Fonds - A Guide to Independent Valuation

Transcription

1 FINANCIAL STATEMENTS AS AT MAY 31, 2015

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, 2015, May 31, 2014 and June 1, 2013, and the statements of comprehensive income, changes in net assets and cash flows for the years ended May 31, 2015 and 2014, 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 International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board, 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, 2015, May 31, 2014 and June 1, 2013, and its financial performance and its cash flows for the years ended May 31, 2015 and 2014 in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. Signed, Deloitte LLP 1 Signed, Raymond Chabot Grant Thornton LLP 2 1 CPA auditor, CA, public accountancy permit No. A CPA auditor, CA, public accountancy permit No. A Montréal, June 23, 2015 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 1

3 BALANCE SHEETS (in millions of Canadian dollars, except net assets per share) Note May 31, 2015 May 31, 2014 June 1, 2013 Assets Development capital investments 5 6,094 5,444 5,306 Other investments 6 5,384 5,075 4,380 Investment property Accounts receivable Cash Other assets Deferred income taxes Property and equipment Intangible assets Refundable taxes on hand Income taxes Securities purchased under reverse repurchase agreements Financial instruments related to securities sold under repurchase agreements ,090 11,197 10,469 Liabilities Notes Accounts payable Other liabilities Deferred income taxes Net defined benefit liability Share redemptions payable Securities sold under repurchase agreements ,066 1,160 Net assets 18 11,150 10,131 9,309 Net assets per Class A share Contingencies (Note 20) The accompanying notes form an integral part of these financial statements. On behalf of the Board of Directors, (signed) Robert Parizeau Robert Parizeau, Director (signed) Gaétan Morin Gaétan Morin, Director FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 2

4 STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED MAY 31 (in millions of Canadian dollars, except net income per share) Note Revenues 21 Interest Dividends and distributions Rental, fee and other income Gains (losses) on development capital investments, other investments and investment property Realized Unrealized Transaction costs (2) (2) , Total operating expenses 22 Corporate Development capital investments and other investments Shareholder Services and Economic Training Income before income taxes 1, Income taxes Net income Item of other comprehensive income that will not be reclassified to net income Remeasurement of the net defined benefit liability Comprehensive income Supplemental information Net income per Class A share 18 and 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 Note Share capital Class A shares Contributed surplus Retained earnings Accumulated other comprehensive income Net assets (in millions of Canadian dollars) 18 Series 1 Series 2 Subscribed 2015 Balance at beginning of year 7, , ,131 Net income Other comprehensive income 7 7 Share issues Net change in share subscriptions 1 1 Share redemptions (490) (8) (51) (94) (643) Change in outstanding redemptions 2 1 (1) 2 Transfers (80) - Balance at end of year 8, , , Balance at beginning of year 7, ,309 Net income Other comprehensive income 1 1 Share issues Net change in share subscriptions - - Share redemptions (578) (11) (69) (72) (730) Change in outstanding redemptions (6) - (2) (8) Transfers (90) - Balance at end of year 7, , ,131 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 millions of Canadian dollars) Operating activities Net income Non-cash items Interest capitalized on development capital investments (4) (2) Interest capitalized on notes Amortization of premiums and discounts (Gains) losses on development capital investments, other investments and investment property Realized (226) (177) Unrealized (584) (405) Post-employment benefits 8 - Depreciation of property and equipment and amortization of intangible assets 7 6 Deferred income taxes Changes in non-cash items Accounts receivable Refundable taxes on hand 2 5 Income taxes (8) 4 Accounts payable (2) (68) Other Acquisition of development capital investments (620) (380) Proceeds of disposal of development capital investments Acquisition of other investments (7,792) (9,458) Proceeds of disposal of other investments 7,932 9,056 Increase in notes Repayment of notes (159) (142) Acquisition of investment property (3) - (15) (39) Financing activities Shares issued and subscribed Shares redeemed (645) (733) Investing activity Acquisition of property and equipment and intangible assets (6) (8) Increase in cash 2 7 Cash at beginning of year 16 9 Cash at end of year Supplemental information (amounts included in operating activities) Interest received Dividends and distributions received Taxes paid 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 1. DESCRIPTION OF THE FONDS 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 whose principal office is located at 545 Crémazie Boulevard East, Suite 200, Montréal, Québec, Canada and whose objectives are: to invest in Québec business entreprises and provide them with services in order to create, maintain or protect jobs; to promote the training of workers in economic matters to enable them to increase their influence on Québec s economic development; to stimulate the Québec economy by making strategic investments that will be of benefit to Québec workers and business entreprises; 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. 2. SIGNIFICANT ACCOUNTING POLICIES 1. IFRS ADOPTION These financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ). The Fonds adopted this accounting framework for the year beginning June 1, 2014, as required by Canadian securities laws and the Accounting Standards Board of Canada. Previously, the Fonds prepared its financial statements in accordance with Canadian generally accepted accounting principles as defined in Part V of the CPA Canada Handbook Accounting ( Canadian GAAP Part V). The Fonds used the same accounting policies to prepare its opening IFRS balance sheet as at June 1, 2013 and throughout all the financial years presented, as if such policies had always been effective. Note 28 discloses the impact of the transition to IFRS on the financial position, financial performance and cash flows reported by the Fonds. It also presents the nature and impact of the significant changes in accounting policies from the accounting policies used to prepare the financial statements of the Fonds in accordance with Canadian GAAP Part V for the year ended May 31, BASIS OF PREPARATION These financial statements have been prepared on a fair value basis, except for property and equipment and intangible assets, which are measured on the historical cost basis, as well as certain financial instruments, as mentioned in item 5 of Note 2. These separate financial statements are the only financial statements presented by the Fonds. They have been approved for issue on June 23, 2015 by the Board of Directors of the Fonds. 3. INVESTMENT ENTITY The Fonds meets the definition of investment entity set out in IFRS 10 Consolidated Financial Statements, as the following conditions are met: the Fonds obtains capital from many investors for the purpose of managing their savings; the Fonds commits to its investors that the purpose of its investments activities is to generate a return and provide investment income, in accordance with its mission; and the Fonds measures and evaluates the performance of its investments on a fair value basis. Consequently, the Fonds does not prepare consolidated financial statements. 4. SUBSIDIARIES AND ASSOCIATES Investments in subsidiaries and associates are recognized at fair value through profit or loss. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 6

8 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 5. FINANCIAL INSTRUMENTS RECOGNITION AND CLASSIFICATION Financial instruments are recognized at fair value at the transaction date, when the Fonds becomes a party to the contractual provisions of the instrument. The cost presented for development capital investments and other investments corresponds to the amount paid and is determined based on average cost, excluding transaction costs. Transaction costs are recognized in net income when incurred. A financial asset is derecognized when the Fonds no longer has the contractual rights to the cash flows from this asset. Financial assets and liabilities are classified in various categories based on their characteristics and the Fonds intention upon their acquisition and their issuance. Development capital investments, other investments, accounts receivable relating to development capital investments and other investments sold, loans included in accounts receivable other, cash, securities purchased under reverse repurchase agreements, financial instruments related to securities sold under repurchase agreements, accounts payable relating to development capital investments and other investments purchased, derivative financial instruments and securities sold under repurchase agreements are all financial instruments designated as at fair value through profit or loss. These financial instruments are part of a managed portfolio whose performance is evaluated on a fair value basis, in accordance with a documented financial asset integrated management strategy, and information is provided internally on that basis to the Fonds key management personnel. Other accounts receivable are classified in loans and receivables. Notes and other accounts payable are classified in other financial liabilities. These financial instruments are recognized at amortized cost, which approximates their fair value given their nature and short-term maturity. Financial liabilities are derecognized when the obligation is extinguished, which is when the obligation is discharged or cancelled or expires. 6. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. a) Fair value of assets and liabilities traded on active markets To determine the fair value of financial assets and liabilities that are quoted in an active market, such as listed shares, bonds, money market instruments and listed derivative financial instruments, the Fonds uses the price within the bid-ask spread that is most representative of fair value, given the relevant facts and circumstances, at the reporting date. b) Fair value of assets and liabilities that are not traded on active markets The fair value of financial assets and liabilities that are not traded on active markets (including unlisted derivative financial instruments) is determined using valuation techniques selected based on certain specified criteria and market conditions prevailing at each reporting date. The valuation techniques used are based on valuation principles derived from the guidelines that are generally used in the industry by business valuation professionals. These valuation principles are approved every six months by the Fonds Audit Committee. The valuation technique used for a financial instrument is generally the same from one period to the next, except when a change in valuation technique results in a more accurate estimate of fair value. i) Unlisted shares and units When a yield method is used, the fair value of unlisted shares is mainly determined using the capitalized cash flow technique. The two main variables used in this technique are maintainable cash flows and the capitalization rate. To determine maintainable cash flows, recurring cash flows are estimated based on the entity s historical results and/or financial forecasts. A weighting factor is applied to each of the cash flows used to reflect its probability of occurrence. The capitalization rate used to capitalize maintainable cash flows reflects how the investee could finance its operations and the risks associated with the materialization of these maintainable cash flows. When the price of a recent transaction negotiated between unrelated parties on an arm s-length basis is available, this valuation technique is used under certain conditions. It may also be appropriate to use a valuation technique based on a bid from a third party. Using judgment is necessary to determine whether the price in such recent transaction or bid represents the best evidence of fair value at the reporting date. The period during which referring to a past transaction or bid is deemed appropriate depends on the circumstances specific to each situation. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 7

9 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 6. FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENT (CONTINUED) b) Fair value of assets and liabilities that are not traded on active markets (CONTINUED) i) Unlisted shares and units (CONTINUED) In certain circumstances or depending on the nature of operations, the future earning potential is better reflected by the value of the assets, and the adjusted net asset method is used. This method is also used to determine the fair value of unlisted investment fund units held. In such case, this method entails using the share of all assets and liabilities appearing on the balance sheet of the investee at their fair value and adjusting it as necessary. The main adjustments made are related to the fair value of the assets and liabilities, new information available and significant events that occurred between the investee s reporting date and the Fonds reporting date. The fair value of certain unlisted units is determined using the price established by their respective manager. ii) Hedge fund units The fair value of hedge fund units is determined using the price established by their respective manager. iii) Loans and advances The fair value of secured and unsecured loans and advances is determined by discounting the contractual cash flows expected to be received by the Fonds using a discount rate that reflects the return that the Fonds would require given the credit risk of the investee. Certain loans and advances to a wholly-owned company are considered as quasi-equity, and their fair value is determined using the adjusted net asset technique. iv) Guarantees and suretyships When it is likely that the Fonds will have to disburse an amount on a guarantee or a suretyship it granted, an asset-based approach and a liquidation value technique are used to estimate the amount of the liability to be recognized. v) Derivative financial instruments The fair value of unlisted derivative financial instruments is determined using appropriate valuation techniques, including discounting future cash flows at the current rate of return. vi) Accounts receivable relating to development capital investments and other investments sold The fair value of accounts receivable relating to development capital investments sold that are not traded on active markets is determined by discounting contractual cash flows. Generally, the estimated amounts to be received and timing of their collection depend on future events or the satisfaction of certain conditions. 7. 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 depositary 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 in net income under Interest. 8. INVESTMENT PROPERTY Investment property is property held by the Fonds for renting and value appreciation purposes. The investment property is occupied by several tenants. The Fonds presents its investment property using the fair value model. Fair value is measured at each reporting date, and any change in fair value is recognized in net income. The fair value used is determined using the discounted cash flow technique, whereby fair value represents the aggregate of the present value of projected cash flows and the reversion value at the end of the projection period. To ensure that such fair value is appropriate, the result is compared with other techniques, such as the direct discounting technique, under which an overall discount rate is applied to normalized net operating income, and the direct comparison method, under which the most likely selling price is estimated by comparing and analyzing real estate transactions involving similar properties. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 8

10 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 9. CASH Cash includes bank accounts used in operating, processing transactions on share capital and managing development capital investments and other investments. 10. PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS Property and equipment and intangible assets are stated at cost less any accumulated depreciation or amortization and accumulated impairment losses. Cost includes items that are directly attributable to the acquisition of the item of property and equipment or intangible asset. Subsequent costs for an item of property and equipment or an intangible asset are recognized only if it is probable that future economic benefits associated with it will flow to the Fonds and the cost can be measured reliably. Repair and maintenance expenses are recognized in total operating expenses through net income when incurred. The main property and equipment and intangible asset categories are depreciated or amortized over their estimated useful life using the following methods, periods and annual rates: Methods Periods/rates Property and equipment Buildings Straight-line 15 to 60 years Office furniture and equipment Diminishing balance 20% Computer hardware Straight-line 4 years Intangible assets Information systems development Straight-line 3 years The Fonds allocates the amount initially recognized in respect of an item of property and equipment or intangible assets to its significant parts and depreciates or amortizes them separately. The carrying amount of a replaced part is derecognized upon replacement. Residual values, depreciation or amortization method and useful life of assets are reviewed at each reporting date and adjusted if needed. At each reporting date, property and equipment and intangible assets are tested for impairment when events or changes in circumstances indicate that their carrying amount may not be recoverable. To determine the recoverable amount, items of property and equipment and intangible assets are aggregated at the lowest level for which identifiable cash flows are independent from the cash flows from other groups of items of property and equipment or intangible assets. The Fonds assesses possible reversals when events or circumstances warrant it. 11. POST-EMPLOYMENT BENEFITS The cost of earned pension benefits and other employee post-retirement benefits is recognized through net income and comprises current service cost and net interest on the net defined benefit plan liability. Remeasurements of the net defined benefit liability are recognized in Other comprehensive income. They are not reclassified subsequently to net income and are presented separately in the Statement of Changes in Net Assets. Remeasurements of the net defined benefit liability comprise actuarial gains and losses as well as the return on plan assets, excluding interest income. Actuarial gains and losses result from changes in the actuarial assumptions used to determine the defined benefit obligation and from experience gains and losses on such obligation. The net defined benefit liability corresponds to the present value of the post-employment benefit plan obligation less the fair value of plan assets. 12. SHARE CAPITAL The Fonds Class A shares are puttable (redeemable at the option of the holder), subject to certain conditions, and are classified in net assets as they have all the following features: they entitle the holder to a pro rata share of the Fonds net assets in the event of the Fonds liquidation; they are in a class of instruments that is subordinate to all other classes of instruments of the Fonds; they have features that are identical to those of all the other instruments of this class; FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 9

11 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 12. SHARE CAPITAL (CONTINUED) apart from the contractual obligation for the Fonds to repurchase or redeem the instrument for cash or another financial asset, they do not include any contractual obligation to deliver cash or another financial asset to another entity, or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity, and they are not a contract that will or may be settled in the Fonds own equity instruments; the total expected cash flows attributable to the shares over their life are based substantially on the change in net assets. Share issues and redemptions are recognized as transactions on net assets. The consideration received for share issues is included in share capital. Share redemptions are recognized when the requests are approved under redemption criteria at the current redemption value, and shares are derecognized based on average cost. 13. FUNCTIONAL CURRENCY AND FOREIGN CURRENCY TRANSLATION The Canadian dollar is the functional currency and the reporting currency of the Fonds. Transactions in foreign currencies are translated into the functional currency at the exchange rate prevailing at the transaction date. Assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the reporting date. Translation differences related to cash are presented as translation differences on cash, and other translation differences are presented in net income under Gains (losses) on development capital investments, other investments and investment property. 14. REVENUE RECOGNITION a) Interest Interest revenue is recognized on an accrual basis using the effective rate method. Amortization of premiums and discounts under this method is recognized under Interest. b) Dividends and distributions Non-cumulative dividends are recognized when they are declared, while cumulative dividends are recognized on an accrual basis. Distributions are recognized when they are received. c) Rental, fee and other income Rental income is recognized on a straight-line basis over the term of the lease, while fee and other income are recognized on an accrual basis. d) Gains and losses on development capital investments, other investments and investment property Realized gains and losses on disposals of development capital investments and other investments are recognized at the time of sale. The amount of such gains and losses is the difference between the proceeds of disposal and average cost. Unrealized gains and losses on the measurement to fair value of financial instruments and investment property are recognized in net income at the time of measurement to fair value. 15. INCOME TAXES The income tax expense comprises the current tax expense and the deferred tax expense. Income taxes are recognized in net income unless they relate to items that are recognized directly in Other comprehensive income or net assets; in such case, income taxes are also recognized directly in Other comprehensive income or net assets, respectively. Current income tax is the amount of income tax payable in respect of the taxable income for the period, calculated using the tax rates that have been enacted or substantively enacted by the end of the reporting period, and any adjustments to income taxes related to prior periods. Deferred income tax is recognized for the temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is calculated on a non-discounted basis using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period and that are expected to apply to the period when the deferred tax asset is realized or the deferred tax liability is settled. A deferred tax asset is recognized only to the extent that it is probable that future taxable income will be available against which the deductible temporary differences can be utilized. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 10

12 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 15. INCOME TAXES (CONTINUED) The Fonds is subject to federal and Québec income taxes. It is also subject to the tax rules applicable to mutual fund corporations. For purposes of the federal income tax, the Fonds can, in particular, receive a refund of the income taxes paid on its capital gains by redeeming its shares or by transferring amounts from retained earnings to share capital. The Fonds considers itself, in substance, exempted from federal income tax related to capital gains for purposes of applying IFRS and, accordingly, does not recognize any deferred tax liability for unrealized net gains on development capital investments, other investments and investment property nor any corresponding deferred tax asset for unrealized recoveries resulting from the tax mechanisms related to refundable capital gains tax on hand. 16. NET INCOME PER CLASS A SHARE Net income per share is calculated by dividing net income by the weighted average number of Class A shares outstanding during the year. 17. ACCOUNTING STANDARDS ISSUED BUT NOT YET ADOPTED As at the date of authorization of these financial statements, new standards and amendments to existing standards had been issued by the International Accounting Standards Board but were not effective. Information on those that might be relevant to the financial statements of the Fonds is provided below. a) IFRS 9 Financial Instruments The IASB issued the final version of the financial instrument standard dealing with classification, measurement, impairment and hedge accounting. This standard is effective for annual periods beginning on or after January 1, The Fonds is currently assessing the impact of applying this standard. b) IFRS 15 Revenue from Contracts with Customers The IASB issued IFRS 15, which supersedes IAS 18 Revenue and IAS 11 Construction Contracts. This new standard establishes a single, comprehensive revenue recognition model for all contracts with customers other than those that are within the scope of other standards, such as financial instruments. The core principle of this new standard is that revenue recognition should depict the transfer of goods or services in an amount that reflects the consideration received or expected to be received in exchange for these goods or services. The new standard also provides more guidance on certain types of transactions and will result in an increase in disclosures related to revenue. This standard is effective for annual periods beginning on or after January 1, However, the IASB has proposed to postpone the effective date to January 1, 2018, but this postponement has not yet been adopted. The Fonds is currently assessing the impact of applying this standard. 3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in accordance with IFRS requires using accounting estimates and judgment when applying certain accounting policies. Changes to certain assumptions may have an impact on the financial statements for the year during which such changes are made. The Fonds believes that the underlying assumptions are appropriate and that, accordingly, its financial statements present fairly its financial position and performance. The following paragraphs present an analysis of the most significant critical accounting estimates and judgments made by the Fonds in preparing its financial statements. 1. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS THAT ARE NOT TRADED ON AN ACTIVE MARKET The Fonds must make assumptions and use estimates in measuring the fair value of financial instruments that are not traded on an active market. Judgments are made with respect to selecting valuation techniques and with respect to the assumptions used in these valuation techniques. Although these techniques use observable inputs to the extent practicable, fair value is also determined using unobservable market inputs that take into account the specific features of the financial instrument and any factor relevant to the measurement. Using unobservable inputs requires the Fonds qualified valuators to make judgments so that these inputs reflect the assumptions that market participants would use to determine fair value using the best information possible in the circumstances. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 11

13 NOTES TO FINANCIAL STATEMENTS 3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONTINUED) 1. FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS THAT ARE NOT TRADED ON AN ACTIVE MARKET (CONTINUED) The Fonds considers observable inputs to be market data that is readily available, regularly distributed and updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market. Fair value reflects market conditions on a given date and, as such, may not be representative of future fair values. In accordance with the Regulation Respecting Development Capital Investment Fund Continuous Disclosure issued by the Autorité des marchés financiers, the Fonds implemented various controls and procedures to ensure that financial instruments are appropriately and reliably measured. To measure financial instruments at fair value in accordance with the valuation principles adopted by the Fonds, the Fonds team of qualified valuators monitor twice a year the performance of the companies in the portfolio and are continuously looking for information on the business and operations of the companies being valued. Where appropriate, the qualified valuators monitor data on comparable companies, the results of recent transactions and the ratings of instruments issued by similar companies. Except in the case of listed public companies, any relevant information related to fair value measurements is submitted to an independent valuation committee composed of a majority of qualified valuators independent from the Fonds, as required by the Regulation Respecting Development Capital Investment Fund Continuous Disclosure. This committee reviews this information and submits a written report to the Audit Committee, which must examine the compliance of the financial statements. The President and Chief Executive Officer as well as the Executive Vice-President, Finance, sign a certification for the Audit Committee on the valuation of development capital investments that is filed with the Autorité des marchés financiers. This certification confirms, in particular, the reasonableness of the aggregate fair value of the development capital investments portfolio. 2. FAIR VALUE MEASUREMENT OF THE INVESTMENT PROPERTY The Fonds must make assumptions and use estimates in measuring the fair value of its investment property. These assumptions include the internal rate of return and the capitalization rate. The investment property is measured based on its highest and best use. The Fonds uses a firm of independent real estate appraisal experts to determine fair value and approves the reasonableness of the assumptions used. 3. MEASUREMENT OF THE NET DEFINED BENEFIT LIABILITY The Fonds must make assumptions for using statistical data and other parameters to measure the net defined benefit liability. These assumptions include the discount rate for the pension obligation and for calculating the expected return on plan assets, the expected rate of increase in salaries and the mortality table used. Should the actuarial assumptions be materially different from the actual data observed subsequently, the plan cost recognized in Other comprehensive income as well as the net defined benefit liability presented on the Balance Sheet could substantially change. 4. FINANCIAL INSTRUMENT RISKS Risks arising from financial instruments are an integral part of the audited financial statements and are discussed in the audited Risk management section of the Management Discussion and Analysis for the Year Ended May 31, 2015, which is available at the Fonds head office, on its website at fondsftq.com or at sedar.com. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 12

14 NOTES TO FINANCIAL STATEMENTS 5. DEVELOPMENT CAPITAL INVESTMENTS The audited Statement of Development Capital Investments, at Cost, is available at the Fonds head office, on its website at fondsftq.com or at sedar.com. Unrealized appreciation (in thousands $) Cost (depreciation) Fair value May 31, 2015 Unsecured Listed shares 768, , ,277 Unlisted shares and units 2,846, ,334 3,601,742 Loans, bonds and advances 1,552,409 8,261 1,560,670 Secured Loans 2,638-2,638 5,169, ,802 6,094,327 May 31, 2014 Unsecured Listed shares 657, , ,707 Unlisted shares and units 2,583, ,761 3,053,976 Loans, bonds and advances 1,522,159 5,086 1,527,245 Secured Loans and advances 30,988 (20,113) 10,875 4,793, ,047 5,443,803 June 1, 2013 Unsecured Listed shares 761, , ,545 Unlisted shares and units 2,454, ,550 2,807,561 Loans, bonds and advances 1,612,955 (181) 1,612,774 Secured Loans and advances 11,590 (1,114) 10,476 4,839, ,658 5,306,356 Development capital investments include securities denominated in foreign currencies, mainly the U.S. dollar, with a fair value of $452.5 million (May 31, 2014: $394.4 million; June 1, 2013: $287.4 million). Investment agreements may include clauses providing for conversion and redemption options. Thus, in the normal course of business, the Fonds may exercise these options and make non-monetary exchanges of financial instruments. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 13

