Fondaction, a leading investment fund promoting positive economic transformation, has announced its share value has reached $16.73, marking an increase of $0.58 from its last established value of $16.15, following the fiscal year ended May 31, 2024. This figure, disclosed on December 23, 2024, not only reflects the fund's commitment to responsible investing but also its growing popularity among individuals preparing for retirement.
For the six-month period ended November 30, 2024, Fondaction reported a shareholder return of 3.6%, alongside substantial compound shareholder returns of 9.8% over the past year, 0.5% over three years, 5.7% over five years, and 5.4% over ten years. Notably, these returns do not account for tax credits potentially available to shareholders, ensuring even higher yields depending upon individual tax circumstances.
The comprehensive income for this period totaled $138.8 million, significantly boosting the organization’s financial standing. On the net asset front, Fondaction's portfolio rose to $3.99 billion, up $221.5 million or 5.9% from $3.77 billion as of the previous report date, which speaks volumes about the increased confidence among investors and the effectiveness of Fondaction’s investment strategies.
Geneviève Morin, CEO of Fondaction, spoke about the importance of their mission amid economic challenges. "Our shareholders are preparing for retirement and want their savings to have a positive impact on society and the planet. Because the economy needs to become fairer, more inclusive, greener and more performant, and because it's the companies offering products and services contributing to this positive transformation who will be champions of tomorrow. Investing in these companies is beneficial not only socially but also financially," she stated. Morin emphasized the dual aim of their operations: aiding individuals who need savings as well as driving systematic transformation within society.
Over the last reporting period, the gross returns generated from development capital investments stood at 3.6%, whereas returns from other investments hit 6.6%, demonstrating the fund's strategic diversification and focus on sustainable investment opportunities.
Operating expenses for Fondaction also saw improvement, with the total operating expense ratio dropping to 1.09% for the six months ending November 30, 2024, from 1.17% during the same timeframe the previous year. This decline is indicative of the fund's commitment to maintaining efficiency and maximizing investor returns.
Fondaction now boasts 222,366 shareholders, reflecting a steady increase of 0.4% compared to the end of May 2024. This growth signifies heightened interest among Quebecois savers who are increasingly opting for investments with positive social impacts.
Looking at the broader picture, Fondaction's earnings and net assets mirror its sustainability ethos and focus on generating both economic and social value. The fund, operating for over 25 years, positions itself at the intersection of financial returns and social responsibility. With $3.99 billion under management, it invests not just for profit but also to promote the creation and maintenance of jobs, the reduction of inequalities, and combatting climate change, which are pressing issues widely recognized by today’s investors.
Certainly, the road forward is guided by the principles of creating an economy more aligned with equity and sustainability. The returns achieved by Fondaction, complemented by its steady growth and mission-driven investments, signal a positive turn for both shareholders and the communities they impact.
For investors considering where to allocate their savings, Fondaction presents not just numbers, but also compelling narratives about the dual responsibilities of financial institutions: being profitable and making substantial contributions to societal wellbeing.
