FINANCIAL STATEMENTS. As at May 31, 2013 and 2012

Transcription

1 FINANCIAL STATEMENTS As at May 31, 2013 and 2012

2 INDEPENDENT AUDITORS REPORT To the Shareholders of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) We have audited the accompanying financial statements of the Fonds de solidarité des travailleurs du Québec (F.T.Q.), which comprise the balance sheets as at May 31, 2013 and 2012, and the statements of operations, changes in net assets and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility 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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as at May 31, 2013 and 2012 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles CPA auditor, CA, public accountancy permit No. A CPA auditor, CA, public accountancy permit No. A Montréal, June 27, 2013 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 1

3 BALANCE SHEETS AS AT MAY 31 (In thousands $, except net assets per share) Assets Development capital investments (Note 4) 5,298,843 4,918,765 Other investments (Note 5) 4,370,186 4,123,020 Accounts receivable and other assets (Note 8) 689, ,836 Cash 9,172 13,789 Capital assets (Note 9) 62,609 61,076 Income taxes 4, ,434,964 9,773,579 Liabilities Notes (Note 10) 396, ,544 Accounts payable and other liabilities (Note 12) 735, ,434 Future income taxes (Note 17) 1,864 3,913 1,133,664 1,248,891 Net assets (Note 13) 9,301,300 8,524,688 Number of Class A shares outstanding (Note 13) 332, ,629 Net assets per Class A share Contingencies (Note 14) The accompanying notes form an integral part of these financial statements. On behalf of the Board of Directors, Yvon Bolduc, Director Michel Arsenault, Director FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 2

4 STATEMENTS OF OPERATIONS FOR THE YEARS ENDED MAY 31 (In thousands $, except earnings per share) Revenues Interest (Note 15) 157, ,804 Dividends 98,348 72, , ,418 Expenses (Note 16) Corporate expenses 42,614 38,663 Development capital investment and other investment expenses 32,229 32,588 Shareholder Services and Economic Training development and administration expenses 49,386 45,923 Amortization of property and equipment and information systems development 5,630 4, , ,148 Net investment income before income taxes 126, ,270 Income taxes (Note 17) 16,500 27,489 Net investment income 109,538 97,781 Gains (losses) on development capital investments and other investments Realized 97,213 49,249 Change in unrealized appreciation or depreciation 252,597 69,614 Transaction costs (1,460) (2,000) 348, ,863 Net earnings 457, ,644 Weighted average number of Class A shares 325, ,092 Earnings per Class A share 1, The accompanying notes form an integral part of these financial statements. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 3

5 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED MAY 31 Share Capital Class A (Note 13) (In thousands $) Series 1 Series 2 Subscribed Contributed Surplus (Note 13) Retained Earnings Net Assets 2013 Balance at beginning of year 7,010,355 76, , ,020 8,524,688 Net earnings 457, ,888 Share issues 843,892 11, ,089 Net change in share subscriptions Share redemptions (444,751) (7,674) (63,156) (26,631) (542,212) Change in outstanding redemptions 4,751 1, ,829 Transfers (Note 13) 95,000 (95,000) - Balance at end of year 7,509,247 80, , ,330 9,301, Balance at beginning of year 6,676,628 78, ,052, ,698 8,177,811 Net earnings 214, ,644 Share issues 757,066 9, ,047 Net change in share subscriptions Share redemptions (507,864) (11,926) (77,253) (22,877) (619,920) Change in outstanding redemptions (12,475) (3,007) 555 (14,927) Transfers (Note 13) 97,000 (97,000) - Balance at end of year 7,010,355 76, , ,020 8,524,688 The accompanying notes form an integral part of these financial statements. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 4

6 STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MAY 31 (In thousands $) Operating activities Net investment income 109,538 97,781 Non-cash items and change in non-cash items Interest capitalized on development capital investments (2,325) (3,071) Interest capitalized on notes 16,859 16,766 Amortization of property and equipment and information systems development 5,630 4,974 Future income taxes (2,049) 615 Accounts receivable and other assets 37,616 (403,672) Accounts payable and other liabilities (44,839) 459,490 Income taxes (4,878) (1,263) Other (2,156) 975 Transaction costs (1,498) (1,972) 111, ,623 Financing activities Issuance of notes 139, ,906 Repayment of notes (187,840) (201,631) Shares issued and subscribed 855, ,080 Shares redeemed (534,912) (620,177) 271, ,178 Investing activities Acquisition of development capital investments (792,902) (1,018,526) Proceeds of disposal of development capital investments 577, ,847 Acquisition of other investments (6,222,907) (8,067,744) Proceeds of disposal of other investments 6,055,038 8,046,753 Acquisition of property and equipment (2,063) (3,335) Proceeds of disposal of property and equipment - 2,250 Information systems development (2,282) (2,629) (387,908) (372,384) Increase (decrease) in cash (4,617) 7,417 Cash at beginning of year 13,789 6,372 Cash at end of year 9,172 13,789 Cash flows from operating activities include income taxes paid of $25.5 million (2012: $26.1 million). The accompanying notes form an integral part of these financial statements. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 5

7 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and INCORPORATION ACT STATUTES AND OBJECTIVES OF THE FONDS The Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the Fonds ), 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 qualified business enterprises by inviting workers to participate in that development by purchasing the Fonds shares. To this end, the Fonds endeavours to concentrate most of its development capital investments in unsecured investments, mainly in small and medium-sized enterprises ( SMEs ), located in Québec. As a general rule, the Fonds will take a minority interest in the projects in which it invests. 60% RULE The Fonds may make development capital investments in any business enterprise with or without security. However, in any given financial year, the proportion of unsecured development capital investments made in qualified business enterprises must represent an average of at least 60% of the Fonds average net assets of the previous financial year. If the Fonds fails to reach this percentage, the share issues giving rise to tax credits for the following financial year are limited to a prescribed percentage of the total value of shares issued in the preceding financial year, except for shares acquired through payroll deductions and employer contributions stipulated in agreements concluded at the end of the preceding financial year. The percentage of average qualified development capital investments to the average net assets of the preceding year was 66.0% as at May 31, 2013 (2012: 67.0%). Since the minimum percentage prescribed by the 60% rule has been reached as at May 31, 2013, the amount of share issues will not be limited for the financial year. 2. SIGNIFICANT ACCOUNTING POLICIES The Fonds is an investment company as defined in the Accounting Guideline on investment companies contained in the Canadian Institute of Chartered Accountants ( CICA ) Handbook and, as such, applies the generally accepted accounting principles ( GAAP ) stated therein. A Statement of Comprehensive Income is not provided as there are no items to include therein. USE OF ESTIMATES The preparation of financial statements in accordance with Canadian GAAP requires management to make estimates and assumptions, in particular when determining allowances and the fair value of development capital 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 at fair value on the transaction date. The cost presented corresponds to the amount paid and is determined based on average cost, excluding transaction costs. Financial assets classified as loans and receivables comprise Accounts receivable and other assets, excluding securities purchased under reverse repurchase agreements and financial instruments related to securities sold under repurchase agreements. Financial liabilities classified as other liabilities comprise Notes and Accounts payable and other liabilities, excluding securities sold under repurchase agreements and derivative financial instruments. These instruments are recognized at amortized cost, which approximates their fair value. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 6

8 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and SIGNIFICANT ACCOUNTING POLICIES (continued) MEASUREMENT OF FINANCIAL INSTRUMENTS All development capital investments and other investments are measured at fair value, established as follows: a) Unlisted financial instruments Unlisted financial instruments consist of shares, units and loans and advances. These instruments are measured at fair value using appropriate valuation techniques and models that may not be principally based on observable market information. Observable market information is used in valuation models if it is available. The fair value is established based on reasonable assumptions that would be considered by parties to an arm s length transaction. Certain assumptions may have a material impact on fair value, including those used to determine characteristic cash flows and the level of risk and future growth rate associated with such cash flows considering economic conditions, the outlook for the relevant industry segment and conditions specific to the business entreprise. Hedge fund units are measured at the fair value set by their respective manager at the date closest to the Fonds balance sheet date. b) Listed financial instruments Listed financial instruments consist of shares, bonds and money market instruments. These instruments are measured at bid price at the close of trading at balance sheet date. In exceptional instances, when the market for a financial instrument is not active, such instrument is then measured using appropriate valuation techniques, including the techniques used for unlisted financial instruments. c) Derivative financial instruments Listed derivative financial instruments are measured at bid price at the close of trading at balance sheet date. Unlisted derivative financial instruments are measured using appropriate valuation techniques, including discounting future cash flows at the current rate of return. SECURITIES LENDING, SECURITIES PURCHASED UNDER REVERSE REPURCHASE AGREEMENTS AND SECURITIES SOLD UNDER REPURCHASE AGREEMENTS To generate additional revenues, the Fonds participates in the securities lending program put in place by its trustee for securities of which it is the custodian. Under this program, the Fonds can enter into securities lending transactions, as well as short-term purchases and sales of securities with a simultaneous commitment to resell and repurchase them at a specified price and date. Reverse repurchase agreements and repurchase agreements are recognized as secured lending and borrowing transactions. Reverse repurchase agreements are recorded on the balance sheet at their fair value, while repurchase agreements are recorded on the balance sheet at the repurchase price determined by the commitment which approximates their fair value. The revenues resulting from the Fonds participation in this program are recorded under Interest in the Statement of Operations. CAPITAL ASSETS Capital assets are stated at cost and are amortized over their estimated useful life using the following methods and annual rates: Property and equipment Methods Rates (%) Buildings straight-line 2.5 Office furniture and equipment diminishing balance 20.0 Computer hardware straight-line 25.0 Information systems development straight-line 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 7

9 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and SIGNIFICANT ACCOUNTING POLICIES (continued) REVENUE RECOGNITION a) Interest Interest is recorded on an accrual basis. b) Dividends Dividends are recorded as income when they are declared, except for cumulative dividends which are recorded on an accrual basis. c) Gains and losses on development capital investments and other investments Realized gains and losses on disposals of development capital investments and other investments, including derivative financial instruments, are recorded at the time of sale and presented under Gains (losses) on development capital investments and other investments in the Statement of Operations. The amount is the difference between the proceeds of disposal and the average cost. INCOME TAXES The Fonds 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, multiplied by 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 exchange rate prevailing at the balance sheet date. 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 Operations. 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 9.5 and 11.7 years (2012: between 8.5 and 12.1 years). 3. FUTURE CHANGES IN ACCOUNTING POLICIES INTERNATIONAL FINANCIAL REPORTING STANDARDS ( IFRS ) In 2008, the Accounting Standards Board of Canada ( AcSB ) confirmed that Canadian GAAP will be replaced by IFRS for the years beginning on or after January 1, 2011, for publicly accountable enterprises. In December 2011, the AcSB confirmed that investment companies, as defined in the Accounting Guideline on investment companies of the CICA Handbook, will have to apply IFRS for the first time to interim and annual financial statements for the years beginning on or after January 1, The Fonds complies with its conversion plan and will present its first interim financial statements prepared in accordance with IFRS as at November 30, The Fonds IFRS transition date is June 1, The Fonds is currently evaluating the impact of this transition. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 8

10 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and DEVELOPMENT CAPITAL INVESTMENTS The audited Statement of Development Capital Investments, at Cost, is available at the Fonds head office, on its Website at or at (In thousands $) Unsecured Cost Unrealized Unrealized appreciation appreciation (depreciation) Fair value Cost (depreciation) Fair value Listed shares 761, , , ,736 45, ,238 Unlisted shares and units 2,454, ,550 2,807,561 2,381, ,649 2,613,025 Loans, bonds and advances 1,612,955 (1,362) 1,611,593 1,592,344 (24,144) 1,568,200 Secured Loans and advances 11,590 (1,114) 10,476 29,173 (3,871) 25,302 4,839, ,145 5,298,843 4,669, ,136 4,918,765 Development capital investments include securities denominated in foreign currencies, mainly the U.S. dollar, with a fair value of $286.8 million (2012: $283.7 million). Investment agreements may include clauses providing for conversion and redemption options. BREAKDOWN BY MATURITY OF LOANS, BONDS AND ADVANCES AT FAIR VALUE Variable rates Fixed rates Total (In thousands $) Less than 1 year 1 to 5 years 5 years and more 2013 Unsecured 100, , , ,998 1,611,593 Average effective rate (%) Secured 6,009 4,467 10,476 Average effective rate (%) Unsecured 104, , , ,852 1,568,200 Average effective rate (%) Secured 413 7, ,310 25,302 Average effective rate (%) This average rate includes non-interest bearing advances repayable on demand of $268.9 million (2012: $294.2 million) to a wholly-owned company. Excluding these advances, the average effective rate would be 8.4% (2012: 12.0%). FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 9

11 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and DEVELOPMENT CAPITAL INVESTMENTS (continued) BREAKDOWN BY INDUSTRY SEGMENT Regional or local (In thousands $) Technology Manufacturing and primary Services and tourism and real estate funds Total 2013 Cost 831,953 1,203,943 1,971, ,109 4,839,698 Unrealized appreciation (depreciation) (134,322) 26, , , ,145 Fair value 697,631 1,230,510 2,312,389 1,058,313 5,298,843 Allocation of investments made by the regional or local funds 25,559 80,184 90,422 (196,165) - Funds committed but not disbursed 1 406, , ,116 58, ,686 Guarantees and suretyships 2 7,814 7, ,129,603 1,502,185 2,591, ,814 6,144,343 Cost 874,966 1,150,805 1,825, ,700 4,669,629 Unrealized appreciation (depreciation) (176,520) (17,855) 241, , ,136 Fair value 698,446 1,132,950 2,066,864 1,020,505 4,918,765 Allocation of investments made by the regional or local funds 21,723 78,430 85,302 (185,455) - Funds committed but not disbursed 1 415, , ,802 72, ,802 Guarantees and suretyships 2 6,898 9,331 16,229 1,135,794 1,336,512 2,377, ,191 5,756, Funds committed but not disbursed represent development capital investments that have already been agreed to and for which amounts have been committed by the Fonds but have not been disbursed at balance sheet date. Disbursements are subject to compliance with the agreement s terms and conditions. Of funds committed but not disbursed, an amount of $171.8 million (2012: $248.1 million) represents credit facilities and project financing for operating companies, having a weighted average maturity of 18 months (2012: 15 months); and an amount of $665.9 million (2012: $573.7 million) represents commitments that will be disbursed to specialized funds in tranches, having a weighted average maturity of 8.1 years (2012: 9.3 years). Commitments amounting to $103.6 million (2012: $89.9 million) are denominated in foreign currencies, mainly the U.S. dollar. 2. Under Section 17 of its Incorporation Act, when the Fonds makes a development capital 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 is established from Other investments. GUARANTEES AND SURETYSHIPS The Fonds granted guarantees and suretyships that do not generally include a specific maturity and that are irrevocable commitments by the Fonds 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 $) Operating activities and operating lines of credit - without recourse 7,814 7,831 Operating activities and operating lines of credit - with recourse - 8,398 7,814 16,229 As at May 31, 2013, there is no allowance related to guarantees and suretyships (2012: $4.5 million presented under Accounts payable and other liabilities). As well, in the normal course of business, the Fonds enters into various indemnification agreements, usually related to sales of development capital investments, for the representations and warrantees made as well as to the liability of the Fonds 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 Fonds 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 10

12 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and OTHER INVESTMENTS The unaudited Statement of Other Investments is available at the Fonds head office, on its Website at or at Unrealized (In thousands $) Cost Unrealized appreciation Fair value Cost appreciation (depreciation) Fair value Listed shares and unlisted units 1,665,829 65,932 1,731,761 1,607,277 (92,976) 1,514,301 Hedge fund units 242,630 4, , ,510 2, ,050 Bonds 2,325,705 60,097 2,385,802 2,032, ,890 2,153,714 Money market instruments , ,475 4,235, ,693 4,365,705 4,085,957 30,583 4,116,540 Derivative financial instruments 1,492 2,989 4, ,437 6,480 4,236, ,682 4,370,186 4,086,000 37,020 4,123,020 Other investments include securities denominated in foreign currencies with a fair value of $1,520.9 million (2012: $1,338.5 million), mainly including $909.8 million (2012: $825.9 million) in U.S. dollars, $199.5 million (2012: $153.2 million) in Euros and $180.0 million (2012: $170.0 million) in pounds sterling. BREAKDOWN BY MATURITY Bonds Less than 1 to 5 to 10 to 20 to 30 years (In thousands $) 1 year 5 years 10 years 20 years 30 years and more Total 2013 Fair value 84, , , , , ,771 2,385,802 Cost 84, , , , , ,373 2,325,705 Par value 82, , , , , ,369 2,152,530 Average effective rate (%) Average nominal rate (%) Fair value 206, , , , ,104 54,973 2,153,714 Cost 209, , , , ,660 54,363 2,032,824 Par value 205, , , , ,258 53,559 1,925,420 Average effective rate (%) Average nominal rate (%) Money market instruments (In thousands $) Less than 1 month 1 to 6 months Total 2013 Fair value Average effective rate (%) Fair value 56, , ,475 Average effective rate (%) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 11

13 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and OTHER INVESTMENTS (continued) BREAKDOWN BY MATURITY (continued) Derivative financial instruments (In thousand $) Less than 1 month 1 to 6 months 6 months and more Total 2013 Fair value 1 Unlisted shares option contracts Purchased put options Written put options (2,327) (2,327) Listed stock index option contracts Purchased put options Written call options (60) (179) (239) Written put options (93) (93) Foreign currency forward contracts Purchases 150 (1) 149 Sales (14,573) (67) (14,640) Interest rate futures Interest rate forward contracts Stock index futures (14,481) 810 (1,577) (15,248) Notional amount Unlisted shares option contracts Purchased put options 18,900 18,900 Written put options 31,500 31,500 Listed stock index option contracts Purchased put options 1,550 11,724 13,274 Written call options 1,633 12,636 14,269 Written put options 9,367 9,367 Foreign currency forward contracts Purchases 630,656 77, ,954 Sales 931, ,582 1,571,241 Interest rate futures 25,612 67,646 1,357,638 1,450,896 Interest rate forward contracts 159, ,738 Stock index futures 124,603 7, ,528 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 12

14 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and OTHER INVESTMENTS (continued) BREAKDOWN BY MATURITY (continued) Derivative financial instruments (continued) (In thousands $) 2012 Fair value 1 Listed stock index option contracts Less than 1 month 1 to 6 months 6 months and more Purchased put options Written call options (45) (45) Foreign currency forward contracts Purchases Sales (22,000) (36) (22,036) Interest rate futures Interest rate forward contracts (246) (4,884) (5,130) Stock index futures - - Over-the-counter interest rate swaps (3,774) (3,774) Notional amount Listed stock index option contracts Total (22,009) (4,877) (3,774) (30,660) Purchased put options 2,693 2,693 Written call options 9,012 9,012 Foreign currency forward contracts Purchases 568,341 10, ,866 Sales 881, ,637 1,429,485 Interest rate futures 11, , ,397 Interest rate forward contracts 147, , ,597 Stock index futures 3,494 3,494 Over-the-counter interest rate swaps 25,000 25, The fair value of instruments with positive values is $4.5 million (2012: $6.4 million) and is presented under Other investments. The fair value of those with negative values is $19.7 million (2012: $37.1 million) and is presented under Accounts payable and other liabilities. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 13

15 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and OTHER INVESTMENTS (continued) BREAKDOWN OF FAIR VALUE BY INDUSTRY SEGMENT 1 Listed shares, (In thousands $) unlisted units and hedge fund units Bonds Money market instruments Total 2013 Government and government agencies 1,596, ,597,686 Financial institutions 102, , ,890 Technology 271,661 96, ,499 Manufacturing and primary 1,025,348 84,778 1,110,126 Services and tourism 579, , ,504 Fair value 1,979,054 2,385, ,365,705 Funds committed but not disbursed² 16,903 16, ,995,957 2,385, ,382,608 Government and government agencies 1,302, ,471 1,414,521 Financial institutions 79, ,820 35, ,376 Technology 223,457 98,970 19, ,384 Manufacturing and primary 901, ,998 39,804 1,047,328 Services and tourism 551, , ,931 Fair value 1,755,351 2,153, ,475 4,116,540 Funds committed but not disbursed² 26,324 26,324 1,781,675 2,153, ,475 4,142, This breakdown does not take into account changes in asset allocation resulting from derivative financial instruments. 2. Funds committed but not disbursed to international infrastructure funds represent other investments that have already been agreed to and for which amounts have been committed by the Fonds but have not been disbursed at balance sheet date. Disbursements are subject to compliance with the agreement s terms and conditions. These commitments, having a weighted average maturity of 7.4 years (2012: 9.1 years), are denominated in U.S. dollars. 6. FAIR VALUE HIERARCHY Financial instruments measured at fair value are classified using a hierarchy that reflects the significance of the inputs used in making the measurements. This hierarchy has the following levels: Level 1: Fair value based on quoted market prices (unadjusted) observed on active markets for identical financial instruments. Level 2: Fair value based on quoted prices for similar financial instruments or based on valuation techniques for which all significant inputs are based on observable market information. Level 3: Fair value based on valuation techniques for which all significant inputs are not based on observable market information. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 14

16 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and FAIR VALUE HIERARCHY (continued) Level (In thousands $) Total 2013 Development capital investments Unsecured Listed shares 868, ,213 Unlisted shares and units 2,807,561 2,807,561 Loans, bonds and advances 441,224 1,170,369 1,611,593 Secured Loans and advances 10,476 10, , ,607 3,988,406 5,298,843 Other investments Listed shares and unlisted units 1,674,321 57,440 1,731,761 Hedge fund units 247, ,293 Bonds 2,375,066 10,736 2,385,802 Money market instruments Derivative financial instruments 256 4,225 4,481 1,674,577 2,380, ,469 4,370,186 2,543,407 2,821,747 4,303,875 9,669,029 Financial instruments related to securities sold under repurchase agreements 148, ,819 Securities purchased under reverse repurchase agreements 274, ,123 Cash 9,172 9,172 Derivative financial instruments (332) (19,397) (19,729) Securities sold under repurchase agreements (422,942) (422,942) 2,552,247 2,802,350 4,303,875 9,658, Development capital investments Unsecured Listed shares 703,132 9, ,238 Unlisted shares and units 2,613,025 2,613,025 Loans, bonds and advances 463,393 1,104,807 1,568,200 Secured Loans and advances 25,302 25, , ,499 3,743,134 4,918,765 Other investments Listed shares and unlisted units 1,436,719 77,582 1,514,301 Hedge fund units 241, ,050 Bonds 2,144,909 8,805 2,153,714 Money market instruments 207, ,475 Derivative financial instruments 80 6,400 6,480 1,436,799 2,358, ,437 4,123,020 2,139,931 2,831,283 4,070,571 9,041,785 Financial instruments related to securities sold under repurchase agreements 131, ,507 Securities purchased under reverse repurchase agreements 325, ,443 Cash 13,789 13,789 Derivative financial instruments (45) (37,095) (37,140) Securities sold under repurchase agreements (456,950) (456,950) 2,153,675 2,794,188 4,070,571 9,018,434 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 15

17 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and FAIR VALUE HIERARCHY (CONTINUED) The following table shows the reconciliation from beginning balances to ending balances for Level 3 fair values. DEVELOPMENT CAPITAL INVESTMENTS (In thousands $) Listed shares Unlisted shares and units Loans, bonds and advances Unsecured Secured Total 2013 Fair value as at May 31, ,613,025 1,104,807 25,302 3,743,134 Realized losses (24,723) (7,210) (2,360) (34,293) Change in unrealized appreciation or depreciation 121,902 6,146 2, ,803 Purchases 281, ,886 6, ,313 Sales and settlements (184,570) (131,260) (21,721) (337,551) Transfer to Level 3 15, ,000 Fair value as at May 31, ,807,561 1,170,369 10,476 3,988,406 Change in unrealized appreciation or depreciation of development capital investments held as at May 31, ,197 (1,899) , Fair value as at May 31, ,097, ,759 31,161 3,126,754 Realized gains (losses) (7,513) 40,148 (11,165) (1,114) 20,356 Change in unrealized appreciation or depreciation 8, ,621 25,866 30, ,042 Purchases - 596, ,387 25, ,056 Sales and settlements (539) (307,518) (148,040) (60,977) (517,074) Fair value as at May 31, ,613,025 1,104,807 25,302 3,743,134 Change in unrealized appreciation or depreciation of development capital investments held as at May 31, ,411 (872) (459) 111, An unsecured debenture has been transferred from Level 2 to Level 3 since its measurement method is no longer based on observable market data. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 16

18 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and FAIR VALUE HIERARCHY (CONTINUED) OTHER INVESTMENTS (In thousands $) 2013 Listed shares and unlisted units Hedge fund units Bonds Total Fair value as at May 31, , ,050 8, ,437 Realized gains (losses) (689) 3,444-2,755 Change in unrealized appreciation or depreciation (3,355) 2,124 1, Purchases ,290 69,245 Sales and settlements (17,053) (67,615) (7) (84,675) Fair value as at May 31, , ,293 10, ,469 Change in unrealized appreciation or depreciation of other investments held as at May 31, 2013 (3,355) 5,685 1,935 4, Fair value as at May 31, , ,439 11, ,923 Realized losses (4,103) (2,376) (6,479) Change in unrealized appreciation or depreciation 7,057 16,154 2,138 25,349 Purchases 2, , ,211 Sales and settlements (8,609) (102,259) (2,699) (113,567) Fair value as at May 31, , ,050 8, ,437 Change in unrealized appreciation or depreciation of other investments held as at May 31, ,057 10,148 (462) 16,743 All Level 3 financial instruments, except for certain units, are measured at fair value using valuation techniques and models whose outputs depend on significant assumptions that are based on data that are not observable on the market. Even though management believes that its fair value measurements are appropriate, using reasonably possible alternative assumptions could result in different fair values. Whenever possible, a sensitivity analysis of changes in significant assumptions is performed. Management assessed the situation and determined that using reasonably possible alternative assumptions would not result in significantly different fair values. Since the Fonds does not have access to information on the underlying investments, the fair value of hedge fund units and of certain units classified as Level 3 is based on the value provided by the general partner or the external manager. Therefore no other reasonably possible assumption could be used. 7. SECURITIES LENDING As part of the securities lending program, the trustee receives, in exchange for the securities loaned, guarantees or assets equivalent to the minimum percentage prescribed by any applicable law or agreement or to a percentage that may vary according to best practices. Depending on the securities loaned, this percentage is 102% as at May 31, 2013 (2012: ranges from 102% to 106%), and the fair value of the securities loaned is $84 million (2012: $133 million). 8. ACCOUNTS RECEIVABLE AND OTHER ASSETS (In thousands $) Accounts receivable relating to development capital investments and other investments sold 159,421 89,399 Accrued dividends and interest 71,597 73,315 Financial instruments related to securities sold under repurchase agreements 148, ,507 Securities purchased under reverse repurchase agreements 274, ,443 Other 35,223 37, , ,836 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 17

