,254
392
699
394
6,321
1,904
30,488
ÊÊ
S
M
/Ê
TI
P
P
TI
Unlisted
Shares
and Units
Secured
£ä]ÈääÊÊ
50
390
ÊÊ
ÊÊ
ÊÊ
751
{ääÊÊ
4,000
ÊÊ
ÊÊ
767
180
84
20,000
32,369
2,024
Total
1,676
5,382
1,128
6,550
4,787
305
1,416
5,082
1,513
2,579
Îä
3,000
201
9,616
2,003
1,699
21
2
339
45,963
7,532
6,321
1,091
2,298
30,488
£ä]Èää
50
390
4,000
751
{ää
767
180
20,084
34,393
Investments
Unsecured
Year of
Initial Investment
2000
Alliances ArtQuest International inc.
Ê
UÊ ,"ÊÊ\Ê/iÊ7ÀiiÃÃÌiÀiÌÊÕ`ÊqÊ
Limited Partnership
Atrium Innovations inc.
BioArtificiel Gel technologies (Bagtech) inc.
Bioxel Pharma inc.
Cronus BioPharma inc.
De Marque inc.
FDJ Monde inc.
Ê
UÊ `ÃÊìÊ`jÛi««iiÌÊìÃÊiÝ«ÀÌ>ÌÃÊ"8]Ê
Ê
Ê `ÃÊìÊÀiÛiÕÊjV«ÌmÀiÃÊ
>>ìÃÊ
Genopole 1er Jour S.A.
Groupe Riotel Hospitalité inc.
GTI V, société en commandite
Les Entreprises Maska-Laforo inc.
Marketing Léger inc.
Planchers des Appalaches ltée
ProVance Technologies inc.
Ressources Majescor inc.
Ressources Strateco inc.
Simard-Beaudry Construction inc.
Ê
UÊ -VjÌjÊiÊV>`ÌiÊii
iÊ/jÀ>«iÕÌµÕiÊ
Theratechnologies inc.
Yamana Gold inc.
2001
Aégera Thérapeutique inc.
Capimont Technologies, société en commandite
Cardianove inc.
Cleyn & Tinker inc.
Corporation DataCom Wireless
Ê
UÊ `ÃÊÛ>Ì]ÊÃVjÌjÊiÊV>`ÌiÊ
GSM Capital Annex Fund, L.P.
Ê
Ê ÛiÃÌÃÃiiÌÊ*ÀimÀiÃÊ >ÌÃÊ`ÕÊ+ÕjLiV]Ê
Kruger Wayagamack inc.
Les Ressources Campbell inc.
Nanox inc.
Ê
UÊ Û>V>«Ê]ÊÃVjÌjÊiÊV>`ÌiÊ
Industry
Segment
Listed
Shares
and Units
TI
3,100
TI
TI
TI
TI
TI
S
M
S
-Ê
TI
S
TI
M
S
M
TI
P
P
S
/Ê
TI
P
TI
TI
TI
M
TI
/Ê
TI
F
M
P
TI
-Ê
Unlisted
Shares
and Units
Secured
Loans
and
Advances
Loans
and
Advances
Total
1,010
1,517
5,627
725
12,165
44,920
1,678
6,020
250
768
2,850
12,165
31,513
13,407
1,678
5,020
1,000
250
768
2,125
ÓÈ]{ÓÎÊÊ
41,950
ÊÊ
136
405
7,332
5,000
1,000
713
6,075
4,594
1,667
£ä]{ÎÎÊÊ
45,189
ÊÊ
ÊÊ
ÊÊ
237
2,958
1,045
368
15
ÊÊ
ÊÊ
1,391
351
5,120
9,418
1,434
6,406
7,024
ÊÊ
900
£{]££äÊÊ
938
ÊÊ
ÊÊ
1,660
12,000
1,420
ÊÊ
2,100
£x]äÎ£ÊÊ
ÊÊ
ÊÊ
41,950
ÓÈ]{ÓÎ
136
642
7,332
7,958
1,000
713
11,714
368
15
46,856
£ä]{ÎÎ
1,391
351
5,120
9,418
2,334
6,406
7,024
£{]££ä
938
1,660
12,000
1,420
2,100
£x]äÎ£
AS AT MAY 31, 2008
(In thousands $)
Investments
Unsecured
Year of
Initial Investment
2001
Partenaires MidCap
SBV Venture Partners L.P.
Ê
UÊ -8]ÊÃVjÌjÊiÊV>`ÌiÊ
SolaCom Technologies inc.
T2C2/Bio2000, société en commandite
Venture Coaches Fund LP
2002
BioAxone Thérapeutique inc.
Énergie Afina inc.
FinTaxi, s.e.c.
Ê
UÊ `ÃÊLiÀÊ`ÕÊ`ÃÊìÊÃ`>ÀÌjÊ/+ÊV°Ê
Hydro Mobile inc.
Investissements BioCapital, société en commandite
Junex inc.
LxSix Photoniques inc.
Ê
UÊ ÕÀ>Ê
>«Ì>ÊÊ+ÕjLiVÊÃVjÌjÊiÊV>`ÌiÊ
nStein Technologies inc.
Produits Intégrés Avior inc.
Thermetco inc.
Topigen Pharmaceutiques inc.
Vêtements Avanti inc.
Vimac Early Stage Fund L.P.
2003
9096-2952 Québec inc. (Magnov)
Enobia Pharma Corp.
Hexago inc.
Joseph Ribkoff inc.
Ê
UÊ iÊ`ÃÊÌÀi«>Ê À`]ÊÃ°i°V°Ê
Mines de la Vallée de l’or ltée
Ressources Plexmar inc.
Solutions originales inc.
Stella-Jones inc.
Technologies Harfan inc.
Technologies Microbridge Canada inc.
TelcoBridges inc.
Tranzyme, inc.
Vimac Milestone Medica Fund North L.P.
2004
3091779 Compagnie Nouvelle-Écosse (Laura Secord)
4262280 Canada inc. (Jonview Canada)
4268822 Canada inc. (Astroflex)
Industry
Segment
S
TI
*Ê
TI
TI
TI
TI
S
S
,Ê
M
TI
P
TI
/Ê
TI
M
M
TI
M
TI
M
TI
TI
M
/Ê
P
P
TI
M
TI
TI
TI
TI
TI
S
S
M
Listed
Shares
and Units
ÊÊ
ÊÊ
Unlisted
Shares
and Units
1
6,805
£x]äääÊÊ
750
8,937
4,064
3,000
4,256
6,800
£ÊÊ
2,500
1,480
Secured
Loans
and
Advances
Loans
and
Advances
ÊÊ
2,500
ÊÊ
500
1,723
27,200
ÓxÈ]ÓxÊÊ
ÊÊ
1,228
ÊÊ
384
ÊÊ
4,877
Ó£]ÓÇxÊÊ
1,229
ÊÊ
688
1,500
ÊÊ
1,250
1,800
8,598
2,000
9,753
1
8,157
4,100
15,627
Ç]äÓÊÊ
13,000
1,133
27
250
ÊÊ
217
135
2,325
4,155
2,000
4,309
2,475
1
2,998
2,000
4,647
1
40,008
1,000
1,470
5,000
ÊÊ
Total
1
6,805
£x]äää
3,750
8,937
4,064
4,723
4,256
34,000
ÓxÈ]ÓÈ
2,500
1,480
384
7,334
Ó£]ÓÇx
13,000
1,938
3,300
8,598
3,133
9,753
28
8,157
4,350
15,627
Ç]äÓ
217
135
2,325
44,163
3,000
4,309
3,945
1
2,998
7,000
4,647
1
Investments
Unsecured
Year of
Initial Investment
2004
9143-4423 Québec inc. (Gestion MSBI)
Advantech technique de pointe pour faisceaux
hertziens inc.
Alexis Minerals Corporation
Bois BSL inc.
Constructions C.D.P. inc.
De Ball inc.
DK-SPEC inc.
Fonds Brightspark II, s.e.c.
Ê
UÊ `ÃÊ`½ÛiÃÌÃÃiiÌÊiÊ`jÛi««iiÌÊ
durable (FIDD), s.e.c.
Fonds d’investissement MSBI, société en commandite
FRV Média inc.
Genizon Biosciences inc.
Groupe Plafolift inc.
ISACSOFT inc.
Le Groupe Blue Mountain Wallcoverings inc.
Le Groupe Cegerco inc.
Les Gestions Gastier inc.
Manac inc.
Matamec Explorations inc.
Octasic inc.
Omni-Med.com inc.
Sciences de la vie Bioniche inc.
Simpler Networks Corp.
Trencap s.e.c.
Vimac ESF Annex Fund L.P.
ViroChem Pharma inc.
Wavesat inc.
2005
3149773 Canada inc. (Les Cafés Vittoria)
Ê
UÊ °°Ê*>««>ÃÊviÊ-ViViÊ6iÌÕÀiÃÊ]Ê*Ê
Accovia inc.
Addenda Capital inc.
Air Data inc.
Allianz Madvac inc.
Bluestreak Network, inc.
Camoplast inc.
Canadian Royalties inc.
Industry
Segment
Listed
Shares
and Units
TI
TI
P
M
S
M
M
TI
S
TI
S
TI
M
TI
M
S
S
M
P
TI
TI
TI
TI
S
TI
TI
TI
M
/Ê
TI
S
TI
M
TI
M
P
Unlisted
Shares
and Units
Secured
Loans
and
Advances
Loans
and
Advances
154
133
3,150
5,151
154
14,832
300
1,450
219
3,848
3,156
4,000
3,620
4,870
2,000
1,153
4,750
169
500
2,775
11,000
12,000
2,025
6,250
18,575
1,242
2,647
5,567
986
1,255
3,750
158
9,000
1
132,250
1,043
11,222
7,125
ÊÊ
È]äÓ£ÊÊ
71,331
5,500
1,200
3
32,950
472
Total
1,650
1,317
ÊÊ
720
1,500
7,800
20,000
ÊÊ
63
4,000
18,832
433
1,450
219
3,848
6,306
5,151
3,620
4,870
3,153
4,750
669
2,775
24,255
2,025
3,750
24,825
158
6,809
3,633
9,000
1
132,250
1,043
11,222
8,775
1,317
È]äÓ£
720
71,331
7,063
13,000
3
32,950
20,472
AS AT MAY 31, 2008
(In thousands $)
Investments
Unsecured
Year of
Initial Investment
2005
Château Bonne Entente inc.
Ê
UÊ ,Ê*>ÀÌi>ÀiÃ]ÊÃVjÌjÊiÊV>`ÌiÊ
Ê
UÊ `ÃÊ`½««ÀÌÕÌjÃÊV>>ìiÃÊ,-]ÊÃ°i°V°Ê
Groupe C.N.P. inc.
Groupe Canatal inc.
IRphotonique inc.
Les Biotechnologies Océanova inc.
Les Réseaux Accedian inc.
Mecachrome international inc.
Média Groupe inc.
Metro inc.
Microbridge Technologies Corp.
Ê
UÊ *À+ÕiÃÌÊÛiÃÌiÌÃÊ]Ê°*°Ê
Ê
UÊ ,ÊÕ`ÊÛiÃÌÀÃÊÓääx]Ê°*°Ê
Ski-Mode Bernard Trottier inc.
Targanta Therapeutics Corporation
Technologie Bluestreak (Canada) inc.
Technologies Positron inc.
2006
2023671 Ontario inc. (Acier Pointe-Claire)
Ê
Ê Èx£ÎxxÇÊ
>>`>ÊV°ÊÕÀÌÕÀiÃÊ`½ÌiiÀiÊ*>ÃV>®Ê
6550568 Canada inc. (ConjuchemBio)
6569293 Canada inc. (Maison des Futailles)
9166-1165 Québec inc. (Maison des Futailles)
9178-6590 Québec inc. (Excavation René-St-Pierre)
BioSyntech, inc.
Bois B.S.L. Énergie inc.
Boulart inc.
Boutique Linen Chest (Phase II) inc.
Ê
Ê >«Ì>Ê>VmÀiÊ}ÀViÊV°Ê
Corporation développement Knowlton inc.
Ê
Ê À«À>ÌÊ>VmÀiÊ½ÝViiViÊÌjiÊ
Coveo Solutions inc.
Dismed inc.
Emerald Cleantech Fund II L.P.
Entreprises SMD ltée
Équipements Comact inc.
Éthanol Greenfield inc.
Excavation René St-Pierre inc.
Industry
Segment
S
Ê
-Ê
M
M
TI
TI
TI
M
S
S
TI
/Ê
/Ê
S
TI
TI
M
M
-Ê
TI
M
M
S
TI
M
M
S
-Ê
M
-Ê
TI
S
TI
S
M
M
S
Listed
Shares
and Units
ÊÊ
{ä]äääÊÊ
Unlisted
Shares
and Units
3,200
Ç]ÓÇÇÊÊ
ÊÊ
1,500
2,500
111
2,348
Secured
Loans
and
Advances
331
ÊÊ
ÊÊ
1,725
Loans
and
Advances
ÊÊ
ÊÊ
888
69,935
2,000
ÊÊ
ÊÊ
2
È]{£äÊÊ
Ó]nÇÊÊ
1,000
875
99,930
ÊÊ
ÊÊ
ÊÊ
ÊÊ
4,313
ÊÊ
£]x{ÊÊ
3,688
6,227
16,472
8,001
ÊÊ
ÊÊ
1
6,598
1
25
15,000
4,000
371
ÊÊ
ÊÊ
Ó]ÎÈÈÊÊ
9,249
ÊÊ
2,000
3,352
2,632
3,500
500
580
2,079
4,000
ÊÊ
13,873
£Ó]äääÊÊ
2,800
50,000
5,000
ÊÊ
ÊÊ
Total
3,531
Ç]ÓÇÇ
{ä]äää
1,725
1,500
2,500
999
2,348
69,935
2,875
99,930
2
È]{£ä
Ó]nÇ
4,688
6,227
16,472
8,001
4,313
£]x{
1
21,598
1
25
4,000
580
2,450
4,000
Ó]ÎÈÈ
23,122
£Ó]äää
2,000
3,352
2,632
3,500
3,300
50,000
5,000
Investments
Unsecured
Year of
Initial Investment
2006
Exploration Dios inc.
Ê
UÊ *,ÊiÀvÕ`Ê
Ê
UÊ `ÕViÊ`ÕÊV>ÌiÀÊìÊ½jViÊÃV>iÊ
Ê
UÊ `ÃÊ
/Ê-ViViÃÊìÊ>ÊÛi]ÊÃ°i°V°Ê
Fonds ID s.e.c.