15 NOTES TO FINANCIAL STATEMENTS 5. DEVELOPMENT CAPITAL INVESTMENTS (CONTINUED) 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 May 31, 2015 Unsecured 81, , , ,791 1,560,670 Average effective rate (%) Secured 138 2,500 2,638 Average effective rate (%) May 31, 2014 Unsecured 75, , , ,458 1,527,245 Average effective rate (%) Secured 4,110 1,031 5,734 10,875 Average effective rate (%) June 1, 2013 Unsecured 100, , , ,179 1,612,774 Average effective rate (%) Secured 6,009 4,467 10,476 Average effective rate (%) This average rate includes non-interest bearing advances to a wholly-owned company repayable on demand of $253.8 million (May 31, 2014: $258.2 million; June 1, 2013: $268.9 million). Excluding these advances, the average effective rate would be 8.1% (May 31, 2014: 8.7%; June 1, 2013: 8.4%). FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 14

16 NOTES TO FINANCIAL STATEMENTS 5. DEVELOPMENT CAPITAL INVESTMENTS (CONTINUED) BREAKDOWN BY INDUSTRY SEGMENT Information (in thousands $) Energy and materials Industrials Consumer discretionary and consumer staples Financials and utilities technology, telecommunications services and healthcare Total May 31, 2015 Cost 571, ,424 1,003,051 2,046, ,542 5,169,525 Unrealized appreciation (depreciation) 51,642 73, , ,929 (19,653) 924,802 Fair value 623, ,658 1,264,701 2,604, ,889 6,094,327 Funds committed but not disbursed 1 104, , , , ,791 1,008,042 Guarantees and suretyships 2 9,655 9, ,173 1,154,552 1,410,045 2,826, ,680 7,112,024 May 31, 2014 Cost 528, , ,995 1,982, ,719 4,793,756 Unrealized appreciation (depreciation) 19, , , ,101 (124,059) 650,047 Fair value 547, ,971 1,126,707 2,423, ,660 5,443,803 Funds committed but not disbursed 1 110,366 89, , , , ,010 Guarantees and suretyships 2 8,227 8, , ,520 1,237,692 2,647, ,160 6,415,040 June 1, 2013 Cost 539, , ,292 2,040, ,593 4,839,698 Unrealized appreciation (depreciation) 7,876 80,471 81, ,539 (166,238) 466,658 Fair value 547, ,166 1,018,302 2,504, ,355 5,306,356 Funds committed but not disbursed 1 105,000 88,443 91, , , ,686 Guarantees and suretyships 2 7,814 7, , ,609 1,117,199 2,645, ,471 6,151, 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 the reporting date. Disbursements are subject to compliance with the agreement s terms and conditions. Of funds committed but not disbursed, an amount of $234.8 million (May 31, 2014: $278.1 million; June 1, 2013: $171.8 million) represents credit facilities and project financing for operating companies, having a weighted average maturity of 30 months (May 31, 2014: 20 months; June 1, 2013: 18 months); and an amount of $773.2 million (May 31, 2014: $684.9 million; June 1, 2013: $665.9 million) represents commitments that will be disbursed to specialized funds in tranches, having a weighted average maturity of 7.8 years (May 31, 2014: 7.2 years; June 1, 2013: 8.1 years). Commitments amounting to $186.2 million (May 31, 2014: $189.5 million; June 1, 2013: $103.6 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 15

17 NOTES TO FINANCIAL STATEMENTS 5. DEVELOPMENT CAPITAL INVESTMENTS (CONTINUED) GUARANTEES AND SURETYSHIPS The Fonds granted guarantees and suretyships for operating activities and operating lines of credit purposes, without recourse, 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. As at May 31, 2015, May 31, 2014 and June 1, 2013, there are no provisions related to guarantees and suretyships. 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 expenses. 6. OTHER INVESTMENTS The unaudited Statement of Other Investments is available at the Fonds head office, on its website at fondsftq.com or at sedar.com. Unrealized appreciation (in thousands $) Cost (depreciation) Fair value May 31, 2015 Listed shares and unlisted units 2,183, ,379 2,760,219 Bonds 2,320, ,936 2,438,033 Money market instruments 185, ,151 4,689, ,392 5,383,403 Derivative financial instruments ,689, ,564 5,383,575 May 31, 2014 Listed shares and unlisted units 2,168, ,678 2,479,289 Hedge fund units 25, ,485 Bonds 2,431,186 78,575 2,509,761 Money market instruments 59, ,855 4,684, ,693 5,074,390 Derivative financial instruments ,684, ,510 5,075,207 June 1, 2013 Listed shares and unlisted units 1,665,829 69,420 1,735,249 Hedge fund units 242,630 4, ,293 Bonds 2,325,705 65,971 2,391,676 Money market instruments ,235, ,055 4,375,067 Derivative financial instruments 1,492 2,989 4,481 4,236, ,044 4,379,548 Other investments include securities denominated in foreign currencies with a fair value of $2,062.4 million (May 31, 2014: $1,847.1 million; June 1, 2013: $1,522.3 million), mainly including $1,192.4 million (May 31, 2014: $1,020.9 million; June 1, 2013: $910.3 million) in U.S. dollars, $201.0 million (May 31, 2014: $199.3 million; June 1, 2013: $199.8 million) in euros, $199.0 million (May 31, 2014: $172.4 million; June 1, 2013: $92.4 million) in yens and $166.4 million (May 31, 2014: $167.0 million; June 1, 2013: $180.6 million) in pounds sterling. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 16

18 NOTES TO FINANCIAL STATEMENTS 6. OTHER INVESTMENTS (CONTINUED) BREAKDOWN BY MATURITY BONDS (in thousands $) Less than 1 year 1 to 5 years 5 to 10 years 10 to 20 years 20 to 30 years 30 years and more Total May 31, 2015 Fair value 55, , , , , ,271 2,438,033 Cost 55, , , , , ,630 2,320,097 Par value 55, , , , , ,431 2,179,323 Average effective rate (%) Average nominal rate (%) May 31, 2014 Fair value 163, , , , , ,952 2,509,761 Cost 163, , , , , ,771 2,431,186 Par value 162, , , , , ,609 2,328,768 Average effective rate (%) Average nominal rate (%) June 1, 2013 Fair value 84, , , , , ,336 2,391,676 Cost 84, , , , , ,373 2,325,705 Par value 82, , , , , ,369 2,152,530 Average effective rate (%) Average nominal rate (%) MONEY MARKET INSTRUMENTS (in thousands $) Less than 1 month 1 to 6 months 6 months and more Total May 31, 2015 Fair value 78, ,481 1, ,151 Average effective rate (%) May 31, 2014 Fair value 59, ,855 Average effective rate (%) June 1, 2013 Fair value Average effective rate (%) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 17

19 NOTES TO FINANCIAL STATEMENTS 6. OTHER INVESTMENTS (CONTINUED) BREAKDOWN BY MATURITY (CONTINUED) DERIVATIVE FINANCIAL INSTRUMENTS (in thousands $) Less than 1 month 1 to 6 months 6 months and more Total May 31, 2015 Fair value 1 Listed stock index option contracts Written put options (27) (97) (124) Foreign currency forward contracts (1,495) (1,495) Interest rate forward contracts (184) (184) Stock index futures - - (1,522) (281) (1,803) Notional amount Listed stock index option contracts Written put options 2,361 4,652 7,013 Foreign currency forward contracts 50,925 50,925 Interest rate forward contracts 72,483 72,483 Stock index futures 10,382 10, mai 2014 Fair value 1 Foreign currency forward contracts Purchases (4) (4) Sales Interest rate futures Interest rate forward contracts Stock index futures Notional amount Foreign currency forward contracts Purchases 1,481 1,481 Sales 81,487 81,487 Interest rate futures 16,228 78,369 1,516,453 1,611,050 Interest rate forward contracts 56,981 56,981 Stock index futures 66,511 6,745 73, The fair value of instruments with positive values is $0.2 million (May 31, 2014: $0.8 million; June 1, 2013: $4.5 million) and is presented under Other investments. The fair value of those with negative values is $2.0 million (May 31, 2014: $0.3 million; June 1, 2013: $19.7 million) and is presented under Accounts payable. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 18

20 NOTES TO FINANCIAL STATEMENTS 6. OTHER INVESTMENTS (CONTINUED) BREAKDOWN BY MATURITY (CONTINUED) DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) (in thousands $) Less than 1 month 1 to 6 months 6 months and more Total June 1, 2013 Fair value 1 Unlisted share option contracts Purchased put options Written put options (2,327) (2,327) Listed index stock 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 share option contracts Purchased put options 18,900 18,900 Written put options 31,500 31,500 Listed index stock 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, , The fair value of instruments with positive values is $0.2 million (May 31, 2014: $0.8 million; June 1, 2013: $4.5 million) and is presented under Other investments. The fair value of those with negative values is $2.0 million (May 31, 2014: $0.3 million; June 1, 2013: $19.7 million) and is presented under Accounts payable. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 19

21 NOTES TO FINANCIAL STATEMENTS 6. OTHER INVESTMENTS (CONTINUED) BREAKDOWN OF FAIR VALUE BY INDUSTRY SEGMENT Information (in thousands $) Energy and materials Consumer discretionary and consumer staples Financials and utilities Industrials technology, telecommunications services and healthcare Governments and government agencies Total May 31, 2015 Listed shares and unlisted units 466, , , , ,448 2,760,219 Bonds 81,714 46,424 74, ,771 55,550 1,557,965 2,438,033 Money market instruments 14,993 9,999 7, , ,151 Fair value 563, , ,630 1,364, ,982 1,710,140 5,383,403 Funds committed but not disbursed 1 20,234 20, , , ,630 1,384, ,982 1,710,140 5,403,637 May 31, 2014 Listed shares, unlisted units and hedge fund units 502, , , , ,844 2,504,774 Bonds 101,305 38,474 66, ,923 59,545 1,642,827 2,509,761 Money market instruments 6,999 52,856 59,855 Fair value 603, , ,690 1,346, ,389 1,695,683 5,074,390 Funds committed but not disbursed 1 19,102 19, , , ,690 1,365, ,389 1,695,683 5,093,492 June 1, 2013 Listed shares, unlisted units and hedge fund units 752, , , ,749 1,982,542 Bonds 87,007 42,613 34, ,758 81,026 1,600,754 2,391,676 Money market instruments Fair value 839,830 42, ,661 1,227, ,775 1,601,603 4,375,067 Funds committed but not disbursed 1 16,903 16, ,830 42, ,661 1,244, ,775 1,601,603 4,391, 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 the reporting date. Disbursements are subject to compliance with the agreement s terms and conditions. These commitments, having a weighted average maturity of 5.6 years (May 31, 2014: 6.6 years; June 1, 2013: 7.4 years), are denominated in U.S. dollars. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 20

22 NOTES TO FINANCIAL STATEMENTS 7. OFFSETTING OF FINANCIAL INSTRUMENTS The Fonds entered into International Swaps & Derivatives Association Inc. ( ISDA ) enforceable master netting arrangements with the majority of counterparties with which it trades derivative financial instruments over the counter. These master arrangements may make it possible to apply full netting of over-the-counter derivative financial instrument transactions. Derivative financial instruments subject to enforceable master netting arrangements are presented in the financial statements before offsetting. The fair value of derivative financial instrument assets subject to such arrangements is $0.2 million (May 31, 2014: $0.3 million; June 1, 2013: $1.9 million), and the fair value of derivative financial instrument liabilities subject to such arrangements is $2.0 million (May 31, 2014: $0.3 million; June 1, 2013: $7.4 million). For securities purchased under reverse repurchase agreements and securities sold under repurchase agreements, the Fonds receives from or pledges to the counterparty collateral to manage credit risk. In the event of default, amounts related to a specific counterparty may be settled on a net basis under the Global Master Repurchase Agreement. As at May 31, 2015, May 31, 2014 and June 1, 2013, none of these amounts was set off in the Balance Sheet. 8. FAIR VALUE OF FINANCIAL INSTRUMENTS 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 the most representative price within the bid-ask spread observed on active markets for identical 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. (in thousands $) Level 1 Level 2 Level 3 Total May 31, 2015 Financial assets Development capital investments Unsecured Listed shares 929, ,277 Unlisted shares and units 3,601,742 3,601,742 Loans, bonds and advances 471,073 1,089,597 1,560,670 Secured Loans 2,638 2,638 Other investments 929, ,146 4,693,977 6,094,327 Listed shares and unlisted units 2,709,312 50,907 2,760,219 Bonds 2,426,699 11,334 2,438,033 Money market instruments 185, ,151 Derivative financial instruments ,709,312 2,612,022 62,241 5,383,575 Accounts receivable relating to development capital investments and other investments sold 154, ,160 Cash 17,734 17,734 Financial instruments related to securities sold under repurchase agreements 256, ,810 Financial liabilities Accounts payable relating to development capital investments and other investments purchased (130,961) (130,961) Derivative financial instruments (124) (1,851) (1,975) Securities sold under repurchase agreements (256,810) (256,810) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 21

23 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (in thousands $) Level 1 Level 2 Level 3 Total May 31, 2014 Financial assets Development capital investments Unsecured Listed shares 851, ,707 Unlisted shares and units 3,053,976 3,053,976 Loans, bonds and advances 451,101 1,076,144 1,527,245 Secured Loans and advances 10,875 10,875 Other investments 851, ,154 4,140,995 5,443,803 Listed shares and unlisted units 2,428,238 51,051 2,479,289 Hedge fund units 25,485 25,485 Bonds 2,498,500 11,261 2,509,761 Money market instruments 59,855 59,855 Derivative financial instruments ,428,238 2,559,172 87,797 5,075,207 Accounts receivable relating to development capital investments and other investments sold 121, ,547 Cash 15,939 15,939 Securities purchased under reverse repurchase 254, ,980 Financial agreements instruments related to securities sold under repurchase agreements 101, ,252 Financial liabilities Accounts payable relating to development capital investments and other investments purchased 122, ,121 Derivative financial instruments (264) (264) Securities sold under repurchase agreements (356,232) (356,232) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 22

24 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (in thousands $) Level 1 Level 2 Level 3 Total June 1, 2013 Financial assets Development capital investments Unsecured Listed shares 875, ,545 Unlisted shares and units 2,807,561 2,807,561 Loans, bonds and advances 442,405 1,170,369 1,612,774 Secured Loans and advances 10,476 10,476 Other investments 875, ,788 3,988,406 5,306,356 Listed shares and unlisted units 1,677,809 57,440 1,735,249 Hedge funds units 247, ,293 Bonds 2,380,940 10,736 2,391,676 Money market instruments Derivative financial instruments 256 4,225 4,481 1,678,065 2,386, ,469 4,379,548 Accounts receivable relating to development capital investments and other investments sold 159, ,421 Cash 9,172 9,172 Securities purchased under reverse repurchase 274, ,123 Financial agreements instruments related to securities sold under repurchase agreements 148, ,819 Financial liabilities Accounts payable relating to development capital investments and other investments purchased 185, ,862 Derivative financial instruments (332) (19,397) (19,729) Securities sold under repurchase agreements (422,942) (422,942) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 23

25 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) The following tables show the reconciliation from beginning balances to ending balances for Level 3 fair values. There were no transfers between Levels 1 and 2 during the year. Transfers between levels are deemed to occur when the underlying information or the prices used in measuring assets and liabilities become more or less dependent on observable market data, as it is previously mentioned in the determination of Levels 1, 2 and 3 of the fair value hierarchy for the Fonds. DEVELOPMENT CAPITAL INVESTMENTS Unlisted shares Loans, bonds and advances (in thousands $) and units Unsecured Secured Total May 31, 2015 Fair value as at May 31, ,053,976 1,076,144 10,875 4,140,995 Purchases 370, ,267 1, ,268 Sales and settlements (118,745) (131,503) (13,971) (264,219) Realized gains (losses) 11, (15,702) (4,369) Unrealized gains (losses) 284,573 (2,384) 20, ,302 Transfer of a financial instrument out of Level 3 (30,000) 1 (30,000) Fair value as at May 31, ,601,742 1,089,597 2,638 4,693,977 Unrealized gains (losses) on development capital investments held as at May 31, ,957 (4,799) ,253 May 31, 2014 Fair value as at May 31, ,807,561 1,170,369 10,476 3,988,406 Purchases 224, ,695 23, ,647 Sales and settlements (83,294) (267,476) (3,346) (354,116) Realized gains (losses) (11,899) (1,540) (811) (14,250) Unrealized gains (losses) 117,211 15,235 (18,999) 113,447 Transfer of a financial instrument out of Level 3 (23,139) 1 (23,139) Fair value as at May 31, ,053,976 1,076,144 10,875 4,140,995 Unrealized gains (losses) on development capital investments held as at May 31, ,775 6,205 (19,809) 83, The transfer from Level 3 to Level 2 was made as the measurement method is now based on observable market inputs. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 24

26 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) OTHER INVESTMENTS (in thousands $) May 31, 2015 Listed shares and unlisted units Hedge fund units Bonds Total Fair value as at May 31, ,051 25,485 11,261 87,797 Purchases Sales and settlements (8,497) (25,868) (34,365) Realized gains (losses) (66) Unrealized gains (losses) 7,670 (605) 73 7,138 Fair value as at May 31, ,907 11,334 62,241 Unrealized gains (losses) on other investments held as at May 31, , ,514 May 31, 2014 Fair value as at May 31, , ,293 10, ,469 Purchases ,361 23,178 Sales and settlements (13,818) (247,567) (1) (261,386) Realized gains(losses) 8,046 7,673-15,719 Unrealized gains (losses) (1,434) (4,275) 526 (5,183) Fair value as at May 31, ,051 25,485 11,261 87,797 Unrealized gains (losses) on other investments held as at May 31, 2014 (1,434) 1, USE OF UNOBSERVABLE INPUTS IN MEASURING LEVEL 3 FINANCIAL INSTRUMENTS Level 3 financial instruments are measured at fair value using valuation techniques and models that incorporate assumptions derived from unobservable market inputs. The following table shows the main techniques and inputs used in measuring the fair value of financial instruments categorized within Level 3. Fair value (in thousands $) Main valuation techniques Unobservable inputs Input value ranges (weighted average) May 31, 2015 Development capital investments Unlisted shares and units 598,342 Capitalized cash flows Capitalization rate 5.2% % (7.8%) EBITDA margin % 1 5.7% % (15.9%) 2,460,854 Adjusted net assets Adjusted net assets N/A 2 335,265 Recent transactions ,281 Other Loans, bonds and advances 810,415 Discounted cash flows Required rate of return 3.0% % (8.6%) 253,821 Adjusted net assets Adjusted net assets N/A 2 27,999 Other - - 4,693,977 Other investments Unlisted units 50,907 Manager s quote - - Bonds 11,334 Other ,241 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 25

27 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) USE OF UNOBSERVABLE INPUTS IN MEASURING LEVEL 3 FINANCIAL INSTRUMENTS (CONTINUED) Fair value (in thousands $) Main valuation techniques Unobservable inputs Input value ranges (weighted average) May 31, 2014 Development capital investments Unlisted shares and units 1,035,939 Capitalized cash flows Capitalization rate 5.9% % (8.8%) EBITDA margin % 1 4.1% % (16.8%) 1,704,547 Adjusted net assets Adjusted net assets N/A 2 94,251 Recent transactions ,239 Other Loans, bonds and advances 811,817 Discounted cash flows Required rate of return 2.6% % (7.8%) Other investments 258,182 Adjusted net assets Adjusted net assets N/A 2 17,020 Other - - 4,140,995 Unlisted units 51,051 Manager s quote - - Hedge fund units 25,485 Manager s quote - - Bonds 11,261 Other - - June 1, 2013 Development capital investments 87,797 Unlisted shares and units 395,100 Capitalized cash flows Capitalization rate 5.7% % (9.1%) EBITDA margin % 1 4.4% % (15.3%) 1,670,748 Adjusted net assets Adjusted net assets N/A 2 486,647 Recent transactions ,066 Other # Loans, bonds and advances 835,070 Discounted cash flows Required rate of return 3.0% % (8.6%) Other investments 316,187 Adjusted net assets Adjusted net assets N/A 2 29,588 Other - - 3,988,406 Unlisted units 57,440 Manager s quote - - Hedge fund units 247,293 Manager s quote - - Bonds 10,736 Other , As a result of the high variety in sizes of the companies in the portfolio, maintainable flows are presented as a percentage of earnings before interest, taxes, depreciation and amortization (EBITDA) over sales. 2. Since the nature and size of adjustments to net assets vary greatly between investments, no input range is presented for adjusted net assets. 3. Other valuation techniques include the expected transaction value, redemption value, discounted cash flow, liquidation and bid value methods. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 26

28 NOTES TO FINANCIAL STATEMENTS 8. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) SENSITIVITY OF THE FAIR VALUE OF FINANCIAL INSTRUMENTS CATEGORIZED WITHIN LEVEL 3 Our sensitivity analyses on loans and advances lead us to conclude that a +/- 0.50% change in the required rate of return would result in a change in fair value that would not be material to net income and total assets and liabilities. Although management believes that its fair value measurements are appropriate, for unlisted shares and units measured using the capitalized cash flow method, using different variables related to maintainable EBITDA and capitalization rate would result in an increase or a decrease in fair value that could be material in certain cases. In practice, the Fonds qualified valuators determine a range of plausible values for each of the securities being valued and the mid-range point is generally used for preparing financial statements. Accordingly, for a given investment, the low end of the range reflects the worst-case scenario, while the high end of the range reflects the best-case scenario. This practice is the most common method used to estimate the financial impact of changing the main assumptions by other reasonably acceptable assumptions. According to management, the increase or decrease in the value of unlisted shares and units is theoretical and unlikely, as the diversification of the portfolio with respect to industries, maturities and sizes is such that the value of investments is not moving solely in one direction. Consequently, management believes that only a portion of the increase or decrease in value should be used to estimate the impact of using alternative assumptions on the fair value of unlisted shares and units measured using the capitalized cash flow method. Management determined that using reasonably plausible alternative assumptions would not change fair value significantly. 9. INVESTMENTS IN SUBSDIARIES AND ASSOCIATES Further to its quantitative and qualitative analyses, management determined that the Fonds controls or exercises significant influence over operating companies and investment entities: May 31, 2015 May 31, 2014 June 1, 2013 Number Fair value (in thousands $) Number Fair value (in thousands $) Number Fair value (in thousands $) Subsidiaries Operating companies 16 1,107, , ,838 Investment entities 15 1,002, ,149, ,123,706 Associates Operating companies , , ,405 Investment entities , , ,113 The principal place of business of the majority of subsidiaries and associates is in Québec. The proportion of ownership interests held by the Fonds is greater than 50% for subsidiaries and between 20% and 49% for associates. Interests in the share capital of operating companies are in the form of common shares, while interests in investment entities are in the form of units. Funds committed but not disbursed to subsidiaries amount to $133.4 million (May 31, 2014: $140.9 million; June 1, 2013: $140.7 million). In certain circumstances, some conditions could restrict the ability of a subsidiary to transfer amounts to the Fonds: for instance, compliance with certain ratios or approval of a payment by another financial institution or other shareholders. However, the Fonds considers that there are no significant restrictions to these transfers, except for one subsidiary operating in the insurance industry. In that case, laws and regulations do not allow the Fonds to receive dividends, redeem its shares or obtain repayment of its loans without approval by the Autorité des marchés financiers. When the Fonds controls an investment entity, it must also take into account in its scope of subsidiaries and associates those of that investment entity. Accordingly, as at May 31, 2015, the Fonds indirectly had 83 additional subsidiaries and 105 additional associates under this criteria (May 31, 2014: 83 subsidiaries and 105 associates; June 1, 2013: 92 subsidiaries and 101 associates). FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 27