19 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and CAPITAL ASSETS (In thousands $) Cost Accumulated amortization Net carrying amount 2013 Buildings 1 70,109 19,008 51,101 Office furniture and equipment 18,659 16,060 2,599 Computer hardware 14,303 9,988 4,315 Information systems development 20,283 15,689 4, ,354 60,745 62, Buildings 1 67,715 17,179 50,536 Office furniture and equipment 17,945 15,449 2,496 Computer hardware 12,966 8,353 4,613 Information systems development 17,928 14,497 3, ,554 55,478 61, The net carrying amount of the portion of building that is leased out is $21.2 million (2012: $20.6 million). 10. NOTES Notes are repayable on demand and bear interest at a rate based on the rate of return of Other investments. Consequently, the fair value of these notes arising from excess liquidities of regional and local funds and of certain specialized funds corresponds to their carrying amount. As at May 31, 2013 and 2012, the interest rate is 4%. 11. CREDIT FACILITIES As at May 31, 2013 and 2012, the Fonds has credit facilities amounting to $80 million, bearing interest at prime rate and renewable annually. As at May 31, 2013 and 2012, these facilities are unused. 12. ACCOUNTS PAYABLE AND OTHER LIABILITIES (In thousands $) Accounts payable relating to development capital investments and other investments purchased 185, ,982 Derivative financial instruments 19,729 37,140 Share redemptions 29,833 28,072 Securities sold under repurchase agreements 422, ,950 Accrued expenses and other 76,833 89, , , 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 18

20 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and NET ASSETS (CONTINUED) SHARE CAPITAL (CONTINUED) Authorized (CONTINUED) 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 shares. Subscribed Subscribed capital is money cashed but for which no Class A share can be issued in consideration thereof pursuant to the Fonds purchase-by-agreement policy. These Class A shares will be issued at the time set out in such policy at the share price in effect at that date. Redemption terms The Fonds is required to redeem shares in the circumstances set out in its Incorporation Act or to redeem them by mutual agreement in exceptional situations provided under a policy for such purpose adopted by the Fonds Board of Directors and approved by the Minister of Finance of Québec. The redemption price is determined semi-annually based on the value of the Fonds. Contributed surplus Contributed surplus arises from the reduction in issued and paid-up capital resulting from transfers and the excess of the average value of share capital over the redemption price. This excess is reduced when shares are redeemed at a price exceeding the average value of issued share capital, prorata to the redeemed shares. Transfers During the year, the Board of Directors approved an increase in the issued and paid-up capital on Class A shares, Series 1 of $95 million through transfers from retained earnings (2012: $97 million). As at May 31, 2013, the Fonds had transferred a cumulative amount of $1,812 million from retained earnings to share capital. NET ASSETS CLASS A Series 1 Series 2 Subscribed Total (In thousands) Number $ Number $ $ $ 2013 Net assets at beginning of year 317,218 8,433,242 3,411 90, ,524,688 Net earnings 453,015 4, ,888 Share issues 31, , , ,089 Net change in share subscriptions Share redemptions (19,837) (533,097) (339) (9,115) (542,212) Change in outstanding redemptions 235 5,829 5,829 Net assets at end of year 328,951 9,202,881 3,490 97, ,301, Net assets at beginning of year 311,941 8,084,720 3,563 92, ,177,811 Net earnings 212,353 2, ,644 Share issues 29, , , ,047 Net change in share subscriptions Share redemptions (23,393) (605,970) (538) (13,950) (619,920) Change in outstanding redemptions (555) (14,927) (14,927) Net assets at end of year 317,218 8,433,242 3,411 90, ,524,688 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 19

21 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and CONTINGENCIES In the normal course of business, the Fonds is party to claims and litigations that could result in losses. A contingent loss is recognized when it is likely and can be estimated. Management believes that the aggregate amount of contingent losses, net of losses recognized, would not have a material adverse effect of the Fonds financial position. 15. REVENUES Interest totalling $16.9 million (2012: $16.8 million) on the notes is recorded against Interest in the Statement of Operations and capitalized under Notes. 16. OPERATING EXPENSES (In thousands $) Salaries and benefits 80,869 75,451 Advertising and information 18,231 15,142 Occupancy expenses and rent 10,334 10,597 Professional fees 7,244 7,818 Management fees 6,779 7,443 Stationery and office supplies 3,813 3,459 Travel and entertainment 3,806 3,807 Shareholder reporting costs 3,041 3,247 Custodial fees and trustee s fees Fees and other income (6,656) (6,702) Rental income (4,197) (4,078) Amortization of property and equipment 4,438 4,057 Amortization of information systems development 1, , ,148 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 20

22 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and INCOME TAXES For purposes of the Income Tax Act (Canada), the Fonds is subject to the rules applicable to mutual fund corporations. As such, the Fonds can receive a refund of the income taxes paid on its capital gains by redeeming its shares or by increasing its issued and paid-up share capital through a transfer from retained earnings. Since these income taxes are refundable and that, in management s opinion, the issued and paid-up share capital will be increased sufficiently to recover them, these income taxes are not presented in the Statement of Operations, but are included in Accounts receivable and other assets. The balance of these income taxes is $7.2 million (2012: $10.3 million). The Fonds, as a private company, can receive a refund of a portion of the income taxes paid on its investment income through the refundable dividend tax on hand (RDTOH). The RDTOH is recoverable by increasing the issued and paid-up share capital through a transfer from retained earnings. This tax of $30.3 million (2012: $31.9 million) was entirely applied against income taxes payable following transfers approved by the Board of Directors during the year. Under the Taxation Act (Québec), the Fonds is an open-ended investment company. As such, the Fonds can, in calculating its Québec taxes, deduct taxable capital gains from its taxable income. Consequently, capital gains realized by the Fonds are not subject to taxes in Québec. Income taxes on net investment income before income taxes are detailed as follows: (In thousands $) Current 18,549 26,874 Future (2,049) ,500 27,489 The above income taxes are different from the amounts that would be obtained by applying the combined basic tax rate (federal and provincial) to net investment income before income taxes. The difference is explained as follows: (In thousands $) Income taxes based on combined income tax rate of 46.6% 58,734 58,376 Non-taxable dividends (25,853) (14,158) Refundable dividend tax on hand (30,345) (31,912) Other items 13,964 15,183 16,500 27,489 Items giving rise to future income taxes are as follows: (In thousands $) Capital assets 2,273 1,749 Development capital investments and other (409) 2,164 1,864 3,913 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 21

23 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and EMPLOYEE FUTURE BENEFITS On January 1, 2001, the Fonds 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 Fonds 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, The most recent actuarial valuation of the pension plans for funding and solvency purposes was as at December 31, 2012 and the next valuation will take place as at December 31, Information about the plans is as follows: (In thousands $) Pension plans Insurance plan Pension plans Insurance plan Accrued benefit obligation Balance at beginning of year 160,030 2, ,826 1,833 Current service cost 16, , Interest cost 7, , Benefits paid (1,556) (37) (1,465) (29) Actuarial loss 4, , Balance at end of year 187,648 2, ,030 2,217 Plan assets Balance at beginning of year 112,379-93,246 - Fonds contributions 13, , Employee contributions 5,549 5,629 Benefits paid (1,556) (37) (1,465) (29) Actual return on plan assets 12,789 5,476 Balance at end of year 142, ,379 - Reconciliation of accrued benefit obligation and plan assets Funded status - deficit (44,898) (2,547) (47,651) (2,217) Unamortized net actuarial loss 30, , Unamortized past service cost (gain) - (98) 362 (138) Accrued benefit liabilities (14,212) (1,868) (14,012) (1,702) These accrued benefit liabilities are presented under Accounts payable and other liabilities. ADDITIONAL INFORMATION ABOUT PLAN ASSETS Funded plan assets are held in trust and their breakdown is as follows: (in %) Equity mutual funds Bond mutual funds Cash and other FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 22

24 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and EMPLOYEE FUTURE BENEFITS (CONTINUED) ADDITIONAL INFORMATION ABOUT PLAN ASSETS (CONTINUED) Costs recognized in the year were as follows: (In thousands $) Pension plans Insurance plan Pension plans Insurance plan Current service cost, net of employee contributions 11, , Interest cost 7, , Actual return on plan assets (12,789) (5,476) Actuarial loss 4, , Cost before adjustments to recognize the long-term nature of employee future benefits 10, , Difference between actual and expected return on plan assets 5,518 (528) Difference between actuarial loss or gain recognized and actual actuarial loss or gain on accrued benefit obligation (2,927) (124) (18,891) (201) Difference between amortization of past service cost or gain and actual plan amendments 362 (40) 173 (40) Costs recognized in the year 13, , Cash payments for employee future benefits, which comprise contributions made by the Fonds to these funded pension plans and amounts paid directly to members under unfunded plans totalled $13.6 million (2012: $9.5 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: (in %) Pension plans Insurance plan Pension plans Insurance plan 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 The Fonds set the maximum annual insurance premium it will assume per retiree and does not expect any increases in the future. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 23

25 NOTES TO FINANCIAL STATEMENTS As at May 31, 2013 and RELATED PARTY TRANSACTIONS In the normal course of business, the Fonds conducts transactions with related companies that are either controlled by the Fonds or subject to significant influence by the Fonds. Many of the development capital investments are of such an amount and nature that the investee is considered a related company. These transactions consist predominantly of interest and dividend revenues on investments and certain expenses, in particular premiums paid under insurance plans. The Fonds, of which a majority of directors are elected by the FTQ, agreed to pay $1.8 million to the FTQ for the year ended May 31, 2013 (2012: $1.9 million) under an agreement that calls 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 Fonds 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 Fonds granted a loan of $5 million to the Fondation at a variable, contingent interest rate, with a fair value of $3.8 million (2012: $3.6 million). The Fonds granted non-interest bearing loans of $20 million with a fair value of $13.7 million (2012: $13.9 million) to the Fonds étudiants solidarité travail du Québec (FESTQ), which are considered related to the Fonds because the Fonds appoints some of their directors together with the Government of Québec. These loans are presented in the Balance Sheet under Accounts receivable and other assets. 20. RISK MANAGEMENT Risks arising from financial instruments are an integral part the audited Financial Statements and are discussed in the Risk management section of the Management Discussion and Analysis for the year Ended May 31, 2013, which is available at the Fonds head office, on its Website at or at COMPARATIVE FIGURES Certain prior year figures have been reclassified to be comparable with those of the current year. 22. ADDITIONAL INFORMATION The audited Statement of Development Capital Investments, at Cost, the unaudited Relevé des autres investissements and the unaudited Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost, are available at the Fonds head office, on its Website at or at FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 24

26 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED MAY 31, 2013

27 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED MAY 31, 2013 This Management Discussion and Analysis ( MD&A ) is intended to help the readers to assess, through the eyes of management, the Fonds de solidarité FTQ s (the Fonds ) results and financial condition and the material changes therein during the financial year ended May 31, The annual MD&A complements and supplements the financial statements and contains financial highlights, but does not contain the complete annual financial statements of the Fonds. To facilitate understanding of events and uncertainties presented herein, this MD&A should be read together with the financial statements and the notes thereto. This MD&A contains forward-looking statements about the Fonds activities, results, and strategies that should be interpreted with caution. These forecasts necessarily involve assumptions, uncertainties and risks; it is therefore possible that a number of factors may cause them not to materialize. Legislative or regulatory changes, economic and business conditions and the level of competition are some examples of major factors that may influence, sometimes significantly, the accuracy of the forward-looking statements in this MD&A. This MD&A is dated June 27, The Fonds is subject to the Regulation Respecting Development Capital Investment Fund Continuous Disclosure (the Regulation ) and, as such, applies the requirements of this Regulation, notably to its financial statements and its MD&A. You can get a copy of the annual financial statements at your request, and at no cost, by calling us at or toll free at , by writing to us at 8717 Berri Street, Montréal, Québec H2M 2T9 or by visiting our website at or the SEDAR website at You can also obtain a copy of the interim documents in this same manner. FINANCIAL HIGHLIGHTS The following tables show selected key financial information about the Fonds and are intended to help you understand the Fonds financial performance for the past five financial years. This information is derived from the Fonds audited financial statements. The Fonds results are discussed under Results of Operations on page 3. RATIOS AND SUPPLEMENTAL DATA Years ended May 31 (in millions of dollars, unless otherwise specified) Revenues Net earnings (net loss) (919) Net assets 9,301 8,525 8,178 7,294 6,375 Class A shares outstanding (number, in thousands) 332, , , , ,733 Total operating expense ratio* (%) Portfolio turnover rate**: Development capital investments (%) Other investments (%) Trading expense ratio*** (%) Number of shareholders (number) 615, , , , ,889 Issues of shares Redemptions of shares Fair value of development capital investments**** 6,144 5,757 5,207 4,784 4,598 * The total operating expense ratio is obtained as follows: by dividing expenses (excluding capital tax) for the year, as shown in the Statement of Operations, by the average net assets for that year. ** The portfolio turnover rate reflects the number of changes made to the composition of the portfolio. There is not necessarily a relationship between a high turnover rate and the portfolio s performance. *** The trading expense ratio represents transaction costs expressed as a percentage of average net assets. **** These investments include funds committed but not disbursed as well as guarantees and suretyships. 1

28 CHANGE IN NET ASSETS PER SHARE Years ended May 31 (in dollars) Net assets per share, beginning of year* Increase (decrease) from operations**: (3.16) Interest and dividends Total operating expenses (0.40) (0.39) (0.38) (0.37) (0.37) Income tax and capital tax (0.05) (0.09) (0.08) (0.09) (0.05) Realized gains (losses) (1.31) Unrealized gains (losses) (2.25) Variance from issues and redemptions of shares Variance from the transfer of Class G shares (0.02) - (0.01) - (0.02) - (0.02) 0.07 (0.11) - Net assets per share, end of year* * The amount of net assets per share is based on the actual number of shares outstanding at the relevant time. ** The increase (decrease) from operations is based on the weighted-average number of shares outstanding during the financial year. ECONOMIC CONDITIONS World and the United States Over the last 12 months, the global economic and financial environment has remained tense. Austerity programs and economic, financial and political uncertainty continued to dampen growth in industrialized countries, many of which are also grappling with major structural problems. The economic situation in many emerging countries, including China and India, was worrisome for most of 2012; these countries saw their growth, which was fast paced until then, taper off in particular due to the weakness of the global economy and, especially, of the European economy, which reduced the level of their exports. All this tension created volatility in commodity prices, including copper, gold and oil. There are still many economic and financial issues around the world, and there are still many obstacles on the road to greater stability. In the Eurozone, despite financial strains easing over the last 12 months particularly as a result of the launch by the European Central Bank of a program under which it may purchase unlimited amounts of bonds from countries that sought assistance from the European bailout fund and some economic indicators beginning to show improvement toward the end of 2012, the recession that officially began in 2011 is far from over. Even the indicators that are slightly improving are still at levels that in many cases suggest sharp dips in GDP. In other words, everything seems to point to a deepening recession in the Eurozone, particularly in the countries with more fragile economies such as Greece, Italy, Spain and Portugal. Nevertheless, during the last 12 months, the European political authorities and financial community managed to succeed in navigating the storm, mostly because of Germany. This country however showed clear signs that its economy was contracting in the fourth quarter of This was short lived, however, as the situation seemed to rebound as early as the following quarter, contrary to the situation in France where the economic indicators suggest stagnation at best. In the United States, the great uncertainty surrounding the fiscal cliff for the better part of 2012 that could have triggered a recession has lifted somewhat following the partial agreement concluded on January 1, Despite the fact that this agreement introduced tax increases that will reduce their disposable income, households seem to have demonstrated some resilience, at least in the opening months of 2013, judging by the growth in retail sales, the strengthening of manufacturing and non-manufacturing indexes, and the rising consumer confidence index. However, this strong relative performance in consumption appears to have started to slacken off beginning in March and continued to do so in April. The labour market experienced a similar loss of momentum: after adding an average of 237,000 jobs per month between November 2012 and February 2013, only 142,000, 149,000 and 175,000 jobs were added in March, April and May 2013, respectively. 2

29 Generally speaking, the U.S. economy grew in booms and busts over the last 12 months. After seeing GDP growth slow down in the first two quarters of 2012 mainly due to the lack of household and corporate confidence in the economy and the persistence of financial fears related to Europe, the U.S. economy posted improved GDP growth in the third quarter of This growth shrank in the following quarter then rebounded in the first quarter of On the other hand, the savings rate remained low (averaging 3.7% since May 31, 2012). Despite a slowing labour market beginning in March 2013, the overall unemployment rate dropped over the last 12 months: it was 7.6% in May 2013, compared to 8.2% in May In addition, residential investment is looking up after several lean years, and house prices tend to rise, which should help consumers better weather higher taxes. In terms of inflation, the annual variation in the U.S. CPI has averaged 1.7% since May Lastly, the key interest rate has remained unchanged at 0.25% since December Canada and Québec Over the last 12 months, the Canadian economy was not shielded from the economic sluggishness and uncertainty that spread around the world; its loss of momentum is really tangible. During this period, the real estate market slowdown persisted, as evidenced by the slump in residential investments. Inversely, non-residential investments continued to grow, but their contribution to economic growth was offset in part by a reduction in government spending due to the fight against the deficit. Domestic demand only rose slightly due to the weakness in consumer spending resulting from dampening credit and improvement in household balance sheets. Foreign trade was hobbled by a weaker global demand and deteriorating competitiveness. On the inflation front, the annual variation of the Canadian CPI has averaged 1.0% since May The unemployment rate decreased from 7.3% in May 2012 to 7.1% in May The Canadian dollar traded at $US 0.97 on May 31, 2013, the same value as on May 31, The discount rate has remained unchanged at 1% since September In Québec, economic growth continued to be relatively weak during the last 12 months, mainly due to the waning household consumption and lower foreign trade. Signs of a slowdown also began to appear in the residential sector, which saw a dip in home sales (existing and new) following the federal government s tightening of mortgage rules. The unemployment rate was 7.7% in May 2013, slightly lower than the 7.8% rate recorded in May 2012; this rate is higher than the rates for Canada (7.1%) and for Ontario (7.3%). During the last 12 months, short-term (2 years) and long-term (10 years) Canadian government bond interest rates fluctuated, however, as at May 31, 2013, they were slightly higher compared to May 31, Provincial and investment-grade corporation credit spreads also fluctuated during this period; however, both were narrower as at May 31, 2013 compared to May 31, The economic uncertainty that persisted around the wold during the last 12 months continued to impact the performance of many financial institutions, including the Fonds. MANAGEMENT DISCUSSION OF FINANCIAL PERFORMANCE RESULTS OF OPERATIONS OVERALL RESULT For the financial year ended May 31, 2013, the Fonds recorded net earnings of $458 million, compared to net earnings of $215 million for the prior year. With this result for the year, the Fonds generated a return of 5.3%, up from the return of 2.6% experienced for the previous year in much less favourable stock market conditions. The value of the Fonds shares therefore increased by $1.39 compared to the price reported in July 2012 and by $0.78 compared to January 2013 to stand at $27.98 as at July 5, The Fonds also reached new historic highs as at May 31, 2013 as it increased its number of shareholders to 615,664 and its net assets to $9.3 billion. 3

30 As a result of its mission, a significant portion of the Fonds de solidarité FTQ s portfolio is comprised of private securities and specialized funds. Consequently, the Fonds did not benefit from the full effect of the increase on the stock markets that occurred during the year. In fact, the Fonds asset allocation tends to limit its return potential in a bull market such as we have experienced in the last financial year, while the opposite occurs in a bear market. In that respect, the Fonds had been able to achieve, for the financial year ended May 31, 2012, a return that exceeded the average return of Canadian balanced mutual funds 1 ; this was largely attributable to its performance for the first six-month period, when stock markets declined. FONDS RETURN Years ended May 31 Assets under management at end of year* $M Assets under management at Weight Return end of year* Weight % % $M % Development capital investments 4, , Other investments** 4, , (0.1) 9, , Total operating expenses (1.4) (1.5) Income tax (0.2) (0.3) Fonds return (annual) Fonds return (1 st six-month period) Fonds return (2 nd six-month period) * Assets under management at end of year refer to the fair value, at the end of the year, of the assets managed by the Investments and Other Investments sectors and used to generate revenues presented in the Statement of Operations. This amount differs from the amount of assets presented in the financial statements, which includes, unlike assets under management, notes from the liquidity surpluses of regional and local funds and certain specialized funds, among other things. ** Other investments represent the remaining assets not invested in partner companies. Managed by the Other Investments sector, they consist of the following portfolios: bonds, cash and money market, sector-based shares, absolute return strategies, international infrastructure funds and high-income. Return % SECTOR RESULTS Investments sector The assets managed by the Investments sector are essentially mission-driven development capital investments made by the Fonds in public and private companies in the form of shares, units or loans. To stabilize its return, the Fonds favours a fair balance between investments in the form of loans that are usually unsecured and provide a current return through interest payments, investments in shares that potentially generate a higher return but involve an increased level of volatility, and investments in specialized fund units that allow the Fonds to better diversify its portfolio while bringing private and foreign capital inflows to Québec. Development capital investments are governed by the Fonds Investment Policy, which is an important component of its Integrated Financial Assets Management Policy. The Investments sector earned a gross return of 7.4% for the year, down from the gross return of 9.2% generated for the prior year. Taking into account this return and given the level of mission-driven investments made by the Fonds during the year, the assets in this sector represented $4.9 billion or 52.7% of assets under management as at May 31, 2013 (52.6% as at May 31, 2012). The performance of the Investments sector is influenced by various factors, particularly the behaviour of the financial markets as well as the economic and business conditions in which our partner companies operate, and by the dynamic management of our investments. The gross return of 7.4% of the Investments sector for the year is largely explained by the following: the return of 6.7% generated by our private securities and specialized funds portfolio during the year (compared to 12.5% for the previous year, when significant gains had been realized on the disposal of some of our investments, including the investment we held in Enobia Pharma). This performance is essentially attributable to the general strength of the portfolio, which produced interest and dividend revenues and, in addition, generated an increase in value during the year; the positive return of 11.0% generated by our portfolio of listed securities during the year. This return is essentially explained by the good performance of the stock markets during the last 12 months. For the previous year, this portfolio had recorded a negative return of 7.0%, when the stock market conditions were much less favourable. 1 Canadian neutral balanced funds, as compiled by globefund.com 4

31 Other Investments sector The Other Investments sector manages the Fonds assets that are not invested in partner companies. Other investments consist of the following portfolios: bonds, cash and money market, sector-based shares, absolute return strategies, international infrastructure funds and high-income. As with development capital investments, other investments are managed in accordance with the Integrated Financial Assets Management Policy, which targets sound diversification of the Fonds financial assets. Under this policy, a sufficient portion of financial assets must be invested in a way that allows the Fonds to meet its liquidity needs, to produce current revenue sufficient to cover its expenses and to contribute to the generation of a reasonable return to its shareholders. For the year, the Other Investments sector earned a positive gross return of 6.6%, up from the negative gross return of 0.1% recorded for the prior year. The assets of this sector represented $4.4 billion or 47.3% of the Fonds assets under management as at May 31, 2013 (47.4% as at May 31, 2012). 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 Fonds economic environment. The positive gross return of 6.6% of the Other Investments sector for the year is largely explained by the following: the increase in stock markets, which led to a positive return of 12.1% for the sector-based shares 2 and other securities 3 portfolios. This performance followed a negative return of 9.6% for the prior year, when the stock market conditions were bearish both in Canada and internationally; the return of 2.4% on our fixed-income securities portfolio for the year, compared to 7.1% for the previous year. This return is mainly explained by interest revenues generated by the portfolio. The difference in returns compared to the prior year is essentially attributable to the decrease, in , in interest rates for Government of Canada securities, which increased the value of bonds included in the portfolio. RETURN BY ASSET CLASS Year ended May 31 Assets under management at end of year* $M Assets under management Weight Return at end of year* Weight % % $M % Return % Development capital investments Private securities and specialized funds Listed securities 4, , (7.0) Other investments Fixed-income securities 2, , Sector-based shares and other securities 1, , (9.6) 9, , TOTAL OPERATING EXPENSES Total operating expenses consist mainly of expenses related to assets under management, shareholder services, subscription activities, systems and controls and their improvement, prospecting and monitoring of partner companies, personnel and all other resources the Fonds de solidarité FTQ requires to achieve its mission and meet its objectives. Although it is essential that the Fonds has available resources to achieve its mission, it is also fundamental that it controls its expenses. Year after year, the Fonds was able to maintain its total operating expenses at a level it considers to be low. For the financial year ended May 31, 2013, the ratio of total operating expenses to net average assets for the year, calculated using the method prescribed in the Regulation, was 1.4% (1.5% for the previous year). Expressed in dollars, total operating expenses amounted to $129.9 million for the year ended May 31, 2013, compared to $122.1 million for the previous year. This increase is largely attributable to the increase in salaries and benefits as well as in expenses related to the advertising and information campaigns. 2 3 These sectors are materials, energy, consumer staples, utilities and telecommunications. Other securities are comprised of the following portfolios: absolute return strategies, international infrastructure funds and high-income. 5