Fonds Propulsion lll s.e.c.
Ê
UÊ >À>}iÊ/iV}iÊ
>«Ì>,ÃµÕiÊ
>>`>]ÊÃ°i°V°Ê
Ê
Ê iÃÌÊ,ÛmÀiÊ`ÕÊ>LiÊV°Ê
Groupe CVTech inc.
Groupe environnemental Labrie inc.
Innodia inc.
J.L. Albright IV Venture Fund L.P.
Lab Recherche inc.
Les Aciers Blais Québec inc.
Les investissements IKE inc.
Les meubles Poitras (2002) inc.
Métal Perreault inc.
OZ (USA), inc.
Oz Communications inc.
Promobois G.D.S. inc.
Ressources Cadiscor inc.
Ressources Cartier inc.
Ê
UÊ ,Ê
>>`>Ê
>«Ì>ÊìÊ,ÃµÕi]ÊÃ°i°V°Ê
Ê
UÊ -VVÀiÌÊÓääÈ]ÊÃVjÌjÊiÊV>`ÌiÊ
Ê
UÊ -VjÌjÊiÊV>`ÌiÊ}i
iÊ
SolVision inc.
Sonaca S.A.
Ê
UÊ 6>Ì>}i*ÌÊ6iÌÕÀiÊ*>ÀÌiÀÃÊÓääÈÊ+®]Ê°*°Ê
2007
6705341 Canada inc. (North Country Slate)
9182-2031 Québec inc.
(Fonds d’acquisition de Montréal)
9184-7376 Québec inc. (Planchers Ancestral)
Accedian Networks Corporation
Bois Nobles Ka’N’Enda ltée
Camoguid Évolution inc.
Cellfish Media LLC
Coradiant inc.
Coradiant (Canada) inc.
Industry
Segment
P
-Ê
-Ê
/Ê
TI
TI
/Ê
-Ê
S
M
TI
TI
TI
M
M
M
M
TI
TI
M
P
P
/Ê
Ê
/Ê
M
M
/Ê
P
R
P
TI
P
M
TI
TI
TI
Listed
Shares
and Units
184
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
Unlisted
Shares
and Units
x]ÈnxÊÊ
ÊÊ
Ó]ÇÈäÊÊ
2,500
4,050
x]ÈxxÊÊ
£]xÊÊ
4,733
10,000
1,689
1,885
Secured
Loans
and
Advances
Loans
and
Advances
ÊÊ
Ó]{ääÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
£]ÈxäÊÊ
11,075
10,000
ÊÊ
ÊÊ
15,217
3,000
4,000
350
300
1
5,965
650
494
190
1,274
63
370
ÊÊ
ÊÊ
ÊÊ
x]ÇääÊÊ
x]ä£ÇÊÊ
x]äääÊÊ
ÊÊ
{]äÇÓÊÊ
1
101
1,750
300
998
11,785
1
2,129
ÊÊ
Î]ÓääÊÊ
ÊÊ
3,000
5,950
ÊÊ
1,883
300
800
ÊÊ
ÊÊ
ÊÊ
ÊÊ
Total
184
x]Ènx
Ó]{ää
Ó]ÇÈä
2,500
4,050
x]Èxx
Î]È{x
15,808
20,000
1,689
1,885
15,217
3,000
4,000
1,000
984
1
5,965
1,274
63
370
x]Çää
n]Ó£Ç
x]äää
3,000
5,950
{]äÇÓ
1,883
1
101
1,750
600
1,798
11,785
1
2,129
AS AT MAY 31, 2008
(In thousands $)
Investments
Unsecured
Year of
Initial Investment
2007
Corporation Komunik
Envivio inc.
Exploration Midland inc.
Fonds d’acquisition de Montréal,
Fonds d’investissement de Montréal (F.I.M.) II,
Fonds d’investissement iNovia II, société en commandite
Ê
Ê iÊ8Ê*>À>ViÕÌV>Ã]ÊV°Ê
GO Capital s.e.c.
Groupe Bikini Village inc.
Groupe Investissement Responsable inc.
Investissements Astra inc.
Les Industries Spectra Premium inc.
LJVH Holdings inc.
MMV Financial inc.
Nexsan Corporation
Ê
UÊ Û>V>«Ê`ÕÃÌÀiÃÊ]ÊÃ°i°V°Ê
Ê
UÊ Û>V>«Ê/iV}iÃÊ]ÊÃ°i°V°Ê
Partenaires Médias Remstar, s.e.c.
Ê
UÊ *À+ÕiÃÌÊÛiÃÌiÌÃÊ6]Ê°*°Ê
Ê
UÊ +ÕjLiVLiÀÌ>Ê
ÃÌÀÕVÌ]ÊÃ°i°V°Ê
Réseaux Trellia inc.
Salerno sacs transparents (1997) ltée
Ê
UÊ -VjÌjÊìÊ}iÃÌÊ`½>VÌvÃÊvÀiÃÌiÀÃÊ-vÀ]Ê
Stedfast inc.
Thallion pharmaceutiques inc.
Ê
UÊ 6iÀÌiÝÊÊ
°°®ÊÕ`Ê°*°Ê
Victhom Bionique Humaine inc.
2008
Canatal International inc.
Cogeco Câble inc.
Enobia Pharma inc.
Enerkem inc.
Exploration NQ inc.
Gestion TFI, société en commandite
GLV inc.
HR Stratégies inc.
Industry
Segment
M
TI
P
Listed
Shares
and Units
Unlisted
Shares
and Units
Secured
Loans
and
Advances
Loans
and
Advances
968
4,735
319
400
Total
968
5,054
400
R
5,000
5,000
R
TI
/Ê
TI
S
S
S
M
M
S
TI
Ê
/Ê
S
/Ê
-Ê
TI
M
342
500
Î]nÇxÊÊ
282
342
500
Î]nÇx
282
2,500
403
1,950
22,006
75,000
28,425
8,687
£]xx
£]ÈÓÇ
1,000
£]ÈäÈ
ä{
2,363
6,161
P
M
TI
/Ê
TI
M
TI
TI
S
P
S
M
S
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
1,500
10,000
75,000
5,685
8,687
£]xxÊÊ
£]ÈÓÇÊÊ
1,000
£]ÈäÈÊÊ
ä{ÊÊ
2,363
1,060
23,675
1,126
8,275
ÊÊ
5,000
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
ÊÊ
22,740
5,101
2,492
ÊÊ
1
100,000
1
6
69
100,000
100
ÊÊ
2,500
403
450
12,006
x]ÇÊÊ
15,000
ÊÊ
ÊÊ
23,675
3,618
8,275
x]Ç
5,000
1
100,000
1
6
69
100,000
15,000
100
Investments
Unsecured
Year of
Initial Investment
2008
Total
Ressources Breakwater ltée
Sonaca NMF Canada inc.
Theseus Capital inc.
Transport C.D.P. inc
Trimag, s.e.c.
13 general partners of limited partnerships
Industry
Segment
Listed
Shares
and Units
P
M
TI
S
M
S
Secured
Unlisted
Shares
and Units
Loans
and
Advances
1,840
3,000
2,500
2,660
Loans
and
Advances
170
2,720
721,706
1
1,549,928
1,119,361
31,921
Total
170
3,000
2,500
4,500
2,720
1
3,422,916
UÊ /iÊÃÌÊvÊÛiÃÌiÌÃÊ>ìÊLÞÊÌiÃiÊÃ«iV>ÌÞÊvÕ`ÃÊÃÊÃÜÊÊÌiÊÃÌÊvÊÛiÃÌiÌÃÊ>ÌÊVÃÌÊ>ìÊLÞÊÌiÊÃ«iV>ÌÞÊvÕ`Ã°
This schedule of investments at a total cost of $3,422,916,000 itemizes by company the amounts invested by the Fonds de solidarité des
travailleurs du Québec (F.T.Q.). This amount appears in Note 5 to the financial statements as at May 31, 2008.
Industry segment legend:
F: Regional or local funds
R: Real estate
M: Manufacturing (lumber and paper, food and beverage, steel, textile, other)
P: Primary
S: Services/tourism
TI: Technology investments (technology and data processing, telecommunications,
life sciences and bio-food industry)
by the specialty funds (unaudited)
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
12-31-07
12-31-07
A.M. Pappas Life Science Ventures lll, LP
Anthera Pharmaceuticals inc.
Athersys, inc.
BioSyntech, inc.
BrainCells, inc.
CeNeRx BioPharma, inc.
Cequent Pharmaceuticals, inc.
CoLucid Pharmaceuticals, inc.
Gentis inc.
Lead Therapeutics, inc.
MethylGene inc.
Optherion inc.
Spherics, inc.
Syndax Pharmaceuticals, inc.
Argo II : The Wireless-Internet Fund - Limited Partnership
Amperion, inc.
ArgNor Wireless Ventures B.V.
Bytemobile, inc.
Casero, inc.
Chinatron Group Holdings Limited
InNotech Industries Limited
IPeria, inc.
Neomedia Technologies, inc.
NT Cubed Limited
Oberon Media, inc.
OnMobile Systems, inc.
Q-go.com B.V.
RV Technology Limited
SurfKitchen, inc.
Sylantro Systems Corporation
uReach Technologies, inc.
Volubill SA
World Wide Packets, inc.
Equity Interest
of the Fund
%
Shares
and Units
$
Loans and
Advances
$
Capimex, société en commandite
Cadim Servotech B.V.
Kanada Polska Kabaty S.P. Z.O.O.
Orkiestra Development S.P. Z.O.O.
PIGC Empreendimentos Imobiliarios S.A.
$
11.8
1,861
1,674
1,423
603
3,331
1,861
4,651
2,791
1,243
1,875
930
1,512
1,861
25,616
1,860
1,522
3,382
1,861
1,674
1,423
2,463
3,331
1,861
4,651
2,791
1,243
1,875
930
3,034
1,861
28,998
3.8
324
12,532
7,951
4,523
11,231
489
10,021
7,431
32,939
6,532
10,820
4,133
392
5,844
6,581
10,782
6,760
10,229
149,514
3,560
1,040
1,721
981
7,302
Funds committed but not disbursed
11-30-06
Total
324
12,532
7,951
4,523
14,791
489
10,021
7,431
32,939
6,532
10,820
4,133
1,432
7,565
6,581
10,782
7,741
10,229
156,816
2,703
159,519
50.0
400
2,427
3,469
637
637
6,296
400
2,427
3,469
637
6,933
Information from
Annual Financial
Report dated
12-31-07
FCPR Aerofund
Alyotech
Duqueine Composites
JPR CAP
PIB Holding
Recaero
Equity Interest
of the Fund
%
Shares
and Units
Loans and
Advances
165
1,665
867
3,612
1,136
7,445
5,606
938
576
1,389
8,509
-
400
362
762
$
$
Fiducie du chantier de l’économie sociale1
Capital patient immobilier
Capital patient opération
FIER Partenaires, société en commandite
Fonds Brightspark ll, s.e.c.
Fonds CTI Sciences de la vie, s.e.c.
Fonds d’investissement iNovia ll, société en commandite
Fonds Propulsion III s.e.c.
Garage Technologie Capital-Risque Canada, s.e.c.
GO Capital s.e.c.
Novacap Industries lll, s.e.c.
Novacap Technologies lll, s.e.c.
Rho Canada Capital de Risque, s.e.c.
Société en commandite AgeChem
5,771
2,603
1,443
3,612
2,525
15,954
4,619
20,573
-
12-31-07
$
20.0
12-31-07
Total
400
362
762
2,933
3,695
26.9
2,476
2,488
1,000
3,050
2,238
1,500
113
724
2,450
1,500
17,539
-
2,476
2,488
1,000
3,050
2,238
1,500
113
724
2,450
1,500
17,539
122,461
140,000
1. The Fonds de solidarité des travailleurs du Québec (F.T.Q.) only holds unsecured debentures and therefore has no equity interest in this specialized fund.
by the specialty funds (unaudited) (continued)
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
03-31-08
Equity Interest
of the Fund
%
Fonds Bio-Innovation, société en commandite
Allostera Pharma inc.
Ambrilia Biopharma inc.
Asmacure ltée
Biogentis inc.
Biotanika Santé inc.
Chlorion Pharma inc.
Créa Biopharma inc.
KCLM Recherche en Nutrition inc.
Les Biotechnologies Océanova inc.
Les Produits pharmaceutiques Ulysses inc.
Milestone Pharmaceutiques inc.
Planteck inc.
Prognomix inc.
Prophagia inc.
PureCell Technologies inc.
Shares
and Units
$
Loans and
Advances
$
378
1,415
75
300
30
600
1,000
56
1,093
1,000
650
1,001
400
318
7,911
338
450
444
407
400
2,444
Fonds CTI Sciences de la vie, s.e.c.
Cervelo Pharmaceuticals, inc.
Enobia Pharma inc.
Targegen inc.
Ê
Fonds de développement des exportations FODEX,
5N Plus inc.
Alex Pneu et Mécanique (Canada) inc.
Bioetik inc.
Champlain Capital Partners LP
Corporation Nuvolt inc.
Équipements Vétérinaires Matvet inc.
Gestion Steelhead inc.
ÀÕ«iÊ*iÀÀiÊiÛj`mÀiÊV°Ê
Intercâble ICH inc.
75
678
1,415
30
600
1,000
338
450
500
1,500
1,000
1,050
1,001
400
318
10,355
1,387
11,742
23.0
845
1,000
1,060
3,242
6,147
-
12-31-07
$
94.4
12-31-07
Total
845
1,000
1,060
3,242
6,147
6,066
12,213
100.0
600
1,000
150
8,895
Ê
Ê
Ê
300
200
Ê
4,000
1,425
480
1,700
300
Ê£]£ÇxÊÊ
600
2,425
150
8,895
480
2,000
500
Ê£]£ÇxÊ
4,000
Information from
Annual Financial
Report dated
12-31-07
Equity Interest
of the Fund
%
Fonds de développement des exportations FODEX,
société en commandite (continued)
Naturpac inc.
Recy-Clone inc.
TDM International inc.
Tradexme inc.
Shares
and Units
Loans and
Advances
200
200
150
250
$
250
100
15,695
$
5,680
03-31-08
Fonds d’investissement de la culture et des communications,
9052-0651 Québec inc. (Logistik 22)
9068-3848 Québec inc. (Les Productions Danse Sing)
9089-1193 Québec inc. (Caméra E-Motion)
9168-1478 Québec inc. (Laboratoires GSS)
Attraction Média inc.