29 NOTES TO FINANCIAL STATEMENTS 10. SECURITIES LENDING As part of the securities lending program, the Fonds receives, in exchange for the securities loaned, guarantees or assets, mainly government and corporate bonds, 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 ranges from 102% to 105% as at May 31, 2015 (May 31, 2014: from 102% to 105%; June 1, 2013: 102%) and the fair value of the securities loaned is $418.3 million (May 31, 2014: $311.3 million; June 1, 2013: $83.6 million). 11. INVESTMENT PROPERTY The investment property held by the Fonds comprises rental space. The following table presents the changes in the fair value of the investment property for the years ended May 31. (in thousands $) Balance at beginning of year 27,689 25,328 Increase in rental space 2,871 Change in fair value recognized in net income 816 2,361 Balance at end of year 31,376 27,689 UNOBSERVABLE INPUTS The investment property measured at fair value is an asset categorized within Level 3 of the fair value hierarchy, as significant unobservable inputs are used in the valuation techniques applied. Main unobservable inputs used in measuring the investment property are as follows: Fair value (in thousands $) Valuation techniques Unobservable inputs Input value May 31, 2015 Investment property 31,376 Discounted cash flows Internal rate of return 7.50% Capitalization rate 6.75% May 31, 2014 Investment property 27,689 Discounted cash flows Internal rate of return 7.50% Capitalization rate 6.75% June 1, 2013 Investment property 25,328 Discounted cash flows Internal rate of return 7.25% Capitalization rate 6.50% 12. ACCOUNTS RECEIVABLE (in thousands $) May 31, 2015 May 31, 2014 June 1, 2013 Accounts receivable relating to development capital investments and other investments sold 154, , ,421 Accrued dividends and interest 64,854 73,580 71,597 Other 24,993 25,358 28, , , ,049 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 28

30 NOTES TO FINANCIAL STATEMENTS 13. PROPERTY AND EQUIPMENT (in thousands $) Buildings Office furniture and equipment Computer hardware Total May 31, 2015 Cost 42,615 11,890 16,776 71,281 Accumulated depreciation (2,697) (9,049) (13,010) (24,756) Net carrying amount 39,918 2,841 3,766 46,525 Change during the year Net carrying amount as at May 31, ,099 2,556 3,923 47,578 Acquisitions ,831 3,138 Disposals (214) - - (214) Depreciation (1,357) (632) (1,988) (3,977) Net carrying amount as at May 31, ,918 2,841 3,766 46,525 May 31, 2014 Cost 42,451 10,973 15,674 69,098 Accumulated depreciation (1,352) (8,417) (11,751) (21,520) Net carrying amount 41,099 2,556 3,923 47,578 Change during the year Net carrying amount as at May 31, ,393 2,275 4,315 48,983 Acquisitions ,675 2,569 Disposals - - Depreciation (1,352) (555) (2,067) (3,974) Net carrying amount as at May 31, ,099 2,556 3,923 47,578 June 1, 2013 Cost 42,393 10,137 14,303 66,833 Accumulated depreciation - (7,862) (9,988) (17,850) Net carrying amount 42,393 2,275 4,315 48,983 As at May 31, 2015, May 31, 2014 and June 1, 2013, no item of property and equipment was impaired. In addition, as at May 31, 2015, May 31, 2014 and June 1, 2013, the Fonds had no significant contractual commitment for the acquisition of property and equipment. The depreciation expense is presented under Corporate in Total operating expenses in the Statement of Comprehensive Income. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 29

31 NOTES TO FINANCIAL STATEMENTS 14. INTANGIBLE ASSETS Information system development (in thousands $) May 31, 2015 May 31, 2014 June 1, 2013 Cost 26,558 24,028 20,283 Accumulated amortization (20,091) (17,486) (15,689) Net carrying amount 6,467 6,542 4,594 Change during the year Net carrying amount at beginning of year 6,542 4,594 Acquisitions 2,530 3,745 Amortization (2,605) (1,797) Net carrying amount at the end of year 6,467 6,542 As at May 31, 2015, May 31, 2014 and June 1, 2013, no intangible asset was impaired. In addition, as at May 31, 2015, May 31, 2014 and June 1, 2013, the Fonds had no significant contractual commitment for the acquisition of intangible assets. The amortization expense is presented under Corporate in Total operating expenses in the Statement of Comprehensive Income. 15. NOTES The notes, which arise from excess liquidities of regional and local funds and of certain specialized funds, are repayable on demand and bear interest at a rate based on the rate of return of Other investments. As at May 31, 2015, May 31, 2014 and June 1, 2013, the interest rate is 4%. 16. CREDIT FACILITIES As at May 31, 2015, May 31, 2014 and June 1, 2013, the Fonds has credit facilities amounting to $80 million, bearing interest at prime rate and renewable annually. As at May 31, 2015, May 31, 2014 and June 1, 2013, these facilities are unused, and they were not used during the years then ended. 17. ACCOUNTS PAYABLE (in thousands $) May 31, 2015 May 31, 2014 June 1, 2013 Accounts payable relating to development capital investments and other investments purchased 130, , ,862 Accrued expenses and other 55,008 57,573 60,752 Derivative financial instruments 1, , , , ,343 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 30

32 NOTES TO FINANCIAL STATEMENTS 18. NET ASSETS 1. SHARE CAPITAL a) Authorized i) 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 share, Series 1 may be issued only to an individual requesting their transfer to a trustee under a registered retirement savings plan. ii) 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. b) 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. c) 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. d) 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, pro rata to the redeemed shares. e) 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 $80 million through transfers from retained earnings (May 31, 2014: $90 million). As at May 31, 2015, the Fonds had, since its incorporation, transferred the following cumulative amounts: $1,982 million from retained earnings to share capital, $1,500 million from share capital to contributed surplus and $291 million from contributed surplus to retained earnings. 2. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income was set up upon the first-time adoption of IFRS. 3. NET INCOME PER CLASS A SHARE Net income per share is based on the weighted average number of Class A shares, which was 335,330,928 (May 31, 2014: 333,514,006). FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 31

33 NOTES TO FINANCIAL STATEMENTS 18. NET ASSETS (CONTINUED) 4. NET ASSETS CLASS A Series 1 Series 2 Subscribed Total (in thousands) Number $ Number $ $ $ May 31, 2015 Net assets as at May 31, ,886 10,029,119 3, , ,131,203 Net income 974,641 9, ,524 Other comprehensive income 7, ,081 Share issues 21, , , ,314 Net change in share subscriptions Share redemptions (20,544) (632,851) (322) (9,942) (642,793) Change in outstanding redemptions 112 1,659 1,659 Net assets as at May 31, ,878 11,037,998 3, ,378 1,312 11,149,688 May 31, 2014 Net assets as at May 31, ,951 9,210,014 3,490 97, ,308,516 Net income 763,579 7, ,468 Other comprehensive income 1, ,034 Share issues 27, , , ,271 Net change in share subscriptions (166) (166) Share redemptions (25,011) (716,048) (459) (13,157) (729,205) Change in outstanding redemptions (220) (7,715) (7,715) Net assets as at May 31, ,886 10,029,119 3, , ,131, CAPITAL DISCLOSURES The Fonds collects capital to make development capital investments in keeping with its mission, while maintaining the liquidities required to satisfy the share redemption requests submitted by shareholders and meet its commitments. The Fonds policy is to reinvest all income generated by its operations, and it does not expect to pay dividends to its shareholders. The Fonds is not subject to externally imposed capital requirements other than those governing share issues and redemptions. 1. EXTERNALLY IMPOSED REQUIREMENTS GOVERNING SHARE ISSUES a) Investment rule The Fonds may make development capital investments in any business enterprise with or without security. However, at the end of each financial year, qualified development capital investments must meet the investment rule minimum threshold as prescribed by the Fonds Incorporation Act. As at May 31, 2015, the minimum threshold was 60%. If the Fonds fails to reach this threshold, the share issues giving rise to labour-sponsored fund tax credits for the following financial year are limited to a prescribed percentage of the total value of shares 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 under the investment rule was 65.1% as at May 31, 2015 (May 31, 2014: 65.1%, May 31, 2013 : 66.0%). Since the investment rule minimum threshold was reached as at May 31, 2015, the amount of share issues giving rise to labour-sponsored fund tax credits for the financial year ending May 31, 2016 will not be limited. It should be noted that in the Québec budget tabled on March 26, 2015, it was announced that the investment rule threshold will be gradually raised (by 1% per year starting with the financial year ending May 31, 2016) to 65% in FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 32

34 NOTES TO FINANCIAL STATEMENTS 19. CAPITAL DISCLOSURES (CONTINUED) 1. EXTERNALLY IMPOSED REQUIREMENTS GOVERNING SHARE ISSUES (CONTINUED) b) Government of Québec budget According to the Québec budget tabled before the National Assembly on June 4, 2014, the amount of share issues giving rise to labour-sponsored fund tax credits that the Fonds could make during the financial year ended May 31, 2015, was limited to an amount of $650 million. The Fonds complied with this limit and also issued $17 million in shares that do not give rise to tax credits and are not subject to this limit, pursuant to the provisions regarding the acquisition of replacement shares set out in the Home Buyers Plan and the Lifelong Learning Plan. This limit ceased to be in effect as of June 1, EXTERNALLY IMPOSED REQUIREMENTS GOVERNING SHARE REDEMPTIONS The Taxation Act (Québec) provides for the payment of a penalty by the Fonds when the total amount paid for purchases by mutual agreement made during a financial year exceeds 2% of paid-up capital, with certain criteria for purchases by mutual agreement being excluded from the calculation. Since this provision has been in effect, the Fonds has always complied with this limit. 20. 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 would not have a material adverse effect on the Fonds financial position. 21. REVENUES Interest totalling $17.6 million (May 31, 2014: $18.7 million) on the notes is presented as a deduction of interest in the Statement of Comprehensive Income and capitalized under Notes in the Balance Sheet. 22. TOTAL OPERATING EXPENSES (in thousands $) May 31, 2015 May 31, 2014 Salaries and benefits 80,797 87,347 Advertising and information 18,294 17,979 Occupancy expenses and rent 13,770 10,567 Management fees 7,006 6,173 Professional fees 8,229 9,069 Stationery and office supplies 5,019 4,697 Travel and entertainment 3,423 3,757 Shareholder reporting costs 2,915 3,243 Custodial fees and trustee s fees Depreciation of property and equipment 3,977 3,974 Amortization of intangible assets 2,605 1, , , KEY MANAGEMENT PERSONNEL COMPENSATION (in thousands $) May 31, 2015 May 31, 2014 Salaries and short-term benefits 2,709 3,758 Post-employment benefits 1,429 1,833 Directors remuneration and fees 1,194 1,108 5,332 6,699 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 33

35 NOTES TO FINANCIAL STATEMENTS 24. 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 capital through transfers. 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 Comprehensive Income, but are presented under Refundable taxes on hand in the Balance Sheet. The balance of these income taxes is nil (May 31, 2014: $2.2 million; June 1, 2013: $7.2 million). The Fonds, as a private company under the Income Tax Act (Canada), 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 transfers from retained earnings. This tax of $23.7 million (May 31, 2014: $29.2 million; June 1, 2013: $30.3 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 income before income taxes are detailed as follows: (in thousands $) May 31, 2015 May 31, 2014 Current 15,924 18,549 Deferred 1, ,520 18,760 The above income taxes are different from the amounts that would be obtained by applying the combined basic tax rate (Québec and federal) to income before income taxes. The difference is explained as follows: (in thousands $) May 31, 2015 May 31, 2014 Income before income taxes 1,002, ,229 Tax rate to which the Fonds is subject 46.6% 46.6% Income taxes 466, ,247 Non-taxable dividends and distributions (61,662) (67,142) Refundable dividend tax on hand (23,659) (29,246) Realized and unrealized capital gains (losses) Non-taxable portion and federal rate difference (209,149) (142,938) Refundable federal tax (109,995) (75,140) Québec tax deduction (46,748) (32,000) Other items 1,780 (3,021) 17,520 18,760 Items giving rise to deferred income tax assets (liabilities) are as follows: (in thousands $) May 31, 2015 May 31, 2014 June 1, 2013 Development capital investments (5,910) (2,846) (3,447) Investment property (1,614) (1,650) (1,514) Property and equipment and intangible assets (4,073) (3,925) (3,733) Net defined benefit liability 8,385 8,329 8,538 Other ,027 (2,951) FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 34

36 NOTES TO FINANCIAL STATEMENTS 25. POST-EMPLOYMENT BENEFITS On January 1, 2001, the Fonds implemented funded and unfunded defined benefit pension plans, which guarantee pension benefits to most of its employees. Also, since July 1, 2003, the Fonds has had an optional personal insurance plan for retired employees. The defined benefit obligation of these plans, as measured by independent actuaries, and the fair value of plan assets are determined as at May 31, DEFINED BENEFIT PENSION PLANS The defined benefits from these pension plans are based on the number of years of service and the average annual salary, which is the highest annualized average salary for 36 consecutive months of service. The Fonds is responsible for these plans. The Fonds set up retirement committees to manage the plans, and these committees engaged independent investment managers, actuaries and trustees to obtain professional services. Changes in the defined benefit obligation and the fair value of plan assets during the year are as follows: May 31, 2015 May 31, 2014 Present value Net defined Present value Fair value Net defined of pension Fair value of benefit of pension of plan benefit (in thousands $) obligation plan assets liability obligation assets liability Balance at beginning of year (228,410) 187,378 (41,032) (189,433) 147,207 (42,226) Current service cost (12,788) (12,788) (11,907) (11,907) Interest (10,130) (10,130) (8,671) (8,671) Interest income 7,886 7,886 6,490 6,490 Impact on net income (22,918) 7,886 (15,032) (20,578) 6,490 (14,088) Remeasurements Return on plan assets, excluding interest income 14,862 14,862 18,310 18,310 Gain (loss) arising from changes in demographic assumptions (14,143) (14,143) Gain (loss) arising from changes in financial assumptions (5,127) (5,127) (3,123) (3,123) Experience gain (loss) (1,593) (1,593) Impact on other comprehensive income (5,857) 14,862 9,005 (16,866) 18,310 1,444 Fonds contributions 7,249 7,249 13,838 13,838 Employee contributions (4,782) 4,782 - (4,877) 4,877 - Benefits paid 4,855 (4,855) - 3,344 (3,344) ,176 7,249 (1,533) 15,371 13,838 Balance at end of year (257,112) 217,302 (39,810) (228,410) 187,378 (41,032) As at May 31, 2015, the weighted average duration of the defined benefit obligation is 18.3 years. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 35

37 NOTES TO FINANCIAL STATEMENTS 25. POST-EMPLOYMENT BENEFITS (CONTINUED) 2. POST-EMPLOYMENT MEDICAL PLANS The Fonds offers post-employment medical plans that cover hospital and medication costs for eligible retirees. These plans are unfunded. Changes in the defined benefit obligation, which is equal to the defined benefit liability, during the year are as follows: Present value of obligation and net defined benefit liability (in thousands $) May 31, 2015 May 31, 2014 Balance at beginning of year (2,860) (2,546) Current service cost (107) (103) Interest (124) (112) Impact on net income (231) (215) Remeasurements Loss arising from changes in demographic assumptions (9) (153) Gain (loss) arising from changes in financial assumptions (156) Impact on other comprehensive income (165) (153) Benefits paid Balance at end of year (3,188) (2,860) 3. SIGNIFICANT ACTUARIAL ASSUMPTIONS The significant actuarial assumptions used to measure the Fonds defined benefit obligation and the costs recognized for the plans are as follows: (in %) Defined benefit obligation Rate at end of year May 31, 2015 May, 2014 Pension plans Medical plans Pension plans Medical plans Discount rate & Rate of increase in salaries Defined benefit costs recognized Rate at end of previous year Discount rate 4.00 & Rate of increase in salaries The Fonds set the maximum annual amount it will assume per retiree under the insurance plan and does not expect any increases in that amount in the future. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 36

38 NOTES TO FINANCIAL STATEMENTS 25. POST-EMPLOYMENT BENEFITS (CONTINUED) 4. SENSITIVITY ANALYSES The sensitivity analyses for the defined benefit obligation were prepared based on reasonably possible changes in each significant actuarial assumption, without considering the impact of simultaneous changes in several significant actuarial assumptions. Any change in an actuarial assumption may result in a change in another actuarial assumption, which could amplify or reduce the impact of changes in such assumptions on the present value of the defined benefit obligation. Actual results could differ from these estimates. Change in assumption Impact on the defined benefit obligation as at May 31, 2015 Increase in assumption (impact in thousands $) Decrease in assumption (impact in thousands $) Discount rate 0.50% (21,469) 24,026 Rate of increase in salaries 0.50% 6,080 (6,042) Life expectancy 1 year 4,956 (5,178) 5. COMPOSITION OF PENSION PLAN ASSETS Funded plan assets are held in trust and their breakdown is as follows: (in %) May 30, 2015 May 31, 2014 Equity mutual funds Bond mutual funds Cash and other EXPOSURE TO ACTUARIAL RISKS As a result of its defined benefit plans, the Fonds is exposed to certain risks, the most significant of which are described below. a) Interest rate risk A decrease in fixed-rate bond interest rates, which would decrease the discount rate used, would increase the present value of the defined benefit obligation. This increase would however be partially offset by an increase in the value of plan assets. b) Salary and longevity risk As the majority of the plan obligations relate to the payment of benefits over the retiree s lifetime, an increase in life expectancy would increase the plan liability. Likewise, an increase in the rate of increase in the participants salaries would increase the plan liability. 7. REMEASUREMENT OF THE NET DEFINED BENEFIT LIABILITY May 31, 2015 May 31, 2014 Actuarial gain (loss) arising from post-employment benefits 8,840 1,291 Deferred income taxes (1,759) (257) 7,081 1,034 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 37

39 NOTES TO FINANCIAL STATEMENTS 26. RELATED PARTY TRANSACTIONS 1. TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL The Fonds key management personnel comprises the members of the Board of Directors and the members of the Management Committee. Information on key management personnel compensation for the year is presented in Note TRANSACTIONS WITH RELATED PARTIES INCLUDED IN DEVELOPMENT CAPITAL INVESTMENTS In the normal course of business, the Fonds conducts transactions with related companies that it either controls or over which it has significant influence. Many of the development capital investments are of such an amount and nature that the investee is considered a related party. The number of investments in subsidiaries and associates is presented in Note 9. The following table details the transactions carried out with all the subsidiaries and associates of the Fonds during the year and presents the end-of-period balances appearing on the Balance Sheet. (in thousands $) May 31, 2015 May 31, 2014 Transactions Interest 23,273 27,376 Dividends and distributions 51,391 8,167 Rental, fee and other income 3,673 1,278 Total operating expenses 6,395 6,433 Interest expense on notes 17,425 18,551 Increase in notes 355, ,324 Repayment of notes 406, ,031 Disbursements for development capital investments 250,911 95,536 Receipts on development capital investments 62, ,340 Balances Development capital investments, at cost 2,603,863 2,401,628 Accounts receivable 16,321 16,325 Accounts payable Notes 414, ,459 Other information Funds committed but not disbursed 451, ,255 The Fonds engaged two of its associates to manage portfolios with assets totalling $652.4 million (May 31, 2014: $600.7 million). 3. OTHER TRANSACTIONS The Fonds, of which a majority of directors are elected by the Fédération des travailleurs et travailleuses du Québec (FTQ), agreed to pay $2.5 million to the FTQ for the year ended May 31, 2015 (May 31, 2014: $2.2 million) under an agreement that calls for compensation to be paid for services rendered in respect of economic training, social audits, shareholder development, attendance at the Fonds governing bodies 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 $3.9 million (May 31, 2014: $3.6 million; June 1, 2013: $3.8 million). The Fonds issued a note of $4.1 million (May 31, 2014: $3.8 million, June 1, 2013: $3.8 million). The Fonds granted non-interest bearing loans of $15 million (May 31, 2014: $15 million; June 1, 2013: $20 million) with a fair value of $11.6 million (May 31, 2014: $10.6 million; June 1, 2013: $13.7 million) to the Fonds étudiant 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 38

40 NOTES TO FINANCIAL STATEMENTS 26. RELATED PARTY TRANSACTIONS (CONTINUED) 3. OTHER TRANSACTIONS (CONTINUED) The Fonds granted a non-interest bearing loan of $5 million (May 31, 2014: $5 million; June 1, 2013: N/A) with a fair value of $3.4 million (May 31, 2014: $3.2 million; June 1, 2013: N/A) to Fiducie de Montréal inc., which is considered related to the Fonds because the Fonds appoints some of its directors. These loans are presented under Accounts receivable on the Balance Sheet. 27. 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 fondsftq.com or at sedar.com. 28. TRANSITION TO IFRS The financial statements for the year ended May 31, 2015 are the first annual IFRS financial statements. They have been prepared as described in Notes 2 and 3. To prepare these financial statements, the Fonds applied IFRS 1. The date of adoption of IFRS by the Fonds is June 1, However, the date of transition is June 1, 2013, which is the beginning of the first comparative year presented. In preparing these first IFRS financial statements in accordance with IFRS 1, the Fonds elected to use some of the allowed exemptions to the retrospective application of certain IFRSs while taking into account the exceptions to the retrospective application of other IFRSs. 1. ELECTIONS AT TRANSITION In accordance with IFRS 1 First-time Adoption of International Financial Reporting Standard, the Fonds used the following exceptions to the full retrospective application of IFRS at the transition date: Deemed cost of property and equipment As permitted by IFRS 1, the Fonds elected to use the fair value of its buildings at the date of transition as their cost of acquisition. Designation of previously recognized financial instruments IFRS 1 allows irrevocably designating any financial instrument as measured at fair value through profit or loss, provided certain criteria are met at the date of transition. The Fonds thereby designated as at fair value through profit or loss all its development capital investments, all its other investments, cash as well as certain accounts receivable and accounts payable. 2. RECONCILIATION TRANSITION TO IFRS Balance sheet and net assets reconciliation (in thousands $) Note May 31, 2014 June 1, 2013 Net assets reported under Canadian GAAP - Part V 10,125,598 9,301,300 Development capital investments a 6,648 7,513 Other investments a 6,188 9,362 Post-employment benefits b (29,170) (28,691) Investment property c 8,456 6,095 Property and equipment d 10,202 10,202 Accumulated depreciation Property and equipment d Deferred income taxes e 2,719 2,735 Net assets reported under IFRS 10,131,203 9,308,516 Net assets per share reported under Canadian GAAP - Part V $30.29 $27.98 Net assets per share reported under IFRS $30.31 $28.00 FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 39

