Fondaction's share price set at $16.15, an increase of 7.0% over one year

Highlights of the fiscal year ended May 31, 2024

• Share value of $16.15, up $0.91 from the value established following the 6-month period ended November 30, 2023, and up $1.05 from the fiscal year ended May 31, 2023.
• Annual shareholder rate of return of 7.0%, compared with a shareholder rate of return of 6.0% for the 6-month period ended May 31, 2024.
• Annual compound shareholder returns: 7.0% over 1 year, 1.5% over 3 years, 5.9% over 5 years and 5.1% over 10 years, excluding tax credits
•  Comprehensive income of $246 M for the fiscal year ended May 31, 2024
• Net assets reached $3.77B on May 31, 2024, up $433M or 13.0% from $3.34B as at May 31, 2023
• 221,512 shareholders, an increase of 3.1% compared with May 31, 2023
• The carbon footprint of listed investments on the financial markets ("Other investments" category) is estimated at 19.4 tonnes CO₂ eq/$M invested, which is 56% less than the benchmark index as at April 30, 2024.

MONTRÉAL, June 21, 2024 /CNW/ - Fondaction announces that as of today, its share value is set at $16.15. This represents an annual shareholder rate of return of 7.0%, compared with a shareholder rate of return of 6.0% for the 6-month period ended May 31, 2024.

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"Year after year, our results confirm that it's possible to make
investments that have a positive social and environmental impact
without compromising on returns. This is all the more important at a
time when the economy must change – and it will change – to meet
people's needs while respecting the planet's limits," says Geneviève
Morin, CEO of Fondaction.

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Fondaction's annual compound shareholder returns are 7.0% over 1 year, 1.5% over 3 years, 5.9% over 5 years and 5.1% over 10 years, calculated based on the variation of the share value between its value at the start of each indicated period and the value of $16.15 as at May 31, 2024. These returns do not take into account tax credits that could be granted to taxpayers when subscribing to Fondaction shares, subject to their eligibility.

The gross return generated by development capital investments was 7.0% and the gross return generated by other investments was 12.5% for the 12-month period ended May 31, 2024.

Total operating expense ratio was at 2.19% for the 12-month period ended May 31, 2024, compared to 2.35% for the 12-month period ended May 31, 2023.

Net assets increased by 13.0% during the fiscal year to $3.77B as at May 31, 2024.

The number of shareholders was 221,512 on May 31, 2024, 3.1% more than on May 31, 2023.

Share issuance during the fiscal year totalled $389.6M, compared with $368.7M for the 2023 fiscal year. Redemptions and purchases by agreement of shares totalled $202.5M during the fiscal year, compared with $158.5M for the 2023 fiscal year.

A long-term investor, Fondaction made the choice in 2016 to exclude the shares of companies that own fossil fuel reserves,and is maintaining this choice today. Moreover, Fondaction requires its external investment advisers to incorporate the environmental, social and governance factors into their investment processes. This explains why this portfolio's carbon footprint is estimated at 19.4 tonnes CO₂eq/$M invested compared to 44.5 tonnes CO₂eq/$M invested for the index selected by Fondaction, which is 56% lower than that of the securities of a benchmark portfolio as at April 30, 2024. These values are based on data available on April 30, 2024, and were calculated using the PCAF methodology, in tonnes of GHG emissions CO₂ equivalent per million dollars of enterprise value. The benchmark portfolio is composed of 40% MSCI ACWI, 40% FTSE Canada Universe Bond and 20% TSX Composite.

Each rate of return indicated represents the historical annual compounded total rate of return, which takes into account changes in share value and the reinvestment of all dividends, as applicable, but not account income taxes payable by any shareholder that would have reduced the return. The rate of return serves only to illustrate the effects of the historic growth rate and is not intended to reflect any future share values or the return on an investment in the shares. There are ongoing costs associated with owning shares in an investment fund. Fondaction shares are not guaranteed. They are an investment whose value and performance will fluctuate, and past performance should not be taken as an indication of future performance. Before investing, please read the prospectus at fondaction.com/prospectus.php.

About Fondaction
A forerunner for over 25 years, Fondaction is the investment fund for individuals and companies that are mobilizing for the positive transformation of Quebec's economy, making it more equitable, inclusive, green and successful. As a labour-sponsored fund created at the initiative of the CSN, Fondaction represents tens of thousands of savers and hundreds of companies committed to helping Quebec progress. It manages more than $3.77B in net assets, as at May 31, 2024, invested in hundreds of businesses and on the financial markets, prioritizing investments that generate positive economic, social and environmental spinoffs in addition to a financial return. Fondaction helps maintain and create jobs, reduce inequalities and combat climate change. For more information, visit fondaction.com or our LinkedIn page.

SOURCE Fondaction

For more information -- Marie-Hélène Lafond, [email protected]