De Marque inc.
Édifice Club Soda inc.
Éditions Viamédias, s.e.n.c.
FRV Média inc.
Groupe Phaneuf inc.
Groupe Star Suites inc.
Guides de Voyages Ulysse inc.
GVGS inc.
In Extremis Images inc.
ISACSOFT inc.
Jeux Alary inc.
LC Média inc.
Motorisés Star Suites inc.
Ryshco Média inc.
Sarbakan inc.
Toon Boom Animation inc.
Tribal Nova inc.
Vivavision inc.
Wilson & Lafleur, limitée
Total
$
400
150
500
100
21,375
2,093
23,468
66.7
125
500
760
200
100
400
198
300
426
1,482
250
565
523
83
21
698
750
1
280
350
980
445
308
230
370
221
500
160
100
525
625
6,556
380
112
6,412
648
83
21
1,198
750
760
201
380
750
1,178
445
308
530
426
1,482
620
565
221
500
160
100
380
637
625
12,968
2,400
15,368
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
12-31-07
Ê
Equity Interest
of the Fund
%
Fonds d’investissement en développement durable (FIDD), s.e.c.
Bioetik inc.
Chiiwedjin Shu Énergie Éolienne inc.
CO2 Solution inc.
Éocycle Technologies inc.
Prosep inc.
-°"°°Ê-ÞÃÌmiÃÊ`½«ÌÃ>ÌÊjiÀ}jÌµÕiÃÊÌiV}iÃÊV°Ê
Sixtron Matériaux avancés inc.
Vaperma inc.
Shares
and Units
$
Loans and
Advances
$
03-31-08
Ê
Ê
Fonds d’opportunités canadiennes HRS, s.e.c.
AFC North American Fund LP
AFC North American Fund (Cayman Island) LP
Emerald Canadian Equity Market Neutral Fund
Epic Limited Partnership
Flatiron Market Neutral LP
Fonds de couverture opportunités Sprott s.e.c.
Jemekk Long Short Fund Limited Partnership
Le Fonds Goodwood
Marret High Yield Hedge Limited Partnership
Parkwood Limited Partnership Fund
Rosseau Société en commandite
Stornoway Recovery Fund LP
Vertex Fund
Waterfall Vanilla LP
West Face Long Term Opportunities LP
Fonds régional de solidarité Abitibi-Témiscamingue,
9026-0357 Québec inc. (Société de gestion Mario Massé)
9060-5031 Québec inc. (MBI Produits Diamantés)
9074-1133 Québec inc. (Mécanicad)
9118-5066 Québec inc. (Atelier Val d’Or)
Alexis Minerals Corporation
Bellerose Capital inc.
À«À>ÌÊmÀiÊ,ViVÊV°Ê
Entretien M. Perron inc.
Exploration Fieldex inc.
$
21.2
Ê
150
684
150
1,200
500
Ê£]ÓxäÊÊ
1,317
3,531
8,782
500
Ê
500
12-31-07
Total
150
684
150
1,200
1,000
Ê£]ÓxäÊ
1,317
3,531
9,282
2,118
11,400
95.8
1,385
2,375
3,719
2,150
4,650
2,750
2,500
3,362
3,550
1,500
1,180
1,850
2,486
700
3,500
37,657
-
1,385
2,375
3,719
2,150
4,650
2,750
2,500
3,362
3,550
1,500
1,180
1,850
2,486
700
3,500
37,657
99.9
Ê
Ê
Ê
41
75
£ÓÊÊ
15
38
93
500
702
100
360
200
ÓääÊÊ
1,199
500
702
100
360
241
75
Ó£ÓÊ
1,199
15
38
93
Information from
Annual Financial
Report dated
03-31-08
03-31-08
Ê
Ê
Ê
Equity Interest
of the Fund
%
Fonds régional de solidarité Abitibi-Témiscamingue,
Exploration Typhon inc.
Forage G4 ltée
Centre d’informatique Abitibi inc.
Groupe Canexfor inc.
Groupe Sogitex inc.
Industries Lignico inc.
Les équipements de forage VersaDrill inc.
Les mines d’or visible inc.
Machines Roger lnternational inc.
MasséNor inc.
Mines de la Vallée de l’or ltée
Palmapor inc.
Ross Finlay 2000 inc.
Fonds régional de solidarité Bas-Saint-Laurent,
£n£{Ó{{Ê+ÕjLiVÊV°Ê
>ÀÀmÀiÊ i}iÌÌi®Ê
Adélard Soucy (1975) inc.
AMH Canada ltée
Distributions Jacques-Cartier inc.
À>LmÀiÃÊìÃÊj}>ÞÃÊV°Ê
Fabrication J.R. Tardif inc.
Fonds soutien Bas-Saint-Laurent, société en commandite
Gagnon Image inc.
Gestion H. Dickner ltée
Glendyne inc.
Lang 2000 inc.
Le Groupe Cambium inc.
Menuiserie Roland Perreault inc.
Mon Joli Motel (1993) inc.
Productions Québec Multimédia inc.
Projexco inc.
,V>À`Ê*ÀiÀÊiÌÊÀmÀiÃÊiVÌÀµÕiÊÌjiÊ
Sanibelle inc.
St-Noël Express inc.
Topocom Technologie inc.
Shares
and Units
$
$
64
825
168
62
350
92
408
155
200
50
124
150
533
1,550
Ê
Ê
Ê
Ê
99.9
Ê
£ÓxÊÊ
Ê
418
283
ÊÊ
412
801
130
6,509
£ÓxÊÊ
250
72
45
xääÊÊ
500
1,000
14
Ê
Ê
ÊÊ
Ê
1,840
Loans and
Advances
148
147
709
131
122
200
125
300
300
ÓÇxÊÊ
1,000
81
79
5,109
Total
$
64
825
168
62
350
92
408
155
612
851
124
280
533
8,059
ÓxäÊ
250
490
328
xääÊ
500
1,000
148
147
723
131
122
200
125
300
300
ÓÇxÊ
1,000
81
79
6,949
700
7,649
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
03-31-08
Equity Interest
of the Fund
%
Fonds régional de solidarité Centre-du-Québec,
2639-1862 Québec inc. (Les Planchers de Bois Francs Wickham)
9097-1599 Québec inc. (Groupe Calum)
Équipements d’incendie Levasseur inc.
Fonderie Ouellet inc.
Fruit d’Or inc.
Groupe Cathédra inc.
Groupe Soteck inc.
Nitek Laser inc.
Remorque Leblanc inc.
Rénovation Expo inc.
S.O.S. Services techniques industriels inc.
Shares
and Units
$
Loans and
Advances
$
466
1
467
Fonds régional de solidarité Chaudière-Appalaches,
9069-4654 Québec inc. (Supervac 2000)
9075-5349 Québec inc. (Fenêtres Météo)
Compositech inc.
Équipements récréatifs Jambette inc.
Gestion SIM inc.
Groupe P.H.L. inc.
Les Images Turbo inc.
Les Productions Horticoles Demers inc.
Menuiserox inc.
Métal Bernard inc.
Multi-Brosses inc.
Quartz Industrie inc.
Structures AmeriCan Industries inc.
81
230
275
260
100
500
750
174
1,000
400
3,770
Ê
Ê
Ê
Fonds régional de solidarité Côte-Nord,
2947-5399 Québec inc. (Boutique Mobilité B-C)
9058-2222 Québec inc. (Club Cap Natashquan)
Boudreau Électrique ltée
ÀÃmÀiÊÓää£ÊV°Ê
µÕ«iiÌÊiÌÊ"ÕÌ>}iÊ
Ìi À`ÊV°Ê
`ÃÊÃÕÌiÊ
Ìi À`]ÊÃVjÌjÊiÊV>`ÌiÊ
Gestion S.S.G. inc.
466
81
230
276
260
100
500
750
174
1,000
400
4,237
500
4,737
99.9
150
460
610
03-31-08
$
99.9
03-31-08
Total
39
106
155
270
500
750
80
150
893
400
93
160
3,596
39
106
155
270
500
750
80
300
460
893
400
93
160
4,206
99.9
78
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
£ääÊÊ
ÓxÊÊ
£]äääÊÊ
125
136
32
571
Ê
ÎääÊÊ
ÊÊ
136
110
571
£ääÊ
ÎÓxÊ
£]äääÊ
125
Information from
Annual Financial
Report dated
03-31-08
Equity Interest
of the Fund
%
Fonds régional de solidarité Côte-Nord,
Lajoie Réfrigération inc.
Les Pétroles Paul Larouche inc.
Maintenance Sept-îles inc.
Pec-Nord inc.
Rechapage Longue-Rive inc.
Shares
and Units
$
Ê
Fonds régional de solidarité Estrie, société en commandite
Ani-Mat inc.
Beaudin Le Prohon inc.
Café Faro inc.
Caoutchouc Pro-Flex inc.
Fontaine-Alliance inc.
Gestion Pro-Conversion inc.
Groupe Lachar inc.
Kemestrie inc.
Laser AMP inc.
Les Entreprises Martin Lajeunesse inc.
Les Entreprises Wiberco inc.
Les Industries Touch inc.
Motrec inc.
Oasis Tropik Nordik inc.
Remises Réal Lamontagne inc.
Signalisation de l’Estrie inc.
Soudure Brault inc.
Stedfast inc.
/i>Ê-ÞÃÌmiÃÊ*>Ã>ÊV°Ê
Ê
Transformateur Bemag inc.
$
65
248
47
300
1,628
03-31-08
Loans and
Advances
120
1,519
931
500
359
282
933
1
1
600
Ê
Ê
ÊÊ
602
Ê
Ê
Fonds régional de solidarité Gaspésie–Îles-de-la-Madeleine,
ä££ÈÈ{£Ê+ÕjLiVÊV°Ê,ÌiÊ*iÀVj®Ê
Ê
ÌÃÊiÌÊvÀmÀiÃÊV°Ê
Ê
B.M.B. (Îles-de-la-Madeleine) inc.
Construction L.F.G. inc.
Fabrication Delta inc.
Gaspésie Diésel inc.
Junex inc.
Les entreprises Léo Leblanc & fils inc.
$
65
248
47
300
120
3,147
99.9
500
475
750
650
885
125
270
283
467
300
775
ÓÓäÊÊ
500
9,205
03-31-08
Total
Ê
Ê
99.9
Ê
Ê
Ê
£ÇÈÊÊ
524
ÓääÊÊ
Ê
67
263
655
224
282
931
500
359
282
933
1
501
600
475
750
650
885
125
270
283
467
300
775
ÓÓäÊ
500
9,807
80
9,887
ÓääÊ
£ÇÈÊ
524
67
263
655
224
282
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
03-31-08
Equity Interest
of the Fund
%
Fonds régional de solidarité Gaspésie–Îles-de-la-Madeleine,
Les Reboiseurs de la Péninsule inc.
Madelimer inc.
Pêcheries Vilo inc.
Philippe Day inc.
Serres Jardins-Nature inc.
Shares
and Units
$
157
915
278
2,274
Loans and
Advances
$
170
1,243
145
250
3,275
03-31-08
Fonds régional de solidarité Île-de-Montréal,
Cardianove inc.
Dynamiques Cowan inc.
Dynapix Intelligence Imaging inc.
Ferox inc.
Groupe de mode Inizio inc.
Les Industries Flexipak inc.
Niram-Fab inc.
Serti informatique inc.
Unitrail inc.
Ê
Fonds régional de solidarité Lanaudière, société en commandite
2954-7490 Québec inc. (Excel Technologies)
2973-8648 Québec inc. (Le Groupe R.G.F.M.)
9177-0651 Québec inc. (Enceintes acoustiques Unisson)
iÌÀiÊìÊÌÀ>ÃvÀ>ÌÊìÊÛjVÕiÃÊ>>Õ`mÀiÊV°Ê
Ê
Champions Consultants inc.
Écono-Porte inc.
Les Aliments Sibon (1985) ltée
Les Emballages Trium inc.
Les Industries Harnois inc.
Triotech Amusement inc.
722
Ê
Fonds régional de solidarité Laurentides, société en commandite
119803 Canada inc. (BMI Canada)
2959-8828 Québec inc. (Palettes St-Janvier)
Aéroport International de Mont-Tremblant inc.
Boulangerie Les Moulins La Fayette inc.
«iÝiÊÌiiÀÊ-ÌÛÌiÊÉÊÌ/ÀiL>ÌÊV°Ê
Ê
Distributions Denis Fontaine inc.
Fonderie des Appalaches inc.
Groupe Star Suites inc.
170
1,400
915
145
528
5,549
500
6,049
10
250
130
300
106
90
138
125
1,149
722
10
250
130
300
106
90
138
125
1,871
77
331
4
Ó{£ÊÊ
15
60
500
170
180
45
1,623
148
331
4
Ó{ÓÊ
90
60
500
170
192
45
1,782
8
317
214
269
ÊÊ
300
571
145
8
317
214
519
ÇxäÊ
300
571
145
99.9
71
Ê
Ê
£ÊÊ
75
12
159
03-31-08
$
99.9
722
03-31-08
Total
99.9
Ê
Ê
250
ÇxäÊÊ
Information from
Annual Financial
Report dated
03-31-08
Ê
Ê
Equity Interest
of the Fund
%
Fonds régional de solidarité Laurentides, société en commandite (continued)
La Petite Bretonne inc.
iÃÊÌÀi«ÀÃiÃÊ`½ÌiiÀiÊÕµÕiÌÌiÊV°Ê
Ê
Ê
Motorisés Star Suites inc.
Palmex International inc.
Papiers Domco inc.
*>ViiÌÃÊiÃÊjmâiÃÊV°Ê
Ê
Ê
Placements Yves St-Onge inc.
Service Alimentaire Desco inc.
Spa Le Baltique inc.
Ventilex inc.
Vision Villégiature inc.
Shares
and Units
$
Ê
ÊÊ
Ê
Ê
300
1,300
Loans and
Advances
$
1,105
{ÎÊÊ
55
600
7
£ÓäÊÊ
1,300
400
400
320
6,174
03-31-08
Ê
Fonds régional de solidarité Laval, société en commandite
6545921 Canada inc. (Les Bouteilles Recyclées du Québec (B.R.Q.))
Aliments Imex inc.
Auvents Multiples (2002) inc.
CVC / RDS inc.
Europe Cosmétiques inc.
Europharm International Canada inc.
Globale Géomatique inc.