41 NOTES TO FINANCIAL STATEMENTS 28. TRANSITION TO IFRS (CONTINUED) 2. RECONCILIATION TRANSITION TO IFRS (CONTINUED) Comprehensive income reconciliation (in thousands $) Note Year ended May 31, 2014 Other comprehensive Net income income Comprehensive income Income reported under Canadian GAAP - Part V 774, ,113 Unrealized gains (losses) a,c (1,677) (1,677) Post-employment benefits b (1,770) 1,291 (479) Depreciation of property and equipment d Income taxes e 240 (257) (17) Income reported under IFRS 771,468 1, ,502 Income per share reported under Canadian GAAP - Part V $2.32 $2.32 Income per share reported under IFRS $2.31 $ NOTES TRANSITION TO IFRS a) Development capital investments and other investments Under Canadian GAAP Part V, the Fonds determined the fair value of its development capital investments and other investments in accordance with Section 3855, Financial Instruments Recognition and Measurement, which required using the bid price for long positions and the asking price for short positions to the extent such prices were available. Under IFRS, the Fonds measures the fair value of its listed financial instruments in accordance with the guidance of IFRS 13 Fair Value Measurement and uses the price within the bid-ask spread that is most representative of fair value, given the relevant facts and circumstances. Consequently, on first-time adoption of IFRS, the carrying amount of the following financial instruments was adjusted: (in thousands $) May 31, 2014 June 1, 2013 Development capital investments Listed shares 5,964 6,332 Bonds 684 1,181 6,648 7,513 Other investments Listed shares 3,809 3,488 Bonds 2,377 5,874 Money market instruments 2-6,188 9,362 This adjustment decreased the Fonds comprehensive income by $4.0 million, under Unrealized gains (losses), for the year ended May 31, FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 40

42 NOTES TO FINANCIAL STATEMENTS 28. TRANSITION TO IFRS (CONTINUED) 3. NOTES TRANSITION TO IFRS (CONTINUED) b) Post-employment benefits Under IFRS, actuarial gains and losses arising from the remeasurement of post-employment benefit obligations are recognized in other comprehensive income when they occur. Under Canadian GAAP Part V, the Fonds applied the corridor approach to recognize such gains and losses, whereby gains and losses were gradually recognized in income only when they exceeded specified thresholds. In addition, under IFRS, the pension expense component reflecting interest income on plan assets is measured using the discount rate for the obligation. Under Canadian GAAP Part V, this component was measured using the expected rate of return on assets. Finally, under IFRS, the past service cost is recognized immediately in net income, whereas it was amortized over the average remaining service period of active employees under Canadian GAAP Part V. The carrying amount of the net defined benefit liability corresponding to the post-employment benefit obligation was increased by $28.7 million as at June 1, 2013 and $29.2 million as at May 31, 2014 as a result of recognizing the net amount of unamortized actuarial gains and losses as at these dates. These adjustments decreased net income and increased other comprehensive income by $-1.8 million and $1.3 million, respectively, for the year ended May 31, c) Investment property Under IFRS, the investment property is subject to the requirements of IAS 40 Investment Property with respect to recognition, measurement and disclosures. According to this standard, investment property is property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both. An entity that holds an investment property must choose as its accounting policy either the fair value model or the cost model and apply it to its investment property. Under Canadian GAAP Part V, this property was classified as an item of property and equipment, was recognized using the cost method and was depreciated. As an entity meeting the definition of an investment entity, the Fonds must recognize its investment property at fair value, with changes in fair value recognized in net income. Consequently, on first-time adoption of IFRS, the carrying amount of the investment property was increased by $6.1 million as at June 1, 2013 and $8.5 million as at May 31, 2014 to reflect fair value. This adjustment increased comprehensive income by $2.3 million under Unrealized gains (losses) for the year ended May 31, d) Property and equipment i) Fair value measurement: ii) As previously mentioned, the Fonds elected to remeasure at fair value at the date of transition buildings included in property and equipment, and thereby increased their value by $10.2 million as at June 1, Depreciation: Under Canadian GAAP Part V, all buildings were items of property and equipment, were recognized at cost and depreciated. Under IFRS, a portion of the buildings was recognized as investment property. The depreciation on the remaining balance of property and equipment is therefore decreased based on the portion that remained in property and equipment. In addition, under IFRS, buildings are divided into their significant parts, which are depreciated over their specific lives. These adjustments decreased depreciation expense by $0.6 million for the year ended May 31, 2014 and decreased accumulated depreciation by $0.6 million as at May 31, FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 41

43 NOTES TO FINANCIAL STATEMENTS 28. TRANSITION TO IFRS (CONTINUED) 3. NOTES TRANSITION TO IFRS (CONTINUED) e) Income taxes Income taxes were adjusted to reflect the following items: (in thousands $) May 31, 2014 June 1, 2013 Post-employment benefits 5,805 5,709 Investment property (944) (944) Property and equipment (2,030) (2,030) Depreciation of property and equipment (112) - Total adjustment to deferred income taxes reported under IFRS 2,719 2,735 (in thousands $) Year ended May 31, 2014 Net income Other comprehensive income Comprehensive income Post-employment benefits 352 (257) 95 Reversal of depreciation expense recognized under Canadian GAAP attributable to the investment property portion (142) (142) Impact of the different depreciation expense under IFRS Total adjustment to income taxes reported under IFRS 240 (257) (17) f) Reclassification adjustments In addition to the above-mentioned measurement adjustments, the Fonds reclassified certain amounts at the date of transition to ensure that its financial statements were presented in accordance with IFRS. The main reclassifications were the following: In accordance with IAS 1 Presentation of Financial Statements, the Fonds reclassified the gains (losses) on development capital investments and other investments to revenues in the Statement of Comprehensive Income. Under IFRS, the Fonds considers itself exempted from income tax related to capital gains and, accordingly, does not recognize any deferred tax liabilities for unrealized net gains on development capital investments, other investments and investment property nor any corresponding deferred tax assets for unrealized recoveries resulting from the tax mechanisms related to refundable capital gains tax on hand. Amounts that the Fonds is entitled to receive under the refundable tax on hand rules are presented separately on the Balance Sheet. The Fonds reclassified distributions in net income under Dividends and distributions; they were previously presented under Realized and unrealized gains (losses). g) Adjustments to the Statement of Cash Flows Acquisition of investments and proceeds of disposal of investments were reclassified from investing activities to operating activities to reflect the nature of the Fonds operations and the fact that it qualifies as an investment entity. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 42

44 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED MAY 31, 2015

45 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED MAY 31, 2015 This Management Discussion and Analysis ( MD&A ) is intended to help the readers 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 the understanding of events and uncertainties presented herein, this MD&A should be read together with the financial statements and the notes thereto. The financial information presented in this MD&A has been prepared in accordance with International Financial Reporting Standards ( IFRS ). The Fonds adopted this accounting framework for the year beginning June 1, 2014, as required by Canadian securities laws and the Accounting Standards Board of Canada. Previously, the Fonds prepared its financial statements in accordance with Canadian generally accepted accounting principles as defined in Part V of the CPA Canada Handbook Accounting ( Part V ). The financial information presented in this MD&A has been restated to reflect the adoption of IFRS as at June 1, 2013, the date of transition, in a manner consistent with the financial statements. The financial information for periods prior to June 1, 2013 has not been restated and has been prepared in accordance with Part V. Note 28 to the financial statements discloses the impact of the transition to IFRS on the financial position, financial performance and cash flows reported by the Fonds. It also presents the nature and impact of the significant changes in accounting policies from the accounting policies used to prepare the financial state ments of the Fonds in accordance with Part V for the year ended May 31, 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 23, 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. The Regulation was updated to reflect the transition to IFRS. You can get a copy of the annual financial statements by visiting our website (fondsftq.com) or the SEDAR website (sedar.com), or at your request, and at no cost, by calling us at or toll free at , or by writing to us at P.O. Box 1000, Youville Station, Montréal, Québec H2P 2Z5. You can also get a copy of the interim documents in this same manner. 1

46 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. Financial data for the financial year ended May 31, 2015 are in accordance with IFRS. Financial data for the financial year ended May 31, 2014 have been restated to conform to IFRS for purposes of comparison with the data for the current year. The impact of this accounting restatement on the value of the shares for presentation purposes means that applying IFRS, if they had been effective at that time, would have had an impact of $0.02 on the value of the Fonds shares. In addition, for the financial year ended May 31, 2014, certain revenues that were previously presented as a reduction of expenses were reclassified to revenues. Financial data for the years that began prior to June 1, 2013 are in accordance with Part V. The Fonds results are discussed under Results of operations on page 5. RATIOS AND SUPPLEMENTAL DATA Years ended May 31 (in millions of dollars, unless otherwise specified) 2015 (IFRS) 2014 (IFRS) 2013 (Part V) 2012 (Part V) 2011 (Part V) Revenues a 1, Net income b Net assets 11,150 10,131 9,301 8,525 8,178 Class A shares outstanding (number, in thousands) 335, , , , ,504 Total operating expense ratio c (%) Portfolio turnover rate d : Development capital investments (%) Other investments (%) Trading expense ratio e (%) Number of shareholders (number) 610, , , , ,235 Issues of shares 667 f Redemption of shares Fair value of development capital investments g 7,112 6,415 6,144 5,757 5,207 a b c d e f g For the financial years ended May 31, 2015 and 2014, revenues include realized and unrealized gains and losses, distributions, rental, fee and other income, which is not the case for the financial year ended May 31, 2013 and the prior years. Net income corresponds to revenues less total operating expenses and income taxes. To arrive at comprehensive income, the remeasurement of the net defined benefit liability is deducted from (or added to) net income. The total operating expense ratio is obtained as follows: by dividing total operating expenses in net income for the year by the average net assets attributable to security holders of the Fonds for that year. The portfolio turnover rate reflects the number of changes made to the composition of the portfolio. A portfolio turnover rate of 100% means, for example, that the Fonds purchased and sold all the securities in its portfolio once during the financial year. There is not necessarily a relationship between a high turnover rate and the portfolio s performance. The trading expense ratio represents transactions costs expressed as a percentage of average net assets. According to the Québec budget tabled before the National Assembly on June 4, 2014, the amount of share issues giving rise to labour-sponsored fund tax credits that the Fonds could make during the financial year ended May 31, 2015 was limited to $650 million. The Fonds complied with this limit and also issued $17 million in shares that do not give rise to tax credits and are not subject to this limit; these shares were issued pursuant to the provisions regarding the acquisition of replacement shares set out in the Home Buyers Plan and the Lifelong Learning Plan. These investments include funds committed but not disbursed as well as guarantees and suretyships. 2

47 CHANGE IN NET ASSETS PER SHARE Years ended May 31 (in dollars) Net assets per share, beginning of year a 2015 (IFRS) 2014 (IFRS) 2013 (Part V) 2012 (Part V) 2011 (Part V) Impact of the transition to IFRS Net assets per share, beginning of year after impact of the transition to IFRS a Increase from operations b : Interest, dividends and distributions and rental, fee and other income c Realized gains d Unrealized gains Total operating expenses e (0.44) (0.45) (0.40) (0.39) (0.38) Income tax and capital tax (0.05) (0.06) (0.05) (0.09) (0.08) Increase from other comprehensive income Variance from issues and redemption of shares (0.01) (0.01) (0.02) (0.01) (0.02) Net assets per share, end of year a a b c d e The amount of net assets per share is based on the actual number of shares outstanding at the relevant time. The increase from operations is based on the weighted-average number of shares outstanding during the relevant financial year. For the financial years ended May 31, 2015 and 2014, this item includes distributions as well as rental, fee and other income. For the financial year ended May 31, 2013 and the prior years, distributions were presented under realized gains. For the financial year ended May 31, 2013 and the prior years, rental, fee and other income was presented as a reduction of total operating expenses. ECONOMIC CONDITIONS AND OUTLOOK World and the United States Over the last 12 months, the sharp decline in energy prices and the changing geopolitical situation in the Ukraine, the Middle East, and more recently, Greece, all contributed in one way or another to dampening the outlook for global GDP. These conditions pushed the International Monetary Fund to reduce its global growth forecast in mid-january. The gloomy outlook for global economic growth for the coming quarters, combined with fears about the impact of falling oil prices on inflation, prompted several central banks, particularly in Asia and Europe, to ease their monetary policy. This situation also drove several currencies down against the U.S. dollar. The situation in the Eurozone is hardly any better. Economic growth over the last 12 months remained sluggish: Germany s real GDP contracted in the second quarter of 2014, which was a hard blow to a country that had been an economic pillar in the zone in previous quarters. However, the German economy rebounded in the fourth quarter of 2014 only to slow in the following quarter. Facing persistent weakness in the Eurozone economy and inflation hovering around zero, the European Central Bank (ECB) finally initiated its own version of large-scale quantitative easing. The program involves monthly purchases by the ECB of 60 billion euros in member country bonds until September A total of over 1,000 billion euros will therefore be injected into the system if the program runs for its scheduled duration. With this program, the ECB is foremost targeting a decrease in borrowing rates in the most problematic countries (Italy, Spain, Portugal and Greece). Despite this quantitative easing program, economists agree that the increase in real GDP will remain relatively moderate in the Eurozone in

48 All this uncertainty on the global economic outlook can be felt on the stock markets, which have been highly volatile over the last 12 months, with several indexes reaching new highs despite that. After recording a decrease in GDP in the first quarter of 2014, the U.S. economy experienced two strong quarters that are mainly due to sustained growth in real consumption and faster growth in business investment. However, in the fourth quarter of 2014, the U.S. economy started to show signs it was losing steam, and then declined in the first quarter of This situation stems in particular from bad weather conditions during winter 2015 as well as the labour conflict in West Coast ports that seems to have disrupted supply chains and deliveries. Despite this slowdown in the U.S. economy and several somewhat disappointing economic indicators (e.g. deterioration in the trade balance and the confidence index, lower-than-expected retail sales), economists generally remain optimistic on the U.S. economy s real capacity to continue growing in the coming quarters, supported by robust domestic demand and strong investment spending. Job creation in the United States progressed steadily over the last 12 months, further lowering the unemployment rate: it was 5.5% in May 2015, compared to 6.3% in May According to several economists projections, the unemployment rate should continue to decrease over The average savings rate has been 5.1% in the United States since May 31, 2014, up from the average savings rate for the same period last year. The annual change in consumer prices in the United States slipped into negative territory in January 2015, where it could remain until the middle of summer. When inflation starts to climb again, the U.S. Federal Reserve (the Fed) could decide to begin raising its key interest rate (which has been unchanged at 0.25% since December 2008). However, according to several experts, such an increase should not happen before the end of Canada and Québec After a rough start to the year, the Canadian economy recovered in the second quarter of 2014, and this growth continued through the third quarter, albeit at a slower pace. However, starting in fall 2014, the Canadian economy began to feel the backlash from the sharp drop in energy prices and the decrease in foreign trade, as evidenced by the deceleration of growth in GDP in the last quarter of 2014 and the decline in GDP in the first quarter of This also led to an inversion of the asymmetry of the country s economic growth from the Western provinces to Ontario and Québec. This is the context in which the Bank of Canada surprised market participants at its January 21, 2015 meeting by announcing its decision to lower the discount rate by 25 basis points (from 1.00% to 0.75%). The Bank of Canada specifically noted the sharp decrease in oil and other commodities prices as well as economic difficulties across the country in general to justify its decision. Economists agree that Canadian economic growth should continue to slow down in the coming months as the negative impact of the sharp decrease in oil prices will continue to be felt. That said, thanks to the expected gradual recovery of energy prices combined with more robust foreign trade, economic conditions should improve afterwards. Overall, in the last 12 months, the Canadian unemployment rate inched down from 7.0% in May 2014 to 6.8% in May It should continue on this path in the coming months as long as the Canadian economy continues to expand. In general, inflation has remained weak in Canada over the last 12 months. Bumpy oil prices will continue to be a determining factor in the evolution of inflation across the country in the coming months. Even though prices at the pump started to climb again in February 2015, the annual total inflation rate should remain very weak for the coming months, according to many economists. We will likely have to wait until 2016 for total inflation to go back around the median target. The Canadian real estate market showed strong resilience for much of After slowing at the beginning of the year, housing starts and home sales started to go up in spring The situation then reversed course in the fourth quarter of 2014, as evidenced by the drop in residential housing starts for both single-family homes and multi-unit buildings. According to many experts, the real estate market could continue to slow down a little more in the coming quarters. During the last 12 months, short-term (2 years) and long-term (10 years) Canadian government bond interest rates posted a decrease. During the same period, investment-grade corporation credit spreads trended up while provincial credit spreads trended down. The Canadian dollar traded at $US0.80 on May 31, 2015, compared to $US0.92 on May 31, However, it should be noted that it fluctuated during the last 12 months and reached its lowest level ($US0.78 in March 2015) since the recession. This downward movement and volatility in the Canadian dollar against the US dollar mainly stems from falling oil prices, increased investor appetite for US dollars and diverging expectations in terms of direction of the two central banks: the Fed and the Bank of Canada. In light of the current context, we believe that the Canadian dollar could continue to experience wide swings in the coming months, and that interest rates on Canadian 10-year and 30-year bonds should vary in a range not exceeding plus or minus 50 basis points. 4

49 In Québec, despite a sharp improvement in exports, economic growth remained weak during the last 12 months, notably due to the weakness in household consumption and business investment. The unemployment rate was 7.6% in May 2015, down from 7.9% in May 2014; this rate is higher than for Canada (6.8%) and for Ontario (6.5%). According to many economists, despite the difficulties arising from current budget cuts, the Québec economy should experience a slight acceleration in 2015 thanks to low oil prices and a weak Canadian dollar. Similar to 2014, Québec s economic growth in 2015 should be largely driven by exports that, despite falling sharply in the first quarter, should recover in the coming months. The Fonds will therefore definitely continue to play an important role, particularly by contributing to creating and maintaining jobs in Québec and by working with Québec companies who have the will and desire to expand abroad while generating economic spinoffs for Québec. Despite the positive signs suggesting than an economic recovery built on stronger ground may be on the horizon in North America, and more specifically in the United States, economic and financial issues still abound around the world, particularly in Europe and several emerging countries. Put another way, the road to greater stability on a global scale is still littered with obstacles of all kinds. This situation is giving rise to many economic uncertainties that should continue to impact the performance of many financial institutions, including the Fonds. MANAGEMENT DISCUSSION OF FINANCIAL PERFORMANCE RESULTS OF OPERATIONS RESULTS FOR THE FONDS For the financial year ended May 31, 2015, the Fonds posted comprehensive income of $992 million, compared to $773 million for the previous year. The Fonds return was 9.7% for the year, compared to a return of 8.3% for the previous year. The value of the Fonds shares increased by $2.97 compared to the value in effect since July 4, 2014 and by $1.90 compared to January 2015 to stand at $33.26 as at July 6, The Fonds net assets amounted to $11.1 billion as at May 31, 2015 compared to $10.1 billion as at May 31, The number of shareholders stood at 610,605 as at May 31, As a result of its mission, a significant portion of the Fonds portfolio is comprised of private securities and specialized funds. In general, the Fonds asset allocation tends to limit its return potential in a bull market, while the opposite occurs in a bear market. FONDS RETURN 1 Years ended May 31 Assets under management at end of year* $M 2015 (IFRS) Weight % Return % Assets under management at end of year* $M 2014 (IFRS) Weight % Development capital investments 5, , Other investments** 5, , , , Rental, fee and other income Total operating expenses (1.4) (1.5) Income tax (0.2) (0.2) Fonds return (annual) Fonds return (1 st six-month period) Fonds return (2 nd six-month period) * Assets under management at end of period 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 Comprehensive Income. 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: cash and money market, bonds, shares, international infrastructure funds, high-income securities and absolute return strategies. Return % 1 The annual return of the Fonds is calculated by dividing net income (net loss) per share for the financial year by net assets per share at the beginning of the financial year. The non-annualized return of the Fonds for a six-month period is calculated by dividing net income (net loss) per share for the six-month period by net assets per share at the beginning of the six-month period. 5

50 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 10.1% for the year, compared to the gross return of 9.8% generated for the prior year. Taking into account this return and given the level of mission-driven investments made by the Fonds, the assets in this sector represented $5.7 billion at the end of the year or 50.9% of assets under management as at May 31, 2015 (49.2% as at May 31, 2014). 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 10.1% of the Investments sector for the most recently ended year is largely explained by the following: The return of 11.1% generated by our private securities and specialized funds portfolio during the year (compared to 7.1% for the previous year). Overall, this performance is attributable to the general strength of the portfolio, which produced interest revenues, dividends and distributions and, in addition, generated an increase in value during the year in a low economic growth environment in Québec. The depreciation of the Canadian dollar over the last 12 months is a factor that contributed positively to this increase in value; The return of 5.3% generated by our portfolio of listed securities during the year. This return was earned in an environment i n which the Canadian stock markets were very volatile and, in general, did not perform as well as in the prior year, when conditions were much more favourable, in particular for small-cap companies, which had enabled our portfolio to generate a return of 21.5%. Other Investments sector The Other Investments sector manages the Fonds assets that are not invested in partner companies. Other investments consist of the cash and money market, bonds, shares, international infrastructure funds, high-income securities and absolute return strategies 2 portfolios. Other investments are managed in accordance with the Other Investments Portfolio Policy, which is an integral part of the Integrated Financial Assets Management Policy. The Other Investments Portfolio Policy is designed to optimize the return/risk ratio of the Fonds, diversify the development capital investments portfolio and ensure that the Fonds has a liquidity level that is sufficient to meet all its obligations. The changes to portfolios initiated during the year ended May 31, 2014 as part of the revision of the Other Investments Portfolio Policy (in particular reducing the target bond allocation to increase the target equity allocation, adopting an active management approach for Canadian equities and adding low-volatility and high-dividend shares to optimize the Fonds return/risk ratio) were completed on June 30, For the year, the Other Investments sector earned a gross return of 12.1%, up from the gross return of 9.7% recorded for the prior year. The assets of this sector represented $5.5 billion, or 49.1% of the Fonds assets under management as at May 31, 2015 (50.8% as at May 31, 2014). The evolution of interest rates and the performance of the stock markets are the determining factors in analyzing the performance of the Other Investments sector. Accordingly, the results achieved by this sector are influenced by the behaviour of the financial markets and the conditions affecting the economic environment. The gross return of 12.1% of the Other Investments sector for the year is largely explained by the following: The good performance of foreign stock markets which, combined with the depreciation of the Canadian dollar, led to a return of 16.9% for the shares and other securities 3 portfolios. These portfolios had generated a return of 19.3% for the prior year, when economic conditions were characterized by a widespread increase in stock markets; The return of 7.2% on our fixed-income portfolio for the year, compared to the return of 3.1% for the prior year. This return is essentially explained by the interest income generated by the portfolio and the decrease in interest rates for Government of Canada securities, which increased the value of bond securities in the portfolio. 2 3 The phase-out of the absolute return strategies portfolio was completed in April Other securities are comprised of the following portfolios: international infrastructure funds, high-income securities and absolute return strategies. 6