32 ANALYSIS OF CASH FLOWS, BALANCE SHEET AND OFF-BALANCE SHEET ITEMS Cash flows Cash flows from operating activities of the Fonds totalled $112 million for the year, down from $171 million for the previous year. Changes in these cash flows mainly resulted from our current operations. Cash flows from financing activities of the Fonds totalled $271 million for the year, compared to $209 million for the prior year. These cash flows for the year resulted mainly from issues of shares amounting to $855 million ($767 million for the previous year) less redemptions of shares totalling $535 million 4 ($620 million for the previous year). Cash flows from investment activities of the Fonds represented a net cash outflow of $388 million for the year, compared to $372 million for the previous year. Cash needed to support net investments (acquisitions less proceeds from disposals) in partner companies was provided by both the cash flows from operating activities and the cash flows from financing activities of the Fonds discussed above. The Fonds also has lines of credit available for its working capital requirements. As at May 31, 2013, these lines of credit were unused. Balance sheet and off-balance sheet items Balance sheet development capital investments increased from $4.9 billion as at May 31, 2012 to $5.3 billion as at May 31, This $380 million increase mainly resulted from our net disbursed investments of $216 million (disbursed investments of $507 million less disinvestments of $291 million) and the increase in value of our development capital investments during the year. On a commitment basis, the Fonds made development capital investments of $521 million during the year, compared to $908 million for the prior year, which included a $300 million investment in SSQ Financial Group. On the other hand, funds committed but not disbursed increased from $822 million as at May 31, 2012 to $838 million as at May 31, In addition, balance sheet other investments increased by $247 million during the year to settle at $4.4 billion as at May 31, 2013 ($4.1 billion as at May 31, 2012). This increase is explained, among other factors, by the excess net cash inflows (issues of shares less redemptions of shares) for the year that were not used to make development capital investments. In accordance with its Integrated Financial Assets Management Policy, the Fonds uses derivative financial instruments in particular to safeguard the value of its assets, to facilitate the management of its portfolios, to modify its asset allocation without increasing or decreasing the amounts managed by internal and external specialists and to improve its returns within allocated risk limits (see the Risk Management section on page 21 for more details). MISSION OF THE FONDS DE SOLIDARITÉ FTQ, OBJECTIVES AND STRATEGIES MISSION AND OBJECTIVES The Fonds de solidarité FTQ is a union-based development capital investment fund that was born out of the Fédération des travailleurs et travailleuses du Québec. Created in 1983 under the Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), the Fonds endeavours to collect the savings of Quebecers who want to participate in creating and maintaining jobs, in order to improve the situation of workers and to stimulate the Québec economy. The Fonds mission also includes raising awareness and encouraging workers to save for retirement as well as providing economic training to workers. 4 This amount is presented on a cash basis and therefore includes the change in amounts payable between May 31, 2012 and May 31,

33 The Fonds mission is supported by both levels of government since shares of the Fonds qualify for RRSPs and give rise to a 15% tax credit at both the Québec and federal tax levels, for a total of 30% 5. The maximum tax credit is $1,500 per year, which corresponds to a purchase of $5,000 of shares. However, it should be noted that in the federal budget tabled on March 21, 2013, the government of Canada announced its intention to phase out until 2017 the 15% tax credit it grants to labour-sponsored fund shareholders. The credit remains at 15% until the taxpayer s 2014 tax year (therefore including any contributions made in the first 60 days of 2015 and applied to the 2014 tax year), and will then be phased out until The Québec tax credit of 15% remains in place. Consequently, for the taxpayer s 2013 and 2014 tax years, total credits will continue to be 30%. The federal government had also announced in its budget that it would hold consultations on this measure until May 31, However, on May 23, 2013, it announced that it would hold new consultations until July 23, 2013; these consultations would precede the eventual release of draft legislation for comment. In this context, it is important to point out that the federal government s intentions, as set out in its budget, are only for the time being a proposal that will not come into force until an act implementing the phase-out of the tax credit is adopted. Since the phase-out of the 15% federal tax credit was announced, the Fonds has undertook a detailed analysis of the impact this could have on its business model, strategies and various policies, particularly the Integrated Financial Assets Management Policy. This analysis will be continued during the next financial year, based on the development of the legislative measures that the federal government will propose on that matter. The business model the Fonds uses to achieve its mission can be illustrated as follows: When shareholders buy shares of the Fonds, an entire process is set into motion. A portion of the money collected from shareholders (in consideration of which the Fonds issues them shares) is first invested by the Fonds, pursuant to its mission, in shares, units or loans in private and public companies in Québec, or in companies that generate economic spinoffs in Québec. The investments made by the Fonds in compliance with its mission represent the development capital investments portfolio, and the companies in which the Fonds invests become partner companies of the Fonds. Pursuant to the Fonds Incorporation Act, this portion invested in partner companies must comply with the 60% rule 6. To ensure sound diversification of its financial assets, the other portion of the money collected but not invested in Fonds partner companies is invested in other financial instruments in a way that allows the Fonds to meet its liquidity needs, to produce current revenue sufficient to cover expenses and to contribute to the generation of a reasonable return to the shareholders. All of these other financial investments represent the other investments portfolio. The Fonds interests in partner companies are qualified as patient capital as they are intended to be held over an investment horizon generally ranging from 5 to 7 years, depending on the financial instrument used. The sums raised when an interest held by the Fonds is sold or bought back (disinvestment) are reinvested in other companies or used to reimburse shareholders who request a share redemption, in accordance with our retirement or early retirement criteria. On average, shareholders request a redemption approximately 10 years after their first share purchase. During this 10-year average period, given the Fonds investment horizon, the shareholders money would therefore have been invested in development capital more than 1.5 times. 5 Please see the prospectus for more information. 6 For more on this, please see the 60% rule section of this MD&A. 7

34 STRATEGIES To implement its mission and to reach its objectives, the Fonds deployed various strategies, both from a global management perspective and by sector. Therefore, in an overall perspective, the Fonds implemented an Integrated Financial Assets Management Policy under which it manages its financial assets in an integrated and comprehensive way to produce a reasonable return for its shareholders while mitigating the volatility of the return from a six-month period to the next. Accordingly, the assets in the other investments portfolio are allocated in a way that is complementary to the portfolio of mission-driven investments made in partner companies. This strategy allows the Fonds to obtain, overall, the desired return/risk ratio. The Integrated Financial Assets Management Policy takes into account actual and expected changes in the Fonds business, particularly the expected increase in redemptions due to aging shareholders and the increase in the size of the portfolio of missiondriven development capital investments. In fact, the weight of investments disbursed by the Fonds, which was 53% as at May 31, 2013, should gradually increase. This policy allows the Fonds to maintain the desired balance among the various components of the Fonds balance sheet and to review the target weight of each asset class with a view to maintaining the desired return/risk profile and continue to meet shareholders expectations. In general, the Fonds may modify its targets depending on the circumstances and events that occur in the next few years. The high volatility of financial and stock markets during recent financial years resulted in significantly modifying the actual weight of these various asset classes, which led the Fonds to rebalance its portfolio a few times. These rebalancings were made to comply with the limits and guidelines of the Integrated Financial Assets Management Policy regarding the target asset allocation. They were also a way to actively manage the portfolio within the limits set out by this policy to improve the return/risk profile, taking into consideration the general movement and erratic behaviour of financial and stock markets. The Shareholder Services sector The Shareholder Services sector strategies are built on three axes: developing systematic savings, mobilizing the LR (local representatives) network and building shareholder loyalty. For the financial year ended May 31, 2013, the Fonds collected subscriptions allowing it to issue shares totalling $855 million, compared to $767 million in the previous year. The number of new shareholders totalled 42,984, which helped the Fonds reach a new historic high of 615,664 shareholders as at May 31, Its financial performance and strength, publicity campaign, targeted marketing mailings, increased presence (particularly through its LR network throughout Québec) during the RRSP period have all allowed the Fonds to increase the amount of lump-sum subscriptions by 20%, reaching $424 million (compared to $354 million for the previous financial year). Despite a rising long-term trend, the volume of redemptions dipped this year, amounting to $542 million as at May 31, 2013, compared to $620 million as at May 31, This reduction in redemptions does not hide the fact that the Fonds needs to renew its shareholder base. This is why for several years now its communication strategies have mainly targeted young people and cultural communities. On that front, during the financial year, the number of new enrolments by people under the age of 40 increased by 27% compared to the previous year. But beyond this axis of communication and the various means the Fonds uses to get the word out, it can also count, to meet its objectives, on a network of 2,077 LRs from FTQ-affiliated unions as well as unions the Fonds has agreements with. These LRs promote, on a voluntary basis, the Fonds in their workplace across Québec, both in factories and in professional environments. They explain the Fonds' objectives and encourage their coworkers to subscribe to Fonds shares and thereby contribute to Québec's economic development while saving for retirement. The network is also supported by a team of coordinators and an LR service group is dedicated specifically to it. Our LRs receive continuing education, which is provided in collaboration with the Fondation de la formation économique, to mobilize them around the Fonds mission and the development of systematic savings. Thanks in large part to our LR network, subscriptions through payroll deduction continue to represent the largest proportion of the Fonds subscriptions. Our efforts to recruit new shareholders who contribute to their RRSP through payroll deduction combined with the increase in workplace blitzes (22% more than last year) paid off: 13,327 additional shareholders chose payroll deduction in Online transactions didn t slacken off either: 17,073 new shareholders enrolled through the Fonds website, and lump-sum subscriptions totalling close to $166 million were collected through the various virtual channels. 8

35 The Investments sector The Investments sector s strategies, which support the Fonds' achievement of its mission regarding development capital investments in Québec's economy, are integrated in the global perspective defined by the Integrated Financial Assets Management Policy, which includes the Investment Policy, and vary, among other things, depending on fluctuations of the 60% rule which the Fonds must follow pursuant to its Incorporation Act (for more on this, see the "60% Rule" section). To enable risk diversification, the Fonds allocates its investment portfolio among various economic sectors. Generally, the Fonds holds a minority interest in the companies it invests in, however it may exceptionally, in very specific situations, hold a majority or all the shares of a company. Over the years, this approach to investing has allowed the Fonds to develop extensive knowledge of the various sectors in which it invests, and its partner companies highly value the expertise this has allowed it to develop. Every year the Fonds undertakes an analysis to determine the sectors that will be prioritized given the behaviour of the financial markets and the economic and business conditions of the various sectors, as well as based on the dynamic management of its investments. The priorities are determined within the risk management framework implemented by the Investments sector several years ago, which helped improving the quality of the portfolio and stabilizing the return. Multidisciplinary teams support our investment specialists with their expertise: legal, tax, business valuation, market study, due diligence, labour relations and public market departments. A due diligence committee reviews all files submitted to governing bodies to identify the associated risks taking into consideration the Fonds mission. In addition, to deal with more difficult situations, the Senior Vice-President, Turnaround Management and Special Projects, together with the Vice-President, Legal Affairs, very closely monitors investments that entail greater credit risk. To fulfill its Québec economic development and job creation mission, the Fonds invests significantly in the form of unsecured risk capital (development capital) in partner companies. To have an accurate idea of the Fonds efforts in Québec s economic development, we must go beyond the image given by the portfolio as at a particular date and look at amounts invested in the form of unsecured risk capital (development capital) over a certain period. As the following graph illustrates, during the financial years 2004 to 2013, i.e. a 10-year period, the Fonds has committed $5.5 billion of unsecured risk capital (development capital) to partner companies. Of this amount, $2.2 billion have been invested in venture capital 7 either directly in private companies ($1.2 billion) or indirectly in private funds ($1.0 billion) in Québec and Canada. The investments made by the Fonds in private funds had a structuring effect on the Québec venture capital industry and allowed these private funds to raise several additional billions of dollars. 7 Venture capital comprises high-risk investments made directly or indirectly by the Fonds in companies in the start-up or early development stage, particularly in the new economy sector. 9

36 The Other Investments sector In managing the balance of assets not invested in partner companies (presented under Other Investments in the financial statements), the Other Investments sector is governed by the Integrated Financial Assets Management Policy which targets sound diversification of the Fonds financial assets. A sufficient portion of financial assets must be invested in a way that allows the Fonds to meet its liquidity needs, to produce current revenue sufficient to cover expenses and to contribute to the generation of a reasonable return to the shareholders, who generally invested in the Fonds for their retirement. The assets of the Other Investments sector are managed internally by a team of specialists and externally by specialized managers. The internal team of specialists manages the money market portfolio, part of the bond portfolio, the high-income portfolio and a portfolio comprised of hedge fund managers. The portfolios that are managed internally represented $2.0 billion as at May 31, 2013, or 47% of the total amount of other investments (45% as at May 31, 2012). To improve the overall performance of these portfolios, the Fonds specialists have some latitude in buying and selling securities; these transactions must comply with the limits and guidelines of the Integrated Financial Assets Management Policy and are overseen by the Financial Assets Management Committee. For portfolios managed externally, the Fonds retains the services of specialized managers which allows optimizing the management of those portfolios. One of the benefits of this kind of management is the implementation of specialized management strategies, such as active management of the duration of the bond portfolio, which targets generating added value for the portfolios in question through the expertise the selected specialists have in the area. The Fonds also held for a few years an overlay management portfolio managed by an external manager specialized in bonds. This portfolio has been gradually eliminated during the year. Using derivative financial instruments provides active management of market risks the Fonds is exposed to. When appropriate, the Other Investments sector develops a risk management strategy, which must be authorized by the appropriate governing bodies, to minimize the Fonds exposure to volatility in foreign exchange rates or stock market prices. Over the last few years, based on the changes in the weight of its development capital investments, the Fonds was led to aim for a gradual reduction of its bond portfolio. The transactions required subsequent to these modifications to the target asset allocation were executed in an orderly fashion so the Fonds would not hurt its return. During the last financial year, other changes affecting the Other Investments sector and being phased in beginning on June 1, 2013, were made to the Integrated Financial Assets Management Policy. On one hand, the equity benchmark index will be switched from an in-house index composed of five sectors to the S&P/TSX and MSCI Global 10 sector indexes, and on the other hand, the absolute return strategies category will be gradually liquidated, except for the portfolio comprised of hedge fund managers selected internally. These changes are mainly intended to optimize the Fonds return/risk ratio. The activities of the Other Investments sector fall under the responsibility of two separate Vice-Presidents: the Vice-President, Marketable Securities Portfolio Management and the Vice-President, Financial Management and Strategy. This structure helps the Fonds continue prioritizing the optimization of its return/risk ratio despite the increasing complexity of financial markets. 60% RULE The 60% rule set out in the Fonds Incorporation Act stipulates that the Fonds average unsecured investments in qualified business enterprises must represent at least 60% of its average net assets of the previous financial 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 Fonds assets, which depends in part on interest rate fluctuations and on the performance of stock markets and the economy in general. Even though market volatility is not something new, the fluctuations that result may, given the size of the Fonds, make it more difficult to manage the 60% rule. Accordingly, the 2012 budget of the Government of Québec proposed to amend the Fonds Incorporation Act to allow flexibility in the calculation of average qualified investments. It would therefore be possible, under certain conditions, to include in the calculation excess qualified investments with respect to the 60% rule made in the two financial years preceding the current financial year. As at May 31, 2013, the value of average qualified investments 8 amounted to $5.5 billion or 66.0% of the average net assets of the previous financial year (compared to 67.0% as at May 31, 2012). Since the minimum percentage prescribed was reached as at May 31, 2013, the amount of share issues for the financial year will not be limited by the 60% rule. As at May 31, 2013, the Fonds was also in compliance with all other limits and rules set out in its Incorporation Act. The Fonds expects to comply with all the limits and rules set out in its Incorporation Act over the next several years. 8 These investments include funds committed but not disbursed as well as guarantees and suretyships. 10

37 RECENT DEVELOPMENTS ACCOUNTING POLICIES The Fonds does not anticipate adopting new accounting policies that would significantly affect its net earnings for the financial year ending May 31, 2014 or its net assets per share as at May 31, INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) In 2008, the Accounting Standards Board of Canada (AcSB) announced that publicly accountable enterprises would have to replace Canadian generally accepted accounting principles (GAAP) by IFRS in their financial statements for the years beginning on or after January 1, Then, in December 2011, the AcSB confirmed that investment companies, as defined in the Accounting Guideline on investment companies of the Canadian Institute of Chartered Accountants (CICA) Handbook, will have to apply IFRS for the first time to their interim and annual financial statements for the years beginning on or after January 1, 2014, at the latest. The Fonds intends to meet this first-time adoption date and will therefore apply IFRS for the first time to prepare its financial statements for the six-month period ending November 30, IFRS conversion plan The Fonds adopted an IFRS conversion plan comprising three phases: a diagnostic phase; a standards assessment, detailed analysis, issue resolution and model financial statements preparation phase; and a change integration phase. The first phase was completed before the end of the financial year ended May 31, This phase included identifying the IFRS having an impact on the Fonds as well as the main issues and priorities to assess in the context of the Fonds. The part of the second phase dealing with standards assessment, detailed analysis and issue resolution was completed in May It included a more detailed analysis of the IFRS and the differences with current Canadian standards and their interpretations in order to identify the impact the conversion will have on processes, systems and the financial statements. In the coming months, the Fonds will prepare draft financial statements in accordance with the new standards. During the change integration phase, we will keep accounting records both under GAAP and IFRS to be able to present comparative information upon transition. In addition, the Fonds deployed its training plans, which are intended to upgrade the knowledge of its accounting staff and other stakeholders of the organization who are affected by the IFRS conversion. The Fonds continuously monitors the development of IFRS to assess its impact. Main expected changes The following table presents only the significant differences between GAAP currently applied by the Fonds and IFRS. While noteworthy, these differences do not necessarily have a significant impact on the Fonds financial statements. This table was prepared based on current standards that would be effective as at the date of transition; however, certain standards could be amended and the Fonds could reassess its position as needed. The impact assessment reflects the results of the analysis based on the current situation. 11

38 Accounting policy Main differences between GAAP and IFRS Impact on financial statements Consolidation Financial instruments Financial instruments fair value Under GAAP, investment companies meeting certain criteria recognize their investments at fair value, in accordance with Accounting Guideline AcG-18, Investment Companies. This rule applies to all investments, including those in entities in which the investment company holds more than 50% of voting shares and those in entities over which it exercises control. On October 31, 2012, the International Accounting Standards Board (IASB), the international standard-setting organization, issued a document entitled Investment Entities (amendments to IFRS 10, IFRS 12 and IAS 27), which defines investment entities and provides for an exception to the consolidation principle for such entities. Under this exception, investment entities measure their investments in controlled entities at fair value instead of consolidating them and recognize changes in fair value in profit or loss. In addition, the document specifies certain disclosure requirements regarding these investments in controlled entities. Under GAAP, the Fonds recognizes all its development capital investments and other investments at fair value, in accordance with accounting principles applicable to investment companies. Other than for financial instruments subject to consolidation, as described above, IFRS that apply to financial instruments are similar to GAAP. Under GAAP, listed financial instruments are measured at the closing bid price at the balance sheet date. Under IFRS, if an asset measured at fair value has a bid price and an ask price, the price within the bid-ask spread that is most representative of fair value in the circumstances must be used to measure fair value. The Fonds does not currently prepare consolidated financial statements and recognizes all its development capital investments and other investments at fair value. IFRS now provide for an accounting treatment for controlled entities that is similar to the treatment currently applied by the Fonds. The Fonds meets the definition of an investment entity set out in the recent amendments to the standards. The Fonds is currently assessing the disclosure requirements under IFRS. The Fonds will recognize all its financial instruments at fair value, as it currently does. The Fonds will use the most pertinent fair value within the bid price and ask price range. 12

39 Accounting policy Main differences between GAAP and IFRS Impact on financial statements Property and equipment (Capital assets) Investment property Employee benefits IFRS require that each component of an item of property, plant and equipment be depreciated separately when such item of property, plant and equipment is comprised of components to which different depreciation rates apply. One impact of this requirement is that more components are recognized under IFRS than under GAAP. Under IFRS, an item of property, plant and equipment may be measured using the cost model or the revaluation model. GAAP preclude the remeasurement of property, plant and equipment at fair value. Upon transition to IFRS, IFRS 1 First-Time Adoption of International Financial Reporting Standards allows an entity to use the fair value of an item of property, plant and equipment as its deemed cost as at the date of transition. Under IFRS, an investment property is defined as a property held to earn rentals or for capital appreciation, or both. An investment property may be measured using the cost model or the fair value model. However, investment entities are required to apply the fair value model, thereby eliminating the above-mentioned choice. GAAP do not include a specific definition of investment property. Under IFRS, past service cost of defined benefit pension plans for which benefits are already vested is immediately expensed. Under GAAP, it is usually amortized over the average remaining service period of active employees. Under GAAP, the actuarial gains or losses of defined benefit pension plans that exceed the corridor are amortized over the average remaining service period of active employees. This option to defer the recognition of gains and losses, which was previously allowed by IFRS, has been eliminated with the issuance of an amendment to IAS 19 Employee Benefits. The list of the specific components of the Fonds buildings is currently being developed. The Fonds expects to use the fair value of its buildings as their deemed cost as at the date of transition. After the transition, the Fonds expects to continue using the cost model to measure its property and equipment. The Fonds will reclassify in its balance sheet the portion of the buildings that it leases out. The Fonds will measure this portion of the buildings that it leases out at fair value. The vested portion of past service cost will have to be immediately recognized in net assets. The Fonds will recognize all net actuarial losses of pension plans in net assets. 13

40 Accounting policy Main differences between GAAP and IFRS Impact on financial statements Income taxes Under GAAP, the portion of income taxes paid that will be refundable in the future upon the payment of dividends or a transfer from retained earnings to share capital must be recognized as an asset. In addition, income tax rates used in the calculation of future income taxes already include the favourable effect of refundable taxes. Under IFRS, refundable taxes are recognized only when dividends or transfers from retained earnings to share capital giving right to a refund of these taxes are realized and approved by the Board of Directors. As such, the calculation of future income taxes cannot reflect the favourable effect of refundable taxes. As a result of these differences, refundable tax balances will have to be written off as at the date of transition and the amount of future income taxes will have to be adjusted. Future income taxes will be recognized for unrealized appreciations and depreciations. The amounts of the main differences between GAAP and IFRS described above are currently being assessed. However, they should not have a significant impact on net assets, net earnings and net earnings per share. The Fonds believes that the IFRS conversion will not require major changes to its information systems, its data processing procedures and its various activities. The Fonds also believes that its current internal control over financial reporting and disclosure controls and procedures will be sufficient and adequate for adopting IFRS and meeting their related disclosure requirements. 14

41 PAST PERFORMANCE This section presents the past performance of the Fonds. The past performance of the Fonds does not necessarily indicate how it will perform in the future. YEAR-BY-YEAR RETURNS OF THE FONDS The following chart shows the Fonds annual performance and illustrates how the Fonds performance has changed from year to year for the last ten financial years. The annual performance of the Fonds is calculated by dividing net earnings (net loss) per share for the financial year by the price per share at the beginning of the financial year. Such performance sometimes differs from the annual compound return to the shareholder because the annual performance of the Fonds is calculated taking into account share issues and redemptions made during the year, which have a dilutive or accretive effect on net earnings (net loss) per share, as the case may be. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER At the current value of $27.98 per share, a shareholder who has invested at the beginning of each of the periods indicated below earns the following annual compound returns: The annual compound return to the shareholder is calculated by taking into account the annualized change in the price per share over the periods indicated. This return sometimes differs from the annual performance of the Fonds since, as explained above, it does not take into account the dilutive or accretive effect of share issues and redemptions made during the year. Since the inception of the Fonds, the annual compound return to the shareholder has been 3.7%. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER (INCLUDING TAX CREDITS) Let s take, for example, a shareholder who has invested an equal amount each year through payroll deduction. Including the Québec and federal labour-sponsored fund tax credits (each amounting to 15%) that this shareholder has received, at the current value of $27.98 per share, this shareholder earned an annual compound return of 13.9% and 10.3% for a 7-year and 10-year period, respectively. In addition to this return, the shareholder can receive additional tax benefits if he holds his Fonds shares in an RRSP. 15

42 SUMMARY OF INVESTMENT PORTFOLIO As at May 31, 2013, the Fonds assets under management were broken down as follows: Asset classes % of net assets Development capital investments Private securities 31.4 Specialized funds 12.1 Listed securities Other investments Cash and money market 1.3 Bonds 24.8 Sector-based shares 17.0 Hedge funds High-dividend shares International infrastructure funds As at May 31, 2013, the issuers of the top 25 positions held by the Fonds, of which 17 are part of the development capital investments portfolio and 8 are part of the other investments portfolio, were as follows: Issuers % of net assets Development capital investments (17 issuers) * 32.1 Other investments (8 issuers)** * The 17 issuers representing, as a group, 32.1% of the Fonds net assets are: ** The 8 issuers representing, as a group, 17.0% of the Fonds net assets are: Atrium Innovations inc. Camoplast Solideal inc. Cogeco Câble inc. Corporation Financière L'Excellence ltée Entreprises publiques québécoises à faible capitalisation 11 FinTaxi, s.e.c. Fonds immobilier de solidarité FTQ inc. 11 Fonds immobilier de solidarité FTQ I, s.e.c. 11 Fonds immobilier de solidarité FTQ II, s.e.c. 11 Gestion TFI inc. Metro inc. Société de gestion d'actifs forestiers Solifor, société en commandite 11 SSQ Financial Group 12 TMX Group Limited Transcontinental Inc. Trencap s.e.c. VC, société en commandite Province of Ontario 5.3% Province of Québec 3.1% Financement-Québec 2.3% Government of Canada 1.8% Canada Housing Trust No % Laurentian Bank of Canada 1.3% Q-BLK Strategic Partners, Inc. 0.8% FRM Diversified II Fund SPC 0.8% This summary of investment portfolio may change due to ongoing portfolio transactions of the Fonds Hedge funds are included in the absolute return strategies portfolio. High-dividend shares are included in the high-income portfolio. Despite their relatively important weight in the overall portfolio of the Fonds, these issuers do not constitute a significant concentration risk given the large number of investees. Includes all of the Fonds investments in SSQ, Life Insurance Company Inc. and its subsidiaries, SSQ Insurance Company Inc. and SSQ General Insurance Company Inc. Includes also the Fonds investment in SSQ, Mutual Holding Inc. 16