Gomark Corp.
Groupe Rojec inc.
Le Paradis des Orchidées inc.
Les Bouteilles Recyclées du Québec (B.R.Q.) inc.
iÃÊ
ÌÀiÃÊ Û>ÌiVÊÊEÊ*ÊV°Ê
Ê
Les Équipements Power Survey ltée
Les Productions Diamant ltée
S.R.A.D. Communications inc.
Stylo Bankers (1991) inc.
1
100
Ê
Ê
70
1,000
ÊÊ
1,171
Fonds régional de solidarité Mauricie, société en commandite
Concept Éco-Plein-Air Le Baluchon inc.
Produits Pylex inc.
Tuyauterie Borgia ltée
$
1,105
{ÎÊ
55
600
7
£ÓäÊ
1,300
400
400
320
300
7,474
400
7,874
99.9
217
1,300
109
328
491
338
2
500
xääÊÊ
397
431
160
375
5,148
03-31-08
Total
1
217
1,400
109
328
491
338
2
500
70
1,000
xääÊ
397
431
160
375
6,319
500
6,819
99.9
672
672
375
462
837
672
375
462
1,509
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
03-31-08
Ê
Ê
Fonds régional de solidarité Montérégie, société en commandite
3523462 Canada inc. (Délices de la forêt)
Atelier d’usinage Quenneville inc.
ÕÃµÕiÌÊÀmÀiÃÊÌjiÊ
Ê
Colorex inc.
Dermolab Pharma ltée
ÃÌjÌµÕiÊÃ>ÃÊvÀÌmÀiÃÊV°Ê
Ê
Gestion Nouveau Départ inc.
Groupe Damafro inc.
LC Média inc.
Les armoires de cuisines Denis Couture (2002) inc.
M.G.B. Électrique inc.
Martin inc.
Multi-Portions inc.
Plombco inc.
Ray-Mont Logistiques inc.
Réseau Telmatik inc.
Secco Plastique inc.
Service sérigraphique professionnel S.S.P. inc.
Soya Excel inc.
Techno P.O.S. inc.
TelcoBridges inc.
Equity Interest
of the Fund
%
Shares
and Units
$
Loans and
Advances
$
Fonds régional de solidarité Nord-du-Québec,
Blais & Langlois inc.
Cogitore Resources inc.
Fonds soutien Baie-James, société en commandite
Forage Eenou inc.
Gestion du Fonds soutien Baie-James inc.
Les Consultants de l’Arctique inc.
Les Ressources d’Arianne inc.
Lucien Senneville (2002) inc.
Mines Virginia inc.
Pourvoirie Mirage inc.
Ressources Beaufield inc.
Ressources Everton inc.
Ressources Metco inc.
$
99.9
Ê
Ê
ÊÊ
Ê
Ê
Ê
565
400
230
nxäÊÊ
90
125
ÇÇxÊÊ
58
1,200
460
276
163
163
250
195
375
1,385
384
475
115
67
959
68
398
300
7,556
03-31-08
Total
400
230
nxäÊ
90
125
ÇÇxÊ
58
1,200
1,025
276
163
163
250
384
475
115
67
959
263
398
675
8,941
675
9,616
99.9
300
135
106
117
500
110
1
850
23
605
91
389
178
103
62
75
300
135
106
117
500
110
1
850
23
605
91
464
178
103
62
Information from
Annual Financial
Report dated
03-31-08
03-31-08
Equity Interest
of the Fund
%
Fonds régional de solidarité Nord-du-Québec,
Ressources MSV inc.
Ressources Sirios inc.
Ressources Strateco inc.
St-Félicien Diesel (1988) inc.
Superior Diamonds inc.
Fonds régional de solidarité Outaouais, société en commandite
3484734 Canada inc. (Les Pâtisseries de l’Outaouais)
4456769 Canada inc. (Planchers ARTE)
9052-2756 Québec inc. (ProVance Technologies)
Cactus Commerce inc.
Corporation EEDO Knowledgeware
iMPath Networks inc.
Les Aliments Chebly inc.
Multicorpora R&D inc.
ProVance Technologies inc.
Reliure Unirel inc.
Restaurations Sélect inc.
Service de Pneus Lavoie Outaouais inc.
SolaCom Technologies inc.
Tomoye Corporation
Tubes & Jujubes Centre d’amusement familial inc.
VanillaSoft corp.
Zeligsoft inc.
Shares
and Units
$
Loans and
Advances
$
400
196
12
908
120
2,033
3,248
Fonds régional de solidarité Québec, société en commandite
9099-7768 Québec inc. (E.B.M. Laser)
Aéro Technique Canadien R.M. inc.
Aventures Norpaq inc.
Chemco inc.
Connexion Technic inc.
Corporation Eatsleepmusic.com
DK-SPEC inc.
Filtrum inc.
Groupe Khéops inc.
Groupe Qualinet inc.
Les Distributions Marc Boivin (2007) inc.
Les Vêtements Perlimpinpin inc.
$
400
196
12
908
120
5,281
99.9
83
475
250
1,000
469
250
550
250
926
750
500
550
1,250
5,776
750
194
450
302
500
150
200
200
250
4,523
03-31-08
Total
83
475
250
1,469
250
550
250
926
1,500
194
450
302
1,000
700
200
200
1,500
10,299
200
10,499
99.9
200
150
150
244
600
395
460
150
43
100
600
1,955
300
333
1,957
53
444
150
150
600
395
460
750
1,955
300
333
2,000
153
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
03-31-08
Ê
Equity Interest
of the Fund
%
Fonds régional de solidarité Québec, société en commandite (continued)
Load Systems International inc.
Métafab (1996) inc.
Mode Avalanche inc.
Novik inc.
Pelliko inc.
Pro Aviation inc.
Réfrigération Noël inc.
Savard Ortho confort inc.
-ÞÃÌmiÃÊ*À>ÊV°Ê
Ê
Ê
Transport C.D.P. inc.
Usital Canada inc.
Shares
and Units
$
Loans and
Advances
$
307
400
260
54
500
307
Ê
ÓääÊÊ
300
2,320
283
292
È{ÊÊ
1,964
210
10,511
03-31-08
Ê
Ê
Fonds régional de solidarité Saguenay–Lac-Saint-Jean,
ÓnÈ£ä{ÈÇÊ+ÕjLiVÊV°Ê ÌÀiÊÌi®Ê
4145275 Canada inc. (Chlorophylle H Tech)
9051-2500 Québec inc. (Les Jardins du Saguenay)
9052-0651 Québec inc. (Logistik 22)
Centre de Suspension des Routiers inc.
Équipements Mauvalin inc.
Excavation Michel Paradis inc.
Gro-Mec inc.
Groupe E.D.S. inc.
Industrie Bois Lamontagne inc.
Industries T.L.T. inc.
Isumi Précision ltée
Les Fenêtres AGM inc.
Les Pétroles R.L. inc.
Les Placements G.M.R. Maltais inc.
Nolicam Location de camions inc.
Novabrik International inc.
"ÝÞ}miÊLi>ÕÊV°Ê
Pétrolex St-Félicien inc.
Précicast ltée
Remac innovateurs industriels inc.
SCP 89 inc.
Société de gestion Trois-Trois-Trois inc.
Tuyauterie LG. 4 inc.
Ê
Ê
99.9
Ê
ÓÓÇÊÊ
280
75
58
Ê
Ê
Ê
345
432
900
ÊÊ
559
367
600
246
365
348
xääÊÊ
135
88
277
297
350
3,523
£ÓÊÊ
570
125
46
172
375
283
404
87
403
350
38
5,908
Total
$
307
400
260
54
500
307
283
292
ÓÈ{Ê
1,964
510
12,831
1,400
14,231
ÎxÈÊ
850
125
121
172
375
283
404
87
403
350
58
367
600
591
797
1,248
xääÊ
135
647
277
297
350
38
9,431
Information from
Annual Financial
Report dated
11-30-07
Ê
Garage Technologie Capital-Risque Canada, s.e.c.
Group IV Semiconductor inc.
HR Alloy inc.
Praized Media inc.
Sidense Corp.
Step Communication Corporation
/iÀ
iÀ>8ÊV°Ê
Equity Interest
of the Fund
%
Shares
and Units
$
Loans and
Advances
$
12-31-07
$
40.0
2,430
1,668
1
Ê
Ê
Ê
485
ÊnäÊÊ
5,393
400
25
Ê
425
12-31-07
Total
Le Fonds Entrepia Nord, s.e.c.
Achronix Semiconductor Corporation
Aura Communications Technology, inc.
Bluestreak Network, inc.
Business Search Technology, inc.
Corporation Vantrix
HelloSoft, inc.
Intransa, inc.
MagSil Corporation
Net Intégration Technologies inc.
NetContinuum, inc.
SolVision inc.
StrataLight Communications, inc.
Technologie Bluestreak (Canada) inc.
World Wide Packets, inc.
36.2
Lumira Capital I Québec société en commandite
ActivBiotics, inc.
Alexza Molecular Delivery Corp.
Alveolus inc.
Archemix Corp.
Cardiac Dimensions inc.
Ception Therapeutics inc.
Guava Technologies, inc.
KAI Pharmaceuticals inc.
Mako Surgical Corp.
Médical Resonant inc.
Pharmasset inc.
RenaMed Biologics inc.
Replidyne inc.
Spinal Kinetics inc.
TransMolecular, inc.
90.9
1,761
1,351
1
1,306
1,996
880
1,585
1,174
139
1,409
1,206
637
2,134
587
2,508
17,126
1,858
783
2,494
1,201
1,727
1,787
773
1,052
1,617
2,090
1,172
2,063
1,418
1,850
1,825
872
1,357
2,905
100
29
2,430
1,668
401
25
485
ÊnäÊ
5,818
1,341
7,159
1,761
1,351
1
1,306
1,996
880
1,724
1,174
1,409
1,206
1,994
2,134
587
2,508
20,031
1,958
783
2,494
1,201
1,727
1,787
773
1,081
1,617
2,090
1,172
2,063
1,418
1,850
1,825
872
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
12-31-07
Equity Interest
of the Fund
%
Lumira Capital I Québec société en commandite (continued)
U-Systems, inc.
Shares
and Units
Loans and
Advances
366
24,948
129
$
$
12-31-07
Ê
Ê
12-31-07
12-31-07
12-31-07
Novacap II, société en commandite
Corporation de Développement Tradition inc.
Corporation Développement Knowlton inc.
Développement Demers Ambulances inc.
Groupe CorActive inc.
Groupe de Chaîne d’approvisionnement Métro inc.
Groupe Emballages Rosmar inc.
iÃÊ-ÞÃÌmiÃÊµÕ`8ÃÌÀi>ÊV°Ê
Octasic inc.
Paul Demers & Fils inc.
Pneumat inc.
Royal Mat inc.
Ryma Solutions Technologiques inc.
Scies B.G.R. inc.
Tenrox inc.
68-Ê-ÞÃÌiÃÊV°Ê
Novacap Industries III, s.e.c.
No Investment
Novacap Technologies III, s.e.c.
Groupe Stingray Digital inc.
ProQuest Investments III, L.P.
Agile Therapeutics, inc.
Aires Pharmaceuticals, inc.
BioSyntech, inc.
Cadence Pharmaceuticals, inc.
Gloucester Pharmaceuticals inc.
Mersana Therapeutics, inc.
MethylGene, inc.
NovaDel Pharma inc.
Palkion, inc.
Sopherion Therapeutics, inc.
Tragara Pharmaceuticals, inc.
Ziopharm Oncology, inc.
Total
$
366
25,077
1,287
26,364
9.6
Ê
Ê
Ê
Ê
Ê
Ê
11,250
23,284
4,644
2,000
970
6,655
Ê{]Ó£ÊÊ
1,340
680
2,987
2,593
4,578
ÊÈ]n£ÊÊ
72,019
1,463
67,986
12,713
23,284
4,644
2,000
21,636
26,822
Ê{]Ó£Ê
8,730
1,000
1,500
16,480
2,987
2,593
4,578
ÊÈ]n£Ê
140,005
-
8,340
8,340
20,666
20,167
Ê
7,390
1,000
1,500
15,800
Ê
10.0
8.0
8,340
8,340
4.9
7,302
5,929
5,166
8,662
6,917
6,423
9,660
5,679
841
4,940
8,893
7,905
78,317
4,596
655
5,251
7,302
5,929
5,166
8,662
11,513
6,423
9,660
5,679
841
5,595
8,893
7,905
83,568
Information from
Annual Financial
Report dated
12-31-07
02-29-08
12-31-07
12-31-07
Ê
Equity Interest
of the Fund
%
ProQuest Investments IV, L.P.
Eagle Pharmaceuticals, inc.
Excaliard Pharmaceuticals, inc.
LEAD Therapeutics, inc.
TeLoRmedix SA
Zosano Pharma, inc.
$
Loans and
Advances
Total
-
4,254
11,857
3,442
2,635
1,399
14,822
38,409
-
959
1,458
1,984
2,979
2,706
10,086
$
$
2.3
4,254
11,857
3,442
2,635
1,399
14,822
38,409
Québec-Alberta Construction, s.e.c.
No Investment
Rho Canada Capital de Risque, s.e.c.
AlleWin Technologies, inc.
HR Alloy (USA), inc.
MakeOver Solutions, inc.
NowPublic, inc.
Pyrophotonics Lasers (USA), inc.
Rho Fund Investors 2005, L.P.
Altor Fund II (No. 1), L.P.
Braemar Energy Ventures ll, L.P.
Care Capital Investments III, L.P.
Catterton Partners VI, L.P.
Centerbridge Capital Partners, L.P.
iµÕiÀÃÊ
>«Ì>Ê86Ê
*,Ê
ChrysCapital V, LLC
Columbia Capital Equity Partners IV (QP), L.P.
Foundry Venture Capital 2007, L.P.
Gilde Equity Management (GEM) Benelux Fund
Granite Global Ventures III L.P.
Greenbriar Equity Fund ll, L.P.
H.I.G. Capital Partners lV, L.P.
H.I.G. Europe Capital Partners, L.P.
Health Care Ventures VIII, L.P.
Japan Ireland Co-Investment Partners, L.P.
Japan Ireland Investment Partners, L.P.
LS Power Equity ll PIE, L.P.
New Enterprise Associates 12, L.P.
Novacap Technologies International lll, s.e.c.
Rutland Fund ll, L.P.
Technology Crossover Ventures VI, L.P.
Triton Fund II, L.P.
Village Ventures Fund II, L.P.