51 RETURN BY ASSET CLASS Years ended May 31 Assets under management at end of year $M 2015 (IFRS) Weight % Return % Assets under management at end of year $M 2014 (IFRS) Weight % Development capital investments Private securities and specialized funds 4, , Listed securities Other investments Fixed-income securities 2, , Shares and other securities 2, , , , Return % TOTAL OPERATING EXPENSES Total operating expenses consist mainly of expenses related to assets under management, shareholder services, subscription activities, economic training, systems and controls and their improvement, the process of investing in companies, personnel a nd all other resources the Fonds 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 expense ratio at a lower level than the management expense ratio of Canadian balanced funds 4, which stands at approximately 2.3% on an annual basis. For the financial year ended May 31, 2015, the ratio of total operating expenses to average net assets attributable to security holders of the Fonds, calculated using the method prescribed in the Regulation, was 1.4% (compared to 1.5% for the previous year). The decrease in the ratio is attributable to an increase in average net assets, but also by a decrease in total operating expenses which, expressed in dollars, amounted to $146.9 million for the year ended May 31, 2015, down $2.6 million compared to the previous year. ANALYSIS OF CASH FLOWS, BALANCE SHEET AND OFF-BALANCE SHEET ITEMS Cash flows Cash flows from operating activities of the Fonds were a total negative amount of $15 million for the year, compared to a total negative amount of $39 million for the prior year. Changes in these cash flows mainly resulted from our current operations. Cash flows from financing activities of the Fonds totalled $23 million for the year, compared to $54 million for the prior year. These cash flows for the two years resulted from issues of shares amounting to $668 million 5 ($787 million for the previous year) less redemptions of shares totalling $645 million 6 ($733 million for the previous year). Cash flows from investment activities of the Fonds represented a net cash outflow of $6 million for the year, compared to $8 million for the previous year. As at May 31, 2015, the Fonds had lines of credit of $80 million available for its working capital requirements. These lines of credit were not used during the year, and their outstanding balance was nil as at May 31, Balance sheet and off-balance sheet items Balance sheet development capital investments increased from $5.4 billion as at May 31, 2014 to $6.1 billion as at May 31, This $650 million increase mainly resulted from our net disbursed investments of $290 million (disbursed investments of $603 million less disinvestments of $313 million) and the increase in value of development capital investments during the year. On a commitment basis, the Fonds made development capital investments of $640 million during the year, compared to $548 million for the prior year. Funds committed but not disbursed increased from $963 million as at May 31, 2014 to $1.0 billion as at May 31, Source: Bloomberg (based on a sample of 149 Canadian retail balanced funds). This amount is presented on a cash basis and therefore includes the net change in share subscriptions between May 31, 2014 and May 31, This amount is presented on a cash basis and therefore includes the change in amounts payable between May 31, 2014 and May 31,

52 In addition, balance sheet other investments increased by $309 million during the year to $5.4 billion as at May 31, 2015 ($5.1 billion as at May 31, 2014). This increase is mainly attributable to the increase in value of securities held in the portfolio as a r esult of the stock market appreciation. The Fonds may use derivative financial instruments in particular to facilitate the management of portfolios, increase its revenues, safeguard the value of its assets and manage its market risks. MISSION OF THE FONDS, OBJECTIVES AND STRATEGIES MISSION AND OBJECTIVES The Fonds 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 FTQ members and Québec residents 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 them economic training. The Fonds mission is supported by both levels of government since shares of the Fonds qualify for RRSPs and give rise to both Québec and federal tax credits. 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 investment rule 7. 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. 7 For more on this, please see the Investment rule section of this MD&A. 8

53 PHASE-OUT OF THE FEDERAL TAX CREDIT In the budget tabled on March 21, 2013, the Government of Canada announced its intention to phase out through 2017 the 15% tax credit it grants to labour-sponsored fund shareholders. Despite the representations and proposals made by the two Québec-based labour-sponsored funds (the Fonds and Fondaction CSN), the Government of Canada passed Bill C-4 in December 2013 without amending the measures set out in the March 2013 budget. More specifically, according to these measures, the federal tax credit remains at 15% until the taxpayer s 2014 tax year (therefore including any contributions made during the first 60 days of 2015 and applied to the 2014 tax year), and will then be phased out through The Québec tax credit of 15% remains in place. Consequently, for the taxpayer s 2014 tax year, total credits remained at 30%; however, for the 2015 tax year, the tax credits to which the taxpayer will be entitled will be 25% (15% provincial and 10% federal). In other words, for the 2015 tax year, the maximum tax credit will be $1,250, which corresponds to an annual subscription of $5,000. Despite this decision by the Government of Canada, the Fonds continues to make representations and proposals to convince the federal government to change its decision in future budgets. It is important to highlight that the phase-out of the federal labour-sponsored fund tax credit will not affect the ability of the Fonds to seek a reasonable return, its ability to comply with the investment rule or its ability to satisfy the eligible requests for redemption from its shareholders, as a significant part of its assets is liquid. In addition, it should be noted that the Fonds share value does not depend on the federal tax credit, on the size of the Fonds, on the annual subscriptions or on the redemption requests to the Fonds, but depends exclusively on the value of the Fonds assets, which are solid. According to a KPMG-SECOR analysis, the Fonds business model will remain viable despite the feared decrease in subscription caused by this hidden tax hike. However, should subscriptions decrease, the Fonds will have to reduce its investments in Québec companies to maintain the equilibrium of its model. In addition, should subscriptions decrease while redemptions maintain their trend, the financial impact of the measure would be, for the Fonds, a potential decrease in its assets that would be gradual and slow. The Fonds assets will nevertheless continue to be very substantial, and their decrease will have no impact on the equilibrium of the model mentioned above, in particular the Fonds ability to redeem shares from its shareholders. The conclusions of the KPMG-SECOR analysis show the potential disruptive effect of the federal government s decision on the financing of Québec job-creating companies. Put another way, the federal government s decision, which will ultimately represent a significant tax increase for Québec workers who save (annual increase of $402 for the Fonds shareholder who contributed on average $2,677 for the 2014 tax year), could reduce subscriptions and, consequently, job-creating investments in the Québec economy. LIMITATION ON FONDS SHARE ISSUES As part of the Québec budget tabled on June 4, 2014, the Government of Québec decided to set a limit on share issues by tax-advantaged funds for the fiscal year. The limit for the Fonds amounted to $650 million in shares giving rise to laboursponsored fund tax credits and had no impact on its share return or its ability to redeem its shares. However, it reduced the ability of Québec workers to save for retirement. It should be noted that this limit ceased to be in effect as of June 1, STRATEGIES The Fonds was created by the FTQ over 30 years ago to proactively meet the needs of Québec society: creating jobs to battle unemployment and offering financing options during a period of high interest rates by setting up an innovative and solidary business model. Therefore, by mobilizing Quebecers savings and channeling it toward Québec companies seeking prosperity, we became a key player in Québec s economic development. The context in which the Fonds operates has obviously changed a great deal since its creation and, over time, we have developed strategies to adapt to these changes. More recently, conditions have been gloomier for the Québec society and economy: Québec s GDP grows slower than other Canadian provinces, mainly due to less favourable demographics; Governments have less and less flexibility, triggering a reflection on the State s role in certain sectors. More recently, the Fonds has weathered a stormy period, particularly marked by the announcement of the phase-out of the federal tax credit. Given this, the success of recent fundraising campaigns and the increase in the share value are not enough it is more important than ever for the Fonds to undertake some self-reflection so that it remains an essential player at the forefront of meeting the needs of the Québec of tomorrow. 9

54 The Fonds therefore launched an extensive strategic review during the financial year to ensure that: In the medium-term, it continues increasing its socio-economic impact and optimizing is current activities, and In the long-term, it adapts its business model to take into account the possibility of permanently losing the federal tax credit while maintaining its proactive and structuring role in Québec s economic development and wealth creation by mobilizing Quebecers savings. This strategic review is expected to be finalized in fall The Shareholder Services sector The financial year was marked by the limit imposed on share issues by the Fonds and the expected decrease in the federal tax credit. These two challenges were not enough to prevent the Fonds from collecting $650 million giving rise to labour-sponsored fund tax credits (the maximum allowed by the Government of Québec) and to further strengthen its relationship with its shareholders, particularly with young savers. In addition, it is worth noting that the Fonds also issued $17 million in shares that do not give rise to tax credits and are not subject to this limit; these shares were issued pursuant to the provisions regarding the acquisition of replacement shares set out in the Home Buyers Plan and the Lifelong Learning Plan. To avoid being affected by this limit and to be certain they could contribute to the Fonds, shareholders who so wished could elect to contribute automatically to their RRSP, either through payroll deduction or by pre-authorized bank withdrawals. Incredible efforts were undertaken by all the Fonds teams to thoroughly inform our shareholders about this situation. Our LRs (local representatives), who receive continuous training so they can provide top-notch service to our shareholders, played a critical role in the last campaign. Hundreds turned out to put their shoulders to the wheel. The number of workplace blitzes reached an all-time high. The LRs personalized approach and their proximity to shareholders paid off: 18,041 shareholders signed up for payroll deduction in In fall 2014, we went back to an education advertising phase. Focusing on the benefits of automatic savings, this phase was critical in the context of the limit. We also intensified our relationship-building activities with our shareholders, whether through mailings, electronically or by telephone. The Fonds has a shareholder base that is loyal and committed: it was crucial to retain this strong relationship. In winter 2015, our traditional sign-up and loyalty-building advertising phases were released in the media. They allowed us to raise interest in subscribing to shares of the Fonds during the RRSP period and to offer an alternative savings solution (automatic savings) once the limit was reached. The total number of new shareholders was 18,727 for the financial year; the Fonds therefore had a total of 610,605 shareholders as of May 31, The annual volume of subscriptions through systematic savings, which continues to represent the largest proportion of the Fonds subscriptions, was $428 million. Online transactions were not outdone: 6,550 new shareholders signed up through the Fonds website, and total lump-sum subscriptions of over $118 million were collected through various virtual channels. The volume of redemptions was $643 million as at May 31, 2015 ($730 million as at May 31, 2014). a level below our expectations for the year. The Fonds excellent return and the ongoing increase in the share value no doubt encourage shareholders to delay cashing out. SÉCURIFONDS, a financial services firm and subsidiary of the Fonds, continues to enjoy a strong success. Its mission involves supporting our shareholders as they prepare for retirement. Over 4,000 shareholders are currently using SÉCURIFONDS, which now manages assets of $102 million. Since July 2014, the Fonds payroll deduction has been an alternative solution to the Voluntary Retirement Savings Plan (VRSP), which will be implemented over a few years. All companies with five or more employees will therefore have to comply with the Voluntary Retirement Savings Plans Act and offer their employees a way to save for retirement. By setting up the Fonds payroll deduction in their companies, employers will not need to set up a VRSP. Our teams are currently working with companies in this process that allows them to comply with the Act and offer a beneficial savings option to their employees. As noted previously, the Government of Québec announced in its March 2015 budget that it was lifting the limit imposed on the Fonds share issues. In this context, our marketing activities aimed at encouraging shareholders to subscribe will continue until the end of February 2016 and will certainly allow a larger number of shareholders to contribute to their Fonds RRSP. 10

55 Integrated management of the Fonds assets The Fonds implemented the Integrated Financial Assets Management Policy, which applies to all the Fonds financial assets. The objective of this policy is to manage the financial assets in an integrated and comprehensive way to ensure sound diversification and an optimal return/risk profile while complying with the mission of the Fonds and meeting the expectations of its stakeholders. The Integrated Financial Assets Management Policy is complemented by the Investment Policy for the development capital investments managed by the Investments sector and the Other Investments Portfolio Policy for the assets managed by the Other Investments sector. 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 in order to allow 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 51% as at May 31, 2015, should gradually increase. Following the strategic review being undertaken by the Fonds, changes could be made to the Integrated Financial Assets Management Policy in the coming years in order to preserve the desired balance between the various components of the Fonds balance sheet, to maintain the desired return/risk ratio and to continue meeting stakeholders expectations. 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 investment rule which the Fonds must follow pursuant to its Incorporation Act (for more on this, see the Investment rule section). To enable risk diversification, the Fonds allocates its investment portfolio among various economic sectors, including the real estate sector, through the fonds immobilier de solidarité FTQ. To bring into action its regional and local commitment, the Fonds invests in all regions of Québec through the fonds régionaux de solidarité FTQ and the fonds locaux de solidarité FTQ. Generally, the Fonds holds a minority interest in the companies in which it invests. 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 improve 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 Vice- President, Due Diligence and Administration, together with the Vice-President, Legal Affairs, very closely monitor investments that entail greater 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 2006 to 2015, i.e. a 10-year period, the Fonds has committed $5.9 billion of unsecured risk capital (development capital) to partner companies. Of this amount, $2.1 billion has been invested in venture capital 8 either directly in private companies ($1.1 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. 8 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. 11

56 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 Other Investments Portfolio Policy, which forms an integral part of the Integrated Financial Assets Management Policy. The objective of the Other Investments Portfolio Policy is to optimize the Fonds return/risk ratio, diversify development capital investments and provide the liquidity necessary for the Fonds to meet all its obligations. 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 cash and money market portfolio, part of the bond portfolio and the high-income portfolio. The portfolios that are managed internally represented $2.1 billion as at May 31, 2015, or 38% of the total amount of other investments (40% as at May 31, 2014). To improve the overall performance of these portfolios, the Fonds specialists have some latitude in implementing tactical strategies on the market; these transactions must comply with the Other Investments Portfolio Policy and the guidelines authorized by the Financial Assets Management Committee. For portfolios managed externally, the Fonds retains the services of specialized managers to manage all the shares held in the other investments portfolio and to actively manage a portion of the bond portfolio. An active approach is adopted by the external managers for Canadian shares, while a passive approach, including the replication of alternative beta indexes, is preferred for managing the global equities portfolios. International infrastructure funds are also managed externally. In addition, the Other Investments sector may use derivative financial instruments to facilitate the management of its portfolios, increase the Fonds revenues and manage its market risks. The internal manager is also authorized to manage overlay management tactical allocation and market opportunities portfolios in accordance with predetermined risk budgets that have been approved by the appropriate governing bodies. 12

57 INVESTMENT RULE The investment rule, set out in the Fonds Incorporation Act, stipulates that the Fonds qualified development capital investments must respect the minimum threshold of the investment rule at the end of each financial year. As at May 31, 2015, this minimum threshold was 60% of the Fonds average net assets of the previous financial year. The Fonds may invest the remaining assets in other financial vehicles for asset diversification and sound management purposes. The calculation method for the investment 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. If the Fonds does not meet the investment rule minimum threshold, the share issues giving rise to labour-sponsored fund tax credits for the following financial year are limited to a prescribed percentage of the total value of the shares issued during the previous financial year, except for shares acquired through payroll deduction or by employer contributions set out in agreements concluded before the end of the prior year. As at May 31, 2015, the value of the average qualified investments 9 amounted to $6.3 billion or 65.1% of the average net assets of the previous financial year (compared to 65.1% as at May 31, 2014 and 66.0% as at May 31, 2013). Since the minimum threshold of the investment rule was reached as at May 31, 2015, the amount of share issues giving rise to labour-sponsored fund tax credits for the financial year will not be limited by the investment rule. As at May 31, 2015, in addition to the investment rule, the Fonds was 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. It should be noted that in the most recent Québec budget, it was announced that the investment rule threshold will be gradually raised (by 1% per year starting in 2016) to 65% in RECENT DEVELOPMENTS ACCOUNTING POLICIES INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) The Fonds adopted the IFRS for the year beginning June 1, 2014, as required by Canadian securities laws and the Accounting Standards Board of Canada. Note 28 to the financial statements at as May 31, 2015 discloses the impact of the transition to IFRS on the financial position, financial performance and cash flows reported by the Fonds. It also presents the nature and impact of the significant changes in accounting policies. AMENDMENTS TO THE ACT TO ESTABLISH THE FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) The proposed amendments to the Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) were adopted by the National Assembly on April 20, These amendments were mainly related to the governance framework of the Fonds (for more information, see the Governance section on page 25). 9 These investments include funds committed but not disbursed as well as guarantees and suretyships. 13

58 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 return and illustrates how the Fonds return has changed from year to year for the last ten financial years. The annual return of the Fonds is calculated by dividing net income (net loss) per share for the financial year by net assets per share at the beginning of the financial year. Such return sometimes differs from the annual compound return to the shareholder because the annual return of the Fonds does not take into account other comprehensive income but takes into account share issues and redemptions made during the year, which have a dilutive or accretive effect on net income (net loss) per share, as the case may be. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER At the current value of $33.26 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 value per share over the periods indicated. This return sometimes differs from the annual return of the Fonds since it takes into account other comprehensive income but 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 4.0%. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER (INCLUDING TAX CREDITS) A shareholder who invested, for instance, an equal amount each year through payroll deduction earned, at the current value of $33.26 per share and including the Québec and federal labour-sponsored fund tax credits (15% at the provincial level and 15% at the federal level) an annual compound return of 17.4% and 12.3% for a 7-year and 10-year period, respectively. In addition to this return, the shareholder can receive additional tax benefits if he transfers his Fonds shares to an RRSP. It should be noted that the phase-out of the federal tax credit that is effective with the 2015 tax year will have a downward impact on this return going forward. 14

59 SUMMARY OF INVESTMENT PORTFOLIO As at May , the Fonds assets under management were broken down between the following categories of the development capital investments and other investments portfolios: Asset classes % of net assets Development capital investments Private securities 31.7 Specialized funds 11.1 Listed securities Other investments Cash and money market 2.3 Bonds 21.8 Shares 24.3 High-dividend shares International infrastructure funds The following table presents the issuers of the top 25 positions held by the Fonds as at May 31, 2015, of which 18 are part of the development capital investments portfolio and 7 are part of the other investments portfolio. When the Fonds holds more than one class of securities of an issuer in the development capital investments portfolio, those classes are aggregated. However, with respect to the other investments portfolio, debt and equity securities of an issuer are not aggregated. Issuers % of net assets Development capital investments (18 issuers)* 32.0 Other investments (7 issuers)** * The 18 issuers representing, as a group, 32.0% of the Fonds net assets are (in alphabetical order): Camoplast Solideal inc. Cogeco Câble inc. Corporation Financière L'Excellence ltée Entreprises québécoises publiques 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 Fonds régionaux de solidarité FTQ, s.e.c. 11 Gestion TFI inc. Metro inc. Société de gestion d'actifs forestiers Solifor, société en commandite 11 Société en commandite Groupe CH SSQ Financial Group 12 TMX Group Limited Transcontinental inc. Trencap s.e. c. VC, société en commandite ** The 7 issuers representing, as a group, 13.1% of the Fonds net assets are: Province of Ontario 4.5% Province of Québec 3.1% Government of Canada 1.8% Financement-Québec 1.2% Province of British Columbia 0.9% Canada Housing Trust No 1 0.9% Hydro-Québec 0.7% This summary of investment portfolio may change due to the ongoing portfolio transactions of the Fonds High-dividend shares are included in the high-income securities 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 the Fonds investments in SSQ, Life Insurance Company Inc. and its subsidiary, SSQ General Insurance Company Inc. as well as the Fonds investment in SSQ, Mutual Holding Inc. 15

60 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 $640 million, on a commitment basis, to support Québec entrepreneurs in their development projects. Here are a few examples of the Fonds contribution to Québec s economic development during the financial year. The economic growth of Québec successful companies hinges on their expansion into new markets. By participating in the historic $470 million transaction in Agropur Dairy Cooperative, the Fonds $75 million investment fits perfectly with this strategy and demonstrates how important it is to the Fonds to develop Québec s agrifood companies of all sizes. This transaction supports the company s growth strategy and finances announced acquisitions. The Cooperative s members include 3,473 milk producers that employ some 8,000 people. The Fonds joined a mainly Québec-based consortium for the acquisition of Montreal Gateway Terminals. This $60 million investment reflects the Fonds desire to support Québec s maritime sector and strategic infrastructures, and it will bring back to Québec the ownership and decision centre of a strategic infrastructure. In addition, a Fonds/Government of Québec joint project, announced in the last Québec budget, will be created to support the Québec maritime strategy. In connection with this project, the Fonds will provide a $100 million envelope and the Government of Québec will provide a $200 million envelope over the next five years. The transaction with ATIS Group is a good example of the vitality of the Québec manufacturing sector. The $39 million investment the Fonds made in this company is intended to repatriate the company s ownership to Québec, and it will allow the company to launch its strategic growth plan in full force. ATIS Group is one of the largest door and window manufacturers in Canada and has 1,400 employees, including 900 in Québec. Present in the media sector for many years now, the Fonds has partnered with Média-Participations, a strategic European partner, to invest a total of $7.5 million (of which $4.9 million is provided by the Fonds) in Frima, a flagship of the gaming and entertainment industry in Québec. With this $4.9 million investment, the Fonds is supporting over 300 quality jobs in one of the largest production company in the Québec City region. Through this partnership, Frima expects to make targeted acquisitions in Canada and abroad. In addition, the Fonds invested $5 million in COLO-D, a new economy company in Drummondville, to support its growth in the development of data centres. During their financial year ended March 31, 2015, the fonds régionaux de solidarité FTQ invested a total of $48.1 million on a commitment basis, up 32.8% from the $36.1 million invested in the previous year. In total, 84 investments were made, of which 58 were in new companies. During its financial year ended December 31, 2014, the fonds immobilier de solidarité FTQ invested in 14 new real estate projects in various regions of Québec and various sectors (residential, commercial, offices and industrial). The authorized investments totalled $114 million. Among them, an investment of $2.5 million was authorized for the construction of a commercial building located on Rue de l Évêché in Rimouski. In addition, a $7.2 million investment was authorized for the Urbania 2 residential project, which will be built according to Transit-Oriented Development principles near the Montmorency metro station and will be part of a group of buildings creating a new downtown in Laval. 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 $47.7 million ($20.1 million in the previous year) in accordance with this policy. Five investments totalling $32.2 million ($3.7 million in the previous year) were made in companies meeting the companies impacting the Québec economy criteria. One of these investments, for $17.0 million, was made in AJ Walter Aviation Limited to support the development of its Montréal-based sister company (AJW Technique), which is one of its suppliers. Another investment of $4.0 million was made in Zymeworks Inc., which develops several cancer treatment products. In addition, two investments totalling $10.2 million were made in companies in the life sciences sector. Lastly, following an investment made last year, an additional $1.0 million was invested in Adetel Group. 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). 16

61 An investment of $14.3 million ($16.4 million for the previous year) was made in a private fund outside Québec. More specifically, this investment was made in Forbion Capital Fund III C.V., a Dutch fund specialized in life sciences that invests in companies in phases ranging from the end of pre-clinical activities to pre-commercialization that are active in developing drugs, medical technologies and diagnostics. In addition, an investment of $1.2 million (none for the previous year) was made in the category of companies undertaking large-scale projects in Québec. This investment in Gladius Pharmaceuticals Inc. will allow it to create five new jobs in its Montréal office and pursue its plans to discover and develop antibiotics to treat life-threatening, multi-drug-resistant bacterial infections. THE FONDS 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, which covers all of Québec, revolves around five levels of investment: The Fonds generally offers $2 million and up for large companies. The Fonds is involved in the financing of mergers, acquisitions, expansions, development of a new market or buy-backs, among others. The fonds régionaux de solidarité FTQ generally offer capital ranging from $100,000 to $3 million to meet the needs of businesses in their region. The fonds locaux de solidarité FTQ, created by the Fonds and the Québec Federation of Municipalities, generally offer $5,000 to $100,000 to small businesses. The fonds immobilier de solidarité FTQ specializes in real estate investment and development. Its 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 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 fund. The following graph shows the breakdown of the Fonds investments based on its various network components: 17