43 CONTRIBUTION TO QUÉBEC S ECONOMIC DEVELOPMENT In keeping with its mission, the Fonds made investments over the financial year that contributed to creating, maintaining or saving quality jobs in different sectors of the Québec economy. In the current, still uncertain economic conditions, the Fonds continues to play an active role in the development and growth of Québec companies. As such, during the financial year, the Fonds invested $521 million, on a commitment basis, to support Québec entrepreneurs in their development projects. In particular, the Fonds made a $75 million commitment (announced last year) in the new Fonds Valorisation Bois. This investment fund for high value-added wood transformation will help businesses in the forestry industry move, among other things, into new niches such as green construction, green energy and green chemicals, which are all supported by the forestry industry. In the services industry, the Fonds contributed, with a $15 million investment in Athos services commémoratifs, to the return to Québec ownership of two flagships of the funeral industry: Lépine Cloutier, in Québec City and Urgel Bourgie, in Montréal. As part of the international development plan of Premier Tech, world leader in the horticulture and agriculture, industrial equipment and environmental technology industries, the Fonds reinvested $8 million; this is the Fonds fourth investment in this company based in Rivière-du-Loup. In addition, a new investment of $2 million in Sail Outdoors will allow the company to continue the regional expansion of its store network in Ontario and Québec over the 2013 to 2015 period. In venture capital, the Fonds collaborated directly, with an investment of $17.2 million, to repatriate to Canada control of Distech Controls, a leader in energy management solutions; this transaction will help create jobs in Québec in the green technology industry and strengthen Québec s position in the economy of tomorrow. In addition, in partnership with investors from other parts of the world, the Fonds participated in the financing of a project in Québec related to the lead product of Thrasos Innovation, a private, clinical stage, biotherapeutics company focused on the treatment of kidney diseases; the Fonds invested $7.1 million in this company. In addition, the Fonds was involved in the capitalization of two private venture capital funds: $25 million in Fonds CTI Sciences de la vie, s.e.c. and $10 million in Sanderling Ventures VII (Canada), L.P. discussed below as well as in a $6.7 million co-investment agreement with the Fonds de solidarité FTQ investissements croissance I, s.e.c. Furthermore, the Fonds invested $12 million in AJW Technique to relaunch Aveos, thereby contributing to the creation of 300 jobs in the aerospace industry by POLICY FOR INVESTMENT OUTSIDE QUÉBEC 13 Over the years, the Fonds made investments pursuant to the Policy for Investment Outside Québec that have had significant economic spinoffs for Québec. During the financial year, the Fonds invested $53.9 million ($47.2 million in the previous year) in five companies in accordance with this policy. In the category of companies undertaking large-scale projects in Québec, the Fonds made two investments totalling $19.0 million ($39.7 million in the previous year), including $15 million in Vision 7 International ULC, a company incorporated in Alberta that is the parent company of Cossette Communications, the largest marketing communication company in Québec. The Fonds made two investments in private funds outside of Québec totalling $29.7 million during the financial year. As mentioned previously, a $10 million investment was made in Sanderling Ventures VII (Canada), L.P., a U.S. investment fund specialized in life sciences, while $19.7 million was invested in FCPR Aerofund III, a French investment fund specialized in the aerospace industry. The eligibility of the investments in these two foreign funds is conditional to these two funds reinvesting in Québec companies an amount at least equivalent to the amount invested by the Fonds. These private funds should also provide their current and future partner companies in Québec with the specific expertise or international network necessary for their development. Lastly, during the financial year, the Fonds made an investment of $5.2 million in Cellfish Media, a company meeting the company impacting the Québec economy criteria ($7.5 million in the previous year). 13 Since 1998, the Fonds has been authorized by the Minister of Finance of Québec to invest outside Québec provided certain clearly defined conditions are met, notably with regards to economic spinoffs in Québec. 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). 17

44 THE FONDS DE SOLIDARITÉ FTQ INVESTMENT NETWORK Since its inception in 1983, the Fonds 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 Fonds' partner companies the opportunity to share their concerns with other SMEs, learn from past experiences and forge new business ties. The Fonds investment network revolves around five levels of investment: The Fonds de solidarité FTQ generally offers $2 million and up for large companies. The fonds régionaux de solidarité FTQ, which cover all of Québec, generally offer capital ranging from $100,000 to $2 million to meet the needs of businesses in their region. The local solidarity funds, created by the Fonds and the Québec Federation of Municipalities, generally offer $5,000 to $100,000 to small businesses. The fonds immobiliers de solidarité FTQ are specialized in real estate investment and development. Their main objective is to create and save jobs through building or renovating major office buildings and commercial, industrial, institutional and residential properties. The other specialized funds form an investment network in Québec and abroad that invests in assorted industries. The Fonds commitment to this network continued in , with the ongoing goal to facilitate Québec SMEs access to capital in all their stages of development. Québec entrepreneurs have had access to the entire Fonds investment network through its website: In addition to searching for our financing projects and for members of our teams of experts, this one-stop shop for investment provides details on the Fonds, the regional funds, the local funds and the real estate funds. The following graph shows the breakdown of the Fonds investments based on its various network components: DISTRIBUTION OF INVESTMENTS BY NETWORK COMPONENTS (AT COST) As at May 31,

45 OUTLOOK AND TRENDS ECONOMIC AND FINANCIAL OUTLOOK World and the United States Economic conditions in Europe continue to be difficult, and generally, leading economic indicators don t seem to suggest short- or medium-term improvement. As such, it seems that for the next few quarters the Eurozone will continue to be mired in the recession that has persisted since The bond purchase program orchestrated by the European Central Bank has so far been successful in lowering financial tensions and soothing fears of a potential collapse of the Eurozone. However, political uncertainty in certain countries, such as Spain and Italy, where recent elections have returned unconvincing results (no majority government), clearly show that the Eurozone continues to struggle and the situation remains fragile. While the economic outlook in France will likely still be challenging in 2013, the only source of comfort comes from the German economy (main driver in the Eurozone), where certain leading economic indicators suggest that in the coming quarters GDP will grow compared to its fall 2012 trough. In the United States, negotiations surrounding the fiscal cliff and the partial agreement that was concluded had no major impact on the markets. The politicians postponed the most critical decisions, particularly those concerning the debt ceiling and adopting a budget. However, sooner or later, the Americans will want to know what is happening with their public finances. The question is even more relevant as certain economic indicators that, all in all, performed well in the opening months of 2013, showed signs of weakness starting in March Put another way, the economic situation in the United States which, at the start of 2013, seemed to be setting up for a promising year, may ultimately not have enough momentum to offset the cooling in public spending and higher taxes if the economic indicators continue to trend downward in the next few months, the end result of which would be lower U.S. GDP. We should remain prudent regarding the economic growth outlook in light of the seasonal phenomenon of optimism in the first months of the year that the U.S. economy has experienced for several years now, and has shown to be a false start each time. Caution should also be exercised with respect to the economic outlook following the June 19, 2013 statement by the U.S. Federal Reserve (the Fed) according to which it intends to slow down, starting in fall 2013, the pace of its purchases of U.S. Treasury bonds and mortgage-backed securities if the economy and the labour market continue to improve. This third round of quantitative easing might even slow down further at the beginning of 2014 and end in the middle of the year. This announcement had a negative effect on several stock indexes and a positive effect on the U.S. dollar and the 10-year U.S. Treasury bills. In addition, the Fed set two indicators to be reached: an unemployment rate below 6.5% and an inflation rate near or under 2.0%. In general, the goal of the Fed s strategies is to give the government the time it needs to implement fiscal measures that will fix structural problems. Canada and Québec In Canada, analysts have been closely monitoring the slowdown in the real estate industry for a few months. Unlike in several other industrialized countries, the Canadian real estate sector was not very affected by the last financial crisis. To avoid overheating, the Bank of Canada took several measures to stifle demand in this sector. These measures seem to have borne fruit judging by the diminished activity in the Canadian real estate market in most provinces. This reduction in real estate activity obviously puts downward pressure on domestic demand and, ultimately, GDP. Since the Canadian government expects to continue cutting spending in the attempt to reach a zero deficit, all that is left to drive growth is Canadian consumers. But, since they are already deeply in debt, they should focus more in the next few months on rebalancing their financial situation rather than buying on credit. Given the above-mentioned points, combined with weak global demand for its export products, Canadian GDP growth should slow down in the coming months. The discount rate should not be revised up or down in Given current economic conditions, we forecast that over the next few months the Canadian dollar will fluctuate between $US0.93 and $US1.04, while interest rates on Canadian 10-year and 30-year bonds should vary in a range not exceeding plus or minus 50 basis points. In Québec, consumer spending remained very weak and there is no indication that this will change in the coming months. Business investment is also at anaemic levels, as are export data. The weakness of global economic conditions and the strength of the Canadian dollar weigh heavily on exports. The residential market seems to be slowing down, which is another factor of uncertainty. Québec s GDP growth in the coming months should be relatively weak. 19

46 TRENDS IN THE VENTURE CAPITAL INDUSTRY 14 In 2012, the level of activity on the North American venture capital market varied from one region to the next. While funds invested dropped 10% in the United States, activity remained stable in Canada compared to 2011, with investments of $1.5 billion. Québec saw a decrease in activity with $409 million of venture capital invested in 2012 compared to $486 million in While Québec represented 32% of all venture capital investments in Canada in 2011, its share was only 28% in 2012, despite a sharp rise in investment activity in the fourth quarter of However, taking into consideration only the last six months of 2012, the Québec s market share was 37% of investments across the country. A total of 147 Québec-based companies received venture capital investments in 2012 (compared to 191 companies in 2011). Based on the results for the first quarter of 2013, the situation seems to be improving. In fact, venture capital investments in Québec totalled $227 million, more than four times the $54 million invested during the same period in 2012, and 51% higher than the investments in the final quarter of In addition, the number of companies that received venture capital investments rose from 39 in the first quarter of 2012 to 48 for the first three months of It remains to be seen if this situation is only temporary or rather marks a new trend. THE SAVINGS MARKET AND RRSP The Canada and Québec economies are currently experiencing rather weak growth, particularly due to reduced consumer spending, and the outlook for the next few years are hardly more optimistic. According to some specialists, the reduction in consumer spending would largely be the result of income stagnation and debt accumulation. In fact, debt rises faster than income: the level of Canadian household debt jumped 11.4% in 2012, rising from 152% to 163.4% of personal disposable income. However, in theory, debt does not seem to impact Canadians intentions to save. According to a SOM survey, more than 50% of individuals aged say they are saving more than they did 10 years ago. This trend is confirmed by a BMO Financial Group survey, which showed that Canadians total savings should climb approximately $600 on average in 2013, to reach $9,859. But these additional amounts could well be invested somewhere other than an RRSP if the decrease in the average amount contributed to an RRSP in Canada for the 2012 tax year compared to the prior year continues. According to SOM s survey, the TFSA is what could benefit from this: there are more holders of TFSAs than before, and they seem to use them more as a retirement savings vehicle. Savers in Québec have the lowest savings intentions for 2013 in the country, with $5,477 on average and are also in last place for RRSP contributions for the 2012 tax year, with $3,049 on average. Given these results, it seems evident that Quebecers should take saving more seriously in the future and find a way to save even more. In this context, it is clear that making Quebecers aware of savings and encouraging them to save, which is an integral part of the Fonds mission, remains at the center of our priorities, especially with regards to young people. On this point, we believe that the communication strategy that we designed specifically for them as well as the involvement of our network of 2,077 LRs, our return, and the tax credits our shares give rise to are all features that contributed, once again in , to the Fonds shares keeping their advantageous position among all the retirement savings products available on the market. 14 The information presented in this section only concerns the venture capital category and is therefore not representative of the Fonds overall development capital investments. In addition, most of the information presented in this section covers the 2012 calendar year, which is different than the Fonds financial year. 20

47 FONDS OUTLOOK 15 Based on current financial and economic outlooks, and given our mission and investment strategy, we are anticipating an average annual return of 2.5% to 3%. This return does not take into account the tax credits granted to shareholders upon purchasing shares of the Fonds and is subject to significant volatility on a six-month or annual basis. While the Fonds is confident it will reach its return objective over a long period, the annual return depends on current economic conditions and the ups and downs of the stock and financial markets. Therefore, the Fonds return over the year will be greatly influenced by stock market returns. The return for private securities is also linked to the general performance of the economy and may be lower than their historic average returns, particularly because of an increase in the cost of credit, adverse impact of economic conditions, the volatility of the Canadian dollar compared to the U.S. dollar and the effects of foreign competition. The Fonds is targeting a ratio of total operating expenses to average net assets similar to the ratio achieved for the financial year ended May 31, With projected share issues higher than anticipated redemptions, the Fonds net assets should increase over the financial year. This being said, net cash inflows (shares issues less shares redemptions) could be lower than in the previous years, particularly because of the anticipated increase in share redemptions, as previously mentioned in this report. Consequently, considering the current 60% rule level, the volume of investments made by the Fonds will likely not exceed the average level of investments recorded in the last financial years. However, and as noted previously, since the announcement of the phase-out of the 15% federal tax credit, the Fonds has undertook a detailed analysis of the impact this could have on its business model, financial outlook and various short-, medium- and long-term strategies. RISK MANAGEMENT Sound risk management practices are vital to the success of the Fonds de solidarité FTQ. We manage our risk within a framework taking into account the nature of our activities and the risks we can reasonably assume considering the desired return/risk ratio and shareholder expectations. To that end, we capitalize on a structured process to determine, measure and control the significant risks with which we must contend. Notice to readers: The following paragraphs and the sections on market risk, credit and counterparty risk and liquidity risk form an integral part of the financial statements on which an unmodified opinion was expressed in an independent auditors report dated June 27, The Fonds manages all its financial instruments in an integrated, comprehensive manner in accordance with the standards set out in the Integrated Financial Assets Management Policy adopted by the Board of Directors. This policy covers both development capital investments and other investments. It sets goals, guidelines and several limits so that the Fonds management can ensure that the target return/risk profile is reached. The Fonds uses derivative financial instruments in particular to safeguard the value of its assets, to facilitate the management of its portfolios, to modify its asset allocation without increasing or decreasing the amounts managed by internal and external specialists and to improve its returns within allocated risk limits. During the year ended May 31, 2013, the risk management approach continued to evolve, after the Fonds undertook, a few years ago, a process to implement an integrated risk management framework. The objective of this process was essentially to provide the Fonds management with an overall vision of all risks to ensure that they are managed in accordance with their degree of importance. The production of an integrated risk profile allowed prioritizing the key financial and non-financial risks to which the Fonds is exposed, before and after considering the effectiveness of the controls implemented to mitigate the Fonds exposure to these risks. A mitigation strategy was developed for some of these risks, and action plans were set up and deployed. In addition, the Fonds produces on a quarterly basis a risk scorecard. This scorecard, which is integrated into its corporate scorecard, allows management to monitor the evolution of risks with respect to its business objectives and the organization's strategies. The integrated risk management approach was also designed to improve risk governance, monitoring and reporting. To this end, the Board of Directors of the Fonds adopted, in May 2012, the Integrated Risk Management Policy, a new policy that sets out the Fonds requirements in that regard while specifying the responsibilities of the main stakeholders involved. This new policy has been effective since June 1, 2012 and continued to be implemented throughout the financial year. 15 The outlook presented in this MD&A reflects the Fonds expectations with respect to future events, based on information available to the Fonds as at June 27, 2013, and presupposes certain risks, uncertainties and assumptions. Many factors, several of which are beyond our control, may cause the Fonds actual results, performance, or achievements to differ materially from explicit or implicit expected future results, performance, or achievements. 21

48 More specifically, the Fonds undertook in a process to qualify and quantify its risk appetite and tolerance. The objectives of this process are as follows: Defining the level of risk that the Fonds is willing to accept in pursuing its strategic objectives, executing its business plan and fulfilling its mission; Defining the Fonds risk tolerance for each risk category using a quantitative threshold or objective for financial risks and a qualitative statement for risks that are more difficult to measure. The qualitative and quantitative statements resulting from this process will be included in the Integrated Risk Management Policy and will be reviewed annually. The results of such review will have to be approved by the Board of Directors of the Fonds. In addition, as the Fonds chose to manage its risks using the principle of subsidiarity, the Fonds business sectors have started to review their procedures and processes to integrate the management of the risks identified in the Integrated Risk Management Policy into the management of their operations. The review of processes has started in the Other Investments and Investments sectors and will continue in the other sectors of the Fonds during the next financial year. In the normal course of business, the Fonds is exposed to various risks; the principal ones are presented hereafter. MARKET RISK Market risk, which is inherent to the Fonds participation in financial markets, represents the risk of losses in value arising from fluctuations in interest rates, exchange rates and prices of listed financial instruments. More specifically, this risk varies with the financial markets conditions and certain parameters of these markets, such as volatility, that may lower the value of the Fonds financial assets and thus have a negative impact on its Balance Sheet and Statement of Operations. Difficult economic or financial conditions may thus have a negative impact on the value of the Fonds shares. The Fonds manages market risk by allocating its financial assets across several classes. In addition, it invests in various industries (government and government agencies, financial institutions, technology, manufacturing and primary, services and tourism, regional or local funds and real estate) and geographic areas, within the limits allowed by its Incorporation Act. The Fonds financial assets are especially sensitive to listed share prices and fluctuations in bond interest rates (Canada bond rates and credit spreads). The Fonds financial assets are also sensitive to exchange rate fluctuations, but since most of its transactions are in Canadian dollars, the Fonds direct exposure to currency risk is relatively low. Furthermore, common hedging mechanisms such as foreign currency forward contracts are generally used for other investments in a foreign currency. A few years ago, in response to the significant appreciation of the Canadian dollar, the Fonds decided to gradually reduce from 100% to 50% the hedge of its sector-based shares portfolio against currency risk. The Fonds met this objective during the most recently ended financial year. The sector-based shares hedging ratio was 50% as at May 31, 2013 compared to 52.5% as at May 31, For the portion of the bond portfolio that is internally managed, it had been agreed in April 2012 to eliminate hedges against an increase in interest rates as rate markets would provide a window for action. During the financial year , the hedge level for this portion of the portfolio gradually moved towards this objective. As at May 31, 2013, hedges against an increase in interest rates for this portion of the portfolio had completely been eliminated (16.5% as at May 31, 2012). The Fonds performs sensitivity analyses and simulations to inform senior management of material levels of market risk exposure. It uses derivative financial instruments to reduce its market risk exposure and safeguard the value of its assets. The following table presents a sensitivity analysis for each of the three market risk categories to which the Fonds financial assets are exposed, namely changes in interest rates, listed share prices and exchange rates. These analyses reflect the changes made to existing hedging levels aimed at reducing the Fonds exposure to interest rate risk and currency risk. 22

49 SENSITIVITY OF THE FONDS RESULTS TO MARKET RISK (in millions of dollars) May 31, 2013 May 31, 2012 Change in bond interest rates* 1% increase in bond interest rates (179) (134) 1% decrease in bond interest rates Change in listed share prices** 10% increase in listed share prices % decrease in listed share prices (253) (215) Change in exchange rates*** 10% appreciation of the Canadian dollar 10% depreciation of the Canadian dollar (94) 94 (77) 77 * This analysis is performed on bonds held by the Fonds presented under Other investments in the financial statements. In this analysis, the impact on results takes into account the use of interest rate forward and futures contracts aimed at safeguarding assets. ** This analysis is performed on listed shares held by the Fonds presented under Development capital investments and Other investments in the financial statements. In this analysis, the impact on results takes into account the use of stock index futures. *** This analysis is performed on securities denominated in foreign currencies held by the Fonds presented under Development capital investments and Other investments in the financial statements. In this analysis, the impact on results takes into account the use of foreign currency forward contracts. The value of unlisted financial instruments in the development capital investments portfolio is established using approved and accepted valuation techniques. These techniques are based on a set of assumptions that take into account market conditions such as exchange rates, economic growth and credit spreads as at the valuation date. Since the assumptions used are highly interrelated, a sensitivity analysis that isolates the impact of one of these variables on the unlisted securities portfolio is not considered to fairly represent the sensitivity of the results. In addition, the fair value of certain financial instruments, in particular other investments and listed securities in the development capital investments portfolio, is determined based on external information and, consequently, no other reasonably possible assumption can be applied to the valuation techniques. Despite this, management assessed the situation for loans, bonds and advances as well as for unlisted securities valued using the capitalization of cash flows method, and determined that using possible alternative assumptions would not result in significantly different fair values. CREDIT AND COUNTERPARTY RISK The Fonds exposure to credit risk stems mainly from its mission-driven development capital investments, which are generally unsecured. Its other investment activities generally 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 (financial instruments presented under Development capital investments), issuer or counterparty in a transaction (financial instruments presented under Other investments) to honour its contractual obligations or due to a degradation of its financial position. The Fonds manages this risk through several means, including a due diligence process to ensure that the credit risk level is acceptable. The Fonds maintains a sound diversification of its assets through the Integrated Financial Assets Management Policy. Compliance with this policy therefore enables managing the concentration risk associated with the exposure to an issuer or group of issuers with common characteristics (industries, credit ratings, etc.). EXPOSURE TO CREDIT AND COUNTERPARTY RISK (fair value as a percentage of net assets) May 31, 2013 May 31, 2012 Weight of the five largest investments (Development capital investments) 19.5* 19.7* Weight of the five largest issuers or counterparties (Other investments) 14.1** 13.8** * The portion attributable to investments that do not constitute a significant concentration risk given the large number of investees represented 9.6% as at May 31, 2013 (9.7% as at May 31, 2012). ** The portion attributable to securities issued or guaranteed by the governments of Québec, Ontario or Canada represented 14.1% as at May 31, 2013 (12.7% as at May 31, 2012). 23

50 The summary of investment portfolio presented previously also discloses relevant information on the credit and counterparty risk concentration level. For the development capital investments portfolio, the Fonds approves on an annual basis targets by industries, in keeping with its internal structure. These targets are set using a risk allocation mechanism. It should be noted that the actual results may however differ from the industry targets determined based on the investment opportunities on the market. Based on an optimal risk level defined by the Fonds for this portfolio as a whole by taking into account its mission, the risk allocation mechanism facilitates a more effective monitoring and control of the portfolio profile and sector allocation by risk level. The return/risk balance of this portfolio is achieved through a sector-based risk allocation mechanism that takes into account the higher risk of our investments in certain sectors. The Fonds regularly re-examines the status of its development capital investments to ensure that they are adequately classified in one of the following three categories: compliant with internal criteria, under watch or in turnaround. To deal with the more difficult situations, an internal committee closely monitors investments that entail greater credit risk. CLASSIFICATION OF THE DEVELOPMENT CAPITAL INVESTMENTS PORTFOLIO (fair value in millions of dollars) May 31, 2013 May 31, 2012 Compliant with internal criteria 4,982 4,562 Under watch In turnaround ,299 4,919 For the other investments portfolio, issuer and counterparty ratings and compliance with exposure limits by borrower or counterparty contribute to the sound management of the credit and counterparty risk of the portfolio and to the diversification of assets. These criteria are set based on the risks specific to each asset class and reduce the risk that our results will be materially affected in the event of a payment default. As at May 31, 2013, the weighted average credit rating of bonds was AA-, as it was as at May 31, CLASSIFICATION OF BONDS INCLUDED IN THE OTHER INVESTMENTS PORTFOLIO* (fair value in millions of dollars) May 31, 2013 May 31, 2012 AAA AA A BBB Other - 4 2,386 2,154 * Presented using the Standard and Poor s rating scale. LIQUIDITY RISK The Fonds must make disbursements on a daily basis when it redeems shares held by shareholders, disburses amounts it committed to invest in partner companies, reimburses notes payable and pays expenses. It is worth noting that the Fonds is required to redeem shares only in the circumstances set out in its Incorporation Act, or to purchase them by agreement in exceptional situations provided under a policy adopted for such purpose by the Board of Directors and approved by the Minister of Finance of Québec. The Fonds must be able to obtain the liquidity required to meet its commitments. Liquidity risk is therefore related to the potential for loss due to its inability to meet such commitments. In certain cases, securities acquired on the market can be subject to resale restrictions, thus potentially reducing their liquidity. The Fonds Incorporation Act provides that part of the financial assets of the Fonds may be invested in marketable securities on organized markets, such as stock and bond markets, so it can easily obtain cash. The Fonds also has access to bank credit facilities for additional liquidities. As at May 31, 2013, the ratio of liquid financial assets 16 as a percentage of assets under management was 53.8% (51.5% as at May 31, 2012), demonstrating, in management s opinion, that the Fonds has the required liquidity to fulfill all its obligations and commitments, even under potential scenarios that would be less favourable to it. 16 Liquid financial assets are comprised of fixed-income securities (cash, bonds and money market securities), listed shares of the other investments portfolio and certain listed shares of the development capital investments portfolio. 24

51 OPERATIONAL RISK Inherent to all the Fonds 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 with a view to continuous improvement. The Fonds operational risk management and the effectiveness of its management framework are underpinned by the following guiding principles: Competent, well-trained staff; A succession management program; A culture of integrity; Segregation of incompatible duties; Adoption of a concept of independence inspired by the securities regulations applicable to public companies; Delegation of decision-making authority to Special Boards whose majority of members are external to the Fonds and the FTQ; Monitoring of the development capital investment valuation process; Implementation of a framework program of financial compliance; Monitoring of technology development and information security; A planning process for resumption of activities in the event of business interruption; Continuous monitoring of changes in applicable legislation, regulations and standards, including the Fonds compliance therewith; Risk identification and assessment when new products or activities are implemented. Codes of ethics and conduct define, among other things, the rules of conduct to be followed by employees, officers and directors to avoid, for instance, conflict of interest situations. All employees or officers must, in the execution of their duties, put the interests of the Fonds ahead of their own or those of third parties. They must also avoid placing themselves in a conflict of interest situation, either real, potential or apparent. The codes of ethics and conduct prohibit, among others, certain personal trading deemed conflictual, including receiving certain gifts and using any advantage, information or interest related to the Fonds 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. Each year, all employees must complete a statement of interests held and a statement on the compliance of their conduct with the code. The codes provide for a whistleblowing procedure for cases of non-compliance with the code involving financial or accounting information or illegal acts. During the financial year , the Fonds also undertook an analysis of the risk of fraud and misconduct to which it is exposed. Although this risk was not assessed as high following this analysis, recommendations to improve its control environment have been implemented by the Fonds during the most recently ended financial year and additional work will be performed in OTHER RISKS The Fonds 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. This risk is managed through monitoring and strategic and operational planning processes that seek input from all levels of the organization; the resulting plans are submitted to the Board of Directors for approval. The Management Committee periodically monitors the business plans and strategic objectives of the Fonds and each sector. Any strategic decision or change to the Fonds already adopted orientations that could have a material impact is authorized beforehand by the appropriate governing bodies, based on the powers delegated to them. 25