Shares
and Units
99.9
22.2
959
1,458
1,984
2,979
2,706
10,086
4.5
Ê
Ê
Ê
656
75
1,077
1,785
343
ÊnÈäÊÊ
711
4,036
928
856
2,456
1,101
259
158
318
5
152
1,853
1,478
347
928
3,835
2,492
2,583
Ê
656
75
1,077
1,785
343
ÊnÈäÊ
711
4,036
928
856
2,456
1,101
259
158
318
5
152
1,853
1,478
347
928
3,835
2,492
2,583
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
12-31-07
Equity Interest
of the Fund
%
Rho Fund Investors 2005, L.P. (continued)
Vivo Ventures Fund Vl, L.P.
Shares
and Units
Loans and
Advances
1,324
30,616
-
13,749
13,749
510
510
14,259
14,259
7,271
43
100
54
7,371
97
Ê
113
3,469
ÊÇ]{äÊ
2,849
2,316
419
2,100
1,081
385
248
882
104
458
1,692
644
113
28,249
-
1,455
745
2,725
4,925
$
$
03-31-08
12-31-07
Ê
SIDEX, société en commandite
Canadian mining companies securities
30.0
Soccrent 2006, société en commandite
2064812 Canada inc. (Groupe Spectal-Spectube)
2846-3065 Québec inc. (Giroux-Maçonnex)
6775993 Canada inc. (Groupe Fruits Bleus, Usine Newport
iÌÊiÕiÌmÀiÊ À`ÃÌ®Ê
9120-7993 Québec inc. (Groupe Sotrem-Maltech)
9143-8945 Québec inc. (Giroux-Maçonnex)
Dynaplast Extruco inc.
Industries Spectal inc.
Intercalaire Inex inc.
Les Conseillers Trigone inc.
Les Consultants Olympe inc.
Les Industries G.R.C. inc.
Les Ressources d’Arianne inc.
Novabrik International inc.
Produits Alba inc.
Services Nolitrex inc.
Société Partition Manufacturiers Associés (PMA) inc.
30.0
Ê
Ê
Ê
Ç]{äÊÊ
2,849
2,316
149
1,081
111
89
682
104
259
1,692
644
24,780
09-30-07
12-31-07
Société de gestion d’actifs forestiers Solifor,
Solifor Bloc A-RPF, société en commandite
Solifor Bloc B-LP, société en commandite
Solifor Bloc Monet, société en commandite
Société en commandite AgeChem
Advitech inc.
Thallion Pharmaceutiques inc.
Société en commandite GeneChem Thérapeutique
Aégera Thérapeutique inc.
Ambit Biosciences Corp.
274
159
200
199
$
1,324
30,616
136,048
166,664
100.0
1,455
745
2,725
4,925
30.5
970
980
3,000
4,950
12-31-07
270
2,100
Total
-
970
980
3,000
4,950
980
5,930
11.0
14,119
5,075
14,119
5,075
Information from
Annual Financial
Report dated
12-31-07
Ê
Equity Interest
of the Fund
%
Société en commandite GeneChem Thérapeutique (continued)
Argos Therapeutics, inc.
Avalon Pharmaceuticals, inc.
BioVex Group, inc.
Chromos Molecular Systems inc.
Cyclacel Pharmaceuticals inc.
Kiadis Pharma Canada inc.
Koronis Pharmaceuticals inc.
Osprey Pharmaceuticals Limited
Paratek Pharmaceuticals, inc.
Scion Pharmaceuticals inc.
8>ÌÕÃÊviÊ-ViViÃÊV°Ê
Ê
Ê
Ê
Shares
and Units
$
3,133
6,652
8,103
4,460
5,521
4,893
4,492
3,055
4,784
3,353
ÊÈ]x{ÊÊ
74,234
Loans and
Advances
$
221
2,121
ÊÎnÊÊ
2,740
08-31-07
Ê
Ê
Ê
Ê
SOLIDEQ, société en commandite
SOLIDE Ahuntsic-Cartierville
SOLIDE Centre-Sud/Plateau Mont-Royal
SOLIDE Chibougamau
-"Ê
ÌiìÃ i}iÃÉ ÌÀi>iìÀ@ViÊÊ
SOLIDE de Gatineau
-"ÊìÊ>Ê>ÃÃiÊ
Ìi À`Êj}>Ã>>V->LÊ
SOLIDE de la MRC d’Acton
SOLIDE de la MRC d’Argenteuil
SOLIDE de la MRC d’Avignon
SOLIDE de la MRC de Beauce-Sartigan
SOLIDE de la MRC de Beauharnois-Salaberry
SOLIDE de la MRC de Bécancour
SOLIDE de la MRC de Bellechasse
SOLIDE de la MRC de Bonaventure
SOLIDE de la MRC de Caniapiscau
SOLIDE de la MRC de Charlevoix
SOLIDE de la MRC de Charlevoix-Est
SOLIDE de la MRC d’Autray
SOLIDE de la MRC de Drummond
SOLIDE de la MRC de Francheville
SOLIDE de la MRC de Joliette
-"ÊìÊ>Ê,
ÊìÊ>Ê
Ìiìi>Õ«ÀjÊÊ
-"ÊìÊ>Ê,
ÊìÊ>Ê>ÕÌi
Ìi À`ÊÊ
SOLIDE de la MRC de la Jacques-Cartier
SOLIDE de la MRC de la Matapédia
SOLIDE de la MRC de la Mitis
Total
$
3,354
6,652
8,103
4,460
5,521
4,893
4,492
5,176
4,784
3,353
ÊÈ]ÓÊ
76,974
579
77,553
99.9
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
10
10
5
Ê£äÊÊ
10
Ê£äÊÊ
10
20
130
225
10
175
30
10
10
55
202
10
433
250
20
Ê££ÓÊÊ
Ê£äÊÊ
10
40
112
10
10
5
Ê£äÊ
10
Ê£äÊ
10
20
130
225
10
175
30
10
10
55
202
10
433
250
20
Ê££ÓÊ
Ê£äÊ
10
40
112
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
08-31-07
Ê
Ê
Ê
Ê
SOLIDEQ, société en commandite (continued)
SOLIDE de la MRC de la Nouvelle-Beauce
-"ÊìÊ>Ê,
ÊìÊ>Ê,ÛmÀi`Õ À`Ê
SOLIDE de la MRC de la Vallée-du-Richelieu
SOLIDE de la MRC de Lac-Saint-Jean-Est
SOLIDE de la MRC de l’Amiante
SOLIDE de la MRC de l’Île d’Orléans
SOLIDE de la MRC de L’Islet
-"ÊìÊ>Ê,
ÊìÊÌLmÀiÊÊ
SOLIDE de la MRC de Maria-Chapdelaine
SOLIDE de la MRC de Matane
SOLIDE de la MRC de Mékinac
SOLIDE de la MRC de Memphrémagog
SOLIDE de la MRC de Minganie
SOLIDE de la MRC de Montmagny
SOLIDE de la MRC de Nicolet-Yamaska
SOLIDE de la MRC de Pontiac
SOLIDE de la MRC de Rimouski-Neigette
-"ÊìÊ>Ê,
ÊìÊ,ÛmÀi`ÕÕ«Ê
SOLIDE de la MRC de Roussillon
-"ÊìÊ>Ê,
ÊìÊ-i«Ì,ÛmÀiÃÊÊ
SOLIDE de la MRC de Témiscamingue
SOLIDE de la MRC de Vaudreuil-Soulanges
SOLIDE de la MRC des Basques
SOLIDE de la MRC des Collines-de-l’Outaouais
SOLIDE de la MRC des Etchemins
SOLIDE de la MRC des Îles-de-la-Madeleine
SOLIDE de la MRC des Jardins-de-Napierville
SOLIDE de la MRC des Laurentides
SOLIDE de la MRC des Pays-d’en-haut
SOLIDE de la MRC du Bas-Richelieu
SOLIDE de la MRC du Domaine-du-Roy
SOLIDE de la MRC du Fjord-du-Saguenay
SOLIDE de la MRC du Haut-Saint-François
SOLIDE de la MRC du Rocher-Percé
SOLIDE de la MRC du Val-Saint-François
SOLIDE de la MRC Lajemmerais
SOLIDE de la MRC Le Centre-de-la-Mauricie
SOLIDE de la MRC Les Maskoutains
SOLIDE de la Ville de Longueuil
SOLIDE de Laval
SOLIDE de Lebel-sur-Quévillon
Equity Interest
of the Fund
%
Shares
and Units
$
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Ê
Loans and
Advances
$
25
ÊÓ£äÊÊ
250
92
425
10
10
Ê£näÊÊ
250
470
370
250
10
60
50
10
85
Ê£äÊÊ
81
Ê£nxÊÊ
10
223
10
10
112
104
10
40
10
110
220
115
200
10
35
10
90
246
400
90
5
Total
$
25
ÊÓ£äÊ
250
92
425
10
10
Ê£näÊ
250
470
370
250
10
60
50
10
85
Ê£äÊ
81
Ê£nxÊ
10
223
10
10
112
104
10
40
10
110
220
115
200
10
35
10
90
246
400
90
5
Information from
Annual Financial
Report dated
08-31-07
Ê
SOLIDEQ, société en commandite (continued)
SOLIDE de l’Est de la Ville de Québec
SOLIDE de Lévis
SOLIDE de l’Ouest de la ville de Québec
SOLIDE de Matagami
SOLIDE de Mercier/Hochelaga-Maisonneuve
SOLIDE de Rosemont/Petite-Patrie
SOLIDE de Villeray/St-Michel/Parc-Extension
SOLIDE du Centre de la ville de Québec
SOLIDE du Sud-Ouest de Montréal
-"Ê,ÛmÀiìÃ*À>ÀiÃÉ*Ìi>ÕÝ/ÀiLiÃÊÊ
SOLIDE Ville-Marie
Equity Interest
of the Fund
%
Ê
Ê
Shares
and Units
$
Ê
Ê
-
Loans and
Advances
$
10
115
5
25
10
177
10
10
131
ÊÓ£äÊÊ
10
7,735
12-31-07
Ê
VantagePoint Venture Partners 2006 (Q), L.P.
allvoices, inc.
Bluepulse, inc.
BridgeLux, inc.
Chemrec AB
China Galaxy Investments Limited
Cobalt Technologies, inc.
Grocery Shopping Network, inc.
LiveScribe, inc.
LifeMasters Supported SelfCare, inc.
Mascoma Corporation
Multiply, inc.
Premium Power Corporation
ProVina, inc.
Senergen Devices, inc.
Sportelligence, inc.
TargeGen, inc.
Trading Metrics, inc.
Transport Technology Systems, Ltd
VantagePoint International SRL
VeriSilicon Holdings Co., Ltd
VP Alpha 2006, L.L.C.
Weblo.com Holdings, Ltd
8ViiÀiÝ]ÊV°Ê
YouMail, inc.
ZE-Gen, inc.
Zvents, inc.
Total
$
10
115
5
25
10
177
10
10
131
ÊÓ£äÊ
10
7,735
18,320
26,055
2.0
Ê
Ê
Ê
4,446
6,433
3,211
3,294
1,383
1,482
6,917
15,316
8,601
2,964
12,845
10,744
3,952
2,497
3,458
14,822
3,162
6,423
2,594
7,041
4,905
3,162
Ê£n]ÇÇ{ÊÊ
4,447
988
7,312
161,173
Ê
-
4,446
6,433
3,211
3,294
1,383
1,482
6,917
15,316
8,601
2,964
12,845
10,744
3,952
2,497
3,458
14,822
3,162
6,423
2,594
7,041
4,905
3,162
Ê£n]ÇÇ{Ê
4,447
988
7,312
161,173
AS AT MAY 31, 2008
(In thousands)
Information from
Annual Financial
Report dated
12-31-07
Vertex III (C.I.) Fund, L.P.
Advantech Technologies (A.B) Ltd.
Asocs Ltd.
ColorChip inc.
Comability Ltd.
Commex Technologies Ltd.
Ethos Networks Ltd.
Expand Networks Ltd.
MultiPon Ltd.
Nexperience Ltd.
Novafora, inc.
Octavian inc.
Sandlinks inc.
Technion Incubator
Zeugma Systems inc.
Equity Interest
of the Fund
%
Shares
and Units
$
Loans and
Advances
$
Total
$
7.8
2,879
3,168
2,160
36
1,080
2,904
3,276
3,600
425
2,088
4,319
3,600
1,332
306
3,600
30,753
799
4,819
36
3,959
3,168
2,160
2,904
3,276
3,600
425
2,088
4,319
3,600
2,131
306
3,600
35,572
Equity
Interest of
the Fund
Informations from
Annual Financial
Report dated
12-31-07
Ê
Fonds immobilier du Fonds de solidarité FTQ inc.
875 Charest s.e.c.
Bio Sherbrooke Phase I s.e.c.
Brossard-sur-le-Fleuve s.e.c.
Carré Chambord s.e.c.
Centre de développement des Biotechnologies de Laval s.e.c.
Condominiums Le George V s.e.c.
ÌiÊìÊ/iÀÀiLiÊÃ°i°V°Ê
Ê
CPA Fontainebleau, s.e.c.
Développements Wilfrid-Carrier s.e.c.
Les Condos Laurin/St-Louis s.e.c.
Montée des Pionniers Phase I s.e.c.
Montée des Pionniers Phase II s.e.c.
Montée des Pionniers s.e.c.
R.P.A. 1 Lachenaie s.e.c.
R.P.A. Rawdon s.e.c.
SEC Laurin/St-Louis
Société en commandite 1111 Saint-Laurent
Société en commandite 668 De Courcelle
Société en commandite Angus s.e.c. Phase II
Société en commandite Bourassa-Pelletier
Société en commandite C.V.L.
Société en commandite Château Hymus
Société en commandite Condos Laurin St-Louis
Société en commandite Édifice Le Soleil
Société en commandite Héritage Pointe-Claire
Société en commandite Le Sanctuaire de la Rive
Société en commandite Rose de Lima
Société en commandite Viau Ontario
Technoparc Bromont Phase1 s.e.c.
Wanklyn Milot s.e.c. et Condos Wanklyn-Milot s.e.c.
Share in Real Estate
Property and Property
Under Development
%
$
100.0
Ê
Ê
Ê
Ê
6,750
11,640
11,924
3,565
16,963
4,415
Ó]Èx{Ê
1,365
10,103
21,264
3,101
4,333
3,551
105
3,363
6,088
2,851
1,169
33,340
18,880
8,765
19,707
6,194
26,376
16,804
839
14,732
595
29
5,675
267,140
Total funds disbursed by the Partnership for these investments is $168,319,845.