62 TRENDS AND OUTLOOK TRENDS IN THE VENTURE CAPITAL INDUSTRY 14 Investment activity in the Québec venture capital market posted an increase for a second consecutive year. Investments by venture capital funds totalled $604 million as at December 31, 2014, surpassing the $599 million invested in The amount invested in Québec in 2014 was the highest since 2007, a record year in the cycle prior to the financial crisis. It should be noted that the North American market saw an increase in activity in 2014 compared to the previous year. Canadian activity was up 21% from 2013 to 2014, reaching a total amount of $2.4 billion. However, with an increase of only 0.8%, Québec lost some of its share of the Canadian market, which went from 31% in 2013 to 25.5% in The sharp decrease in amounts invested by foreign funds mainly explains the weak growth in total amounts invested in 2014 in Québec. In fact, amounts invested by private independent funds, government funds, labour-sponsored funds and other tax-advantaged funds were up 19%, (from $406 million in 2013 to $484 million in 2014), but amounts invested by foreign funds were down 38% (from $193 million in 2013 to $120 million in 2014). The allocation of these investments by sector also changed compared to 2013, when the non-technology and clean technology sectors were the big winners, with 36% and 34% of total venture capital invested in Québec, respectively. In 2014, the information technology (IT) and life sciences sectors made a comeback. In total, these two sectors attracted 54% of amounts invested. Investments totalled $225 million in the IT sector (73% more than in 2013) and $104 million in the life sciences sector (56% more than in 2013). TRENDS IN THE SAVINGS MARKET AND RRSP In Québec, as soon as the Liberal government took office in April 2014, a process to improve public finances was put in place with the objective to quickly return to a balanced budget. For this government, a major factor in achieving this objective is the aging population, which will lead to massive retirements that will put increasing pressure on pension plans 15.The conclusions of the D Amours Report, which examined the viability of these plans, are therefore still quite present. Since July 1, 2014, the Voluntary Retirement Savings Plans Act has been in effect, and its implementation will span a few years. As such, the necessity for citizens to take charge of their personal savings remains more than ever a hot topic. Despite this observation, the current financial position of the citizens does not really allow them to do so. While disposable income has risen in recent years in both Québec and Canada, the personal debt rate continued to go up and the savings rate in Québec has remained significantly lower than that of Canada (in 2013: 2.7% in Québec compared with 5.2% in Canada) 16. The trend did not improve in 2014, as the percentage of Quebecers having contributed to their registered retirement savings plan (RRSP) is the same as in 2013 (62% compared to 66% in 2012) 17. Despite all this, tax free savings accounts (TSFAs) remain very popular as a tool for financing medium-term projects (increase of 89% from 2009 to 2013) 18, because withdrawals are less restrictive than with an RRSP. These findings are a reminder of the importance of the Fonds mission for the Québec population. The phase-out of the federal tax credit and the limit imposed in by the Government of Québec on the Fonds share issues giving rise to the labour-sponsored fund tax credits do not seem to have affected the trust of the Fonds shareholders and the Québec population in general; the last subscription campaign was successful and the limit was achieved on February 18, The strength of our roughly 2,000 LRs and our customer service, combined with a competitive return, should favourably position the Fonds for the next financial year, especially since the abovementioned limit on the Fonds share issues giving rise to labour-sponsored fund tax credits ceased to be in effect as of June 1, 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 2014 calendar year, which is different than the Fonds financial year. Statistics Canada, Canadian Economic Observer: Projected trends to 2031 for the Canadian labour force. Institut de la statistique du Québec and Statistics Canada. SOM-REER, Le marché des REER et des CELI pour l année d imposition Canada Revenue Agency (data extracted from income tax returns and related schedules filed by individuals). 18

63 FONDS OUTLOOK 19 Notice to readers: The following outlook does not take into consideration the potential impact of the implementation of new strategic directions on subscriptions and their redeployment as investments as well as on operating expenses. 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% on a long-term horizon. 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 and 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 forecasted redemptions, net assets should increase during the financial year. Net subscriptions (share issues less redemptions) could even be greater than in the financial year, given the absence of a limit and despite the reduction in the federal tax credit. However, it should be noted that net subscriptions should become negative thereafter, due to the combined impact of the reduction in the federal tax credit on share issues and the forecasted increase in share redemptions. In particular, as a result of the increase in the investment rule threshold from 60% to 61% in 2016, announced in the most recent Québec budget (more specifically, the investment rule threshold will increase 1% per year starting in 2016 to reach 65% in 2020), the volume of investments made by the Fonds should be higher than the volume recorded in the financial year. The phase-out of the federal tax credit will not, strictly speaking, affect the overall strength of the Fonds assets, the share value, the return to shareholders or the ability of the Fonds to redeem shares, even in the long-term. However, as mentioned previously, the federal government s decision, which will represent a significant tax hike for Québec workers who save, could reduce subscriptions and, consequently, decrease the Fonds job-creating investments in the Québec economy. 19 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 23, 2015, 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. 19

64 RISK MANAGEMENT Sound risk management practices are vital to the success of the Fonds. We manage our risk within a framework taking into acco unt the nature of our activities and the risks we can reasonably assume considering the desired return/risk ratio and stakeholder 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 23, 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. The Integrated Financial Assets Management Policy is complemented by the Investment Policy for the development capital investments managed by the Investments sector and by the Other Investments Portfolio Policy for the assets managed by the Other Investments sector. These policies, which were adopted by the Board of Directors, set goals, guidelines and several limits so that the Fonds management can ensure that the target return/risk profile is reached. In addition, the Fonds may use derivative financial instruments in particular to facilitate the management of portfolios, increase its revenues, safeguard the value of its assets and manage its market risks. During the year ended May 31, 2015, the Fonds continued to implement its integrated risk management framework. This process, which was undertaken a few years ago, is essentially aimed at providing 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 strategies. The integrated risk management approach was also designed to improve risk governance, monitoring and reporting. To that end, the Board of Directors of the Fonds adopted, in May 2012, the Integrated Risk Management Policy, which sets out the Fonds requirements in that regard while specifying the responsibilities of the main stakeholders involved. This policy has been in effect since June 1, 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, which has already been completed in the Other Investments and Investments sectors, was completed in two other sectors (Shareholder Services and Information Technologies) during the 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 results. 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 (governments and government agencies; financials and utilities; information technology, telecommunications services and healthcare; consumer discretionary and consumer staples; industrials; energy and materials) and geographic areas, within the limits allowed by its Incorporation Act. The Fonds financial assets are sensitive to listed share prices, fluctuations in bond interest rates (Canada bond rates and credit spreads) and fluctuations in exchange rates. The Fonds performs sensitivity analyses and simulations to inform senior management of material levels of market risk exposure. It may use derivative financial instruments to manage its market risk. 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. As part of the revision of the other investments portfolio, the implementation of which was completed on June 30, 2014, the target equity allocation was increased. This change increased the sensitivity of the Fonds assets to changes in stock markets. In addition, the phase-out of the foreign currency hedge on global equities increased the exposure to foreign exchange risk. 20

65 SENSITIVITY OF THE FONDS RESULTS TO MARKET RISK (in millions of dollars) May 31, 2015 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Change in bond interest rates* 1% increase in bond interest rates (186) (180) (179) 1% decrease in bond interest rates Change in listed share prices** 10% increase in listed share prices % decrease in listed share prices (364) (333) (253) Change in exchange rates*** 10% appreciation of the Canadian dollar (246) (216) (95) 10% depreciation of the Canadian dollar * 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, if any, 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, if any, 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, if any, 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 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, which is complemented by the Investment Policy for development capital investments and by the Other Investments Portfolio Policy for the assets managed by the Other Investments sector. 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, 2015 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Weight of the five largest investments (Development capital investments) 18.9* 17.1* 19.5* Weight of the five largest issuers or counterparties (Other investments) 11.5** 13.0** 14.2** * The portion attributable to investments that do not constitute a significant concentration of credit risk given the large number of investees represented 10.4% as at May 31, 2015 (8.9% as at May 31, 2014 and 9.6% as at June 1, 2013). ** All of these securities are issued or guaranteed by government issuers (Canada or provinces). 21

66 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, 2015 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Compliant with criteria 5,818 5,142 4,989 Under watch In turnaround ,094 5,444 5,306 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, 2015, the weighted average credit rating of bonds was AA-, as it was as at May 31, 2014 and as at June 1, CLASSIFICATION OF BONDS INCLUDED IN THE OTHER INVESTMENTS PORTFOLIO* (fair value in millions of dollars) May 31, 2015* (IFRS) May 31, 2014** (IFRS) June 1, 2013** (IFRS) AAA AA A BBB ,438 2,510 2,392 * Presented using the Dominion Bond Rating Services (DBRS) rating scale. ** 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, 2015, the ratio of liquid assets 20 as a percentage of assets under management was 57.6% (59.2% as at May 31, 2014 and 53.8% as at June 1, 2013), 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. 20 Liquid financial assets are comprised of fixed-income securities (cash, money market and bonds), listed shares of the other investments portfolio and certain listed shares of the development capital investments portfolio. 22

67 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 and regulatory compliance risk. Effective policies, standards and procedures are implemented to manage this risk. Control principles and mechanisms are monit ored 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 Investment Committees whose majority of members are independent from the Fonds, the FTQ and its affiliated unions; Monitoring of the development capital investment valuation process; Monitoring of the due diligence process; Implementation of a framework program of financial compliance; Implementation of a framework program of regulatory compliance; Implementation of an internal audit function; 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 code of ethics and conduct for management and unionized personnel was updated in 2014, and training was provided to all employees. An ethics hotline managed by an accounting firm is in place and allows employees to anonymously report cases of noncompliance with the code involving financial or accounting information or illegal acts. A few years ago, the Fonds 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 were implemented by the Fonds over the past few years. 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. 23

68 With respect to strategic risk, the phase-out of the tax credit announced by the federal government in its March 2013 budget, which has been effective since January 1, 2015 (for the 2015 tax year, the total tax credits granted to taxpayers will be 25%, compared to 30% previously), will force the Fonds to adapt and review its short-, medium- and long-term development strategies by taking into account a potential reduction in subscriptions. As explained previously in this MD&A, the phase-out of the federal tax credit does not affect the equilibrium of the Fonds model (ability to redeem shares, to keep sufficient liquidities, to seek a reasonable return, to comply with the investment rule, etc.), but it will force the Fonds to adapt its annual investment volumes to the subscription amounts it will collect year after year. Should subscriptions decrease while redemptions maintain their trend, the financial impact of the measure would be, for the Fonds, a potential decrease in its assets that would be gradual and slow. The Fonds assets will nevertheless continue to be very substantial, and their decrease will have no impact on the equilibrium of the model mentioned above, in particular the Fonds ability to redeem shares from its shareholders. In addition, as previously mentioned in this MD&A, the Fonds launched, during the financial, an extensive strategic review process to ensure that, in the medium-term, it continues increasing its socio-economic impact and optimizing its current activities and, in the long-term, it adapts its business model to take into account the possibility of permanently losing the federal tax credit. This strategic review process should be finalized in fall In addition, the limit that the Government of Québec decided to set on share issues by tax-advantaged funds for the fiscal year (for the Fonds, this limit amounted to $650 million in shares giving rise to labour-sponsored fund tax credits) reduced the ability of Québec workers to save for retirement. However, this limit had no impact on the return of the Fonds or its ability to redeem its shares. It should be noted that this limit ceased to be in effect as of June 1, Reputation risk is the risk that negative publicity, whether founded or unfounded, will cause expenses, revenue 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. In that respect, the Fonds has implemented in August 2014 the Sustainable Development Policy. The Fonds also has a voting rights policy with regards to public 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. Reputation risk evolved favourably during the year, as evidenced by the strengthening of the message on the relevance of the Fonds in the Godbout report and the Québec budget, tabled in March 2015, as well as the adoption, on April 20, 2015, by the National Assembly of the amendments to the Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.), which will enable the Fonds to complete the implementation of its new governance. These amendments to the Act reflect the recommendations of the special committee on governance of the Board of Directors of the Fonds issued in February The Fonds has had for a few years 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 comprised 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 Audit Committee. Given the growing use of social media by the Fonds and its employees, the Fonds has had a Social Media Policy for a few years. 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. 24

69 GOVERNANCE Further to the announcement, in February 2014, of the important reform of the Fonds governance, the Fonds has implemented several elements designed to strengthen its governance: Presidency of the Board of Directors and all the Board s committees (including those authorizing regional and real estate fund investments) reserved for a member independent from the Fonds, the FTQ and its affiliated unions; Creation of two new committees composed of a majority of members independent from the Fonds, the FTQ and its affiliated unions, namely the Governance and Ethics Committee and the Human Resources Committee; Implementation of a working group composed of independent members to review the decision-making process for investments, and whose work has an immediate impact on the scope of the mandate, roles, responsibilities and composition of the various governance bodies of the Fonds. In connection with this ongoing reform at the Fonds, Robert Parizeau, Chairman of the Board of Directors of the Fonds, and Gaétan Morin, President and Chief Executive Officer of the Fonds, supported before the National Assembly s Committee on Public Finance in January 2015 the amendments proposed to the Act to Establish the Fonds de solidarité des travailleurs du Québec (F.T.Q), which were finally adopted on April 20, The amendments enshrine the reforms already made by the Fonds since 2009 whereby all investments must first be recommended by an investment committee made up of a majority of members independent from the Fonds, the FTQ and its affiliated unions. In addition, the number of members of the Board of Directors is increased from 17 to 19; the majority of these members will have to be elected annually by the shareholders for a term not exceeding 12 years. The Fonds has therefore launched a call for nominations ahead of its Annual General Meeting of Shareholders to be held on September 26, A notice of the call for nominations has been published in Québec s major dailies and on the Fonds website for the four director positions that will be voted on at the Annual Meeting from among the candidates selected following the call for nominations. The criteria for director eligibility and the nomination procedure are available on the Fonds website. As regards the seven independent directors recommended to the Board of Directors by the Fonds Governance and Ethics Committee, a notice of meeting for the Annual Meeting and a proxy circular will be made available to shareholders in August RISK GOVERNANCE The Management Committee, comprised of the President and Chief Executive Officer and executives, is responsible for the global management of the Fonds operations. Because integrated financial assets management is an essential part of risk governance, 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. The governance structure that supports the Fonds, in particular with respect to risk management, is as follows: The Fonds 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. 25

70 The implementation process of the 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 Integrated Risk Management Committee, once formed, the monitoring of some work and their results in that respect. 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. Integrated risk management is the responsibility of the Executive Vice-President, Finance, who chairs the Integrated Risk Management Advisory Committee, composed of internal members, and will be supported in his duties by a Vice-President, Integrated Risk Management and Financial Strategies, a position that will be filled during the financial year. The Integrated Financial Assets Management Policy, which is under the Integrated Risk Management Policy, is a key piece of the risk governance framework. The objective of this policy is to manage financial assets in an integrated and comprehensive way to ensure sound diversification and an optimal return/risk profile while complying with the mission of the Fonds and meeting the expectations of its stakeholders. The Integrated Financial Assets Management Policy is complemented by the Investment Policy for the development capital investments managed by the Investments sector and the Other Investments Portfolio Policy for the assets managed by the Other Investments sector. The purpose of these policies is to set out the investment principles and rules for financial assets as well as to define the roles and responsibilities of the persons involved and the monitoring procedure to be applied. Policies are complemented by guidelines to specify how investment managers must proceed, including, without limitations, discretionary limits, diversification requirements, quality standards as well as return and risk objectives. KEY GOVERNING BODIES BOARD OF DIRECTORS 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; Ensuring that the Fonds, as an investor, behaves as a socially responsible entity; 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 to boards and committees to support it in maintaining the highest standards. The Fonds committees report their activities at least once a year to the Board of Directors. INVESTMENT BOARDS AND COMMITTEES Investment Boards and Committees are responsible for decisions related to development capital investments. These Investment Boards and Committees comprise the three Investment Committees for the Traditional, New Economy and Mining sectors as well as the Decision-Making Boards of the fonds immobilier de solidarité FTQ (which are similar, for operational purposes, to an Investment Committee). Each development capital investment of $15 million or more ($10 million or more for the Real Estate sector) 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 corresponding Investment Board or Committee. All investments below these thresholds are under the authority of the Investment Committee overseeing the economic sector or the Decision-Making Boards of the fonds immobilier de solidarité FTQ. All majority interest investments must be authorized by the Board of Directors on the recommendation of the appropriate Investment Committees. The three Investment Committees and the Decision-Making Boards of the fonds immobilier de solidarité FTQ are composed of a majority of members who are independent from the Fonds, the FTQ and its affiliated unions. 26

71 EXECUTIVE COMMITTEE The Executive Committee is composed of at least seven directors, including (i) the Chairman of the Board of Directors, (ii) the First Vice-Chair of the Board of Directors, (iii) the President and Chief Executive Officer, (iv) a member appointed by the FTQ, and (v) three independent members who sit on the Board of Directors. The Executive Committee only deliberate or make decisions if a majority of independent members are present. It may exercise all the powers of the Board of Directors with the exception of distributing shares, granting options, dismissing or replacing directors, declaring or authorizing dividend payments, and adopting, amending or revoking bylaws. AUDIT COMMITTEE The Audit Committee is comprised entirely of members who are independent from the Fonds, the FTQ and its affiliated unions in accordance with the Fonds Incorporation Act and 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 providing feedback. The Audit 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 makes recommendations to the Board of Directors when necessary. An internal audit function monitored by the Audit Committee was put in place, which allows benefiting from an independent assurance function. HUMAN RESOURCES COMMITTEE Composed of a majority of independent directors (from the Fonds, the FTQ and its affiliated unions), this new committee is tasked with proposing to the Board of Directors the appointment of the President and Chief Executive Officer, his employment conditions and his remuneration, as well as assessing his performance. More broadly, the Committee will have to examine issues related t o the compensation of the Fonds management as well as evaluate and plan management s succession. Its mandate will also include overseeing the negotiation of the collective agreement with the Fonds employees. Furthermore, the mandate of the Committee includes monitoring the general human resources practices within the Fonds network, in particular at the real estate fund, the regional funds and the local funds. GOVERNANCE AND ETHICS COMMITTEE Composed of a majority of independent directors (from the Fonds, the FTQ and its affiliated unions), this new committee had first been mandated in the short-term to steer the implementation of the Fonds governance reform. This committee is also responsible for supporting the Board of Directors in the implementation of a continuing education and self -assessment program, in addition to the overall aspects of the Fonds general governance, in particular with respect to appointments to the governing bodies of t he Fonds. More specifically, it determines the terms and conditions for the election of members of the Board of Directors at the shareholders meeting. It also ensures, with the Fonds management, that directors, governing body members and all employees of the Fonds maintain on an ongoing basis ethical culture and practices. The Governance and Ethics Committee also reviews certa in continuous disclosure documents to be filed with the Autorité des marchés financiers or distributed to shareholders. INTEGRATED RISK MANAGEMENT COMMITTEE The primary mandate of this committee, which will be implemented during the financial year, will be to supervise the Fonds integrated risk management general practices by making recommendations to ensure that the Fonds applies proper oversight and integrated management practices to its risk exposures. It will also have to ensure that the r isks to which the Fonds is exposed are clearly identified, review the measures taken by management to adequately manage them, including examining the integrated risk profile and its action plans, and review the quantitative and qualitative risk appetite st atements as well as the risk tolerance levels. This committee will coordinate with the Financial Assets Management Committee. INTEGRATED RISK MANAGEMENT ADVISORY COMMITTEE The Integrated Risk Management Advisory Committee, composed of internal members, supports the Management Committee in the implementation of the integrated risk management framework and its decisions, in accordance with the requirements of the Integrated Risk Management Policy. 27

72 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 Other Investments Portfolio Policy. Its primary mandate is to ensure that asset management is coordinated and aligned. In this capacity, it recommends the main investment orientations to the Boa rd of Directors. This committee also monitors performance and changes in the return/risk ratio, ensures that the Fonds asset management is in compliance with all its policies and approves the guidelines required to manage its financial assets. Th is committee makes recommendations to the Board of Directors when necessary. PURCHASE-BY-AGREEMENT DECISION-MAKING COMMITTEE The Purchase-by-Agreement Decision-Making Committee, composed of internal members, was set up in accordance with Section 8 of the Fonds Incorporation Act. Its main duty is authorizing the purchase by agreement of the shares and fractional shares of the Fonds in accordance with the Purchase-by-Agreement Policy adopted by the Board of Directors and approved by the Minister of Finance of Québec. VALUATION COMMITTEE Composed of a majority of qualified valuators independent from the Fonds, the FTQ and its affiliated unions, the Valuation Committee is mandated to review the private investment valuation process and 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 21. 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. Qualified 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 qualified 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, regulations require that the Chief Executive Officer and the Chief Financial Officer of an investment fund sign on a half-year basis 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 signed and submitted to the Audit Committee on a half-year basis since May 31, For the six-month period ended May 31, 2015, the certification was signed by the President and Chief Executive Officer and the Executive Vice-President, Finance of the Fonds. 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 IFRS issued by the International Accounting Standards Board. 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. 21 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

73 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 new COSO framework (issued in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission), and, for information technology controls, the COBIT (Control Objectives for Information and Related Technology) framework, two recognized financial governance frameworks. The necessary work to comply with the new COSO 2013 framework was completed by the Fonds during the year; the Fonds previously used the 1992 version of the COSO framework. Regulations require that the President and Chief Executive Officer and the Chief Financial Officer confirm their responsibility for controls by signing a certification to this end. Accordingly, for the year ended May 31, 2015, the Fonds President and Chief Executive Officer and Executive Vice-President, Finance signed a certification confirming their responsibility in that regard. 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 IFRS issued by the International Accounting Standards Board. Management, under the supervision of the President and Chief Executive Officer 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, 2015, internal control over financial reporting was adequately designed and effective and did not contain any material weaknesses. 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, 2015, 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 Chief Executive Officer 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, 2015, disclosure controls and procedures were adequately designed and effective. 29

74 STATEMENT OF DEVELOPMENT CAPITAL INVESTMENTS, AT COST AS AT MAY 31, 2015

75 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, 2015 ("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, 2015 is prepared, in all material respects, in accordance with the dispositions of article 18 of the Regulation respecting development capital investment fund continuous disclosure. Signed, Deloitte LLP 1 1 CPA auditor, CA, public accountancy permit No. A Montréal, June 23,

76 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 1988 Fonds de développement emploi-montréal inc. 40 1,338 1,338 V01400 TransForce inc. 20 9,955 9,955 V Entreprises québécoises publiques (Appendix A) 315, ,106 V Transat A.T. inc ,274 38,274 V B.M.B. (Îles-de-la-Madeleine) inc V02102 Fonds immobilier de solidarité FTQ I, s.e.c ,975 28,975 V02273 Fonds locaux de solidarité FTQ, s.e.c ,000 38,000 V Fonds immobilier de solidarité FTQ II, s.e.c ,000 25,000 V02828 Groupe Robert inc ,940 27,954 49,894 V01945 Le Devoir inc. 25 1,315 1,315 V02780 SSQ, Société d'assurance-vie inc ,363 66, ,463 V Corporation Financière Brome inc. 40 2,991 2,991 V Château M.T. inc. 25 2,610 2,610 V03133 Fonds régionaux de solidarité FTQ, s.e.c , ,380 V Fonds d'investissement de la culture et des communications, société en commandite 25 26,700 26,700 V03748 Groupe Solmax inc. 15 1,618 7,828 9,446 V03615 Mines Richmont inc. 15 9,219 9,219 V Québec inc. (Manoir Richelieu) 25 44,579 44,579 V16026 Exploration Azimut inc V04288 Niocan inc V04287 Société en commandite Manoir Richelieu 25 1,254 1,254 V03184 TSO3 inc. 35 5,236 5,236 V La Financière des entreprises culturelles (FIDEC), société en commandite 2000 ARGO II : The Wireless-Internet Fund - Limited Partnership V ,318 11,318 V04893 Atrium Innovations inc ,180 22,180 V04820 Genopole 1er Jour S.A V05387 Groupe HNZ inc ,633 24,633 V04958 GTI V, société en commandite 45 7,581 7,581 V04396 Marketing Léger inc. 20 1,000 1,250 2,250 V Fonds Bio-Innovation, société en commandite 35 32,732 32,732 V05076 Investissement Premières Nations du Québec, société en commandite 40 2,000 2,000 V04956 Kruger Wayagamack inc ,351 13,351 V03772 Novacap II, société en commandite 40 2,190 2,190 V04981 Partenaires MidCap V05454 SIDEX, société en commandite 15 15,000 15,000 V FinTaxi, s.e.c ,200 60,800 77,000 V