52 Reputation risk is the risk that negative publicity, whether founded or unfounded, will cause losses, a decrease in liquidity or a decline in the customer base. The Fonds controls and manages reputation risk through the following, among others: proper training, legal and financial due diligence for all its capital development investments, sound governance practices, the application of policies and procedures, and ownership of the codes of ethics and conduct by all officers and employees. The Fonds 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 partner companies and a code of conduct for international business dealings. The Fonds also ensures that any financial information released outside the organization is accurate and validated beforehand. The Fonds implemented a 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 a disclosure framework and standards, to ensure that information disclosed is rigorously prepared and validated, to make the Fonds employees aware of disclosure principles, and to specify the roles and responsibilities of the main participants in the disclosure process. The application of this policy is monitored by a Disclosure Committee composed of members of the Fonds 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. Given the growing use of social media by the Fonds and its employees, the Fonds implemented a Social Media Policy during the financial year This policy governs the use of these tools to prevent any harm or damage to the image or the reputation of the Fonds resulting from such use. All employees were trained following the implementation of this policy. GOVERNANCE RISK GOVERNANCE The Management Committee, comprised of the President and CEO and executives, is responsible for the global management of the Fonds de solidarité FTQ s operations. Because risk governance is an essential part of integrated financial assets management, the Fonds 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. An Integrated Risk Management Advisory Committee has also been set up. The governance structure that supports the Fonds, in particular with respect to risk management, is as follows: Our risk governance structure is built upon a series of policies approved by the Board of Directors. The Fonds regularly reassesses policies, standards, guidelines, and procedures to incorporate the best possible practices. It should be noted that the functions of Chairman of the Board and President and CEO are separate. 26

53 The implementation process of an integrated risk management framework, that was launched a few years ago and led to the adoption by the Board of Directors of the Integrated Risk Management Policy in May 2012 (see the Risk Management section), also had some effects on the risk governance structure. The roles and responsibilities of the Fonds governing bodies, internal committees and main stakeholders involved were specified in this policy. The Board of Directors of the Fonds thus reconfirmed its responsibility for integrated risk management while delegating to the Executive Committee the monitoring of some work and their results in that respect. In addition to the governance structure, the Integrated Risk Management Policy sets out the organization s requirements with respect to the integrated management of all types of risks, ensures that risk management is closely related to the total risk appetite and determines an approach whereby all significant risks and their interrelations are considered in the development of the organization and the maintenance of the return/risk balance. The Vice-President responsible for the integrated risk management framework reports directly to the President and CEO in carrying out his duties, and he is supported by the Integrated Risk Management Advisory Committee. The Integrated Financial Assets Management Policy, which is under the Integrated Risk Management Policy, is a key piece of this management framework. The policy sets out the target financial asset allocation allowing the Fonds to fulfill its mission while meeting the desired return/risk ratio through sound diversification that helps mitigate the volatility of such return from a six-month period to the next. This policy also provides objectives, guidelines, and limits within which our managers and specialists must perform their duties to carry out their mandates. In fact, the Integrated Financial Assets Management Policy is composed of several policies covering general principles, orientations, and the limits and guidelines applicable to various asset classes, including a separate policy applicable to the Investments sector. The detailed guidelines and procedures covering the management of financial assets on an operational basis are presented separately to facilitate their application. KEY GOVERNING BODIES BOARD OF DIRECTORS, DELEGATE BOARDS AND COMMITTEES The Board of Directors carries out the following duties: Ensuring the Fonds mission, Incorporation Act and any other law it is subject to are followed while adhering to its values of solidarity and responsibility; Approving the main directions, policies and business strategies of the Fonds, notably in regards to integrated financial assets management and integrated risk management; Ensuring there are controls over the Fonds management, including over risk management, and ensuring a culture of integrity; Approving investment recommendations for which it is responsible and monitoring them; Evaluating the Fonds performance on a regular basis. Members of the Board of Directors are nominated or elected according to the rules set out in the Fonds Incorporation Act. In carrying out its mandate, the Board delegates part of its responsibilities. Delegate Boards and Committees are responsible for decisions related to development capital investments and, in accordance with Section 8 of its Incorporation Act, to the purchase by agreement of shares of the Fonds. These Delegate Boards and Committees include the Executive Committee, the four Special Boards created for the Traditional, New Economy, Mining Portfolio and Turnaround and Majority Interests sectors as well as the Purchase-by-Agreement Decision-Making Committee, which is responsible for approving the purchase by agreement requests made by our shareholders. Each development capital investment of $5 million or more must be authorized by the Board of Directors, or the Executive Committee if the Board of Directors is unable to meet in a timely fashion; in addition, each of these investments must be recommended by the Special Board overseeing the corresponding activities. All investments of less than $5 million are under the authority of the corresponding Special Board, except for the Mining Portfolio, whose limit is $1 million. The four Special Boards are composed of a majority of members who are external to the Fonds and the FTQ, while the Purchase-by-Agreement Decision-Making Committee is comprised of Fonds employees. The Executive Committee examines, at least once every six-month period, management s reports on integrated risk management. Using these reports, the Committee reports to the Board of Directors, the Audit Committee and the Financial Assets Management Committee, as required. It also recommends policies for integrated risk management that are proposed by management, as needed. AUDIT COMMITTEE The Audit Committee is comprised entirely of members who are external to the Fonds in accordance with Regulation respecting Audit Committees, and its mandate includes: recommending the audited financial statements and MD&A for approval by the Board of Directors; approving the principles for valuing development capital investments and receiving the Valuation Committee s report; enquiring about the effectiveness of internal controls implemented by management and the fact that they are not overridden; enquiring about the compliance and risk management process for preparing the Fonds financial statements and provide feedback; and receiving the Ethics Committee report and overseeing the application of the code of ethics for Board members. The Committee also ensures the Fonds complies with the laws, regulations and agreements that govern its operations and that may have a material financial impact. The Audit Committee reports its activities to the Board of Directors and makes recommendations to it when necessary. 27

54 In addition, an Ethics Committee composed of members of management support the Audit Committee in monitoring the application of the Fonds codes of ethics and conduct. FINANCIAL ASSETS MANAGEMENT COMMITTEE This committee is responsible for monitoring the implementation, compliance with and updating of the Integrated 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 overall vision and orientation for financial assets management to the Board of Directors. This committee also monitors performance and changes in the return/risk ratio and ensures that the Fonds activities are in compliance with all its financial assets management policies and that the Fonds has adequate and sufficient guidelines and procedures. The Financial Assets Management Committee reports to the Board of Directors twice yearly on its activities and makes recommendations to it when necessary. VALUATION COMMITTEE Composed of a majority of qualified valuators independent from the Fonds, the Valuation Committee is mandated to provide a reasonable assurance that the procedure used for valuing the development capital investments portfolio complies with the procedure set out in the Regulation Respecting Development Capital Investment Fund Continuous Disclosure. The Valuation Committee reports on its review to the Audit Committee twice yearly. VALUATION FRAMEWORK Development capital investments and other investments are recorded on the balance sheet at their fair value 17. However, the majority of the Fonds development capital investments are made in private companies or specialized funds for which a fair value must be established because the securities issued by these companies or funds are not traded on organized, public markets. Specialized valuators employed by the Fonds determine the fair value of these investments. These 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 management framework that governs the procedure for valuing development capital investments is set out in the Regulation Respecting Development Investment Fund Continuous Disclosure. In particular, the Regulation specifies the minimum qualifications required for specialized valuators employed by the Fonds as well as the governing body responsible for approving the valuation principles used. The Regulation also requires that all relevant information about the valuations (excluding publicly traded issuers valued using market prices) should be provided to an independent valuation committee. In addition, the President and CEO and the Chief Financial Officer must sign a certification stating that the valuation procedure set out in the Regulation was complied with and confirming the aggregate fair value of the development capital investments portfolio. This certification has been submitted to the Audit Committee on a half-year basis since May 31, During the year, the Fonds valuation principles were updated to reflect the changes proposed in the International Private Equity and Venture Capital Valuation (IPEV) Guidelines. The changes do not materially affect the Fonds valuation principles. The Audit Committee approved these updated valuation principles in May FINANCIAL GOVERNANCE While not required to apply MI issued by the Canadian Securities Administrators, the Fonds has decided to base its work upon the principles stated in this rule, thereby demonstrating its willingness to respect best practices in financial governance. Our financial compliance framework program commonly known as Confor 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 adequate internal control over financial reporting and disclosure controls and procedures. It must also periodically evaluate their design and effectiveness. 17 Using fair value is a best practice recognized by venture capital firms and private equity funds. In short, fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. 28

55 During the year, the Fonds undertook the necessary work to evaluate the design and effectiveness of internal control over financial reporting and disclosure controls and procedures using the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework, and, for information technology controls, the COBIT (Control Objectives for Information and Related Technology) framework, two recognized financial governance frameworks. A certification was signed by the President and CEO and the Executive Vice-President, Finance for the financial year ended May 31, 2013, confirming their responsibility for this procedure. These certifications are available on SEDAR. A mechanism for sub-certification by several Fonds executives and managers also supports these certifications. Management s conclusions on the design and effectiveness of internal control over financial reporting and disclosure controls and procedures are presented hereafter. MANAGEMENT S REPORT ON INTERNAL CONTROLS CONCLUSIONS ON THE DESIGN AND EFFECTIVENESS OF INTERNAL CONTROL OVER FINANCIAL REPORTING Internal control over financial reporting comprises all the processes and controls in place, including policies and procedures, that govern the maintenance of accounting records and the preparation of financial statements to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with Canadian generally accepted accounting principles. Management, under the supervision of the President and CEO and the Executive Vice-President, Finance, evaluated the design and effectiveness of internal control over financial reporting. Based on this evaluation, management concluded that, as at May 31, 2013, internal control over financial reporting was adequately designed and effective. However, because of its inherent limitations, internal control over financial reporting may not prevent or detect certain misstatements on a timely basis. During the year ended May 31, 2013, there was no change in the Fonds internal control over financial reporting that has materially affected, or is reasonably likely to affect, the Fonds internal control over financial reporting. CONCLUSIONS ON THE DESIGN AND EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES Disclosure controls and procedures include the processes and mechanisms designed to provide reasonable assurance that financial information for external purposes is recorded, processed, summarized and reported within the required time period for review and approval by management and that it is disclosed externally within the time periods specified in the applicable regulations and legislation. Management, under the supervision of the President and CEO and the Executive Vice-President, Finance, evaluated the design and effectiveness of disclosure controls and procedures. Based on this evaluation, management concluded that, as at May 31, 2013, disclosure controls and procedures were adequately designed and effective. 29

56 STATEMENT OF DEVELOPMENT CAPITAL INVESTMENTS AT COST As at May 31, 2013

57 INDEPENDENT AUDITOR S REPORT To the Directors of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) We have audited the statement of development capital investments at cost of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as at May 31, 2013 ("the statement"). The statement has been prepared by management based on the dispositions of article 18 of the Regulation respecting development capital investment fund continuous disclosure. Management's Responsibility for the Statement Management is responsible for the preparation of the statement in accordance with the dispositions of article 18 of the Regulation respecting development capital investment fund continuous disclosure, and for such internal control as management determines is necessary to enable the preparation of the statement that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on the statement based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the statement of development capital investments at cost of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as at May 31, 2013 is prepared, in all material respects, in accordance with the dispositions of article 18 of the Regulation respecting development capital investment fund continuous disclosure. 1 CPA auditor, CA, public accountancy permit No. A Montréal, June 27,

58 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 1988 Fonds de développement emploi-montréal inc. F 1,338 1,338 V01400 TransForce inc. S 9,955 9,955 V Entreprises publiques québécoises à faible capitalisation TI/M/P/S 316, ,009 FIDUCIE 1990 Bestar inc. M 1, ,251 V02252 Transat A.T. inc. S 39,377 39,377 V B.M.B. (Îles-de-la-Madeleine) inc. S V02102 Fonds immobilier de solidarité FTQ I, s.e.c. R 28,975 28,975 V02273 Fonds locaux de solidarité FTQ, s.e.c. F 38,000 38,000 V Polycor inc. P 12,490 12,490 V Fonds immobilier de solidarité FTQ II, s.e.c. R 25,000 25,000 V02828 Groupe Robert inc. S 21,940 18,500 40,440 V01945 Le Devoir inc. S 1,315 1,315 V02780 SSQ, Société d'assurance-vie inc. S 29,413 66,100 95,513 V Corporation Financière Brome inc. S 2,991 3,100 6,091 V Château M.T. inc. S 2,610 2,610 V03133 Fonds régional de solidarité Abitibi- Témiscamingue, société en commandite Fonds régional de solidarité Côte-Nord, société en commandite Fonds régional de solidarité Estrie, société en commandite Fonds régional de solidarité Lanaudière, société en commandite Fonds régional de solidarité Laurentides, société en commandite Fonds régional de solidarité Laval, société en commandite Fonds régional de solidarité Mauricie, société en commandite F F F F F F F 16,105 16,105 V ,985 21,985 V ,114 20,114 V ,587 12,587 V ,532 21,532 V ,524 21,524 V ,708 12,708 V03588 MethylGene inc. TI 17,033 17,033 V03890 Mines Virginia inc. P 1,712 1,712 V Fonds d'investissement de la culture et des communications, société en commandite S 26,700 26,700 V03748 Fonds régional de solidarité Bas Saint-Laurent, société en commandite Fonds régional de solidarité Chaudière- Appalaches, société en commandite Fonds régional de solidarité Gaspésie-Îles-de-la- Madeleine, société en commandite Fonds régional de solidarité Montérégie, société en commandite Fonds régional de solidarité Outaouais, société en commandite F F F F F 16,160 16,160 V ,574 18,574 V ,573 12,573 V ,478 24,478 V ,478 30,478 V

59 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 1996 Fonds régional de solidarité Québec, société en commandite Fonds régional de solidarité Saguenay-Lac-Saint- Jean, société en commandite F F 24,976 24,976 V ,971 24,971 V03586 Groupe Solmax inc. M 1,618 12,000 13,618 V03615 Mines Richmont inc. P 9,219 9,219 V Fonds de capital de risque GeneChem Technologies, s.e.c. Fonds d'investissement de Montréal (F.I.M.), société en commandite Fonds régional de solidarité Nord-du-Québec, société en commandite TI R F 6,439 6,439 V , ,709 V ,000 12,000 V03594 GSM Capital Limited Partnership TI V Québec inc. (Manoir Richelieu) S 46,179 46,179 V16026 Cap sur mer inc. M 1, ,909 V04308 Exploration Azimut inc. P V04288 Fonds régional de solidarité Centre-du-Québec, société en commandite F 9,616 9,616 V04352 Niocan inc. P V04287 Société en commandite Manoir Richelieu S 1,254 1,254 V03184 TSO3 inc. TI 6,503 6,503 V Corporation minière Osisko P 4,523 9,583 14,106 V04656 La Financière des entreprises culturelles (FIDEC), société en commandite 2000 ARGO II : The Wireless-Internet Fund - Limited Partnership S TI 2,402 2,402 V ,364 11,364 V04893 Atrium Innovations inc. TI 37,769 25,000 62,769 V04820 Genopole 1er Jour S.A. TI V05387 Groupe HNZ inc. S 24,633 24,633 V04958 GTI V, société en commandite TI 8,059 8,059 V04396 Marketing Léger inc. S 1,000 1,000 V04460 Société en commandite GeneChem Thérapeutique TI 9,775 9,775 V Fonds Bio-Innovation, société en commandite TI 24,351 24,351 V05076 Investissement Premières Nations du Québec, société en commandite F 2,000 2,000 V04956 Kruger Wayagamack inc. M 12,137 12,137 V03772 Novacap II, société en commandite S 8,224 8,224 V04981 Partenaires MidCap S V05454 SIDEX, société en commandite P 15,000 15,000 V FinTaxi, s.e.c. S 12,800 47,200 60,000 V05683 Fonds immobilier de solidarité FTQ inc. R 1 268, ,942 V05025 Junex inc. P V05601 Lumira Capital I Québec société en commandite TI 3,877 3,877 V

60 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 2002 Produits Intégrés Avior inc. M 3,250 3,250 V05148 Thermetco inc. M ,237 V05577 Vimac Early Stage Fund L.P. TI 9,659 9,659 V Fonds Vimac Milestone Medica Nord s.e.c. TI 5,550 5,550 V05951 Le Fonds Entrepia Nord, s.e.c. TI 7,612 7,612 V05841 Mines de la Vallée de l'or ltée P V06004 Stella-Jones inc. M 35,938 35,938 V Canada inc. (Transat A.T.) S 4,647 4,647 V06375 Corporation Aurifère QMX P V06287 Fonds d'investissement MSBI, société en commandite TI 8,956 8,956 V05710 Matamec Explorations inc. P V06168 Octasic inc. TI 1,741 6,091 7,832 V05549 Trencap s.e.c. S 198, ,516 V06277 Vimac ESF Annex Fund L.P. TI 1,030 1,030 V Québec inc. M 1 1 V04338 A.M. Pappas Life Science Ventures III, LP TI 10,645 10,645 V11759 Addenda Capital inc. S 71,393 71,393 V13108 Camoplast Solideal inc. M 39,551 39,551 V04935 Château Bonne Entente inc. S 1, ,244 V06252 FIER Partenaires, société en commandite F 24,500 24,500 V06260 Fonds Brightspark II, s.e.c. TI 1,281 1,281 V06280 Fonds d'opportunités canadiennes HRS, s.e.c. S 20,484 20,484 V06076 Groupe C.N.P. inc. M V06387 Média Groupe inc. S 2,000 2,042 4,042 V06408 Metro inc. S 73,948 73,948 V11740 ProQuest Investments III, L.P. TI 3,229 3,229 V06351 RHO Fund Investors 2005, L.P. TI 5,391 5,391 V11625 SAIL Plein Air inc. S 1,000 5,529 6,529 V Canada inc. (Maison des Futailles) M 13,482 8,000 21,482 V11897 Alaris Royalty Corp. TI 1 1 V12157 Boutique Linen Chest (Phase II) inc. S 2,317 2,317 V12067 Capital Financière Agricole inc. S 2,366 2,366 V06115 Capital St-Laurent, s.e.c. TI 11,320 11,320 V11478 Corporation développement Knowlton inc. M 9,249 10,405 19,654 V12363 Coveo Solutions inc. TI 5,954 5,954 V12251 Distribution Acier Pointe-Claire inc. M 2,807 2,807 V11730 Emerald Cleantech Fund II L.P. TI 6,351 6,351 V11778 Entreprises SMD ltée S 3, ,760 V11515 Éthanol Greenfield inc. M 60,000 60,000 V

61 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 2006 Excavation René St-Pierre inc. S 5,000 5,000 V11889 Exploration Dios inc. P V11976 FCPR Aerofund S 9,406 9,406 V11792 Fiducie du Chantier de l'économie sociale S 12,000 12,000 V06285 Fonds CTI sciences de la vie, s.e.c. TI 1,926 1,926 V11965 Fonds ID s.e.c. TI 10,000 10,000 V11741 Fonds Propulsion III s.e.c. TI 5,944 5,944 V06283 Gestion Rivière du Diable inc. S 2, ,755 V11457 Groupe CVTech inc. S 19,985 3,232 23,217 V12130 J.L. Albright IV Venture Fund L.P. TI 3,549 3,549 V12024 Métal Perreault inc. M V12104 Ressources Cartier inc. P V12031 Rho Canada Capital de Risque, s.e.c. TI 19,050 19,050 V11984 Société en commandite Agechem TI 17,742 17,742 V06248 Sonaca S.A. M 2,950 2,950 V12257 VantagePoint Venture Partners 2006 (Q), L.P. TI 16,728 16,728 V Canada inc. (North Country Slate) P V Québec inc. (Excavation René-St- Pierre) S V11964 Envivio, inc. TI 5,751 5,751 V12402 Exploration Midland inc. P V12531 Fonds d'acquisition de Montréal, société en commandite Fonds d'investissement de Montréal (F.I.M.) II, société en commandite Fonds d'investissement inovia II, société en commandite S R TI 5,000 5,000 V V ,499 3,499 V12317 GO capital s.e.c. TI 1,408 1,408 V12016 Groupe Bikini Village inc. S 1,275 1,275 V12655 Investissement (12348) s.e.n.c. (Cellfish Media) TI 11,785 11,785 V12348 Les Industries Spectra Premium inc. M 10,000 5,903 15,903 V06225 MMV Financial inc. S 1 1 V12373 Novacap Industries III, s.e.c. M 21,421 21,421 V12234 Novacap Technologies III, s.e.c. TI 14,851 14,851 V12095 Partenaires Médias Remstar, s.e.c. S 2,000 2,000 V11979 ProQuest Investments IV, L.P. TI 6,593 6,593 V12276 Soccrent 2006, société en commandite F 11,380 7,400 18,780 V11929 Société de gestion d'actifs forestiers Solifor, société en commandite P 150, ,000 V11584 Thallion pharmaceutiques inc. TI 8,275 8,275 V12642 Vertex III (C.I.) Fund, L.P. TI 9,208 9,208 V

62 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships Canada inc. (Groupe B.M.R.) S 10,300 10,300 V13242 Administration LVER inc. S 9,983 9,983 V13113 Alimentation Coop Port-Cartier S V12496 BDR Capital s.e.c. TI 73,413 73,413 V13558 Cogeco Câble inc. TI 100, ,000 V12924 Corporation Financière L'Excellence ltée S 100, ,000 V13127 Dalkotech inc. M 5, ,060 V13252 Donner Metals Ltd. P V13371 Exploration NQ inc. P V13232 Fonds soutien Montréal parallèle, s.e.c. TI 2,000 2,000 V13118 G.D.G. Environnement ltée S 2,500 2,500 V11560 Gestion ACCEO inc. TI 22,870 7,750 30,620 V13530 Gestion TFI inc. S 125, ,000 V14754 GLV inc. M 32,061 25,000 57,061 V13155 Groupe AGF inc. M 9,600 9,600 V12541 Groupe Gecko Alliance inc. TI 4,537 4,537 V12870 HR Stratégies inc. S V11531 Ontario Venture Capital Fund LP TI V13245 Placements Montrusco Bolton inc. S 20,151 20,151 V13132 Rho Ventures VI, L.P. TI 18,185 18,185 V12930 Sonaca Montréal inc. M 5,000 5,000 V11595 VantagePoint Cleantech Partners II, L.P. TI 16,919 16,919 V N Plus inc. M 14,166 14,166 V12431 A.M. Pappas Life Science Ventures IV, LP TI 9,267 9,267 V12898 ADS inc. M 3,600 3,600 V13601 Axtel SARL S V13790 Champlain Capital Partners, L.P. S 6,208 6,208 V13625 Corporation Nuvolt inc. M V14081 FCPR Aerofund II S 12,201 12,201 V13661 Fonds Cycle Capital I, s.e.c. S 16,965 16,965 V13823 Fonds d'acquisition québécois, société en commandite S 5,000 5,000 V13608 Gestion hôtelière REVPAR inc. S V14033 Gestion Juste pour Rire inc. S 3,125 3,125 V12916 Holding Smardt inc. M 12,121 5,000 17,121 V15321 Les Viandes Laroche inc. M 2,000 2,000 V01417 Meca Dev s.a.s. M 21,502 10,933 32,435 V14354 Média Cineflix inc. S 11,063 11,063 V13243 Medicago inc. TI 5,099 5,099 V04576 Premier Tech ltée P 43,625 43,625 V01387 Shermag inc. M 2,533 2,533 V

63 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 2009 Société en commandite Groupe CH S 40,000 40,000 V ,814 Teraxion inc. S 6,167 6,167 V05734 Transcontinental inc. M 100, ,000 V13756 VC, société en commandite R 119, ,537 V Québec inc. (Groupe C.N.P.) M 2,500 2,500 V14468 Cactus Commerce inc. TI V06093 Dalkotech International inc. M 1 1 V14868 Focus Graphite inc. P V14393 Foliot Management inc. M 7,000 2,000 9,000 V14270 Fortress Paper Ltd M 7,000 25,000 32,000 V14403 Groupe Technosub inc. S 3,344 3,344 V06405 IPL inc. M 15,000 45,000 60,000 V01975 Les Diamants Stornoway (Canada) inc. P ,700 15,344 V14396 Logibec Groupe Informatique ltée TI 30,000 30,000 V01833 Nemaska Lithium inc. P V14826 Radialpoint Safecare inc. TI 1 17,096 17,097 V14302 Ressources Géoméga inc. P V14798 Ressources Pershimco inc. P V11415 Royal Nickel Corp. P V14827 Saladexpress inc. M 8,250 8,250 V03768 Scierie Dion & Fils inc. M 2,750 2,750 V14350 Serdy Média inc. S 2,500 1,000 3,500 V13802 SSQ, Société d'assurances générales inc. S 15,000 15,000 V14428 Twist, société en commandite S 6,000 6,000 V Abitibi Royalties inc. P 8 8 V15313 Acquisio inc. TI 4,429 4,429 V12982 AmorChem, société en commandite TI 2,178 2,178 V14317 Bombardier inc. M 49,779 49,779 V13647 Cogeco inc. TI 25,000 25,000 V15279 Corporation Aurifère Aurvista P V14828 Divertissement 7G inc. TI 6,006 7,967 13,973 V15022 Fonds Alpha+ Montrusco Bolton S 20,000 20,000 V13562 Fonds Capital Culture Québec, société en commandite S 10,000 10,000 V14949 Fonds d'amorçage Cycle-C3E, s.e.c. TI 2,313 2,313 V14929 Fonds d'investissement pour la relève agricole (FIRA), s.e.c. S 1,667 1,667 V14455 Fonds d'investissement Réal, s.e.c. TI 4,081 4,081 V14927 Fonds Relève Québec, s.e.c. S 1,800 1,800 V14948 Fonds stratégique à rendement absolu HRS, s.e.c. S 50,000 50,000 V14730 Groupe Crête division St-Faustin inc. M 1,733 1,733 V