AS AT MAY 31, 2008
(In thousands)
Informations from
Annual Financial
Report dated
12-31-07
Ê
Ê
12-31-07
Ê
Equity
Interest of
the Fund
Société en commandite immobilière Solim
C.C.L. II, Société en commandite
Centre de Ressources du Parc Technologique du Québec Métropolitain inc.
Édifice 255 Saint-Jacques Société en commandite
Édifice 261 Saint-Jacques Société en commandite
>ÊÃVjÌjÊiÊV>`ÌiÊìvÀÞÊìÊÌÌÊ
Ê
Ê
PTQM/Lutech s.e.c.
Société en commandite Alphonse T. Lépine
Société en commandite Claude Baillif
-VjÌjÊiÊV>`ÌiÊìÊ>Ê>ÕÛiÀÃmÀiÊ
Ê
Ê
Société en commandite Inspecteur-William
Société en commandite Milton
Société en commandite Place Dunant
Terrains de stationnement de Montréal
Société en commandite immobilière Solim II
Complexe L.L. phase l, s.e.c.
Complexe L.L. phase ll, s.e.c.
ÌiÊ*>ÀÌVÕiÀÊ\ÊiÊ-ÌijmiÊÃ°i°V°Ê
Ê
Ê
Immeuble 9001 L’Acadie, Société en commandite
SEC St-Bruno-sur-le-Lac Phase 2
Société en commandite 75 boulevard Québec
Société en commandite African
Société en commandite Cavelier de LaSalle
Société en commandite CDTI de Hull
Société en commandite du 1400
Société en commandite JBSL
Société en commandite Mansfield
Société en commandite RMI
Trois A, Société en commandite
Share in Real Estate
Property and Property
Under Development
%
$
99.9
Ê
Ê
Ê
Ê
Ê
Ê
2,048
2,400
968
2,023
x£ÈÊ
4,587
1,729
3,511
È]xx£Ê
5,492
2,074
1,664
3,733
37,296
99.9
Ê
Ê
Ê
5,322
2,391
£]Î{äÊ
11,326
2,005
1,006
3,904
6,013
1,458
1,802
4,721
2,047
216
2,748
46,299
This unaudited list provides details of the investments made by the specialty funds in which the Fonds de solidarité des travailleurs du Québec
(F.T.Q.) has invested more than $10,000,000.
Fondation de la formation économique du Fonds
de solidarité des travailleurs du Québec (F.T.Q.)
Auditors’ Report
To the directors of the
Fondation de la formation économique du
We have audited the statements of financial position of the Fondation de la formation économique du Fonds de solidarité des travailleurs
du Québec (F.T.Q.) as at May 31, 2008 and 2007 and the statements of operations and changes in net assets for the years then ended.
These financial statements are the responsibility of the Fondation’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with Canadian Generally Accepted Auditing Standards. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Fondation as at May 31, 2008
and 2007 and the results of its operations and its cash flows for the years then ended in accordance with Canadian Generally Accepted
Accounting Principles.
de solidarité des travailleurs du Québec (F.T.Q.) (continued)
Statements
of Financial Position
As at May 31
Assets
Current assets
Cash
Accounts receivable
Investments (Note 5)
Capital assets (Note 6)
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Other
Loan – Fonds de solidarité des travailleurs du Québec (F.T.Q.) (Note 7)
Net assets
On behalf of the Board of Directors,
Denis Leclerc, Director
2008
$
2007
$
187,896
221,464
409,360
233,136
286,600
519,736
5,323,717
2,526
5,735,603
5,157,516
3,158
5,680,410
96,455
219,854
316,309
358,643
111,762
470,405
5,000,000
5,316,309
5,000,000
5,470,405
419,294
210,005
Statements
of Operations
For the years ended May 31
Revenues
Financial contributions
Partner companies
Other revenues
Government agency and other bonds
Other
Expenses
Education and training expenses
Education and training – enterprises
Education and training – other
Administrative expenses
Salaries and benefits
Rent and occupancy costs
Advertising and information
Professional fees
Travel and entertainment
Office supplies
Amortization of capital assets
Financing costs
Interest on loan (Note 7)
Excess of revenues over expenses
2008
$
2007
$
801,612
100,000
821,914
100,000
122,106
174,636
29,227
1,227,581
121,512
149,232
19,562
1,212,220
942,325
45,684
988,009
765,735
19,658
785,393
47,348
10,920
24,565
70,022
8,480
4,334
632
166,301
48,202
10,920
2,033
70,122
6,089
4,364
789
142,519
73,271
1,227,581
284,308
1,212,220
-
-
Statements
of Changes in Net Assets
For the years ended May 31
Net assets
invested in
capital assets
Unrestricted
net assets
Total
2008
Changes in accounting policies (Note 3)
3,158
-
206,847
209,289
210,005
209,289
Balance at beginning of year, as restated
3,158
416,136
419,294
$
$
$
(expenses over revenues)
(632)
632
-
2,526
416,768
419,294
2007
3,947
206,058
210,005
(expenses over revenues)
(789)
3,158
789
-
206,847
210,005
Notes
to Financial Statements
As at May 31, 2008 and 2007
1. Incorporation and nature of operations
The Fondation is incorporated under Part III of the Québec Companies Act. The main purpose of the Fondation is to collect and manage
financial contributions from various social and economic groups in order to promote the education and economic training of the working
people of Québec.
2. Significant accounting policies
Use of estimates
The preparation of financial statements in accordance with Canadian Generally Accepted Accounting Principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the recognized amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Financial instruments (see Note 3)
Recognition of financial instruments
Financial instruments are recognized on the transaction date.
Classification of financial instruments
Cash and investments are classified as “Assets held for trading”. They are measured at fair value at each balance sheet date and
changes in fair values are recorded in the Statements of Operations.
Accounts receivable and accrued interest on investments are classified as “Loans and receivables”. They are usually measured at
unamortized cost using the effective interest method, which corresponds to fair value at initial recognition.
Accounts payable and accrued liabilities are classified as “Other liabilities”. They are measured at unamortized cost using the effective
interest method, which corresponds to fair value at initial recognition.
The loan, which was initially measured at cost under Section 3840, Related Party Transations, is classified as “Other liabilities”. It is
measured at unamortized cost using the effective interest method.
Measurement of financial instruments
Investments
The demand promissory note is recorded at fair value. The fair value is comparable to cost because of the interest rate that the
Fondation could currently obtain for invesments having similar terms and conditions and maturities.
Government agency bonds are measured at bid price at the close of trading. The cost of the bonds as at May 31, 2007 represents
the unamortized cost as at June 1, 2007.
As at May 31, 2007, bonds were stated at unamortized cost. Premiums and discounts on fixed-term investments were amortized
as revenue using the effective yield method up to their maturity date.
Other
Given the short-term maturity of these financial instruments, the fair value of accounts receivable and accounts payable and accrued
liabilities approximates their carrying amount.
The fair value of the loan cannot be determined as it has no fixed repayment terms.
Capital assets
Office furniture and equipment are stated at cost and amortized over their estimated useful life using the diminishing balance method
and a rate of 20%.
Capital assets are amortized over their useful life. They are tested for impairment whenever events or changes in circumstances indicate
that their carrying amount exceeds the total undiscounted cash flows that are likely to result from their use and eventual disposition.
An impairment loss should be measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. As at
May 31, 2008, no impairment loss has been recognized.
Revenue recognition
Financial contributions
Financial contributions are recognized as revenue when received or receivable if the amount can be reasonably estimated and collection
is reasonably assured.
Other revenues
Interest, recorded using the accrual method, and changes in the fair value of investments are reflected in “Other revenues”.
Notes
to Financial Statements (continued)
As at May 31, 2008 and 2007
3. Changes in accounting policies
Effective June 1, 2007, the Fondation adopted three new accounting standards of the Canadian Institute of Chartered Accountants
(CICA) Handbook.
Section 1506, Accounting Changes. Note 4 to the financial statements, Future Changes in Accounting Policies, includes a description
and the impact of new accounting standards issued but not yet applied given their effective date.
Section 3855, Financial Instruments – Recognition and Measurement. This section establishes standards for recognizing and measuring
financial assets and liabilities based on their classification.
Under this standard, all financial instruments must be measured at fair value on initial recognition, except for certain related party
transactions. Subsequent measurement depends on the category in which the financial instrument was classified, namely held for trading,
loans and receivables and other financial liabilities.
As at June 1, 2007, the Fondation recorded all financial assets and liabilities on its Statement of Financial Position based on their
classification, as described in Note 2. The impact of these changes was an increase of $209,289 in the value of investments, which
was recorded as a restatement of the opening balance in the Statement of Changes in Net Assets.
Section 3861, Financial Instruments – Disclosure and Presentation, replaced the similarly titled Section 3860. This standard addresses
the presentation of financial instruments and non-financial derivatives and the information that should be disclosed about them.
4. Future changes in accounting policies
The CICA issued Section 1535, Capital Disclosures, Section 3862, Financial Instruments – Disclosures, and Section 3863, Financial
Instruments – Presentation. These sections establish standards for disclosing information about a company’s capital, as well as change
and expand the disclosure requirements for financial instruments.
These standards will be applied by the Fondation as of June 1, 2009 and should have no impact on amounts recorded in the financial
statements since they mainly relate to disclosures.
5. Investments
2007
2008
Demand promissory note of Fonds de solidarité
des travailleurs du Québec (F.T.Q.)
Government agency bonds
Accrued interest
Cost Fair value
Cost Fair value
2,645,654
2,425,288
5,070,942
59,156
5,130,098
2,645,654
2,618,907
5,264,561
59,156
5,323,717
2,673,548
2,425,288
5,098,836
58,680
5,157,516
2,673,548
2,634,577
5,308,125
58,680
5,366,805
$
$
$
$
Interest on the demand promissory note, renewed monthly at a variable rate, is based on the rate of return of Other investments of the
Fonds de solidarité des travailleurs du Québec (F.T.Q.). As at May 31, 2008, the interest rate was 4.25% (2007: 4.75%) and the capitalized
interest amounted to $122,106 (2007: $121,512). The average interest rate for the year was 4.58% (2007: 4.58%).
The government agency bonds, which had average nominal rates and yields to maturity of 8.23% and 5.47%, respectively, in 2008
(2007: 8.23% and 5.52%, respectively) mature on various dates between 2012 and 2035.
6. Capital assets
Cost
$
Accumulated
amortization
Net book
value
$
$
2008
19,092
16,566
2,526
2007
19,092
15,934
3,158
7. Loan – Fonds de solidarité des travailleurs du Québec (F.T.Q.)
The loan from Fonds de solidarité des travailleurs du Québec (F.T.Q.) is repayable on demand and bears an interest rate equal to the
Laurentian Bank prime rate, as determined from time to time, plus two percent (2%). At no point should the payment of such interest cause
expenses to exceed revenues.
8. Cash flows
No statements of cash flows were prepared since the required information on cash flows is available from other financial statements
and notes thereto.
9. Related party transactions
The Fonds de solidarité des travailleurs du Québec (F.T.Q.) appoints the Directors of the Fondation and manages the Fondation’s
investments.
During the year, 69.5% of the expenses incurred by the Fondation (2007: 77.6%) stemmed from transactions with the Fonds de solidarité
des travailleurs du Québec (F.T.Q.). These transactions are measured at the exchange amount, which represents the consideration
established and agreed to by the related parties.
10. Risk management
Market risk
The Fondation’s financial instruments are especially sensitive to fluctuations in bond interest rates.
Interest rate risk
The Fondation is exposed to interest rate risk through the impact of changes in the rate on the loan from the Fonds de solidarité des
travailleurs du Québec (F.T.Q.). This exposure is limited since the payment of such interest should at no point cause expenses to exceed
revenues, and generated capital has been invested in long-term investments that produce stable returns.
Liquidity risk
Liquidity risk is the potential for loss due to the inability of the Fondation to honour its obligations to make the required cash payments.
This risk is managed on a short-term basis as available assets, that exceed liabilities due, are easily convertible into cash.
11. Comparative figures
Certain comparative figures have been reclassified to conform with the current year’s presentation.
Glossary
Appreciation (depreciation)
Appreciation (depreciation) is the increase (decrease) of the value of an asset or a portfolio in relation to its reference value.
Average assets (or average net assets)
Total of the averages of assets (or average net assets) of the beginning and end of each six-month period, divided by two.
Assets under management (or financial assets) and average assets under management
Assets under management refers to the fair value of the assets managed by the investment and other investments sectors and used to generate income
for the Fund. The average assets under management are calculated by adding the average assets at the beginning and end of each six-month period
and dividing by two.
Derivative financial instrument or derivative product
Financial instrument whose price or return is tied to an underlying product. The most common derivative instruments are swaps, forwards, futures and
options. Derivative instruments are used to limit market risk and to preserve asset value, to facilitate changes in asset allocation, to manage an indexed
strategy for part of the portfolio, to facilitate portfolio management, and to improve returns within established risk limits.
Direct jobs
Jobs held by workers working directly in the Fund’s, the regional funds’, the local funds’ or the specialty funds’ partner companies or their subsidiaries.
Disbursed funds
Investments for which authorized, committed amounts were paid to a partner company. Disbursed funds exclude funds committed but not disbursed
as well as guarantees and suretyships.
Equity loan
Unsecured loan of up to $2 million treated as quasi-equity by most financial institutions. This loan is offered with fixed or variable rate and does not require
capital reimbursement for a period of 3 to 5 years.
FIER
Regional economic intervention fund set up by the Government of Québec, the Solidarity Fund QFL, Fondaction and Desjardins. With a capitalization
of $180 million, FIER is committed to creating sector-based and seed funds as well as financing structuring projects.
Fixed-income security
Security that pays a pre-determined fixed income until maturity. Fixed-income securities comprise bonds, mortgages, preferred shares and money
market securities.
Forward or futures contract
Commitment to buy or sell a security (short-term security, bond, share, stock index, currency) on a pre-determined date and price.
Investments agreed to by the Fund and for which the funds have been committed but not yet disbursed.
Fund return
Result of the calculation taking the average return of each asset class, weighted to account for their relative weight in relation to the average assets
under management, less operating expenses, income taxes and capital tax expressed as a percentage of average net assets.
Growth loan
Unsecured loan of up to $500,000, available at any time, that is flexible, fast and easy to use since it only requires 15 business days to process. Offered
at competitive rates, this loan is designed to increase working capital or to complete a financing phase.