77 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2002 Fonds immobilier de solidarité FTQ inc , ,822 V05025 Junex inc V05601 Lumira Capital I Québec société en commandite 35 3,999 3,999 V05720 Produits Intégrés Avior inc. 20 1,250 1,250 V05148 Vimac Early Stage Fund L.P. 45 8,992 8,992 V Fonds Vimac Milestone Medica Nord s.e.c. 35 5,550 5,550 V05951 Le Fonds Entrepia Nord, s.e.c. 45 7,612 7,612 V05841 Mines de la Vallée de l'or ltée V06004 Stella-Jones inc ,938 35,938 V Canada inc. (Transat A.T.) 25 4,647 4,647 V06375 Corporation Aurifère QMX V06287 Fonds d'investissement MSBI, société en commandite 45 8,905 8,905 V05710 Octasic inc. 45 1,741 6,264 8,005 V05549 Trencap s.e.c , ,516 V06277 Vimac ESF Annex Fund L.P V Québec inc V04338 A.M. Pappas Life Science Ventures III, LP 35 8,308 8,308 V11759 Addenda Capital inc ,406 71,406 V13108 Camoplast Solideal inc ,551 39,551 V04935 Château Bonne Entente inc. 25 1, ,244 V06252 FIER Partenaires, société en commandite 40 27,822 27,822 V06260 Fonds Brightspark II, s.e.c. 45 1,367 1,367 V06280 Fonds d'opportunités canadiennes HRS, s.e.c ,484 20,484 V06076 Média Groupe inc. 25 2,000 2,042 4,042 V06408 Metro inc ,948 73,948 V11740 ProQuest Investments III, L.P. 35 3,653 3,653 V06351 RHO Fund Investors 2005, L.P. 45 2,976 2,976 V11625 SAIL Plein Air inc. 25 6,000 4,911 10,911 V Canada inc. (Maison des Futailles) 30 21,861 21,861 V11897 Boutique Linen Chest (Phase II) inc V12067 Capital Financière Agricole inc. 30 2,366 2,366 V06115 Capital St-Laurent, s.e.c ,320 11,320 V11478 Corporation développement Knowlton inc ,254 35,254 V12363 Coveo Solutions inc. 45 6,318 6,318 V12251 Emerald Cleantech Fund II L.P. 40 6,538 6,538 V11778 Exploration Dios inc V11976 FCPR Aerofund 20 6,941 6,941 V11792 Fiducie du Chantier de l'économie sociale 40 12,000 12,000 V06285 Fonds CTI sciences de la vie, s.e.c. 35 3,029 3,029 V

78 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2006 Fonds ID s.e.c ,000 10,000 V11741 Fonds Propulsion III s.e.c. 45 5,436 5,436 V06283 Gestion Rivière du Diable inc. 25 2, ,291 V11457 Les alcools de spécialités Greenfield inc ,000 16,000 V12378 NAPEC inc ,985 1,186 21,171 V12130 Relay Ventures Fund L.P. 45 3,452 3,452 V12024 Ressources Cartier inc V12031 Rho Canada Capital de Risque, s.e.c ,000 20,000 V11984 Société en commandite Agechem 35 15,756 15,756 V06248 VantagePoint Venture Partners 2006 (Q), L.P ,631 18,631 V Canada inc. (North Country Slate) V12564 Envivio, inc. 45 5,751 5,751 V12402 Exploration Midland inc. 15 2,136 2,136 V12531 Fonds d'investissement inovia II, société en commandite 45 3,999 3,999 V12317 GO capital s.e.c. 45 1,693 1,693 V12016 Investissement (12348) s.e.n.c. (Bandsintown Group) 45 12,029 12,029 V12348 Les Industries Spectra Premium inc ,000 2,003 12,003 V06225 MMV Financial inc V12373 Novacap Industries III, s.e.c ,878 25,878 V12234 Novacap Technologies III, s.e.c. 45 4,719 4,719 V12095 Partenaires Médias Remstar, s.e.c. 25 2,000 2,000 V11979 ProQuest Investments IV, L.P. 35 6,918 6,918 V12276 Soccrent 2006, société en commandite 40 11,380 7,400 18,780 V11929 Société de gestion d'actifs forestiers Solifor, société en commandite , ,000 V11584 Vertex III (C.I.) Fund, L.P. 45 3,244 3,244 V Administration LVER inc. 25 1,200 1,200 V13113 Alimentation Coop Port-Cartier V12496 BDR Capital s.e.c ,725 59,725 V13558 Cogeco Câble inc , ,000 V12924 Corporation Financière L'Excellence ltée , ,000 V13127 Dalkotech inc. 20 5, ,580 V13252 Exploration NQ inc V13232 Fonds soutien Montréal parallèle, s.e.c. 45 2,000 2,000 V13118 G.D.G. Environnement ltée 20 2,500 2,500 V11560 Gestion ACCEO inc ,870 5,750 28,620 V13530 Gestion TFI inc , ,000 V14754 Groupe AGF inc ,000 3,300 23,300 V12541 HR Stratégies inc V

79 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2008 Ontario Venture Capital Fund LP 45 5,438 5,438 V13245 Ovivo inc ,061 25,000 57,061 V13155 Placements Montrusco Bolton inc ,055 20,055 V13132 Rho Ventures VI, L.P ,160 20,160 V12930 Sonaca Montréal inc. 20 3,945 3,945 V11595 VantagePoint Cleantech Partners II, L.P ,938 19,938 V N Plus inc ,166 14,166 V12431 A.M. Pappas Life Science Ventures IV, LP 35 2,123 2,123 V12898 ADS inc. 25 3,600 3,600 V13601 Champlain Capital Partners, L.P. 40 3,791 3,791 V13625 Corporation Nuvolt inc V14081 FCPR Aerofund II 20 13,664 13,664 V13661 Fonds Cycle Capital I, s.e.c ,458 18,458 V13823 Gestion hôtelière REVPAR inc V14033 Gestion Juste pour Rire inc V12916 Holding Smardt inc ,121 5,000 17,121 V15321 Les Viandes Laroche inc. 30 2,000 2,000 V01417 MECA DEV S.A.S ,502 12,729 34,231 V14354 Média Cineflix inc ,925 10,925 V13243 Premier Tech ltée 15 42,875 42,875 V01387 Société en commandite Groupe CH 25 11,324 11,324 V ,437 Teraxion inc. 45 6,167 6,167 V05734 Transcontinental inc , ,000 V13756 VC, société en commandite , ,037 V Dalkotech International inc V14868 Foliot Management inc. 25 7,000 2,500 9,500 V14270 Fortress Paper Ltd 15 7,000 25,000 32,000 V14403 Groupe Technosub inc. 20 2,430 2,430 V06405 IPL inc ,000 45,000 60,000 V01975 Nemaska Lithium inc V14826 Ressources Géoméga inc V14798 Royal Nickel Corp V14827 Saladexpress inc. 30 8, ,818 V03768 Serdy Média inc. 25 2, ,667 V13802 Société de Diamant Stornoway 15 11,045 14,700 25,745 V14396 SSQ, Société d'assurances générales inc ,000 15,000 V14428 Twist, société en commandite 30 6,000 6,000 V Abitibi Royalties inc V15313 Acquisio inc. 45 4, ,929 V12982 AmorChem, société en commandite 35 5,753 5,753 V

80 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2011 Bombardier inc ,779 49,779 V13647 Cogeco inc ,000 40,000 V15279 Corporation Aurifère Aurvista V14828 Corporation Aurifère Monarques V15054 Fonds Alpha+ Montrusco Bolton 40 20,240 20,240 V13562 Fonds Capital Culture Québec, société en commandite 25 10,000 10,000 V14949 Fonds d'amorçage Cycle-C3E, s.e.c. 45 5,561 5,561 V14929 Fonds d'investissement pour la relève agricole (FIRA), s.e.c. 30 3,667 3,667 V14455 Fonds d'investissement Réal, s.e.c. 45 6,803 6,803 V14927 Fonds Relève Québec, s.e.c. 40 2,677 2,677 V14948 Fonds stratégique à rendement absolu HRS, s.e.c ,000 50,000 V14730 Groupe Crête division St-Faustin inc V14867 Groupe Meloche inc. 20 3,000 3,000 V14936 Groupe TMX Limitée 40 97,600 97,600 V15039 JV Driver Corporation inc ,000 16,000 V14834 Les Chantiers de Chibougamau ltée 15 1,750 1,750 V14814 Les Investissements Nolinor inc V14769 Magnus Poirier inc V03002 Milestone Pharmaceutiques inc. 35 5,157 1,202 6,359 V14985 Nunavik Nickel Mines Ltd V15314 Rona inc ,375 35,375 V15367 Scandinave Spa in Whistler inc. 25 1,861 1,861 V Québec inc. (Forage Boréal) 15 2,050 2,050 V Québec inc. (Casavant Frères) 25 2,000 2,000 V15284 Abipa Canada inc. 20 9,600 9,600 V15425 Agritibi R.H. inc V15495 Athos services commémoratifs inc ,699 14,699 V15783 Erfa Canada 2012 inc. 35 3,106 3,106 V15297 Fonds de solidarité FTQ investissements croissance I, s.e.c. Fonds de solidarité FTQ Investissements technologiques I, s.e.c ,992 5,992 V ,000 4,000 V15320 Germain Larivière inc. 25 1,073 1,073 V14464 Gestion SMS inc V15483 GLyPharma Thérapeutique inc. 35 2,837 2,837 V15331 Groupe Colabor inc ,000 30,000 V06111 Groupe MBI inc , ,729 V15261 Groupe PCM inc V15362 Groupe QuébéComm inc. 25 3,000 3,000 V14747 Innovation Thrasos inc ,017 12,017 V

81 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2012 La Coop fédérée 30 75,000 75,000 V15256 Les Bois de plancher P.G. inc. 15 2,000 2,000 V13578 Les entreprises de divertissements Muse inc. 25 4,500 4,500 V14680 Les Industries Touch inc V11932 Lumira Capital II, société en commandite 35 7,133 7,133 V13774 Maibec inc. 15 9,662 4,824 14,486 V02502 Mine Barlow inc V15436 Pages Jaunes Limitée 25 1,747 1,747 V16028 Pages Jaunes Solutions numériques et médias limitée 25 6,948 6,948 V16027 Produits alimentaires Viau inc. 30 4,700 4,700 V14878 Société en commandite Free 2 Play 25 7,500 7,500 V14906 Sojag inc. 25 3,325 3,325 V15446 SSQ, Société de participation mutualiste inc ,050 78,050 V15372 Supermétal Structures inc. 20 3,618 3,618 V05411 Technologies Interactives Mediagrif inc. 45 4,725 4,725 V Accedian Networks Corporation 45 1,252 1,252 V13081 Adetel Group 45 4,691 4,691 V15890 AJW Technique inc ,750 10,750 V15836 Asmacure inc V06167 Attraction Média inc. 25 4,000 1,500 5,500 V11876 Auberge & Spa le Nordik inc V16361 Bandsintown Group inc. 45 5,168 5,168 V16328 Corporation d'or Intégra V17283 Distech Contrôles inc ,000 13,000 V06350 Entreprises Minières du Nouveau-Monde inc V15867 FCPR Aerofund III 20 6,052 6,052 V15929 Fonds d'investissements Sanderling VII (Canada), s.e.c. 35 2,502 2,502 V15642 Groupe de construction industrielle DCM inc. 20 7,667 7,667 V15945 Humania Assurance inc ,000 10,000 V15294 Les Brasseurs du Nord inc ,975 19,975 V Les Réseaux Accedian inc. 45 7,764 7,764 V11761 Lunetterie New Look inc ,000 15,000 V17373 Macadamian Technologies inc V17250 Propair inc V16025 Ressources Falco ltée V inc V Canada inc. (Groupe Multi-Prêts) 40 2,500 2,500 V Canada inc. (Groupe Multi-Prêts) 40 3,100 3,100 V18036 A J Walter Aviation Limited 20 17,417 17,417 V

82 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2014 Acquisition Glacier II inc ,895 58,895 V17590 Adventure Gold inc V13715 Agropur Coopérative 30 75,000 75,000 V17727 Anges Québec Capital s.e.c. 40 2,738 2,738 V17797 Argos Therapeutics inc V15710 AV & R Vision & Robotiques inc. 20 1,373 1,373 V15961 Coalision inc ,000 15,000 V06297 Colo-D inc. 45 2,175 5,000 7,175 V18185 Decolin inc. 25 5,000 5,000 V17672 Densi Corporation 25 2,000 2,000 V17520 Double A Corp inc. 20 3,000 3,000 V17235 Enerkem inc ,015 11,015 V13021 Fonds CTI Sciences de la vie II, s.e.c V15952 Fonds de solidarité FTQ investissements croissance II, s.e.c. 45 1,600 1,600 V18165 Fonds Valorisation Bois, s.e.c. 15 5,000 5,000 V15486 Groupe Acier Pointe-Claire / Green Valley inc. 15 2,807 2,807 V18053 Groupe Bermex inc. 25 5,000 5,000 V12828 Groupe Giroux Maçonnex inc. 20 2,000 2,000 V02222 Groupe Laces inc. 25 2,500 2,500 V18199 Groupe V Média inc. 25 7,500 7,500 V16356 Héroux-Devtek inc ,537 21,537 V14766 Leprohon inc V18174 Lumenpulse inc. 20 7,485 7,485 V15264 Machines Roger International inc. 15 1,000 1,000 V02679 Maison des Futailles, s.e.c. 30 2,000 2,000 V17474 Mason Graphite inc V17459 Métal 7 inc. 20 4,750 4,750 V17257 Mines Agnico Eagle Limitée 15 3,990 3,990 V18101 Mines Coulon inc. 15 3,600 3,600 V17399 Novacap Industries IV, s.e.c. 40 5,404 5,404 V17668 Orckestra inc. 45 2,800 2,800 V18164 PRCL Research inc. 35 1,818 1,818 V17211 Redevances Aurifères Osisko ltée 15 27,905 27,905 V18105 Ricardo Média inc. 25 2,738 2,738 V17379 Rudsak inc. 25 4,950 4,950 V14788 Société d'investissement Alt Canada, s.e.c. 25 2,083 2,083 V13237 Sterinova inc. 35 4,500 4,500 V16093 Super Aqua Club inc. 25 2,700 2,700 V17395 Technologies Tremcar inc. 20 5,000 5,000 V13729 Teralys Capital Fonds de Fonds, s.e.c ,854 24,854 V

83 Statement of Development Capital Investments, at Cost AS AT MAY 31, 2015 (In thousands $) Unsecured Secured Total Year of Initial Investment Industry Segment Listed Shares Unlisted Shares and Units Loans, Bonds and Advances Loans Guarantees and Suretyships 2014 Tuango inc. 25 5,000 2,500 7,500 V17516 Versant Venture Capital V, L.P. 35 3,228 3,228 V16155 Xenon Pharmaceuticals inc V18203 Yamana Gold inc. 15 3,405 3,405 V12055 Zymeworks inc. 35 4,000 4,000 V Québec inc. (MGT - Terminaux Montréal Gateway) 20 60,000 60,000 V18178 Artemano Canada inc V18177 Corporation Fiera Capital 40 12,600 12,600 V18462 engene inc. 35 1,778 1,778 V16114 Esperas Pharma inc. 35 2,430 2,430 V18382 Gérodon (Canada) inc V17333 Gestion Frima inc. 45 2,400 2,400 V17374 Groupe Atis inc ,000 7,311 39,311 V18198 Groupe Maibec inc ,000 7,001 V18400 Placements Mecyva inc ,500 17,500 V18417 Ressources Sphinx ltée V13371 Société en commandite Fiera Axium Infrastructure Canada II V16254 Souris Mini inc. 25 4,000 2,000 6,000 V18295 Tecsys inc. 45 1,233 1,233 V13685 Teralys Capital Fonds d'innovation s.e.c V18076 Voyages Traditours inc. 25 2,925 4,000 6,925 V general partners of limited partnerships V18880 Total 768,070 2,846,408 1,552,409 2,638 5,169,525 9,655 The list of investments made by these specialized 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 $5,169,525,000 itemizes by company the amounts invested by the Fonds de solidarité des travailleurs du Québec (F.T.Q.). This amount appears in Note 5 to the financial statements as at May 31, In addition, this statement presents a list of the guarantees and suretyships granted by the Fonds. Industry segment legend Energy Materials Industrials Consumer discretionary Consumer staples Health care Financials Information technology Telecommunication services Utilities 9

84 Entreprises québécoises publiques, at cost APPENDIX A AS AT MAY 31, 2015 (In thousands $) Description Industry Segment Listed Shares 5N Plus inc. Abitibi Royalties inc. Adventure Gold inc , V12431 V15313 R14323 Aimia inc , Alimentation Couche-Tard inc. Amex Exploration inc. Bombardier inc , , P 30214Q V13647 Bowmore Exploration Ltd Cogeco Câble inc. Corporation Fiera Capital CR Capital Corp. Ergorecherche ltée Exploration Azimut inc. Exploration Dios inc. Exploration Midland inc. Forage Orbit Garant inc. Groupe Canam inc. Groupe CGI inc. Groupe d'alimentation MTY inc. Groupe DMD Connexions santé numériques inc ,770 12, ,410 3, ,856 3,164 15,066 8,259 2,538 V A R C V04288 V11976 V N 13710C 39945C 55378N APTILON Hecla Mining Company Héroux-Devtek inc , L Industries Lassonde inc. 30 2, Innergex Énergie renouvelable inc. Junex inc ,935 1, B V05601 Lamêlée minerais de fer ltée Le Groupe Jean Coutu (PJC) inc. Lumenpulse inc. Manac inc. Mason Graphite inc. Metro inc. Mines Agnico Eagle Limitée Mines de la Vallée de l'or ltée Mines Richmont inc. Nunavik Nickel Mines Ltd ,300 7, , , Q V15264 V06118 V17459 V11740 V18101 V06004 V02088 V15314 Opsens inc. 45 1, Ovivo inc. Quincaillerie Richelieu ltée Redevances Aurifères Osisko ltée ,201 7,076 27,437 V W V

85 Entreprises québécoises publiques, at cost APPENDIX A AS AT MAY 31, 2015 (In thousands $) Description Industry Segment Listed Shares Ressources Cartier inc. Rogers Sugars inc ,076 V R SEMAFO inc Stella-Jones inc. Technologies D-Box inc. Technologies Interactives Mediagrif inc. Technologies Sensio inc. TransForce inc. WSP Global inc ,496 5,445 12,153 1,283 14,598 21,236 V02986 DBOX V Y V Q Xebec Adsorption inc. 20 2, Yamana Gold inc. 15 Total 315, V12055 Industry segment legend Energy Materials Industrials Consumer discretionary Consumer staples Health care Financials Information technology Telecommunication services Utilities 2

86 RELEVÉ DES AUTRES INVESTISSEMENTS (NON AUDITÉ) IN FRENCH ONLY AS AT MAY 31, 2015

87 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts GB00B1YW4409 3i Group plc Y101 3M Co A.P. Moeller - Maersk AS, classe B ABB Ltd Abbott Laboratories Y109 AbbVie inc ABC-Mart inc. 404 JP Aberdeen Asset Management plc ES Abertis Infraestructuras SA G1151C101 Accenture plc H0023R105 ACE Ltd Actavis plc K CH Actelion Ltd V109 Activision Blizzard inc CH Adecco SA Adidas AG F101 Adobe Systems inc Advance Auto Parts inc Y JP Advantest Corp NL Aegon NV ES Aena SA Aeon Co. Ltd FR Aéroports de Paris H105 AES Corp Aetna inc Y Aflac inc Ag Growth International inc Ageas SA 297 BE GB00BK1PTB77 Aggreko plc U101 Agilent Technologies inc B0ZNPN904 AGL Energy Ltd Agnico Eagle Mines Ltd Agrium inc B4TX8S909 AIA Group Ltd Air Canada B1YXBJ905 Air Liquide SA Air Products & Chemicals inc Airgas inc Ajinomoto Co. inc Akamai Technologies inc T Akzo Nobel NV Albemarle Corp FR Alcatel-Lucent Alcoa inc Alexion Pharmaceuticals inc SE Alfa Laval AB JP Alfresa Holdings Corp P403 Alimentation Couche-Tard, classe B Alkermes plc 145 IE00B56GVS Alleghany Corp Alliance Data Systems Corp Alliant Energy Corp

88 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Allianz SE Allied Properties REIT Allstate Corp Ally Financial inc N Q107 Alnylam Pharmaceuticals inc FR Alstom SA AltaGas Ltd Altera Corp Altice SA Alumina Ltd Amadeus IT Holding SA 666 ES Amazon.com inc Amcor Ltd Amec Foster Wheeler plc Ameren Corp R102 American Airlines Group inc X105 American Capital Agency Corp American Electric Power Co. inc American Express Co American International Group inc American Realty Capital Properties inc T X100 American Tower Corp American Water Works Co. inc Ameriprise Financial inc C E105 AmerisourceBergen Corp AMETEK inc Amgen inc AMP Ltd Amphenol Corp., classe A Anadarko Petroleum Corp Analog Devices inc Andritz AG B1XZS8907 Anglo American plc Anheuser-Busch InBev NV Annaly Capital Management inc Ansys inc Q Anthem inc Antofagasta plc G0408V102 Aon plc JP Aozora Bank Ltd DK AP Moeller - Maersk AS APA Group Apache Corp Apple inc Applied Materials inc D408 ARC Resources Ltd ArcelorMittal B03XPL BMG0450A1053 Arch Capital Group Ltd Archer-Daniels-Midland Co ARM Holdings plc Aryzta AG 139 B39VJC JP Asahi Glass Co. Ltd

89 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Asahi Group Holdings Ltd Asahi Kasei Corp Ashland inc GB Ashtead Group plc KYG0535Q1331 ASM Pacific Technology Ltd ACI02GTQ9 ASML Holding NV Assa Abloy AB, classe B Assicurazioni Generali SPA Associated British Foods plc Astellas Pharma inc AstraZeneca plc ASX Ltd AU000000ASX R102 AT&T inc ATCO Ltd, classe I IT Atlantia SPA SE Atlas Copco AB SE Atlas Copco AB ATS Automation Tooling Systems inc NZAIAE0002S6 Auckland International Airport C105 AuRico Gold inc Australia and New Zealand Banking Group Ltd Autodesk inc Autoliv inc Automatic Data Processing inc Autozone inc SG Avago Technologies Ltd AvalonBay Communities inc Avery Dennison Corp Aviva plc Axa SA Axis Capital Holdings Ltd 194 BMG0692U B/E Aerospace inc GB Babcock International Group plc BAE Systems plc Baker Hughes inc Ball Corp IT Banca Monte dei Paschi di Siena SPA Banco Bilbao Vizcaya Argentaria SA Banco Comercial Português SA 187 PTBCP0AM ES A34 Banco de Sabadell SA IT Banco Popolare SC ES Banco Popular Espanol SA Banco Santander SA Bank Hapoalim BM 813 IL IL Bank Leumi Le-Israel BM Bank of America Corp Bank of East Asia Ltd HK IE Bank of Ireland Bankia SA Banque Canadienne Impériale de Commerce Banque de Montréal D106Z Banque Laurentienne du Canada