64 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 2011 Groupe Meloche inc. M 3,000 3,000 V14936 Groupe TMX Limitée S 97,600 97,600 V15039 Groupe Tolgeco inc. S 2,500 2,500 V01736 JV Driver Corporation inc. S 16,000 16,000 V14834 Les Chantiers de Chibougamau ltée M 3,750 3,750 V14814 Les Investissements Nolinor inc. S 1,875 1,875 V14769 Magnus Poirier inc. S V03002 Milestone Pharmaceutiques inc. TI 2,868 2,868 V14985 Nunavik Nickel Mines Ltd P V15314 Ressources Monarques inc. P V15054 Ressources Sirios inc. P 1 1 V14995 Rona inc. S 39,985 39,985 V15367 Scandinave Spa in Whistler inc. S 1,950 1,950 V Québec inc. (Forage Boréal) P 2,250 2,250 V Québec inc. (Casavant Frères) M 2,000 2,000 V Quebec inc (Loisirs Fletcher) M 2,500 2,500 V15981 Abipa Canada inc. M 9,800 9,800 V15425 Agritibi R.H. inc. S V15495 Athos services commémoratifs inc. S 15,000 15,000 V15783 Erfa Canada 2012 inc. S 3,125 3,125 V15297 Fempro I inc. M 3,725 3,725 V15348 Financement YPG inc. S 10,195 10,195 V16027 Finloc inc. S 5,442 5,442 V15861 Fonds de solidarité FTQ investissements croissance I, s.e.c. Fonds de solidarité FTQ Investissements technologiques I, s.e.c. S TI 5,667 5,667 V ,500 2,500 V15320 Germain Larivière inc. S 1,587 1,587 V14464 Gestion SMS inc. M 1 1 V15483 Gestion Steelhead inc. S V15442 GLyPharma Thérapeutique inc. TI 1,437 1,437 V15331 Groupe Colabor inc. S 15,000 15,000 V06111 Groupe MBI inc. M 18, ,973 V15261 Groupe PCM inc. M V15362 Groupe QuébéComm inc. S 3,000 3,000 V14747 Innovation Thrasos inc. TI 4,224 4,224 V14257 La Coop fédérée M 50,000 50,000 V15256 Les Bois de plancher P.G. inc. M 2,000 2,000 V13578 Les entreprises de divertissements Muse inc. S 4,500 4,500 V14680 Les Industries Touch inc. S V11932 Lumira Capital II, société en commandite TI 1,628 1,628 V

65 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2013 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans and Advances Guarantees and Suretyships 2012 Maetta Sciences inc. M 2,438 2,438 V12032 Maibec inc. M 2,500 2,500 V02502 Mine Barlow inc. P V15436 Produits alimentaires Viau inc. M 5,000 5,000 V14878 Société en commandite Free 2 Play S 5,000 5,000 V14906 Sojag inc. S 4,750 4,750 V15446 SSQ, Société d'assurance inc. S 191, ,950 V15298 SSQ, Société de participation mutualiste inc. S 78,050 78,050 V15372 Supermétal Structures inc. M 3,618 3,618 V05411 Technologies Interactives Mediagrif inc. TI 4,725 4,725 V03963 Yellow Média Limitée S 1,747 1,747 V Accedian Networks Corporation TI 1,252 1,252 V13081 AJW Technique inc. S 7,000 7,000 V15836 Asmacure inc. TI 1 1 V06167 Cellfish Media inc. TI 5,168 5,168 V16328 Distech Contrôles inc. M 13,000 13,000 V06350 Entreprises Minières du Nouveau-Monde inc. P V15867 Fonds d'investissement de Montréal (F.I.M.) III, société en commandite R 1,957 1,957 V13959 Humania Assurance inc. S 10,000 10,000 V15294 Les Brasseurs du Nord inc. M 15,750 8,750 24,500 V15958 Les Réseaux Accedian inc. TI 7,764 7,764 V11761 Propair inc. S V16025 Vision 7 International ULC S 15,000 15,000 V general partners of limited partnerships S V17210 Total 761,142 2,454,011 1,612,955 11,590 4,839,698 7,814 The list of investments made by these specialty funds is shown in the unaudited Index of the share of the Fonds in investments made by the specialized funds, at cost. This statement of development capital investments at a total cost of $4,839,698,000 itemizes by company the amounts invested by the Fonds de solidarité des travailleurs du Québec (F.T.Q.). This amount appears in Note 4 to the financial statements as at May 31, In addition, this statement presents a list of the guarantees and suretyships granted by the Fonds. Industry segment legend F: R: M: P: S: TI: Regional or local funds Real estate Manufacturing Primary Services/tourism Technology investments 9

66 Relevé des AUTRES investissements (non audité) in french ONLY As at May 31, 2013

67 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Acciona SA Advantage Oil & Gas Ltd F Aeon Co. Ltd H105 AES Corp B0ZNPN904 AGL Energy Ltd Agnico Eagle Mines Ltd Agrium inc B1YXBJ905 Air Liquide SA Air Products & Chemicals inc Air Water inc Airgas inc Ajinomoto Co. inc B1VLVW903 Aker Solutions ASA Akzo Nobel NV Alacer Gold Corp Alamos Gold inc Albemarle Corp Alcoa inc Allegheny Technologies inc R Alliant Energy Corp AltaGas Ltd Alumina Ltd Amcor Ltd AMEC plc Ameren Corp American Electric Power Co. inc American Water Works Co. inc Anadarko Petroleum Corp B1XZS8907 Anglo American plc Anheuser-Busch InBev NV Antofagasta plc APA Group Apache Corp D408 ARC Resources Ltd B03XPL901 ArcelorMittal Archer-Daniels-Midland Co Argonaut Gold inc A B0Z5YZ906 Arkema B39VJC900 Aryzta AG Asahi Breweries Ltd Asahi Kasei Corp Associated British Foods plc R102 AT&T inc R107 Athabasca Oil Corp C105 AuRico Gold inc Avon Products inc Q209 B2Gold Corp Baker Hughes inc Ball Corp Bankers Petroleum Ltd D106 Banque Laurentienne du Canada Banro Corporation

68 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Barrick Gold Corp Barry Callebaut AG-REG ACI0054Q2 BASF SE Q105 Baytex Energy Corp Beam inc Beiersdorf AG B00D9P907 Belgacom SA Bezeq Israeli Telecommunication Corp. Ltd BG Group plc BHP Billiton Ltd BHP Billiton plc Birchcliff Energy Ltd U100 BlackPearl Resources inc Boliden AB 430 B1XCBX Y108 Bonavista Energy Corp Bonterra Energy Corp Boral Ltd Q109 Border Petroleum Corp BP plc Brown-Forman Corp BT Group plc G Bunge Ltd Cabot Oil & Gas Corp CALBEE inc. 122 B3TBRZ Calfrac Well Services Ltd Calpine Corp Caltex Australia Ltd L108 Cameco Corp B105 Cameron International Corp Campbell Soup Co Canadian Natural Resources Ltd E105 Canadian Oil Sands Ltd Canexus Corp W Canfor Corp G104 Capstone Mining Corp Carlsberg AS, classe B Carrefour SA Casino Guichard Perrachon SA Castle Resources inc CCL Industries inc., classe B Celanese Corp U109 Cenovus Energy inc T107 CenterPoint Energy inc Centerra Gold inc B033F2900 Centrica plc CenturyLink inc CF Industries Holdings inc CGG Chesapeake Energy Corp Cheung Kong Infrastructure Holdings Ltd Chevron Corp P103 China Gold International Resources Corp. Ltd

69 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Chubu Electric Power Co. inc Chugoku Electric Power Co. inc Church & Dwight Co. inc Cimarex Energy Co K101 Cliffs Natural Resources inc Clorox Co CLP Holdings Ltd CMS Energy Corp Cobalt International Energy inc F Coca-Cola Amatil Ltd Coca-Cola Co T109 Coca-Cola Enterprises inc Coca-Cola Hellenic Bottling Co. SA Coca-Cola West Co. Ltd Colgate-Palmolive Co Colossus Minerals inc., bons de souscription échéant le L ACI009ZR8 Colruyt SA ConAgra Foods inc Concho Resources inc P C104 ConocoPhillips Consolidated Edison inc P108 Constellation Brands inc Contact Energy Ltd Continental Resources inc N Core Laboratories NV Corporation minière Osisko Cosmo Oil Co. Ltd K105 Costco Wholesale Corp C101 Crescent Point Energy Corp Crew Energy inc CRH plc Croda International plc Crown Castle International Corp Crown Holdings inc CVS Caremark Corp Daicel Chemical Industries Ltd Daido Steel Co. Ltd B1Y9TB906 Danone DE Master Blenders 1753 NV 689 ACI022F Delek Group Ltd Delhaize Group SA Denbury Resources inc Denki Kagaku Kogyo KK Detour Gold Corp Deutsche Telekom AG M103 Devon Energy Corp Diageo plc Diamond Offshore Drilling inc C ACI00NNS8 Distribuidora Internacional Dominion Diamond Corporation U109 Dominion Resources inc Dow Chemical Co

70 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts 26138E109 Dr Pepper Snapple Group inc DTE Energy Co C204 Duke Energy Corp Dundee Precious Metals inc E.ON SE Eastman Chemical Co Ecolab inc B0NJJ1901 EDF SA Edison International EDP - Energias de Portugal SA EI du Pont de Nemours & Co Eldorado Gold Corp B02Q32903 Electric Power Development Co. Ltd Elisa OYJ Ems-Chemie Holding AG-REG Enagas SA N105 Enbridge inc Enbridge Income Fund Holdings inc R Encana Corp Endeavour Silver Corp Y B4TWTW909 Enel Green Power SPA Enel SPA Enerflex Ltd R N108 Energen Corp R108 Energizer Holdings inc Enerplus Corp ENI SPA G3157S106 Ensco plc, classe A Ensign Energy Services inc G103 Entergy Corp P101 EOG Resources inc L109 EQT Corp Estee Lauder Companies inc Eurasian Natural Resources Corp. plc 493 B29BCK B71N6K903 Evraz plc N101 Exelon Corp G102 Exxon Mobil Corp FamilyMart Co. Ltd V103 First Majestic Silver Corp First Quantum Minerals Ltd FirstEnergy Corp Fletcher Building Ltd FMC Corp U101 FMC Technologies inc Fortescue Metals Group Ltd Fortum OYJ Fortuna Silver Mines inc France Telecom SA Franco-Nevada Corp Freehold Royalties Ltd D857 Freeport-McMoRan Copper & Gold inc Fresnillo plc 370 B2QPKJ

71 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts FRM Diversified II Fund SPC A108 Frontier Communications Corp Fugro NV 328 B096LW Gabriel Resources Ltd Galp Energia SGPS, SA 372 B1FW GAM GAM GL Global Rates Fund Gas Natural SDG, SA B0C2CQ902 GDF Suez General Mills inc Gibson Energy inc Givaudan SA Goldcorp inc Golden Agri-Resources Ltd Green Mountain Coffee Roasters inc HATHER Hathersage LTCP Fund HeidelbergCement AG Heineken Holding NV 563 B0CCH Heineken NV Hellenic Telecommunications Organization SA Helmerich & Payne inc Henkel AG & Co. KGaA Herbalife Ltd 638 G4412G Hershey Co H107 Hess Corp Hitachi Chemical Co. Ltd Hitachi Metals Ltd HJ Heinz Co B4TXDZ907 HKT Trust and HKT Ltd Hokkaido Electric Power Co. inc Hokuriku Electric Power Co Holcim Ltd HollyFrontier Corp Hong Kong & China Gas Co. Ltd Hormel Foods Corp HRS Holding Ltd HudBay Minerals inc Husky Energy inc I.L.F. Ltd, série , classe B 741 ILF IAMGOLD Corp B288C9908 Iberdrola SA Idemitsu Kosan Co. Ltd 141 B1FF8P Iliad SA Iluka Resources Ltd B011GL903 Imerys SA Imperial Oil Ltd Incitec Pivot Ltd B09LSH907 Inmarsat plc Inpex Corp B10RB P105 Integrys Energy Group inc P102 Inter Pipeline Fund, classe A International Flavors & Fragrances inc International Paper Co

72 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Israel Chemicals Ltd Israel Corporation Ltd Ivanhoe Mines Ltd B019KW907 J Sainsbury plc James Hardie Industries Japan Petroleum Exploration Co B1Y1SQ901 Jeronimo Martins SGPS, SA JFE Holdings inc JM Smucker Co B70FPS903 Johnson Matthey plc JSR Corp B627LW906 JX Holdings inc K+S AG ACI00RQT Kaneka Corp Kansai Electric Power Co. inc Kansai Paint Co. Ltd Kao Corp Kazakhmys plc 458 B0HZPV KDDI Corp Kellogg Co Kerry Group plc Kesko OYJ Keyera Corp Kikkoman Corp Kimberly-Clark Corp B101 Kinder Morgan inc Kinder Morgan Management LLC U Kinross Gold Corp Kirin Holdings Co. Ltd Kirkland Lake Gold inc P Kobe Steel Ltd Koninklijke (Royal) KPN NV Koninklijke Ahold NV B0HZL9902 Koninklijke DSM NV Q106 Kraft Foods inc Kroger Co KROM Krom River Fund Kuraray Co. Ltd Kyushy Electric Power Co. inc Labrador Iron Ore Royalty Corp Lafarge SA Lanxess AG 695 B05M8B Lawson inc Legacy Oil + Gas inc N308 Level 3 Communications inc Linde AG Lindt & Spruengli AG-PC Lindt & Spruengli AG-REG L'Oreal SA Lundin Mining Corp Lundin Petroleum AB N LyondellBasell Industries NV

73 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Major Drilling Group International Marathon Oil Corp A102 Marathon Petroleum Corp MARKHAM-B Markham Rae I Fund, classe B MARKHAM-C Markham Rae I Fund, classe C Martin Marietta Materials inc Maruichi Steel Tube Ltd McCormick & Co. inc MDU Resources Group inc Mead Johnson Nutrition Co MeadWestvaco Corp MEG Energy Corp MEIJI Holdings Co. Ltd 321 B60DQV B0744W900 Metcash Ltd K108 Methanex Corp Metro AG B00L2M903 Millicom International Cellular SA Mines Aurizon ltée P B0JQTJ900 Mitsubishi Chemical Holdings Corp Mitsubishi Gas Chemical Co. inc Mitsubishi Materials Corp Mitsui Chemicals inc Molson Coors Brewing Co R Mondelez International inc., classe A Monster Beverage Corp C103 Mosaic Co Mullen Group Ltd Murphy Oil Corp Nabors Industries Ltd 577 G6359F B08SNH908 National Grid plc National Oilwell Varco inc Neste Oil OYJ 305 B06YV Nestlé SA F109 Nevada Copper Corp L101 Nevsun Resources Ltd New Gold inc Newcrest Mining Ltd Newfield Exploration Co Newmont Mining Corp Newstrike Capital inc F101 NextEra Energy inc Niko Resources Ltd Nippon Meat Packers inc B8B8PJ905 Nippon Paper Industries Co. Ltd Nippon Steel Corp Nippon Telegraph & Telephone Corp P105 NiSource inc Nisshin Seifun Group inc Nissin Foods Holdings Co. Ltd Nitto Denko Corp Noble Corp. 838 H5833N Noble Energy inc

74 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts B11HK3901 Norsk Hydro ASA Northeast Utilities E206 Novagold Resources inc B798FW902 Novozymes AS, classe B NRG Energy inc NTT DoCoMo inc Nucor Corp NUWAVE NuWave Fund Occidental Petroleum Corp OceanaGold Corp Oceaneering International inc Oest Elektrizitaets Wirtschafts OGE Energy Corp OJI Paper Co. Ltd B05Q3L908 Olam International Ltd OMV AG Oneok inc Orica Ltd Origin Energy Ltd Orkla ASA 657 B1VQF Osaka Gas Co. Ltd Owens-Illinois inc OZ Minerals Ltd U206 Pacific Rubiales Energy Corp Pan American Silver Corp Paramount Resources Ltd Parkland Fuel Corp T Pason Systems inc PCCW Ltd Peabody Energy Corp Pembina Pipeline Corp P104 Pengrowth Energy Corp Penn West Petroleum Ltd Pepco Holdings inc Pepsico inc Pernod-Ricard SA PetroBakken Energy Ltd K B0H2K5904 Petrofac Ltd R107 Petrominerales Ltd Peyto Exploration & Development Corp C108 PG&E Corp Phillips Pilot Gold inc R Pinnacle West Capital Corp Pioneer Natural Resources Co CITI5 Portefeuille de deux fonds d'infrastructures privés Portugal Telecom SGPS, SA L107 Potash Corp. of Saskatchewan inc Power Assets Holdings Ltd PPG Industries inc T106 PPL Corp P104 Praxair inc

75 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts 74022D308 Precision Drilling Corp Premier Gold Mines Ltd D C102 Pretium Resources inc Procter & Gamble Co Public Service Enterprise Group inc QBLK14 Q-BLK Strategic Partners, inc., série 1, classe I QBLK8 Q-BLK Strategic Partners, inc., série 12, classe I Q-BLK Strategic Partners, inc., série 3, classe I QBLK QBLK10 Q-BLK Strategic Partners, inc., série 4, classe I QBLK12 Q-BLK Strategic Partners, inc., série 5, classe I QBLK7 Q-BLK Strategic Partners, inc., série 7, classe I QBLK11 Q-BLK Strategic Partners, inc., série 8, classe I QEP Resources inc V B01C3S908 Randgold Resources Ltd A109 Range Resources Corp B24CGK904 Reckitt Benckiser Group plc Red Electrica Corp. SA Rémy Cointreau SA Repsol YPF SA Rexam plc 739 ACI04MZX T104 Rio Alto Mining Ltd Rio Tinto Ltd Rio Tinto plc Rock Tenn Company, classe A G7665A101 Rowan Cos. plc B03MM4906 Royal Dutch Shell plc Rubicon Minerals Corp RWE AG SABMiller plc Safeway inc Saipem SPA Salzgitter AG Santos Ltd Savanna Energy Services Corp J106 SBA Communications Corp M102 SCANA Corp Schlumberger Ltd Scottish & Southern Energy plc B09RMQ900 Seadrill Ltd Sealed Air Corp K C102 Secure Energy Services inc SEMAFO inc Sempra Energy B0FS5D909 Seven & I Holdings Co. Ltd B1FH8J905 Severn Trent plc ShawCor Ltd Sherritt International Corp Sherwin-Williams Co Shikoku Electric Power Co. inc Shin-Etsu Chemical Co. Ltd Shiseido Co. Ltd Showa Denko KK

76 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Showa Shell Sekiyu KK Sigma-Aldrich Corp Sika AG L106 Silver Standard Resources inc Silver Wheaton Corp P103 Silvercorp Metals inc Sims Metal Management Ltd 453 B0LCW B02PY2901 Singapore Telecommunications Ltd Snam Rete Gas SPA Softbank Corp Solvay SA Southern Co Southwestern Energy Co B0RF60901 SP AusNet Spectra Energy Corp Sprint Nextel Corp B1CNDB906 StarHub Ltd Statoil ASA Stora Enso OYJ F101 Strategic Oil & Gas Ltd Subsea 7 SA Suedzucker AG B3B8D0900 Suez Environnement Co Sumitomo Chemical Co. Ltd Sumitomo Metal Mining Co. Ltd Suncor Energy inc Superior Energy Services inc B1VVGZ901 Svenska Cellulosa AB Swisscom AG Syngenta AG Sysco Corp Tahoe Resources inc Taiheiyo Cement Corp Taiyo Nippon Sanso Corp E103 Talisman Energy inc Taseko Mines Ltd Tate & Lyle plc TDC A/S Technip SA Teck Resources Ltd Teijin Ltd B97C73904 Tele2 AB Telecom Corp. of New Zealand Ltd Telecom Italia SPA Telefonica S.A Telekom Austria AG Telenor ASA TeliaSonera AB Telstra Corp. Ltd Tenaris SA B01BN5908 Terna Rete Elettrica Nazionale SPA Tesco plc

77 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Thompson Creek Metals Co. inc ThyssenKrupp AG T-Mobile US inc Toho Gas Co. Ltd Tohoku Electric Power Co. inc Tokyo Electric Power Co. inc Tokyo Gas Co. Ltd TonenGeneral Sekiyu KK Toray Industries inc Torex Gold Resources inc V106 Tourmaline Oil Corp Toyo Seikan Group Holdings Ltd Toyo Suisan Kaisha Ltd D107 TransCanada Corp Transglobe Energy Corp B5W3ND904 Transocean Ltd Treasury Wine Estates Ltd 340 B61JC Trican Well Service Ltd H105 Trilogy Energy Corp Trinidad Drilling Ltd TriOil Resources Ltd Tullow Oil plc Tyson Foods inc Ube Industries Ltd Ultra Petroleum Corp Umicore SA Unicharm Corp B12T3J908 Unilever NV B10RZP905 Unilever plc United States Steel Corp B39J2M903 United Utilities Group plc UPM-Kymmene OYJ Y100 Valero Energy Corp Veolia Environnement SA R106 Veresen inc V104 Verizon Communications inc Vermilion Energy inc Vivendi SA B16GWD903 Vodafone Group plc Voestalpine AG Vulcan Materials Co Walgreen Co Weatherford International Ltd H Wesfarmers Ltd West Fraser Timber Co. Ltd A200 Whitecap Resources inc Whitehaven Coal Ltd 190 B1XQXC Whitting Petroleum Corp Whole Foods Market inc Williams Cos. inc B17KC6900 Wilmar International Ltd W104 Windstream Corp

78 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Quantité Coût Juste valeur Actions et parts Wisconsin Energy Corp WM Morrison Supermarkets plc Woodside Petroleum Ltd Woolworths Ltd WorleyParsons Ltd B100 Xcel Energy inc Yakult Honsha Co. Ltd Y100 Yamana Gold inc Yamato Kogyo Co. Ltd Yamazaki Baking Co. Ltd Yara International ASA B7QNZW908 Ziggo NV Total - actions et parts

79 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations 80928BAB2 Scotia Capital Trust 6,28 % AA6 Serco DES inc. 5,27 % ZAT7 Honda Canada Finance inc. 5,61 % BEM3 Merrill Lynch Financial Asset inc. (2004-CA12, A1) 4,74 % NAC1 Daimler Canada Finance inc. 2,54 % Taux variable AR8 La Banque de Nouvelle-Écosse 8,30 % RK1 Province de Québec 5,25 % AF1 VW Credit Canada inc. 2,20 % CH9 Banque Manuvie du Canada 1,97 % Taux variable AA5 Industrielle Alliance Capital Trust 5,71 % ZDN9A John Deere Credit inc. 1,85 % ZBQ8A GE Capital Canada Funding Co. 2,95 % ZDR5 Banque Laurentienne du Canada 2,04 % Taux variable ZAL7 Merrill Lynch Canada Finance Co. 5,00 % ZAC1A Bell Aliant Regional Communications L.P. 4,95 % UF3 Province de l'ontario 5,00 % NAB3A Daimler Canada Finance inc. 3,16 % AB6 British Columbia Ferry Services inc. 5,74 % ZAM7 Financement-Québec 3,25 % ZAE7 Manulife Financial Corp. 4,90 % ZBW5 GE Capital Canada Funding Co. 2,17 % Taux variable PBW2 Canada Housing Trust No 1 3,15 % E6 Banque Royale du Canada 5,95 % ZAW4 Bell Canada 4,85 % ZGR1 Banque Canadienne Impériale de Commerce 1,86 % Taux variable ZKQ8 Banque Canadienne Impériale de Commerce 1,54 % Taux variable AA0 Data Centres Trust 7,23 % ZEZ0 Citigroup Finance Canada inc. 6,75 % ZAJ5 American Express Canada Credit Corp. 4,85 % ZAB3 Emera inc. 4,10 % A53 Gouvernement du Canada 1,00 % YU2 Gouvernement du Canada 2,00 % AX3 Thomson Reuters Corp. 5,20 % AB6 CI Financial Corp. 4,19 % HAD5 BMO Capital Trust 5,47 % UW1 Banque Nationale du Canada 2,23 % VAD2 bcimc Realty Corp. 4,65 % BGB5 Merrill Lynch Financial Asset inc. (2005-CA15, A2) 4,82 % BGE9 Merrill Lynch Financial Asset inc. (2005-CA15, B) 5,04 % VAP0 Banque de Montréal 1,62 % Taux variable MAA7 Trans-Northern Pipelines inc. 4,74 % JM8 Metropolitan Life Global Funding I 2,62 % A95 Gouvernement du Canada 1,00 % ZAM3 Caterpillar Financial Services Ltd 2,20 % AE4 VW Credit Canada inc. 2,50 % PAA0 Alliance Pipeline L.P. 7,23 % A38 Gouvernement du Canada 1,50 % HAD9 BMW Canada inc. 2,64 % NAG2 Daimler Canada Finance inc. 2,33 % HSP9 HSBC Bank Canada 2,57 % ZAB8 Capital Power L.P. 4,60 % ZAK1 Financement-Québec 4,25 %