Hedge fund
Investment fund with long and short positions on securities, markets, etc. These positions reflect the manager’s opinion on probable securities price
or market trends. A fund of hedge funds is a fund mostly made up of investments in hedge funds.
Hedging strategy
Strategy used to reduce variations in the Fund’s return resulting from changes in interest rates, exchange rates or stock market prices.
Income trust
Legal structure allowing an enterprise to raise capital by publicly offering trust units. An income trust is a transfer mechanism generally structured so that its
earnings are attributed to unitholders and the trust therefore does not pay income tax. However, the amounts attributed to unitholders are subject to income
tax. It is important to note that the federal government announced on October 31, 2006 changes to the tax treatment of income trusts.
Indirect jobs
Jobs associated with economic spin-offs generated by partner companies located in Québec. The number of indirect jobs is calculated by taking the
number of direct jobs, and applying a factor based on the co-efficient of indirect jobs by productive sector published by the Institut de la statistique
du Québec. The factor depends on the industry in which the partner company operates.
Induced jobs
Jobs created, maintained or preserved as a result of spending by workers holding direct and indirect jobs. The calculation of consumer spending takes
tax collection and the level of workers’ savings into account. The number of induced jobs is a function of personal disposable income spent, to which a ratio
of 877 jobs for each $100 million is applied, based on the intersectoral model developed by the Institut de la statistique du Québec.
Investment
Acquisition of securities or commitment to acquire securities, generally from Québec SMEs, and purchased as part of the Fund’s mission. Most investments
are eligible under the 60% rule set out in the Fund’s incorporating act.
Limited partnership
Partnership consisting of two types of partners: limited partners and a general partner. Only the general partner is authorized to manage and represent the
partnership. As a director, the general partner’s liability is unlimited with regards to the partnership’s debts and obligations. Limited partners provide the
capital required for the partnership to operate and are liable for its debts up to the amount committed and to be disbursed to the partnership. The limited
partnership is a legal structure designed to meet specific needs and to separate investment from the partnership’s management.
Local representative (LR)
The Fund has created a network of LRs within the unions affiliated with the QFL (and in unions with which the Fund has concluded agreements) who
work as volunteers to promote the Fund in their workplace. These LRs’ main task is to explain the Fund’s objectives and to promote share purchases by
union members.
Money market security
Security with a pre-determined return that matures in less than one year. Easily marketable, and highly liquid, these securities include T-bills, bankers’
acceptances and commercial paper.
Option
Contract that gives the holder the right to buy or sell a security (short-term security, bond, share, stock index, currency and futures) at a pre-determined
price. The seller or writer of the option must buy or sell the security if the option holder exercises his/her right.
Other investments
Invested capital consisting mainly of large-cap securities acquired on organized markets, i.e., money market securities, bonds, shares acquired as part
of the sector-based strategy, funds of hedge funds and the high-revenue portfolio (preferred shares, high-dividend shares and income trust units).
Overall financial assets management
Financial asset management principle with the objective of diversifying the risks borne by the Fund while allowing it to fully achieve its mission.
Private security
Direct investment in an unlisted company or in a listed company whose stock price exceptionally does not reflect its fair value at the time of its valuation.
Swap
Agreement used to exchange a security, an income or a currency for another security, income or currency at pre-determined conditions and for a given
period. The parties sign an agreement that respects international standards for this type of transaction.
Specialty or private fund
Investment company in which the Fund invests as a limited partner or a shareholder. The company’s general partner or administrators manage the invested
funds on behalf of the limited partners or shareholders.
Board of Directors
As at May 31, 2008
FROM LEFT TO RIGHT
Réjean Parent
President, Centrale des syndicats
du Québec (CSQ)
Jérôme Turcq
ABSENT FROM PHOTO,
FROM LEFT TO RIGHT
Pierre-Maurice Vachon B, D
Corporate Director
Michel Ouimet
C
Regional Executive Vice-President, Québec
Region, Public Service Alliance of Canada
(PSAC), and Vice-President of the QFL
Executive Vice-President – Québec,
Communications, Energy and Paperworkers
Union of Canada (CEP), and Vice-President
of the QFL
Louise St-Cyr A, B
Daniel Boyer
Chairholder, Chair of Small and Medium-Sized
Business Development and Succession,
HEC Montréal
Yvon Bolduc A, E
President and Chief Executive Officer
of the Fund
Michel Arsenault A, D
President, QFL, and Chairman of the Board
of Directors of the Fund
René Roy A, C
General Secretary, QFL, and Secretary
of the Board of Directors of the Fund
President, Québec Service Employees Union
(QSEU), Local 298, and Vice-President of the QFL
Daniel Roy
F
Québec Director, United Steel Workers Métallos,
and Vice-President of the QFL
Alain DeGrandpré
President of Joint Council 91, Teamsters Canada,
Denise Martin A, B, D
Vice-President and General Manager of
McMahon Distributeur pharmaceutique inc.,
and Vice-Chair of the Board of Directors
of the Fund
Michel Poirier
Québec Director and Secretary General,
Canadian Union of Public Employees (CUPE),
Luc Desnoyers
Québec Director, National Automobile,
Aerospace, Transportation and General
Workers Union of Canada (CAW-Canada),
Louis Bolduc D
Executive Assistant to the National President,
United Food and Commercial Workers
International Union (UFCW), and Vice-President
of the QFL
A Member of the Executive Committee
Jean Lavallée
C M
ember of the Technology
Investment Special Board
General Director and Secretary of Finance,
Inter-Provincial Brotherhood of Electrical
Workers (FIPOE), and Vice-President of the QFL
Roland Robichaud B, E
Corporate Director
B Member of the Audit Committee
D M
ember of the Turnaround
Special Board
E M
ember of the Financial Assets
F M
ember of the Mining Portfolio
Steering Committee
As at May 31, 2008
FROM LEFT TO RIGHT
Mario Tremblay
Janie C. Béïque
Denis Leclerc
Michel Pontbriand B
Vice-President, Public Affairs
and Communications
Executive Vice-President, Shareholder
Services, President and CEO
of the Fondation de la formation économique
Vice-President, Legal Affairs,
and Corporate Secretary
Danny Le Braceur
Vice-President,
Human Resources
Executive Vice-President, Finance
A Member of the Executive Committee
Yvon Bolduc A, B
B M
ember of the Financial Assets
President and CEO
Gaétan Morin B
Executive Vice-President,
Investments
Special Boards
Committees
As at May 31, 2008
As at May 31, 2008
As at May 31, 2008
Technology Investments
Financial Assets Management Committee
Executive Committee
Fund Directors and Advisors
René Roy (President), Jean Martin,
Michel Ouimet, Jean Perron
Fund Directors and Officers
Roland Robichaud (President),
Yvon Bolduc, Gaétan Morin,
Michel Pontbriand
Guy Trépanier, President
Outside Representatives
J.V. Raymond Cyr, Chairman of the Board,
Polyvalor Inc., and Corporate Director
Pierre Genest, Michel Thérien, Nycole Turmel
Union
Marie-Claude Rouleau,
First Vice-President
Robert Charpentier,
Second Vice-President
David Boucher, Treasurer
Jacques Simard, Professor, Department
of Anatomy and Physiology, Université Laval,
and Director, Cancer Genomic Laboratory,
CHUQ/CHUL Research Centre
Mining Portfolio Steering Committee
Julie Proulx, Secretary
Director
Daniel Roy (President)
Labour Council and Social Delegates
André Monette, Management Consultant
Pierre Boudreault, Michel Gauthier
Sylvie Lalande, Corporate Director
Turnaround
Fund Directors and Advisors
Michel Arsenault (President), Louis Bolduc,
Denise Martin, Jean Martin, Pierre-Maurice Vachon
Louise Bergeron, Nathalie Bilodeau,
Gilles de Montigny, Michel Desjardins,
Linda Di Quinzio, Johanne Dupont,
Daniel Gilbert, Jacques Grégoire,
Claude Grenier, Marie-Thérèse Hébert,
Josée Lachapelle, Ginette Lecours,
Valérie Morin, Michèle Péloquin,
Pierre Thompson
Outside representative
Michel M. Lessard, Corporate Director
Permanent
Employees
as at may 31, 2008
Nathalie Albert / Daniel Allaire / Claudette Allard / Jean Archambault / Luc Archambault / Dominique Arsenault / Pierre Arseneault / Danielle Asselin / Raynald Aubin / Louis Aubuchon / Danielle Auclair / Rui Barao /
Bruno Baril / Michel A. Bastien / Georges Bazinet / Martin Beauchamp / Manon Beaudoin / Annie Beaudry / Langis Beaulieu / Johanne Beauparlant / Rosage Beauzil / Monique Bédard / Steves Bégin /
Janie C. Béïque / Nicole Béland / Christian Bélanger / Normand Bélanger / Suzanne Benoit / Louise Bergeron / Luc Bergeron / Marie Bergeron / Conrad Bernadel / Natacha Bernier / Délisca Berthelot /
France Berthiaume / Josée Bilodeau / Nathalie Bilodeau / Nathalie Bilodeau / Jocelyne Blais / Pierre Blaising / Simon Blanchard / Josée Bolduc / Julie Bolduc / Yvon Bolduc / Philippe Bonin / Lise Bordeleau /
Fabien Bouchard / David Boucher / Sylvie Boucher / André Bougie / Claudine Boulais / Normand Boulay / Daniel Bourcier / Sylvie Boutet / Charles Boutin / Guy Boutin / Jean-Claude Brault / Hélène Brien /
Guylaine Brousseau / François Brulotte / François Caisse / Linda Call / Johanne Carignan / Lise Carignan / Stéphane Caron / Hubert Carrier / Robert Charpentier / Frédérique Chatain-Collinet /
Normand Chouinard / Marie-Claude Clermont / Mireille Cliche / Mathieu Cloutier / Richard Cloutier / Ina Corbin / Jean-Sébastien Cossette / Gilles Côté / Line Côté / Lise Côté / Michel Coulombe / Roland Courtois /
Louise Cousineau / Manon Cousineau / Éric Coutu / Luc Couture / Guy Croteau / Aubin D’Amours / Tania D’Anjou / Jocelyne Dansereau / Joanne Daviault / Daniel David / Danielle Day / Anne De Bellefeuille /
Gilles De Montigny / Denis Dean / Claude Delâge / Nathalie Denommée / Yves Derosby / Martine Desforges / Maryse Deshaies / Marie-Josée Desjardins / Michel Desjardins / Nathalie Desjardins /
Sylvie Deslières / Alain Desrochers / Lisette Dezainde / Linda Di Quinzio / Chantal Dionne / Chantal Doré / Michel Dorion / Sylvie Drouin / Diane Du Tremble / Louise Dubreuil / Jean-Denis Dufort / Nathalie Dufresne /
Isabelle Duguay / Karyn Duguay / Isabelle Duhaime / Hélène Dumont / France Dumontier / Jocelyne Dupont / Johanne Dupont / Francine Dupuis / Roch Dutil / Roxanne Émond / Ricardo Espera /
Chantale Favreau / Christian Fecteau / Sylvain Flynn / Alain Foisy / Carole Forget / Raymond Forget / Daniel Fortier / Manon Fortier / André C. Fortin / Hélène Fortin / Martin Fournier / Louise Fréchette /
Danny Gagné / Gérard Gagné / François Gagner / André Gagnon / Jocelyne Gagnon / Lucie Gagnon / Mireille Gagnon / Véronique Gagnon / Louise Galipeau / Nathalie Gallant / Christiane Gamache /
Claudine Gamache / Marie-Josée Gamache / Benoît Gariépy / Nathalie Gaudreau / Ginette Gaudreau-Lessard / Serge Gauthier / Louis Gendron / Gilles Genest / François Geoffrion / Jean Germain /
Carole Gignac / Carole Giguère / Guylaine Giguère / Alain Gilbert / Daniel Gilbert / Louise Gingras / François Girard / Manon Girard / Diane Gosselin / Marie-Hélène Gosselin / Nancy Goudreau /
Louis Gourdeau / Gaétan Gravel / Jacques Grégoire / Claude Grenier / Suzanne Grenier / Francine Grenon / Jean-Pierre Guay / Marie-Noëlle Guertin / Gilles Guilbault / Louise Hamel / Suzanne Hamel /
Lucie Hamiaux / Louise Harvey / Daniel Hébert / Marie-Thérèse Hébert / Claude Hétu / Daniel Hinse / Alain Houle / Angèle Houle / Camyl Huot / Philippe Jacquemot / Claude Jarret / Guy Jasmin /
Manon Jeannotte / Sylvie Jeannotte / Gilles Jolivet / Patrice Jolivet / Colette Julien / Michel Kirouac / René Kurth / Marc La Grenade / Madeleine Labelle / Linda Lachance / Josée Lachapelle /
Josée Lachapelle / Diane Lacharité / Jodi A. Lackman / Hugues Lacroix / Diane Ladurantaye / Sylvie Laferrière / Daniel Lafrenière / Josée Lagacé / Dominic Lainesse / Alain Lamanque / Marie-Josée Lamarche /
Pictures do not appear in the same order as the names listed under Permanent employees.