80 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations 13509PCM3 Canada Housing Trust No 1 2,45 % WR0 Banque Nationale du Canada 2,05 % RAA7 Cadillac Fairview Finance Trust 3,24 % AC8 VW Credit Canada inc. 3,60 % BR2 Ford Auto Securitization Trust 3,02 % AP2 Nova Gas Transmission Ltd 12,20 % ZAQ3 Hydro One inc. 4,64 % BE4 Thomson Reuters Corp. 6,00 % NAH0 Daimler Canada Finance inc. 2,23 % T23 La Banque de Nouvelle-Écosse 1,80 % ZAT4 Enbridge inc. 5,17 % ZAE6 Shoppers Drug Mart Corp. 2,01 % MAP8 TELUS Corp. 3,65 % HAF4 BMW Canada inc. 2,11 % AM3 Rogers Communications inc. 5,80 % ZAV8 GE Capital Canada Funding Co. 5,10 % JJ0 Municipal Finance Authority of British Columbia 3,00 % AA7 Claregold Trust 5,07 % AB7 Powell River Energy inc. 6,45 % L8 Banque Royale du Canada 3,03 % B29 Gouvernement du Canada 1,00 % SP0 Banque de Montréal 2,96 % QS6 Banque Toronto-Dominion 2,95 % AA6 Deutsche Bank AG 1,98 % Variable et rachetable à compter du ZQ0 Gouvernement du Canada 2,75 % NAD9 Daimler Canada Finance inc. 3,28 % ZAW2 Georges Weston Ltd 3,78 % ZAN5 Financement-Québec 3,50 % ZAD9 Emera inc. 2,96 % AA2 CI Investments inc. 3,94 % Variable et rachetable à compter du ZBL9 Wells Fargo Financial Canada Corp. 2,77 % ZAU8 Bell Canada 5,00 % YX0 Province de l'ontario 4,30 % ZAC9 Veresen inc. 3,95 % AE6 Reliance L.P. 4,57 % MAG8 TELUS Corp. 4,95 % ZAE4 Altagas Income Trust 5,49 % AD6 VW Credit Canada inc. 2,90 % AU5 Rogers Communications inc. 3,00 % VX8 Banque Nationale du Canada 2,69 % AAX2 Province de l'ontario 1,90 % ZAG2 Bell Aliant Regional Communications L.P. 4,37 % BU7 Banque Royale du Canada 2,36 % ZHZ2 Banque Canadienne Impériale de Commerce 2,35 % ZAT7 Hydro One inc. 5,18 % ZEF0 Banque Laurentienne du Canada 3,13 % AD6 Lower Mattagami Energy 2,23 % ZBD7 407 International inc. 3,87 % ZAQ8 Financement-Québec 3,50 % WAF5 OMERS Realty Corp. 3,04 % ZAJ3 Enbridge Income Fund 2,92 % PDM2 Canada Housing Trust No 1 1,70 %

81 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations 29253ZAD7 Encana Corp. 5,80 % GRE6 Goldman Sachs Group inc. 3,38 % ZQ4 Province de l'ontario 4,20 % S24 La Banque de Nouvelle-Écosse 2,24 % ZDT1 Banque Laurentienne du Canada 2,56 % GB7 Province du Nouveau-Brunswick 4,45 % ZAM8 American Express Canada Credit Corp. 2,31 % YM0 Banque Toronto-Dominion 2,17 % PAC5 Holcim Finance Canada inc. 3,65 % ZAC3 Suncor Energy inc. 5,80 % HAH0 BMW Canada inc. 2,33 % ZAF3 Shoppers Drug Mart Corp. 2,36 % ZCA2 GE Capital Canada Funding Co. 2,42 % ZAP6 Caterpillar Financial Services Ltd 2,29 % YL2 Gouvernement du Canada 4,25 % WAG3 OMERS Realty Corp. 2,50 % ZAA4 Financière Sun Life inc. 5,12 % Variable et rachetable à compter du ZAC1 Manulife Financial Corp. 5,51 % WAA0 NBC Asset Trust 7,24 % ZAB6 Inter Pipeline Fund 3,84 % ZDU7 Hydro-Québec 5,50 % ABR4 Province de l'ontario 2,10 % YAA9 Brookfield Power Corp. 5,25 % ZAS4 Financement-Québec 2,40 % ZDU4 Province de Québec 4,50 % FX5 Province de la Colombie-Britannique 4,65 % BAA3 TD Capital Trust III 7,24 % ZAF1 Enbridge Income Fund 4,10 % ZAD9 Bell Aliant Regional Communications L.P. 5,52 % ZAB5 Brookfield Asset Management inc. 3,95 % ZP5 La Banque de Nouvelle-Écosse 4,94 % Variable et rachetable à compter du AB7 Power Corp. of Canada 7,57 % B80 Province de l'ontario 4,40 % ZBX3 GE Capital Canada Funding Co. 3,55 % GAA3 Scotia Plaza 3,21 % TAB1 Groupe SNC-Lavalin inc. 6,19 % ZBM7 Wells Fargo Financial Canada Corp. 2,94 % LAG3 Cameco Corp. 5,67 % ZBN5 GE Capital Canada Funding Co. 5,68 % KAP6 Shaw Communications inc. 5,65 % ZAV1 Greater Toronto Airports Authority 5,96 % FV4 Province de la Nouvelle-Écosse 4,15 % ZAT2 Financement-Québec 2,45 % ZEE9 Province de Québec 4,50 % ZAL4 Alliance Pipeline L.P. 4,93 % ZBZ3 Banque Nationale du Canada 4,93 % Variable et rachetable à compter du DQ1 Banque de Montréal 4,87 % Variable et rachetable à compter du ZAD5 AltaGas Ltd 4,07 % J0 Province de l'ontario 4,20 % TK1 Province du Manitoba 4,15 % M86 Banque Royale du Canada 4,35 % Variable et rachetable à compter du WAB8 NBC Asset Trust 7,45 %

82 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations AF9 CDP Financial inc. 4,60 % JS8 Province de la Saskatchewan 3,90 % ZCE3 Canadian Natural Resources 2,89 % AR2 Rogers Communications inc. 4,70 % ZCN9 Banque Nationale du Canada 4,70 % Variable et rachetable à compter du R57 Banque Royale du Canada 3,18 % Variable et rachetable à compter du ZAE7 Capital Desjardins inc. 3,80 % Variable et rachetable à compter du AA4 Mississagi Power Trust 6,92 % ZEG4 Province de Québec 4,50 % KAR2 Shaw Communications inc. 5,50 % RAB5 Cadillac Fairview Finance Trust 4,31 % ZAA8 Inter Pipeline Fund 4,97 % AG9 Brookfield Asset Management inc. 5,30 % AS0 Rogers Communications inc. 5,34 % AA2 Lower Mattagami Energy 4,33 % ZAC1 Capital Desjardins inc. 5,54 % Variable et rachetable à compter du AAD6 Province de l'ontario 4,00 % PCS0 Canada Housing Trust No 1 3,80 % BJ2 TELUS Communications inc. 10,65 % ZAD8 Sun Life Financial inc. 4,57 % ZAE3 AltaGas Ltd 3,72 % ZAP8 Westcoast Energy inc. 3,88 % ZBW7 TransCanada PipeLines Ltd 3,65 % ZEH2 Province de Québec 4,25 % PDB6 Canada Housing Trust No 1 2,65 % BL7 TELUS Communications inc. 9,65 % ZDM0 Banque Nationale du Canada 3,26 % Variable et rachetable à compter du EB3 Citigroup inc. 5,16 % ZAC4 Inter Pipeline Fund 3,78 % AD8 Manufacturers Life Insurance Co. 4,17 % Variable et rachetable à compter du JK7 Municipal Finance Authority of British Columbia 3,35 % AAW4 Province de l'ontario 3,15 % M38 La Banque de Nouvelle-Écosse 2,90 % Variable et rachetable à compter du ZAZ2 Greater Toronto Airports Authority 3,04 % AA5 Standard Life Assurance 3,94 % Variable et rachetable à compter du AA1 BMO Subordinated Notes Trust 5,75 % Variable et rachetable à compter du AV4 Fairfax Financial Holdings Ltd 5,84 % ZAB7 Pembina Pipeline Corp. 3,77 % LAH1 Cameco Corp. 3,75 % ZAG1 AltaLink L.P. 2,98 % ZEL3 Province de Québec 3,50 % ZBC0 Enbridge inc. 3,19 % BBR0 First Capital Realty inc. 3,95 % ZBN5 Wells Fargo Financial Canada Corp. 3,46 % AE6 Manufacturers Life Insurance Co. 2,82 % Rachetable à compter du MAQ6 TELUS Corp. 3,35 % Rachetable à compter du ZBC7 Bell Canada 3,35 % ZAY0 Banque de Montréal 6,17 % Variable et rachetable à compter du ZAC3 Brookfield Asset Management inc. 4,54 % ZAE3 Toronto Hydro Corp. 2,91 % VB3 US Treasuries 1,75 % VAJ4 Cogeco Câble inc. 4,18 % Rachetable à compter du

83 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations AC2 Empire Life Insurance 2,87 % Variable et rachetable à compter du ABN3 Province de l'ontario 2,85 % UA1 Province du Manitoba 2,55 % AH2 Great Lakes Power Limited, series 2, subordinate 7,80 % ZEP4 Province de Québec 3,00 % PDV2 Canada Housing Trust No 1 2,35 % BBU3 First Capital Realty inc. 3,90 % DAA4 IPL Energy inc. 8,20 % P27 La Banque de Nouvelle-Écosse 3,04 % Variable et rachetable à compter du CW2 Banque Royale du Canada 2,99 % EW9 Banque Toronto-Dominion 9,15 % ZAE4 Nova Gas Transmission Ltd 8,90 % DAK8 Westcoast Energy inc. 8,85 % TAB1 AGT Ltd 8,80 % AA8 Lievre Power Financing Corp. 5,56 % ZAC4 Alliance Pipeline L.P. 6,77 % ZAF4 Capital Desjardins inc. 4,95 % Variable et rachetable à compter du AE2 NAV Canada 7,56 % KG2 Province de l'ontario 7,60 % DW8 Bell Canada 7,00 % ZAD9 Loblaw Cos. Ltd 6,45 % ZAF4 Loblaw Cos. Ltd 6,50 % LJ5 Province de l'ontario 6,50 % ZAC8 Bell Canada 6,55 % WL4 Gouvernement du Canada 5,75 % EK4 Province de la Colombie-Britannique 5,70 % QJ5 Province de Québec 6,00 % AM9 Ontario School Boards Financing Corp. 5,48 % AC5 Hydro One inc. 7,35 % ZAA7 Greater Toronto Airports Authority 7,05 % ZAD9 Enbridge inc. 7,22 % AP2 Ontario School Boards Financing Corp. 4,79 % AU6 Gaz Métro inc. 7,05 % AA5 Edmonton Regional Airport Authority 7,21 % ZBK3 TransCanada PipeLines Ltd 6,50 % ZAL8 Bell Canada 7,85 % AR8 Ontario School Boards Financing Corp. 5,07 % NM6 Province de l'ontario 6,20 % ZAC3 Greater Toronto Airports Authority 7,10 % AB9 Aéroport de Montréal 6,95 % ZAB6 Hydro One inc. 6,93 % QT3 Province de Québec 6,25 % SL3 Province de l'ontario 5,85 % CAD8 Great-West Lifeco inc. 6,67 % XG4 Gouvernement du Canada 5,75 % PAA4 55 Ontario School Board Trust 5,90 % ZAU3 Nova Scotia Power inc. 6,95 % AC7 Aéroport de Montréal 6,55 % AV4 Gaz Métro inc. 6,30 % FR3 Province du Nouveau-Brunswick 5,50 % ZAJ8 Greater Toronto Airports Authority 6,47 % ZAL2 Canadian Tire Corp. Ltd 6,32 %

84 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations 31739ZAG0 Financement-Québec 5,25 % ZAU1 Loblaw Cos. Ltd 6,05 % AC4 British Columbia Ferry Services inc. 6,25 % AA3 University of Ontario Institute of Technology 6,35 % ZCM6 Hydro-Québec 6,50 % VR6 Province de l'ontario 5,60 % PAJ0 Brookfield Asset Management inc. 5,95 % ZAN8 Canadian Tire Corp. Ltd 5,61 % ZAB8 Metro inc. 5,97 % ZAF2 EPCOR Utilities inc. 5,65 % AA3 Sun Life Financial inc. 4,80 % Variable et rachetable à compter du ZAM8 407 International inc. 5,75 % AX0 Gaz Métro inc. 5,70 % ZAP5 Union Gas Ltd 5,46 % RL9 Province de Québec 5,75 % ZAG3 Enbridge inc. 5,08 % FQ4 Province de Terre-Neuve-et-Labrador 4,50 % VAA2 Toronto Community Housing Corp. 4,88 % XW9 Gouvernement du Canada 5,00 % AA0 Ontario Infrastructure Projects Corp. 4,70 % YD4 Province de l'ontario 4,70 % FL1 Province de la Colombie-Britannique 4,70 % ZBK1 GE Capital Canada Funding Co. 5,73 % BAA7 FortisBC Energy Vancouver Island inc. 6,05 % ZDK6 Province de Québec 5,00 % ZBU1 TransCanada PipeLines Ltd 8,05 % AC5 Power Corp. of Canada 8,57 % ZAY5 Nova Scotia Power inc. 5,95 % AP6 Rogers Communications inc. 6,68 % KAQ4 Shaw Communications inc. 6,75 % JAB7 Canada Post Corp. 4,36 % AU0 407 International inc. 7,13 % AA9 Winnipeg Airport Authority inc. 5,21 % AC6 Teranet Holdings L.P. 5,75 % ZAX7 Greater Toronto Airports Authority 5,30 % TM7 Province du Manitoba 4,10 % AB9 Arrow Lakes Power 5,52 % YQ1 Gouvernement du Canada 4,00 % B98 Province de l'ontario 4,65 % AA9 Province du Nouveau-Brunswick 4,80 % AA1 Halifax International Airport Authority 5,50 % ZAE6 AltaLink L.P. 4,46 % ZEF6 Province de Québec 5,00 % ZAK1 EPCOR Utilities inc. 4,55 % ZBF2 407 International inc. 4,19 % Rachetable à compter du Y1 Province de la Colombie-Britannique 4,30 % ZAF3 AltaLink L.P. 3,99 % MAA4 OPB Finance Trust 3,89 % ZBB2 Enbridge inc. 4,24 % AH6 Aéroport de Montréal 3,92 % QZ4 US Treasuries 3,13 % TW5 Province du Manitoba 3,35 %

85 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Obligations 87971MAS2 TELUS Corp. 4,40 % RAA5 Simon Fraser University 5,61 % ZEK5 Province de Québec 4,25 % ZH0 Gouvernement du Canada 1,50 % ACC6 Province de l'ontario 3,45 % ZS6 Gouvernement du Canada 3,50 % ZER0 Province de Québec 3,50 % AE4 Lower Mattagami Energy 4,18 % QAB7 Sun Life Capital Trust 7,09 % Rachetable à compter du XAW3 Master Asset Vehicle II, classe A-1 0,00 % XAY9 Master Asset Vehicle II, classe A-2 0,00 % AA6 Great-West Lifeco Finance Delaware L.P. II 5,69 % Variable et rachetable à compter du AA9 Great-West Lifeco Finance Delaware L.P. II 7,13 % Variable et rachetable à compter du ZAC0 Banque Toronto-Dominion 4,78 % Variable et rachetable à compter du ZAD8 Banque Toronto-Dominion 5,76 % Variable et rachetable à compter du AA7 BMO Capital Trust II 10,22 % Variable et rachetable à compter du UAA9 CIBC Capital Trust 9,98 % Variable et rachetable à compter du FAA5 La Banque de Nouvelle-Écosse 7,80 % Variable et rachetable à compter du GAC8 TD Capital Trust IV 6,63 % Variable et rachetable à compter du XAA1 Manulife Financial Capital Trust II 7,41 % Variable et rachetable à compter du BAA9 Sun Life Capital Trust II 5,86 % Rachetable à compter du Total - obligations

86 Relevé des autres investissements ( non audité ) au 31 mai 2013 Description Valeur nominale Coût Juste valeur Instruments du marché monétaire ST34163 Province de l'ontario, bon du trésor 1,01 % ST34233 Province de Québec, bon du trésor 1,01 % ST34273 Province de l'ontario, bon du trésor 1,02 % ST34334 Province de l'ontario, bon du trésor 1,02 % ST34635 Province de l'ontario, bon du trésor 1,04 % ST34735 Province de Québec, bon du trésor 1,05 % ST34677 Gouvernement du Canada, bon du trésor 0,98 % ST34651 Gouvernement du Canada, bon du trésor 0,99 % ST34633 Gouvernement du Canada, bon du trésor 1,00 % Total - instruments du marché monétaire

87 Relevé des autres investissements ( non audité ) au 31 mai 2013 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats à terme - position acheteur FUSD060613E Dollar américain 1,01 CAD FUSD060613F Dollar américain 1,03 CAD FUSD060613G Dollar américain 1,03 CAD FUSD060613H Dollar américain 1,03 CAD FUSD060613I Dollar américain 1,03 CAD FUSD140613A Dollar américain 1,02 CAD FUSD270613B Dollar américain 1,03 CAD FAUD050713A Dollar australien 0,99 CAD (1) FAUD060613B Dollar australien 0,99 CAD (1) CDM3F05NW Dollar canadien 98,28 USD FHKD060613B Dollar de Hong Kong 0,13 CAD FSGD060613B Dollar de Singapour 0,82 CAD FEUR050713A Euro 1,34 CAD FEUR060613B Euro 1,34 CAD (5) FCHF060613B Franc suisse 1,08 CAD F135A Gouvernement du Canada, 1,25 %, ,03 CAD (16) F135A873007B Gouvernement du Canada, 1,25 %, ,37 CAD (79) F135A Gouvernement du Canada, 1,50 %, ,82 CAD IXTM3F04NEW Indice E-Mini Technologie 318,80 USD DEDZ4F04NEW Indice Euro StoXX 50 dividend 101,83 EUR DEDZ5F04NEW Indice Euro StoXX 50 dividend 101,75 EUR MFSM3F04RBC Indice Mini MSCI EAFE 1 668,30 USD PTM3F05RBC Indice S&P/TSX ,34 CAD FGBP050713A Livre sterling 1,57 CAD (2) FGBP060613B Livre sterling 1,57 CAD FGBP060613C Livre sterling 1,57 CAD (3) FILS060613B Shekel israélien 0,28 CAD CNU3F01DERNW Taux d'intérêt 10 ans obligations du gouvernement du Canada 136,37 CAD BAZ3F14MER Taux d'intérêt 3 mois acceptations bancaires canadiennes 98,74 CAD EDZ412F14MER Taux d'intérêt 3 mois eurodollar 99,51 USD EDZ5F14MER Taux d'intérêt 3 mois eurodollar 99,16 USD EDU5F14MER Taux d'intérêt 3 mois eurodollar 99,11 USD EDU6F14MER Taux d'intérêt 3 mois eurodollar 98,48 USD FJPY060613C Yen 0,01 CAD Total - contrats à terme - position acheteur Contrats à terme - position vendeur FUSD050713A Dollar américain 1,03 CAD (4) FUSD050713B Dollar américain 1,03 CAD (5) FUSD050713C Dollar américain 1,03 CAD (5) FUSD050713D Dollar américain 1,03 CAD (1) FUSD050713E Dollar américain 1,03 CAD (11) FUSD060613A Dollar américain 1,01 CAD (2 038) FUSD060613B Dollar américain 1,01 CAD (2 036) FUSD060613C Dollar américain 1,01 CAD (2 036) FUSD060613D Dollar américain 1,01 CAD (2 046) FUSD Dollar américain 1,01 CAD (1 385) FUSD Dollar américain 1,01 CAD (1 934) FUSD Dollar américain 1,00 CAD (2 225) FUSD Dollar américain 1,01 CAD (622) 21

88 Relevé des autres investissements ( non audité ) au 31 mai 2013 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats à terme - position vendeur FUSD140613B Dollar américain 1,04 CAD FUSD Dollar américain 1,01 CAD (1 131) FUSD Dollar américain 1,01 CAD (155) FUSD270613A Dollar américain 1,04 CAD FAUD050713B Dollar australien 0,99 CAD FAUD060613A Dollar australien 1,04 CAD FAUD Dollar australien 1,03 CAD FHKD050713A Dollar de Hong Kong 0,13 CAD FHKD060613A Dollar de Hong Kong 0,13 CAD (165) FSGD050713A Dollar de Singapour 0,82 CAD (15) FSGD060613A Dollar de Singapour 0,82 CAD (5) FEUR050713B Euro 1,34 CAD FEUR060613A Euro 1,33 CAD (1 032) FEUR Euro 1,32 CAD (37) FCHF050713A Franc suisse 1,08 CAD (1) FCHF060613A Franc suisse 1,08 CAD F135A873007A Gouvernement du Canada, 1,25 %, ,15 CAD F135ZU13007E Gouvernement du Canada, 2,75 %, ,25 CAD F135YR93007 Gouvernement du Canada, 3,75 %, ,45 CAD MFSM3F05NW Indice Mini MSCI EAFE 1 727,67 USD ESM3F04RBC Indice S&P 500 E-Mini 1 564,42 USD FGBP050713B Livre sterling 1,57 CAD (4) FGBP060613A Livre sterling 1,57 CAD (49) FGBP Livre sterling 1,57 CAD FILS050713A Shekel israélien 0,28 CAD FILS060613A Shekel israélien 0,28 CAD CNU3F04NEW Taux d'intérêt 10 ans obligations du gouvernement du Canada 136,68 CAD EDZ3F14MER Taux d'intérêt 3 mois eurodollar 99,64 USD EDM5F14MER Taux d'intérêt 3 mois eurodollar 99,38 USD EDH6F14MER Taux d'intérêt 3 mois eurodollar 98,83 USD EDH7F14MER Taux d'intérêt 3 mois eurodollar 98,12 USD FJPY050713A Yen 0,01 CAD (19) FJPY050713B Yen 0,01 CAD (3) FJPY060613A Yen 0,01 CAD FJPY060613B Yen 0,01 CAD Total - contrats à terme - position vendeur (13 665) Contrats d'options - position acheteur OES1F041500A Indice S&P 1 500,00 USD OES1F Indice S&P 1 500,00 USD OES1F Indice S&P ,00 USD OES1F041575A Indice S&P ,00 USD V13647OPT1 Investissements en capital de développement - Secteur : 3,00 CAD Manufacturier Total - contrats d'options - position acheteur Contrats d'options - position vendeur OES1F Indice S&P ,00 USD (22) (51) OES1F Indice S&P ,00 USD (25) (60) OES1F041450B Indice S&P ,00 USD (40) (37) 22

89 Relevé des autres investissements ( non audité ) au 31 mai 2013 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats d'options - position vendeur OES1F041450C Indice S&P ,00 USD (51) (56) OES1F Indice S&P ,00 USD (31) (51) OES1F041700A Indice S&P ,00 USD (58) (77) V13647OPT2 Investissements en capital de développement - Secteur : 5,00 CAD (977) (2 327) Manufacturier Total - contrats d'options - position vendeur (1 204) (2 659) Total - instruments financiers dérivés 288 (15 248) * Total des autres investissements * * De ces totaux, un montant de 19,7 M$, représentant la juste valeur négative des instruments financiers dérivés et un montant de 1,2 M$ représentant le coût de ces instruments financiers dérivés, sont présentés sous Créditeurs et autres passifs aux états financiers du Fonds de solidarité des travailleurs du Québec (F.T.Q.) au 31 mai Titres achetés en vertu de conventions de revente Au 31 mai 2013, la juste valeur des titres en portefeuille achetés en vertu de conventions de revente est de 274,1 M$. Ces titres sont des obligations. Ces transactions ont été exécutées entre le 24 mai 2013 et le 31 mai 2013, tandis que leurs échéances se situent dans l'intervalle compris entre le 3 juin 2013 et le 14 juin Le montant payé est de 274,3 M$ et il correspond à la juste valeur des titres reçus. Titres vendus en vertu de conventions de rachat Au 31 mai 2013, la juste valeur des titres en portefeuille vendus en vertu de conventions de rachat est de 420,7 M$. Ces titres sont des obligations. Ces transactions ont été exécutées entre le 10 mai 2013 et le 31 mai 2013, tandis que leurs échéances se situent dans l'intervalle compris entre le 3 juin 2013 et le 13 juin Le collatéral reçu est de 429,5 M$. Le prix de rachat à payer est de 422,9 M$. 23

90 INDEX OF THE SHARE OF THE FONDS IN INVESTMENTS MADE BY THE SPECIALIZED FUNDS, AT COST (UNAUDITED) As at May 31, 2013

91 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances BDR Capital s.e.c. Accedian Networks Corporation Bluestreak Network inc. Énergie Afina inc. Enerkem inc. Gogo6 inc. Irphotonique inc. Les Réseaux Accedian inc. Logiciel Iscopia inc. Nanogestion inc. Omni-Med.com inc. ProVance Technologies inc. SolaCom Technologies inc. Technologie Bluestreak (Canada) inc. Technologies Microbridge Canada inc. TelcoBridges inc. Wavesat inc. Securities of two other companies 31,901 8,315 3,079 43, FIER Partenaires, société en commandite Capital St-Laurent, s.e.c. Fonds Brightspark II, s.e.c. Fonds CTI sciences de la vie, s.e.c. Fonds d'investissement inovia II, société en commandite Fonds Propulsion III s.e.c. GO capital, s.e.c. Novacap Industries III, s.e.c. Novacap Technologies III, s.e.c. Rho Canada Capital de Risque, s.e.c. Société en commandite AgeChem Securities of three other companies 30,355 30,355 Funds commited but not disbursed 15,258 45, Fonds Bio-Innovation, société en commandite Securities of six companies 2, , Fonds de solidarité FTQ Investissements technologiques I, s.e.c. Axesnetwork Solutions inc Cadens Imagerie Médicale inc E2metrix inc Embrionix Design inc Réflex Photonique inc , , Fonds d'investissement de la culture et des communications, société en commandite Québec inc. (Laboratoires GSS) Attraction Média inc. Carpediem film & TV inc. Datsit Studios inc. De Marque inc. Gestion Juste pour Rire inc. Groupe Phaneuf inc. Groupe Pierre Belvédère inc. Groupe Star Suites inc. GVGS inc. Hibernum Créations inc. La Compagnie Larivée, Cabot, Champagne LC Média inc. Media-Max inc. Média Cinéflix inc. Modus FX inc. Sarbakan inc. Studios Budge inc. Tribal Nova inc. Vivavision inc. Wilson & Lafleur, limitée Securities of nine other companies 2,527 7,829 4,415 14,771 Suretyship 857 Funds commited but not disbursed ,463 1

92 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds immobilier de solidarité FTQ inc de Bleury s.e.c. 15,681 15, Crescent, s.e.c Rand, s.e.c. 1,802 1, Richelieu s.e.c ,888 3, Charest s.e.c. 2,010 2, Honoré-Mercier s.e.c. 20,029 20,029 Brossard-sur-le-Fleuve s.e.c. 2,217 2,217 Carré Chambord s.e.c Centre de développement des Biotechnologies de Laval s.e.c. 5,100 14,095 19,195 Condominiums Le George V s.e.c Condos Wanklyn-Milot s.e.c. 4,399 4,399 CPA Fontainebleau, s.e.c Développement Joseph-Morin, s.e.c Développements Wilfrid-Carrier s.e.c. 8,150 8,150 Édifice Saint-Vallier, s.e.c. 13,013 13,013 Espace MV1 s.e.c. 1 1 Espace MV2 s.e.c. 1 1 Espace MV3 s.e.c. 2,700 2,700 Espaces Lebourgneuf Phase III s.e.c. 2,800 2,800 Gérer son Quartier 3,562 3,562 Graham-Mont-Royal, s.e.c. 11,386 11,386 Merlin immobilier inc. 3,515 3,515 Montée des Pionniers Phase I s.e.c Montée des Pionniers Phase II s.e.c ,177 1,677 R.P.A. Mont-Joli s.e.c ,096 R.P.A. Rawdon s.e.c. 1,208 1,208 Société de développement Urbania 2003 inc Société en commandite Angus s.e.c. Phase I Société en commandite Angus s.e.c. Phase II 1 1 Société en commandite Bourassa-Pelletier 10 9,603 9,613 Société en commandite Château Hymus Société en commandite Clairevue Société en commandite des Bassins I 2,500 1,700 4,200 Société en commandite D.P.L.S. 1,400 1,400 Société en commandite GII, Ilôt 10 (Comm-bur) 2,518 3,115 5,633 Société en commandite GII, Ilôt 10 (Résidentiel) 1,107 4,974 6,081 Société en commandite Griffintown II 4,968 4,968 Société en commandite Griffintown II, Phase II 3,687 3,687 Société en commandite Griffintown II, Phase II (Tour 3) 7 7 Société en commandite Griffintown II, Phase II (Condos-Tour 1) 963 1,000 1,963 Société en commandite Griffintown II, Phase II (Condos-Tour 2) Société en commandite Griffintown II, Phase II (Commercial) 1,560 1,560 Société en commandite Griffintown II, Phase III (Bloc I) 581 2,580 3,161 Société en commandite Héritage Pointe-Claire 1 1 Société en commandite immobilière T.D.C. 4,275 4,275 Société en commandite Laurin/Saint-Louis Phase I 8,266 15,546 23,812 Société en commandite QDS 27,950 27,950 Société en commandite Rose de Lima Société en commandite St-Bruno-sur-le-Lac Phase 4 2,000 2,000 Société en commandite Viau Ontario 1 1 Souvenir-Corbusier s.e.c. 1 1 St-Paul/Du Palais s.e.c. 9,220 4,096 13,316 Technoparc Bromont Phase I s.e.c. 1,363 1,363 Urbania Phase VII s.e.c. 1 1 Wanklyn-Milot s.e.c. 3,197 3, general partners of limited partnerships ,116 47,163 38, ,408 Direct holdings: Terrain Boul. Lucille Teasdale, Terrebonne 2,596 Terrain Boul. Le Corbusier, Laval 11, ,381 2

93 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds immobilier de solidarité FTQ I, s.e.c St-Alexandre, s.e.c Québec inc Québec inc. 1,450 1,450 C.C.L. II, société en commandite Centre de Ressources du Parc Technologique du Québec Métropolitain inc. 2, ,219 Complexe d'affaires 440, s.e.c. 2,470 2,470 Condos Miscéo, s.e.c ,134 1,997 Construction Louis Lefebvre inc PTQM/Lutech s.e.c. 2,877 2,877 Sfère-Ahuntsic s.e.c. 1,160 1,160 Société en commandite 1190 Jeanne-Mance 2,193 2,193 Société en commandite Notre-Dame 1 1 Société en commandite 544 de l'inspecteur 3,254 3,254 Société en commandite Alfred-Nobel Société en commandite Alphonse T. Lépine 1,725 1,725 Société en commandite Ann-Ottawa 1,500 1,317 2,817 Société en commandite Beauharnois 6 6 Société en commandite Claude Baillif 1,045 1,045 Société en commandite de La Dauversière 2,308 2,308 Société en commandite Inspecteur-William 2,960 2,960 Société en commandite Les Berges Brossard Société en commandite Milton 1,695 1,695 Société en commandite Place Dunant Société en commandite Square Mont-Royal 4 4 Société en commandite Ste-Hélène Village de la Gare s.e.c general partners of limited partnerships ,562 6,421 4,038 33,021 Direct holdings: Terrain ave. du Lac-Clermoutier, Chertsey 1,295 34, Fonds immobilier de solidarité FTQ II, s.e.c de Bleury s.e.c. 4,100 4, Henri Bourassa ouest s.e.c. 2,301 2, Québec inc Québec inc. 1,450 1,450 Capital BLF inc. 2,335 2,335 Espaces Lebourgneuf s.e.c. 3,471 3,471 Faubourg la Grande Place s.e.c. 1,189 1,189 Hôtel Particulier : Le Ste-Hélène s.e.c. 3,822 3,822 Immobilière Concorde-Corbusier s.e.c. 6,670 6,670 Les Haltes du Roi s.e.c Neuvième Avenue, s.e.c. 10 2,710 2,720 SEC St-Bruno-sur-le-Lac Phase SEC St-Bruno-sur-le-Lac Phase Société en commandite Ann-Ottawa 1,317 1,317 Société en commandite Benadev 1 1 Société en commandite Cavelier de LaSalle 4, ,933 Société en commandite CDTI de Hull Société en commandite d'investissement Germain-Calgary 1,800 1,800 Société en commandite du Société en commandite du 259 boulevard St-Joseph-Hull Société en commandite JBSL Société en commandite Mansfield 2,075 2,075 Société en commandite RMI Trois A, Société en commandite Village de la Gare s.e.c general partners of limited partnerships ,207 9,455 2,905 41,567 Direct holdings: Condominium 410 des Récollets, Montréal 615 Terrain ave. du Lac-Clermoutier, Chertsey 1,295 43,477 3

94 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds locaux de solidarité FTQ, s.e.c. CDEC Rosemont-Petite Patrie, corporation de développement économique communautaire Centre local de développement (CLD) de Beauce-Sartigan Centre local de développement (CLD) de Marguerite-D'Youville Centre local de développement (CLD) des Îles-de-la-Madeleine Centre local de développement (CLD) du Haut-St-François Centre local de développement (CLD) du Fjord Centre local de développement (CLD) du territoire de la MRC d'argenteuil Centre local de développement (CLD) du territoire de la MRC du Rocher- Percé Centre local de développement (CLD) Montréal-Nord Centre local de développement Beauharnois-Salaberry Centre local de développement de Brome-Missisquoi Centre local de développement de la Basse-Côte-Nord Centre local de développement de la Côte-de-Beaupré Centre local de développement de la Haute-Côte-Nord (CLDHCN) Centre local de développement de la M.R.C. d'avignon inc Centre local de développement de la M.R.C. de Bonaventure Centre local de développement de la Mitis Centre local de développement de la MRC de Charlevoix Centre local de développement de la MRC de Charlevoix-Est inc Centre local de développement de la MRC de Maskinongé Centre local de développement de la MRC de Memphrémagog Centre local de développement de la MRC de Robert Cliche Centre local de développement de la MRC de Sept-Rivières inc Centre local de développement de la MRC des Laurentides Centre local de développement de la MRC du Val-Saint-François Centre local de développement de la MRC Les Maskoutains Centre local de développement de la municipalité régionale de comté de d'autray Centre local de développement de la Nouvelle-Beauce (C.L.D.N.B.) Centre local de développement de la région d'acton Centre local de développement de la région de Rivière-du-Loup Centre local de développement de la Vallée-du-Richelieu Centre local de développement de l'île d'orléans Centre local de développement de Lachine (CLD Lachine) Centre local de développement de Longueuil «CLD» Centre local de développement de Manicouagan Centre local de développement de Rimouski-Neigette (CLD) Centre local de développement de Roussillon Centre local de développement des Basques Centre local de développement des Collines-de-l'Outaouais Centre local de développement des Etchemins Centre local de développement des Pays-d'en-Haut Centre local de développement du Pontiac Centre local de développement les 3 Monts Centre local de développement Maria-Chapdelaine Centre local de développement Mékinac Centre local de développement Minganie CLD de la MRC de Lotbinière Corporation de développement économique communautaire (C.D.E.C.) Centre-Nord Corporation de développement économique communautaire Ahuntsic- Cartierville Corporation de développement économique communautaire Côte-des- Neiges/Notre-Dame-de-Grâce Corporation de développement économique et communautaire Centresud/Plateau Mont-Royal Corporation de développement économique de Lasalle (CLD) Développement économique - CLD Gatineau Fonds local de solidarité (FLS) MRC d'antoine-labelle Fonds local de solidarité (FLS) MRC de la Rivière-du-Nord Fonds local de solidarité Laval Fonds local de solidarité MRC de Coaticook Fonds local de solidarité MRC de Drummond Fonds local de solidarité Québec Le centre local de développement de la M.R.C. de Bécancour inc Regroupement économique et social du Sud-Ouest (RESO) Sherbrooke Innopole (CLD) Société de développement économique de la région de Thetford (CLD) SOLIDE de la MRC de Bellechasse

95 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds locaux de solidarité FTQ, s.e.c. (continued) SOLIDE de la MRC de Caniapiscau SOLIDE de la MRC de Joliette SOLIDE de la MRC de la Jacques-Cartier SOLIDE de la MRC de Lac-Saint-Jean-Est SOLIDE de la MRC de Matane SOLIDE de la MRC de Montmagny SOLIDE de la MRC de Témiscamingue SOLIDE de la MRC de Vaudreuil-Soulanges SOLIDE de la MRC des Jardins-de-Napierville SOLIDE de la MRC du Domaine-du-Roy SOLIDE de la MRC du Fjord-du-Saguenay SOLIDE de Lévis SOLIDE de Mercier/Hochelaga-Maisonneuve SOLIDE de Shawinigan SOLIDE Rivière-des-Prairies/Pointe-aux-Trembles SOLIDE Ville-Marie ,642 10,291 Funds commited but not disbursed 38,922 49, Fonds régional de solidarité Abitibi-Témiscamingue, société en commandite Québec inc. (Hardy Construction) Québec inc. (Les Réclamations du Nord-Ouest) Québec inc. (Centre Jardin Lac Pelletier) Québec inc. (Consultants B.C.H.) Québec inc. (Dan Extermination) Québec inc. (Forage Boréal) 1, , Québec inc A. & L. Pinard inc Abitibi Royalties inc. 3 3 Adventure Gold inc Agritibi R.H. inc. 1,806 1,806 Atelier Tangente inc Centre de peinture L.B.G. inc Corporation Aurifère QMX Entrepreneur Minier Promec inc Exploration Azimut inc Exploration Midland inc Ferabi inc Géliko inc Groupe MBI inc. 1,642 1,642 Groupe Technosub inc. 1,208 1,208 H.P. Hydraulique inc Industries Wood4 inc Les Aciers J.P. inc Les équipements de forage VersaDrill inc Les Grains du Témis inc LVL Global inc ,143 Machineries Horticoles d'abitibi inc Machines Roger lnternational inc Matamec Explorations inc Mines de la Vallée de l'or ltée Mines Richmont inc Modulabec inc Ressources Cartier inc Service Sani Tri inc Transport Clément Bégin inc Transport D. Barrette & fils inc VCC-Massénor inc ,930 11, ,780 Funds commited but not disbursed 2,200 19,980 5

96 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Bas-Saint-Laurent, société en commandite Québec inc. (Copeaux de la vallée) Canada inc. (Méridien Maritime Réparation) et Canada inc Québec inc. (Carrière Neigette) Québec inc. (Pièces d'autos sélect) Québec inc. (Multi-Pièces D.L.) Adélard Soucy (1975) inc AMH Canada ltée Asselin & Asselin arpenteurs-géomètres inc Bois BSL inc Ébénisterie Jean-Guy Lévesque & fils inc. 1,000 1,000 Érablières des Alléghanys inc Fonderie BSL inc Fonds Soutien Bas-Saint-Laurent, société en commandite 1,000 1,000 Gagnon Image inc Gestion du Fonds Soutien Bas-Saint-Laurent inc. 1 1 Groupe Riotel Hospitalité inc Les Constructions H.L. Thériault inc Les Distributions Arnaud inc Les Électriciens Pierre Roy inc Les Produits PBM ltée Pourvoirie de la Seigneurie du lac Métis inc Productions Québec Multimédia inc Projexco inc Richard Poirier et Frères Électrique ltée Topocom Technologie inc ,695 6,564 9,259 Funds commited but not disbursed 65 9, Fonds régional de solidarité Centre-du-Québec, société en commandite Écofib inc Huppé Meubles inc IPM Canada inc Misa Tours Canada inc Nitek Laser inc Rénovation Expo inc Vibrotech inc ,617 2,617 Funds commited but not disbursed 250 2, Fonds régional de solidarité Chaudière-Appalaches, société en commandite Québec inc. (Ramp-Art) Québec inc. (Supervac 2000) Acier Majeau inc Bercomac Limitée Canada moteurs importations inc Cométal inc Équipements récréatifs Jambette inc Fenêtres Altek inc Fini. U.V. International inc Forimpex inc Groupe PCM inc Groupe S.S. inc J.L. Leclerc & fils inc Les Productions Horticoles Demers inc L'usine Tac Tic inc Mapa Innovations inc. et Les Produits Multi-Formes G.M. inc Menuiserox inc Météo fenêtres et portes inc Multi-Brosses inc Portes Veilleux 2000 inc Quartz Industrie inc Usine Sartigan inc. 1,196 1, ,426 9,363 6

97 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Côte-Nord, société en commandite Canada inc. (Les Entreprises Electro Select) Québec inc Québec inc. (Parmon Construction) Québec inc. (Résidence J.R. Lafontaine) Carrosserie Pro 2010 inc Construction F.H.D. inc Construction Fortin & Lévesque inc. 1,050 1,050 Construction J.G.M. inc Croisière 2001 inc Fonds Soutien Côte-Nord, société en commandite 1,000 1,000 Gestion du Fonds Soutien Côte-Nord inc. 1 1 Hôtel Mingan inc. 1,090 1,090 Hôtel Motel Le Q'Artier des Îles inc Lajoie Réfrigération inc Les Distributions G.F.D. inc Les Pétroles Paul Larouche inc Nord Industrie inc Pec-Nord inc Phoenix services environnementaux inc Synergica Alliance inc ,401 7,617 9,018 Funds commited but not disbursed 375 9, Fonds régional de solidarité Estrie, société en commandite Québec inc Acier Fastech inc Amecci inc Ani-Mat inc. 1,385 1,385 Beaudin Le Prohon inc Boréal - Informations stratégiques inc. 1,127 1,127 Café Faro inc Domaines Pinnacle inc Innotex inc Kemestrie inc Laser AMP inc Les Cartons Northrich inc Les Entreprises Dauphinais inc Les fabricants de boyaux industriels Premier ltée Les Industries Touch inc. 1,558 1,558 Les Quais Bertrand inc Les Viandes Laroche inc M.P. Éco inc Motrec international inc. 1,000 1,000 Oasis Tropik Nordik inc Oxybec Médical inc Scholer Industriel inc Soudure Brault inc Sport Powertek inc ,290 11,920 Funds commited but not disbursed , Fonds régional de solidarité Gaspésie - Îles-de-la-Madeleine, société en commandite B.M.B. (Îles-de-la-Madeleine) inc Cap sur mer inc Fabrication Delta inc Fonds Soutien Gaspésie-Îles-de-la-Madeleine, société en commandite Gaspésie Diésel inc Gestion du Fonds Soutien Gaspésie-Îles-de-la-Madeleine inc. 1 1 Junex inc Les entreprises Léo Leblanc & fils inc Les Industries Leblanc inc. 3 3 Les Pêcheries Marinard ltée Les Reboiseurs de la Péninsule inc Michaud technologies inc Pêcheries Vilo inc Serres Jardins-Nature inc ,925 2,467 4,392 7

98 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Lanaudière, société en commandite Canada inc. (Les Signatures Passions) ABC Environnement inc Agro-100 ltée Gestion EDB Mondor inc Groupe Manucam inc Les Aliments Sibon (1985) ltée Multi-modèles Martin Gaudet inc Pneus Lanoraie inc Produits Vince inc Sécurité GMR inc Triotech Amusement inc. 1,420 1,420 Verre Select inc ,105 5, Fonds régional de solidarité Laurentides, société en commandite Canada inc. (Aliments Urbains) Canada inc. (Profab mécanique 2010) et Québec inc Québec inc. (Lacelle & Frères) Autobus Lion inc BMI Canada inc. 1,900 1,900 Complexe Hôtelier St-Jovite / Mont-Tremblant inc Distributions Denis Fontaine inc Garage François Thouin inc., Remorques CFT inc. et Canada inc Gestion Estérel inc Gestion hôtelière REVPAR inc Groupe Aviation et Puissance inc. 1,517 1,517 Groupe Sima Palsol inc Groupe Star Suites inc La Petite Bretonne inc. 1,266 1,266 Le Groupe Synergie Xpress inc Les Entreprises Guy Desjardins inc. 1,000 1,000 Lev-Fab inc Montour ltée Palmex International inc Service Alimentaire Desco inc Vision Villégiature inc ,050 10,675 11, Fonds régional de solidarité Laval, société en commandite Québec inc. (Jungle Aventure) Alimentation L'Épicier inc Ciel Aventure Québec inc. 1,000 1,000 Corporation Smartsilk inc Emballages Cré-O-Pack International inc Groupe Carreaux Céragrès inc Groupe Lincora inc Hydrolico International inc. 1,000 1,000 K.F. Construction inc Les Bouteilles Recyclées du Québec (B.R.Q.) inc Les Fruits de Mer IFC inc Les industries Cendrex inc Les Investissements Sylnic inc Les Laboratoires de recherche de Lan Wirewerks inc Les Productions Diamant ltée Paris, Ladouceur & associés inc Perlite Canada inc Portes et fenêtres Cordy inc S.R.A.D. Communications inc Stylo Bankers (1991) inc Tornatech inc , , Fonds régional de solidarité Mauricie, société en commandite Québec inc. (Transport Jacques Labbé) Climatisation Trois-Rivières inc Concept Éco-Plein-Air Le Baluchon inc ,352 Portes & fenêtres Nouvel Horizon inc Tuyauterie Borgia ltée ,651 2,402 8

99 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Montérégie, société en commandite Canada inc., Canada inc. et Canada inc Agro-Bio contrôle inc Agrocentre Belcan inc Aliments Horizon Nature inc Andy transport inc Atelier d'usinage Quenneville inc Bousquet Frères Limitée DCL Nutrition & santé animale inc Dermolab Pharma ltée Équipements de transformation IMAC (E.T.I.) inc FDC Composites inc Groupe Damafro inc Groupe Exel International inc Investissements Brasco inc LC Média inc Le Groupe Conseil Integrim inc Les Produits de Ventilation Lambro inc Les sols Sportica inc Location Jean Légaré ltée M.G.B. Électrique inc. 1,025 1,025 Magnus Poirier inc. 1,175 1,175 Matériaux paysagers Savaria ltée Perfecta Plywood ltée Plombco inc Quincaillerie architecturale Capsol inc Ray-Mont Logistiques inc. 1,435 1,435 Service sérigraphique professionnel S.S.P. inc Soya Excel inc Vulcan Compagnie de Palans ltée 1,000 1,000 1,072 12,727 13,799 Funds commited but not disbursed , Fonds régional de solidarité Nord-du-Québec, société en commandite Québec inc. (Entretien industriel D.L.B.) Québec inc Cogitore Resources inc Corporation Éléments Critiques Donner Metals Ltd Équipement de bureau Ungava inc Exploration Azimut inc Exploration Dios inc Exploration Khalkos inc. 6 6 Exploration Midland inc Exploration NQ inc Focus Graphite inc Fonds Soutien Baie-James, société en commandite Gestion du Fonds Soutien Baie-James inc. 1 1 Les Consultants de l'arctique inc Les Pétroles M.J. inc Mines Virginia inc Nemaska Lithium inc Nord Décoration inc Ressources Cartier inc Ressources Géoméga inc Ressources Monarques inc Services Pétroliers Chibougamau inc Société d'exploration Minière Vior inc St-Félicien Diesel (1988) inc Stornoway Diamond Corporation ,739 2, ,866 Funds commited but not disbursed 100 5,966 9

100 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Outaouais, société en commandite Canada ltée (Taxi Loyal) Canada inc. (Vitrerie Vision 2000 enr.) 1,000 1, Canada Ltd (Storeimage) Canada inc. (InnovationEngineering Group) Canada inc. (Les Services de la première générale (Gatineau)) Canada inc. (Concept Pro-Métal) Québec inc. (Activec) Alary, St-Pierre & Durocher Arpenteurs-géomètres inc Auberge & Spa le Nordik inc Cactus Commerce inc Gestion conseil Immogest-Sweeney inc Laiterie de l'outaouais inc Mr. Refill International inc Multicorpora R&D inc PCI Géomatiques Entreprises inc ProVance Technologies inc Restaurations Sélect inc Service de Pneus Lavoie Outaouais inc. 1,327 1,327 SolaCom Technologies inc. 1 1 Terrapro Construction inc. 1,437 1,437 Tomoye Corporation VanillaSoft corp WMD Moulin de Wakefield développements inc Zeligsoft inc ,476 8, , Fonds régional de solidarité Québec, société en commandite Québec inc. (E.B.M. Laser) Agora Communication inc Armeco inc Ascenseurs Maxi inc Auvents W. Lecours inc Chemco inc Corporation Eatsleepmusic.com Distribution Sports Loisirs G.P. inc DK-SPEC inc Engrenage Provincial inc. 1,875 1,875 Filtrum inc. 1,238 1,238 Fleurigros 1995 inc Groupe Enode inc Groupe Incursion inc Groupe Renaud et Ass. inc Imprimerie Nicober inc Laboratoire Hygiènex inc Les Aliments 2000 inc. 1,400 1,400 Les Chaussures Henri-Pierre inc Les Distributions Marc Boivin (2007) inc Les Entreprises P.E.C. inc Les Industries Rouillard inc Les Vêtements Perlimpinpin inc Load Systems International inc Métafab (1996) inc Métal Potvin inc Miro Cuisines Tendances inc Mode Avalanche inc Panavidéo inc Radio-Onde inc Simon Giguère Produits Pétroliers inc Tapitec (Québec) inc TBC Constructions inc Transport C.D.P. inc. 1,521 1,521 1,529 16,292 17,821 Funds commited but not disbursed 1,300 19,121 10

101 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Fonds régional de solidarité Saguenay - Lac-Saint-Jean, société en commandite Québec inc. (Notre Hôtel) Québec inc. (Interbus) Québec inc. (Les Équipements pétroliers Claude Pedneault) Canada inc. (Société P.C.P.) Québec inc. (Les Chocolats Lulu) Québec inc. (Inter-Projet) Québec inc. (Menuiserie St-Henri) Québec inc. (Pub la Voix-Maltée) Québec inc A.S. Nettoyage inc Cycles Devinci inc Dynamitage Express inc. 1,117 1,117 Équipements Mauvalin inc. 6 6 Garage Marcel Simard inc Gestion du Fonds AP 60 inc. 1 1 Gestion LJ inc Groupe Giroux Maçonnex inc Industrie Bois Lamontagne inc Industries Bofab inc Isumi Précision ltée Les Fenêtres AGM inc Les Lignes du Fjord inc Les Pétroles R.L. inc Les Placements G.M.R. Maltais inc Nolicam Location de camions inc Novabrik International inc. 1, ,521 Oxygène Dolbeau inc Perfecta Forêt ltée Pétrolex St-Félicien inc Précicast ltée Prowatt inc Reboitech inc. et Plani-forêt S.G.F. inc Remac innovateurs industriels inc SCP 89 inc Société de gestion Trois-Trois-Trois inc Transports J.M. Bernier inc ,326 9, , Novacap Industries III, s.e.c. Camille Fontaine & Fils inc. Corporation de Développement Nautilus inc. IPL inc. Securities of six other companies Rho Canada Capital de Risque, s.e.c. BC inc. (Réseau Playerize) Chango, inc. Eightfold Logic, inc. Fixmo inc. GrowLab Les Entreprises Beyond the rack inc. Les Réseaux Accedian inc. Logiciel Iscopia inc. LucidLogix Technologies, Ltd Mobio Technologies inc. Public Mobile inc. Securities of five other companies Soccrent 2006, société en commandite Canada inc. (Groupe Fruits Bleus) Canada inc. (Groupe Secto inc.) Dynaplast Extruco inc. Groupe Secto inc. Groupe Sotrem-Maltech inc. Industries Spectal inc. Intercalaire Inex inc. Les Consultants Olympe inc. Les Conseillers Trigone inc. Les Industries G.R.C. inc. Novabrik international inc. Produits Alba inc. Securities of three other companies 9,685 9,888 19,573 12, ,329 10,732 3,742 14,474 11

102 Index of the Share of the Fonds in Investments Made by the Specialized Funds, at Cost (unaudited) As at May 31, 2013 (In thousand $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units Advances Advances Société de gestion d'actifs forestiers Solifor, société en commandite Solifor Bloc A-RPF, société en commandite Solifor Bloc B-LP, société en commandite Solifor Bloc Monet, société en commandite Solifor Charlevoix-Saguenay, société en commandite Solifor Lac Métis, société en commandite Solifor Lotbinière, société en commandite Solifor Mauricie, société en commandite Solifor Nicolas Riou, société en commandite Solifor Perthuis, société en commandite 134, , VC, société en commandite Securities of two companies Direct holdings of real estate 116, ,195 This unaudited index details the investments made by the regional funds, by the specialized funds in which the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the Fonds ) has invested more than 0.2% of its net assets and by the specialized funds in which the Fonds holds an interest of 50% or more and exercises significant influence over the management of these funds. Amounts invested by business enterprise are disclosed only in the cases provided by the Regulation Respecting Development Capital Investment Fund Continuous Disclosure. 12