Pascal Lamarche / Sophie Lamarche / Michel Lambert / Annie Lamoureux / Odile Landry / Véronique Landry / Yvan Landry / Gaétan Langlois / Julie Langlois / Monique Langlois / Denis Lapalme /
Jean-François Laplante / Serge Lapointe / Daniel Laporte / Patricia Larocque / Yvette Larrivée / Martin Latreille / Michèle Laurion / Michel Lauzon / Réjean Lavigne / Hubert Lavigueur / France Le Bourdais /
Daniel Le Braceur / Éric Lebel / Lucie Lebeuf / Réjean Leblanc / Anne Leclerc / Chantal Leclerc / Denis Leclerc / Diane Leclerc / Diane Lecompte / Ginette Lecours / Chantal Leduc / Liette Leduc /
Chantal Lefebvre / Hélène Lefebvre / Jean-François Legault / Josée Legault / Sylvain Lemarbre / Claudine Lemay / Sylvie Lemay / Fabiola Lépine / Martin Lépine / Élise Lessard / Jocelyn Levasseur /
Sonia Lévêque / Mario Lévesque / Michel Lévesque / Michèle Levesque / Rollande Lévesque / François L’Heureux / Stéphane Lortie / Manon Lussier / Yves Mackay / Louise Malboeuf / André Mallet /
Madeleine Manseau / Diane Marcotte / Suzel Marcotte / Carole Marcoux / Nathalie Marino / Stéphan Marois / Jean Martel / Benoit Martin / Mélanie Martineau / Sylvain Masse / Thierry Masse / Nicolas Maufrand /
André McDonald / Louise McQuillan / Chantal Ménard / Élaine Ménard / Marie-Claude Ménard / Pascale Ménard / Frédéric Mercier / Michel Messier / Steve Messier / Marie-Claude Michaud / Serge Michaud /
Julie Migneault / Paul-André Moisan / Chantal Mongeau / Lyne Mongeau / Robert Montpetit / Nathalie Morand / Jocelyn Moreau / Thérèse Morel / Gaétan Morin / Jean Morin / Normand Morin / Valérie Morin /
Guylaine Morneau / Richard Moss / Noël Nadeau / François Nadon / Gabriel Nadon / Jean-Claude Nadon / Yvan Nantel / Diane Nother / Martin Ostiguy / Chantal Ouellet / Georges Panitchersky / Annick Paquet /
Luce Paquette / Laurent Paquette / Monique Paquette / Lyne Paquin / Antoinette Paradis / Robert Paradis / Sylvain Paré / Carole Parent / Daniel Pelletier / Dany Pelletier / Nathalie Pelletier / Michèle Péloquin /
Lise Perreault / Marie-Noëlle Perrier / Brigitte Perron / Joan Pierre / Danielle Pigeon / Gisèle Pigeon / Claire Pitre / Carole Poirier / Michel Pontbriand / Nicole Potvin / Julie Poudrette / Marco Poulin /
Anne-Catherine Poupart / Martine Pratte / Gina Préziosi / Julie Proulx / Maryse Pruneau / Steve Rayes / Andréa Raymond / Isabelle Raymond / Marie-Josée Reed / Johanne Rémillard / Mario Renaud /
Claire Richard / Manon Riendeau / Suzanne Rippeur / Marie-Claude Rivest / Martin Rivest / Sylvie Robitaille / Nicole Rochon / Éric Roger / Marie-Claude Rouleau / Suzanne Roussel / Lise Routhier /
André Roy / Colette Roy / Sébastien Roy / Sylvain Roy / Manon Royal / Carole Ruel / Michel Sabourin / Nathalie Sabourin / Guy Sanscartier / Lorraine Saumure / Sébastien Sauvageau / Louise Sauvé /
Renée Sauvé / Lina Scarpellini / Daniel Schneider / Patrick Schumann / Carmen Shaw / Dany Sirois / Pierre Soulière / Annie St-Arnaud / Patricia Ste-Marie / Éric St-Jacques / Manon St-Jean / Roch St-Louis /
Miville St-Onge / Mélanie St-Pierre / Julie Marie Strutt / Pierre Surprenant / André Sylvain / Jean Sylvestre / Geneviève Tanguay / Michel Taylor / Pierre Tellier / Sylvain Tellier / Laurent Themens / Francine Théorêt /
Johanne Thériault / Josée Théroux / Denis Thibault / Jean-François Thibault / Johanne Thibault / Jean Thifault / Gabrielle Thom-Gadbois / Pierre Thompson / Éric Tourangeau / Quang-Xuan Tran / Bruce Tremblay /
Danielle Tremblay / Élyse Tremblay / Mario Tremblay / Simon C. Tremblay / Monique Tremblay-Coté / Guy Trépanier / Louise Trudeau / Sylvie Trudeau / Christine Turcotte / Céline Turgeon / Véronique Turgeon /
Michèle Vachon / Yolande Vaillancourt / Nathalie Vallières / Claudia Valois / Hélène Valois / Gilles Veilleux / Mireille Verret / Hélène Vézina / André Viau / Madeleine Vignola / Jean Wilhelmy / Joanne Zakaïb
Infrastructure and communications management
Corporate communications
Solicitation
Sales
IT development, applications programming and support
Process reengineering and documentation
Valuation
Company turnaround
Hedging strategies
Securities trading
Mergers / Acquisitions
Request for proposals management
IT and information asset management
Sector expertise
Image management
Network development
Investment negotiation
International taxation
Organization design
Marketing
Risk management
Purchasing services and inventory management
Quality control
Organizational development
Customer service
Reproduction / Messaging / Telephony
Corporate law / Litigation
Fundraising
Training and economic training
Due diligence
Tactical management
Product development
Strategic planning
Business analysis
Sales tax
Accounting
Financial analysis
Company succession and transfer
Corporate and individual tax
Trust services
Market and industry analysis
Control and compliance
Portfolio management
Administrative support
Project management
Client file management
External communications
Remuneration and benefits
Staffing
Public relations
Bankruptcy
Call centre management and operation
Human resources development
Work relations
Secretarial and technical support
Research and development
A Multitude
of Expertise
Social audit
Major event organization
Asset allocation
Graphics, Web and multimedia
Document management
Business valuation
126,035 jobs created, maintained
Training activities
As at May 31, 2008
In the workplace
Network members
Students
Total
s
Fu
b
jo
ct
63
,7
67
it y
7 local
ar
lid
47 nd
So 3,
la
4 giona 110 unds
, yf
Re
20 ecialt 76
Sp ,1
4
re
Di
nd
FL
Participants
Courses
3,147
2,633
815
377
6,972
228
131
44
23
426
fu
bs
nd
s
s
ob
j
ed
18
uc
,0
27
d
In
jo
ct
54
,2
31
re
di
In
Q
Highlights
Key data
2004
2005
2006
2008
2007
(11 months)
since its creation.
Criteria
Number
Shareholder profile
As at May 31, 2008
7,239
284,628
1
1.5%
1.4%
1.4%
1.4%
4
1.8%2
2. Annualized.
s
Ratio
7,285
290,050
er
6,607
277,466
ld
5,955
264,845
ho
5,233
243,946
10
(89)
re
591
475
Retirement and
early retirement
Access to home
ownership
Death, disability,
redemption within
60 days
Unforeseen events
(job loss or other)
Return to studies
Other criteria
ha
463
366
5
373
271
un
96
n0, %
No
24 1.9
Balance Sheet
Net assets
247
fs
4
ro
be
39
m
5, d 2
Nu
57 ionize ,43
4 % ed
Un
33 8.1 ioniz 2
Revenues
34,111
395
83
3,747
29
6
1,992
24
5
5,177
465
18
3
4
1
7
1
476 100
As at May 31
Net value per share
(in dollars)
21.37 22.41
23.74
25.36
25.05
2004 2005
2006
2007
2008
96,000 105,596
116,644
122,460
126,035
Redemptions
2004*
2005
2006
2007
2008
* (11 months)
5.2 5.0
6.0
7.1
(1.2)
188 256
329
402
476
554,796 568,383
573,086
574,794
575,394
2004 2005
2006
2007
2008
2004 2005
2006
2007
2008
* (11 months)
554
706
614
571
611
(Fund and network)
2004 2005
2006
2007
2008
1,722
1,683
1,681
1,696
1,881
Investments3
2004* 2005
2006
2007
2008
(at cost) 2007-20081
Disinvestments
Share issues
(as a percentage)
2004 2005
2006
2007
2008
* (11 months)
%
549
46,041
Total
2004* 2005
2006
2007
2008
$M
2,695 2,901
3,343
3,742
3,962
2004* 2005
2006
2007
2008
* (11 months)
405
492
643
668
730
Regions3
Western Québec
Montréal Region
Central Québec
Québec City Region
Eastern Québec
All of Québec
Outside Québec
Total
Sectors
Real estate
natural resources
and consumer
Total
No.
$M
%
No.
$M
%
No.
$M
%
No.
$M
%
15 157
18
31
29
46
44
340
74 1,465
128
346
134
893
265
3,305
2
44
4
11
4
27
8
100
2
47
6
8
4
2
7
76
21
484
13
60
30
53
69
730
3
66
2
8
4
7
10
100
2
48
6
7
8
12
12
95
7
146
5
9
23
36
47
273
3
53
2
3
9
13
17
100
14
154
19
34
27
46
44
338
88
1,803
136
397
141
910
287
3,762
2
48
4
10
4
24
8
100
11
26
315
386
9
12
1
1
29
3
4
1
3
-
4
-
2
-
9
25
340
389
9
10
167
136
340
1,628
976
3,305
49
30
100
42
32
76
397
301
730
54
41
100
59
33
95
166
103
273
61
37
100
167
137
338
1,859
1,174
3,762
50
31
100
Editors
Suzanne Hamel
André McDonald
Writers
Suzanne Hamel
Sylvain Paré
Collaborators
Roch Dutil
Ricardo Espera
Sylvain Masse
Louise Sauvé
Translator
Jean Marois
Designer
Gauthier Designers
B-08-00-0196
Photographers
Shoot Studio
Pierre Manning
Jean-Sébastien Cossette 2008 Annual Report
Solidarity Fund qfl
Suite 200
Telephone: 514 383-8383
Fax: 514 383-2502
Toll free: 1 800 361-5017
www.fondsftq.com
envision
expand
enrich
1. Mission
6. Envision
10. Expand
14. Enrich
100. Glossary
Special Boards
Committees
Union
4
5
6
7
8
9
10
11
12
Photography: Caroline Bergeron, Jean-Sébastien Cossette,
Alain Gauthier, Lise Labelle, Francis Laroche, Jacques Lavoie,
Ronald Maisonneuve et Hélène Rochon.
3
13
14
15
Suite 200
Telephone: 514 383-8383
Fax: 514 383-2502
Toll free: 1 800 361-5017
www.fondsftq.com
2
16
Beginning as a dream,
the Fund is now
a unique institution!
15th anniversary
of the Fund’s creation.
A dream begins…
a brilliant idea…
om
es
Pre
sid
ent
199
8
con : Th
trib e go
utio ve
n li rnm
mit
e
from nts in
$3, crea
500 se
to $ the w
5,0 ork
00. ers
’
199
trav 8 : C
ail reat
du
i
Qu on of
ébe the
c.
Fon
ds
étu
dia
nt s
olid
arit
199
é
9
:
Ch
H
air m enr
an i Mas
of t
he sé be
Boa com
rd.
es
the
Fun
d’s
200
0: C
rea
tion
of t
he
Fon
ds
Rel
ève
PM
E.
200
of E 1: Cr
xpl eati
ora on
tion of S
Par IDE
tne X (D
rsh
ip). iversi
fica
tion
200
and 2: Pie
CE rre G
Oo
The
f th enest
ma Fund
eF
r
und beco
k
c
sin
me
.
ce and h rosse
sP
as
s th
its
res
cre its
ide
atio bes e 500
nt
,
n, c t su 000
olle bsc
s
h
ctin ript are
g $ ion hold
200
870 cam ers
3: T
mil pai
he
lion gn
Fun
.
d is
20
yea
rs o
ld!
200
and 6: Yv
inv CEO on Bo
est
me of th lduc b
nt r e F
eco und ecom
rds , wh es P
.
ich res
is b iden
rea t
kin
200
g
7
Fun : Mi
c
d’s
h
e
Ch l Ar
airm sen
an ault
of t
he becom
Boa
200
rd. es the
8:
The
Fun
d is
25
yea
rs o
ld!
199
and 7: Ra
CE ymo
O o nd
f th Bac
eF
und hand
bec
.
Jun
Lou e 23,
the is La 1983
Lou Solid berge , und
of t is La arity , then er the
bec he Bo berge Fund -pres initia
om ard bec QFL iden tive
es
its and C omes is cre t of theof
Pre
a
sid laude its firs ted. QFL,
Ma
e
t
B
n
l
t an anc Chai
$60 rch 19
d C het rma
0
8
n
EO
sha ,000 4: F
.
i
reh
old is rais rst sub
ers
e
of t d andscript
io
he
Fun 600 w n cam
d.
ork
ers paign
bec –
198
om
4
e
:
net
Beg
w
the ork o innin
Fun f lo g o
cal f th
d.
rep e ac
res
ent tivities
ativ
es of the
(LR
s) f vast
or
Dec
in S embe
cie r 19
rie
des 84: Fir
Ou st in
tard ves
es, tme
in B nt o
aie f $50
-Co 0,0
me 00
au.
Feb
me ruary
etin
g o 1985 :
f th Fir
e F st a
u n d nnu
’s s al g
h a r en
eho era
lde l
rs.
198
6: E
con
om
ic t
rain
ing
for
wo
rke
rs b
egi
ns.
198
7
$5, : Th
Tém000,0 e Fun
the isca 00 in d’s fi
du Caiss mingu Temb rst ma
Qu
e
ébe e de de – in c, locjor inv
c.
épô par ate estm
t et tner d in
ent
pla ship
–
cem wi
th
198
e
n
t
allo 9: In
of t wed vestm
Ten he In keepi ent in
cap year stitut Ang co Bioc
ital s lat rm ntro hem
iza
tion er, Bioand-F l of th Phar
exc che rapp e va ma,
eed m P ier ccin whi
ed har in Q e d ch
Ear
m
i
$3
u
l
bill a’s m ébec vision
y
inv
199
ion
a
e
r
ket .
.
tha stme 0s: C
n8
n
r
e
t
0 th fun atio
rou ds). n of
gho Tod SO
LI
ut Q ay
uéb thereDE (lo
ec!
are cal
mo
re
199
4
Cha : Fe
irm rnan
an
of t d Dao
he
Boaust be
rd. com
es
the
Fun
d’s
199
sin 6: Cl
of t ce 19 émen
9
he
t
Boa 3, be Godb
rd. com out
es , QF
the
L
Fun Pres
d’s iden
Ch
airmt
199
an
fun 6: Cr
ds
eat
net ion
wo
rk. of the
reg
ion
al s
olid
arit
y
199
7: F
irst
Sha
reh
old
er B
ook
let.
Ea
rea rly 198
che 3 ,
s 1 the
4.6
% i unem
n Q plo
uéb yme
ec. nt r
ate
envision
expand
enrich
envision expand enrich
1
17
18
19
20
21
22
23
24
25
2008 Annual Report
Solidarity Fund QFL
I’m
25 years
old.
www.25ansfondsftq.com

envision expand enrich - Fonds de solidarité FTQ

Transcription

Similar documents

cadastre - Shawville

Nature and culture for all tour – 2 days

LANAUdIèRE

québec city - La Route accessible

News for shareholders

Catalogue CRAM anglais - Agence Ambre Communication

www .ouranos.ca

annual - Centris

With the Orchestre symphonique de Québec Conducted by Airat