90 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Banque Nationale du Canada Banque Royale du Canada Banque Toronto-Dominion Barclays plc Barratt Developments plc 158 GB Barrick Gold Corp Barry Callebaut AG ACI0054Q2 BASF SE Baxter International inc Bayer AG Bayerische Motoren Werke AG Bayerische Motoren Werke AG - PRF 301 DE Q105 Baytex Energy Corp BB&T Corp B760 BCE inc Becton Dickinson and Co Bed Bath & Beyond inc Beiersdorf AG B00D9P907 Belgacom SA Benesse Holdings inc. 878 JP Berkshire Hathaway inc., classe B Best Buy Co. inc Bezeq Israeli Telecommunication Corp. Ltd BG Group plc BHP Billiton Ltd BHP Billiton plc Biogen inc X G101 BioMarin Pharmaceutical inc F103 BlackBerry Ltd BlackRock inc X BNP Paribas Boardwalk Real Estate Investment Trust BOC Hong Kong Holdings Ltd Boliden AB 81 B1XCBX Bombardier inc Bonavista Energy Corp Y Boral Ltd BorgWarner inc Boston Properties inc Boston Scientific Corp Bouygues SA BP plc Brambles Ltd 758 B1FJ0C DE000A1DAHH0 Brenntag AG Bridgestone Corp Bristol-Myers Squibb Co British Land Co. plc Broadcom Corp., classe A Brookfield Asset Management inc., classe A G Brookfield Properties Corp G Brookfield Renewable Energy Partners LP Brown-Forman Corp., classe B

91 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts BT Group plc G Bunge Ltd Bunzl plc GB00B0744B Burberry Group plc Bureau Veritas SA 670 B28DTJ C.R. Bard inc Cabot Oil & Gas Corp CaixaBank SA 375 ES B3TBRZ902 CALBEE inc Calpine Corp Caltex Australia Ltd Camden Property Trust L108 Cameco Corp B105 Cameron International Corp Campbell Soup Co Canadian Apartment Properties Real Estate Investment Trust W108 Canadian Energy Services & Technology Corp Canadian National Railway Co Canadian Natural Resources Ltd Canadian Oil Sands Ltd E T100 Canadian Pacific Railway Ltd J104 Canadian Real Estate Investment Trust Canadian Tire Corp., classe A Canadian Utilities Ltd, classe A Canon inc Cap Gemini SA 410 FR B23K0M900 Capita plc H105 Capital One Financial Corp M102 Capital Power Corp CapitaLand Ltd G104 Capstone Mining Corp Y108 Cardinal Health inc Carlsberg AS, classe B CarMax inc Carnival Corp Carrefour SA Casino Guichard Perrachon SA Catamaran Corp Caterpillar inc Cathay Pacific Airways Ltd 110 HK CBS Corp., classe B CCL Industries inc., classe B Celanese Corp., série A Q108 Celestica inc Celgene Corp U109 Cenovus Energy inc CenterPoint Energy inc T Central Japan Railway Co B033F2900 Centrica plc CenturyLink inc Cerner Corp CF Industries Holdings inc

92 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts 39945C109 CGI Group inc., classe A CH Robinson Worldwide inc W M305 Charter Communications inc., classe A A103 Chartwell Retirement Residences Chemtrade Logistics Income Fund P R208 Cheniere Energy inc Chesapeake Energy Corp Cheung Kong Holdings Ltd Cheung Kong Infrastructure Holdings Ltd Chevron Corp Chicago Bridge & Iron Co. NV Chipotle Mexican Grill inc JP Chiyoda Corp Christian Dior SA Chubb Corp Chubu Electric Power Co. inc JP Chugai Pharmaceutical Co. Ltd Chugoku Electric Power Co. inc Church & Dwight Co. inc CI Financial Corp Cigna Corp Cimarex Energy Co AU000000CIM7 CIMIC Group Ltd Cincinnati Financial Corp Cineplex inc R102 Cisco Systems inc Citigroup inc Citizen Holdings Co. Ltd 105 JP Citrix Systems inc SG1R City Developments Ltd Clorox Co CLP Holdings Ltd CME Group inc Q CMS Energy Corp NL CNH Industrial NV Coach inc F106 Cobalt International Energy inc Coca-Cola Amatil Ltd Coca-Cola Co Coca-Cola Enterprises inc T B9895B904 Coca-Cola HBC AG AU000000COH5 Cochlear Ltd V105 Cogeco Câble inc Cognizant Technology Solutions, classe A Colgate-Palmolive Co Coloplast AS DK ACI009ZR8 Colruyt SA N200 Comcast Corp Commerzbank AG 315 ACI05RX Commonwealth Bank of Australia Communications Sales & Leasing inc J Compagnie de St-Gobain

93 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts B3DCZF902 Compagnie Financière Richemont SA Compagnie Générale des Établissements Michelin SCA Compass Group plc Computershare Ltd 271 AU000000CPU ConAgra Foods inc Concho Resources inc P Concordia Healthcare Corp C104 ConocoPhillips Consolidated Edison inc Constellation Brands inc., classe A P X100 Constellation Software inc Contact Energy Ltd Continental AG Continental Resources inc Cooper Companies inc N Core Laboratories NV Corning inc K105 Costco Wholesale Corp Crédit Agricole SA 518 FR CH Credit Suisse Group AG C101 Crescent Point Energy Corp CRH plc Croda International plc V101 Crown Castle International Corp Crown Holdings inc AU000000CWN6 Crown Resorts Ltd CSL Ltd CSX Corp Cummins inc CVS Caremark Corp Daicel Corp B0J7D9901 Daiichi Sankyo Co. Ltd Daikin Industries Ltd Daimler AG Daito Trust Construction Co. Ltd 420 JP Daiwa House Industry Co. Ltd Daiwa Securities Group inc Danaher Corp Danone FR Danske Bank AS FR Dassault Systèmes SA K108 DaVita HealthCare Partners inc DBS Group Holdings Ltd Deere & Co Delhaize Group SA G Delphi Automotive plc Delta Air Lines inc Denso Corp Dentsu inc. 240 JP DE000A1ML7J1 Deutsche Annington Immobilien SE Deutsche Bank AG Deutsche Boerse AG

94 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Deutsche Post AG Deutsche Telekom AG DE000A14KLV M103 Devon Energy Corp AU000000DXS1 DEXUS Property Group R101 DH Corp Diageo plc Diamond Offshore Drilling inc C GB00B89W0M42 Direct Line Insurance Group plc A103 DirectCash Payments inc A309 DIRECTV Discover Financial Services F104 Discovery Communications inc., classe A F302 Discovery Communications inc., classe C M109 DISH Network Corp ACI00NNS8 Distribuidora Internacional DNB ASA Dollar General Corp Dollar Tree inc T107 Dollarama inc Dominion Diamond Corp U109 Dominion Resources inc C205 Dorel Industries inc., classe B Dover Corp Dow Chemical Co Dr Pepper Snapple Group inc E A106 Dream Global Real Estate Investment Trust DTE Energy Co C204 Duke Energy Corp E.I. du Pont de Nemours and Co E.ON SE DE000ENAG1G East Japan Railway Co Eastman Chemical Co G Eaton Corp. plc ebay inc Ecolab inc Edenred 648 FR Edison International EDP - Energias de Portugal SA E108 Edwards Lifesciences Corp Eisai Co. Ltd Eldorado Gold Corp Electric Power Development Co. Ltd 166 B02Q B0NJJ1901 Électricité de France SA SE Electrolux AB Electronic Arts inc Element Financial Corp Eli Lilly & Co Elisa OYJ EMC Corp Emera inc Emerson Electric Co Empire Co. Ltd, classe A

95 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Ems-Chemie Holding AG Enagas SA N105 Enbridge inc Encana Corp Endo International plc 96 IE00BJ3V B4TWTW909 Enel Green Power SPA Enel SPA C207 EnerCare inc R105 Enerflex Ltd Energen Corp N R108 Energizer Holdings inc Enerplus Corp ENI SPA Ensco plc, classe A 821 G3157S G103 Entergy Corp P101 EOG Resources inc EQT Corp L Equifax inc U700 Equinix inc L107 Equity Residential Ericsson LM, classe B Erste Group Bank AG 620 AT Essex Property Trust inc Essilor International European Aeronautic Defence and Space Co. NV Eutelsat Communications 104 FR BMG3223R1088 Everest Re Group Ltd W108 Eversource Energy N107 Evertz Technologies Ltd N101 Exelon Corp P303 Expedia inc Expeditors International of Washington inc B19NLV907 Experian plc G108 Express Scripts Holdging Co G102 Exxon Mobil Corp F5 Networks inc M102 Facebook inc., classe A Fairfax Financial Holdings Ltd Family Dollar Stores inc FamilyMart Co. Ltd Fanuc Corp Fast Retailing Co. Ltd Fastenal Co Federal Realty Investment Trust FedEx Corp X ES Ferrovial SA NL Fiat Chrysler Automobiles NV M106 Fidelity National Information Services inc Fifth Third Bancorp Financière Sun Life inc Finmeccanica SPA 157 IT Finning International inc

96 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts 31816Q101 FireEye inc First Capital Realty inc B BMG First Pacific Co. Ltd First Quantum Minerals Ltd FirstEnergy Corp Fiserv inc R109 Fission Uranium Corp FleetCor Technologies inc Fletcher Building Ltd SG Flextronics International Ltd P105 Flowserve Corp Fluor Corp FMC Corp U101 FMC Technologies inc FR Foncière des Régions Ford Motor Co Fortescue Metals Group Ltd Fortis inc Fortum OYJ Franco-Nevada Corp Franklin Resources inc Freehold Royalties Ltd D857 Freeport-McMoRan inc Freescale Semiconductor Ltd 395 BMG3727Q Fresenius Medical Care AG & Co. KGaA Fresenius SE & Co. KGaA B2QPKJ909 Fresnillo plc Frontier Communications Corp A Fuchs Petrolub SE Fuji Heavy Industries Ltd FUJIFILM Holgings Corp Fujitsu Ltd GB00B01FLG62 G4S plc HK Galaxy Entertainment Group Ltd B1FW75903 Galp Energia SGPS, SA Gartner inc Gas Natural SDG, SA B0C2CQ902 GDF Suez DE GEA Group AG B1WGG9901 Geberit AG Gemalto NV General Electric Co General Growth Properties inc General Mills inc V100 General Motors Co Genuine Parts Co George Weston Ltd Gibson Energy inc Gilead Sciences inc Givaudan SA GB GKN plc Glaxosmithkline plc

97 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts SG2C Global Logistic Properties Ltd Goldcorp inc Golden Agri-Resources Ltd Goldman Sachs Group inc G P508 Google inc., classe A P706 Google inc., classe C AU000000GPT8 Group Great Canadian Gaming Corp C106 Great-West Lifeco inc Groupe Canam inc C T105 Groupe SNC-Lavalin inc JP GungHo Online Entertainment inc H&R Real Estate Investment Trust Hammerson plc 307 GB Hang Lung Properties Ltd Hang Seng Bank Ltd Hankyu Hanshin Holdings inc Hargreaves Lansdown plc Harley-Davidson inc Harman International Industries inc Harris Corp Hasbro inc C101 HCA Holdings inc L109 HCP inc K106 Health Care REIT inc AU000000HSO1 Healthscope Ltd HeidelbergCement AG B0CCH4904 Heineken Holding NV Heineken NV Helmerich & Payne inc HK Henderson Land Development Co. Ltd Henkel AG & Co. KGaA Hennes & Mauritz AB, classe B Henry Schein inc Hermès International 461 FR T105 Hertz Global Holdings inc H107 Hess Corp Hewlett-Packard Co Hexagon AB 230 SE High Liner Foods inc Hikari Tsushin inc Hirose Electric Co. Ltd 665 JP Hitachi Chemical Co. Ltd JP Hitachi Construction Machinery Co. Ltd JP Hitachi High-Technologies Corp Hitachi Ltd Hitachi Metals Ltd B4TXDZ907 HKT Trust and HKT Ltd Hokuriku Electric Power Co Holcim Ltd HollyFrontier Corp Home Depot inc

98 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Honda Motor Co. Ltd Honeywell International inc Hong Kong & China Gas Co. Ltd Hong Kong Exchanges & Clearing Ltd Hormel Foods Corp Hospira inc P104 Host Hotels & Resorts inc Hoya Corp HRS Holding Ltd HSBC Holdings plc HudBay Minerals inc Hudson's Bay Company Hugo Boss AG Humana inc Husky Energy inc Hutchison Post Holdings Trust 300 SG2D Hutchison Whampoa Ltd B288C9908 Iberdrola SA Ibiden Co. Ltd 157 JP B1FF8P905 Idemitsu Kosan Co. Ltd IHS inc Iliad SA Illinois Tool Works inc Illumina inc Iluka Resources Ltd B011GL903 Imerys SA Imperial Oil Ltd Incitec Pivot Ltd US45337C1027 Incyte Corp Inditex SA Industrielle Alliance, Assurance et services financiers inc Infineon Technologies AG 863 DE Ing Groep NV Ingersoll-Rand plc 556 G B09LSH907 Inmarsat plc B10RB1904 Inpex Corp Insurance Australia Group Ltd T106 Intact Financial Corp Integrys Energy Group inc P Intel Corp V109 Inter Pipeline Ltd InterContinental Hotels Group plc 415 B85KYF F104 IntercontinentalExchange Group inc International Business Machines Corp International Consolidated Airlines Group SA 153 ES International Flavors & Fragrances inc International Paper Co Intertape Polymer Group inc Intertek Group plc Intesa Sanpaolo Intuit inc Intuitive Surgical inc E

99 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts G491BT108 Invesco Ltd Investec plc 501 GB00B17BBQ SE Investment AB Kinnevik, classe B Investor AB, classe B Isis Pharmaceuticals inc Israel Chemicals Ltd JP Isuzu Motors Ltd Itochu Corp JP Itochu Techno-Solutions Corp GB ITV plc B019KW907 J Sainsbury plc James Hardie Industries plc JP Japan Display inc Japan Exchange Group inc JP Japan Prime Realty Investment Corp JP Japan Real Estate Investment Corp JP Japan Retail Fund Investment Corp SG1B Jardine Cycle & Carriage Ltd IE00B4Q5ZN47 Jazz Pharmaceuticals plc JB Hunt Transport Services inc Jeronimo Martins SGPS, SA 444 B1Y1SQ JFE Holdings inc JP JGC Corp Johnson & Johnson Johnson Controls inc Johnson Matthey plc 198 B70FPS Q107 Jones Lang Lasalle inc H100 JPMorgan Chase & Co JSR Corp R104 Juniper Networks inc B627LW906 JX Holdings inc K+S AG 405 ACI00RQT DE000KD88880 Kabel Deutschland Holding AG JP Kakaku.com inc JP Kamigumi Co. Ltd Kansai Electric Power Co. inc Kansai Paint Co. Ltd Kansas City Southern Kao Corp KBC Groep NV 541 BE KDDI Corp Kellogg Co Keppel Corp. Ltd 753 B1VQ5C Kering Kerry Group plc, classe A Kerry Properties Ltd 166 BMG M100 Keuring Green Mountain inc Keyence Corp Keyera Corp Kikkoman Corp Kimberly-Clark Corp B101 Kinder Morgan inc

100 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Kingfisher plc Kinross Gold Corp Kirin Holdings Co. Ltd KLA-Tencor Corp FR Klepierre SA Kobe Steel Ltd Kohl's Corp Komatsu Ltd Kone OYJ, classe B 905 B09M9D Koninklijke Ahold NV NL Koninklijke Boskalis Westminster NV Koninklijke DSM NV Koninklijke KPN NV Koninklijke Philips NV NL NL Koninklijke Vopak NV Q106 Kraft Foods Group inc Kroger Co Kubota Corp B142S6906 Kuehne + Nagel International AG Kuraray Co. Ltd Kyocera Corp Kyowa Hakko Kirin Co. Ltd 540 JP Kyushu Electric Power Co. inc L Brands inc L-3 Communications Holdings inc La Banque de Nouvelle-Écosse R409 Laboratory Corp. of America Holdings Labrador Iron Ore Royalty Corp Lafarge SA Lam Research Corp Land Securities Group plc B05M8B904 Lanxess AG Las Vegas Sands Corp Lawson inc Le Groupe Jean Coutu (PJC) inc., classe A Q Lear Corp Legacy Oil + Gas inc Legal & General Group plc Legg Mason inc B11ZRK906 Legrand SA Les Vêtements de sport Gildan inc Leucadia National Corp N308 Level 3 Communications inc BMG5485F1692 Li & Fung Ltd Liberty Global plc, classe A Liberty Global plc, classe C Liberty Media Corp., classe A Liberty Media Corp., classe C L107 Linamar Corp Lincoln National Corp Linde AG Lindt & Spruengli AG-PC

101 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Lindt & Spruengli AG-REG Linear Technology Corp A108 LinkedIn Corp., classe A Liquor Stores NA Ltd LKQ Corp Lloyds Banking Group plc Loblaw Companies Ltd Loews Corp GB00B0SWJX34 London Stock Exchange Group Lonza Group AG L'Oreal SA Lowe's Cos inc Lululemon Athletica inc Lundin Mining Corp Lundin Petroleum AB IT Luxottica Group SPA LVMH Moet Hennessy Louis Vuitton SA N LyondellBasell Industries NV, classe A M&T Bank Corp F M3 inc Mabuchi Motor Co. Ltd 123 JP B28YTC906 Macquarie Group Ltd P104 Macy's inc Magna International inc Mallinckrodt plc 153 G5785G DE MAN SE Manitoba Telecom Services inc ManpowerGroup inc H R106 Manulife Financial Corp Mapfre SA 27 ES E Marathon Oil Corp A102 Marathon Petroleum Corp Marks & Spencer Group plc Marriott International inc., classe A Marsh & McLennan Cos inc Martin Marietta Materials inc Marubeni Corp Maruichi Steel Tube Ltd BMG5876H1051 Marvell Technology Group Ltd Q104 MasterCard inc., classe A Mattel inc K101 Maxim Integrated Products inc Mazda Motor Corp McCormick & Co. inc McDonald's Corp McDonald's Holdings Co. Japan Ltd 671 JP McGraw Hill Financial inc Q103 McKesson Corp MDU Resources Group inc Mead Johnson Nutrition Co MeadWestvaco Corp AU000000MPL3 Medibank Private Ltd

102 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts US58501N1019 Medivation inc Medtronic plc MEG Energy Corp MEIJI Holdings Co. Ltd 310 B60DQV Y105 Merck & Co. inc Merck KGaA 452 DE K108 Methanex Corp R108 MetLife inc Metro AG N109 Metro inc FI Metso OYJ Mettler-Toledo International inc KYG MGM China Holdings Ltd MGM Resorts International VGG Michael Kors Holdings Ltd Microchip Technology inc Micron Technology inc Microsoft Corp Millicom International Cellular SA 745 B00L2M Minebea Co. Ltd JP Miraca Holdings inc B0JQTJ900 Mitsubishi Chemical Holdings Corp Mitsubishi Corp Mitsubishi Electric Corp Mitsubishi Estate Co. Ltd Mitsubishi Gas Chemical Co. inc Mitsubishi Heavy Industries Ltd Mitsubishi Materials Corp Mitsubishi Motors Corp. 295 JP JP Mitsubishi Tanabe Pharma Corp Mitsubishi UFJ Financial Group Mitsui & Co. Ltd Mitsui Fudosan Co. Ltd IL Mizrahi Tefahot Bank Ltd Mizuho Financial Group inc Mohawk Industries inc R209 Molson Coors Brewing Co., classe B Mondelez International inc., classe A Mondi plc 283 B1CRLC Monster Beverage Corp Moody's Corp Morgan Stanley Motorola Solutions inc MS&AD Insurance Group Holdings inc. 442 B2Q4CS HK MTR Corp. Ltd Muenchener Rueckver AG Mullen Group Ltd Murata Manufacturing Co. Ltd Murphy Oil Corp Mylan NV G6359F103 Nabors Industries Ltd JP Nagoya Railroad Co. Ltd

103 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts National Australia Bank Ltd B08SNH908 National Grid plc National Oilwell Varco inc Nec Corp. 341 JP B06YV4907 Neste Oil OYJ Nestlé SA NetApp inc D L106 Netflix inc T401 New Flyer Industries inc New World Development Co. Ltd 477 HK Newcrest Mining Ltd Newmont Mining Corp News Corp., classe A B Nexon Co. Ltd Next plc F101 NextEra Energy inc NGK SPARK PLUG Co. Ltd 135 JP IL NICE Sytems Ltd JP Nidec Corp N Nielsen Holdings NV NIKE inc., classe B Nikon Corp Nintendo Co. Ltd JP Nippon Building Fund inc JP Nippon Electric Glass Co. Ltd Nippon Meat Packers inc JP Nippon Prologis REIT inc Nippon Steel & Sumitomo Metal Corp Nippon Telegraph and Telephone Corp NiSource inc P Nissan Motor Co. Ltd Nisshin Seifun Group inc Nissin Foods Holdings Co. Ltd Nitori Co. Ltd 824 JP Nitto Denko Corp Noble Energy inc BMG6542T1190 Noble Group Ltd JP NOK Corp Nokia OYJ Nomura Holdings inc Nomura Research Institute Ltd JP P403 Norbord inc Nordea Bank AB Nordstrom inc Norfolk Southern Corp B11HK3901 Norsk Hydro ASA Northern Trust Corp Northland Power inc Norwegian Cruise Line Holdings Ltd 157 BMG Novartis AG Novo Nordisk AS, classe B Novozymes AS, classe B 460 B798FW

104 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts NRG Energy inc NSK Ltd 62 JP JP NTT Data Corp NTT DOCOMO inc Nucor Corp Q104 NuVista Energy Ltd G104 NVIDIA Corp Occidental Petroleum Corp Oceaneering International inc NL OCI NV Odakyu Electric Railway Co. Ltd OGE Energy Corp Oji Holdings Corp B77J08909 Old Mutual plc Omnicare inc Omnicom Group inc OMV AG Oneok inc K103 Onex Corp Ono Pharmaceutical Co. Ltd 97 JP Open Text Corp X105 Oracle Corp Oracle Corp. Japan 576 JP Orange SA O'Reilly Automotive inc H Orica Ltd Oriental Land Co. Ltd Origin Energy Ltd Orix Corp B1VQF4902 Orkla ASA Osaka Gas Co. Ltd Osram Licht AG 300 DE000LED JP Otsuka Corp B5LTM9909 Otsuka Holdings Co. Ltd B0F9V2906 Oversea-Chinese Banking Corp PACCAR inc Pall Corp US Palo Alto Networks inc Panasonic Corp Pandora AS 156 DK Paramount Resources Ltd, classe A Q104 Parex Resources inc Park24 Co. Ltd Parker Hannifin Corp T105 Parkland Fuel Corp PartnerRe Ltd 602 BMG6852T CH Partners Group Holding AG Patterson Cos inc Paychex inc PCCW Ltd Pearson plc Pembina Pipeline Corp

105 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts 70706P104 Pengrowth Energy Corp Pentair Ltd 475 H6169Q People's United Financial inc Pepco Holdings inc Pepsico inc Pernod Ricard SA Perrigo Co GB Persimmon plc B0H2K5904 Petrofac Ltd FR Peugeot SA Peyto Exploration & Development Corp Pfizer inc C108 PG&E Corp Phillips Pinnacle West Capital Corp Pioneer Natural Resources Co IT Pirelli & C. SPA PNC Financial Services Group Polaris Industries inc Porsche Automobil Holding SE CITI5 Portefeuille de deux fonds d'infrastructures privés L107 Potash Corp. of Saskatchewan inc Power Assets Holdings Ltd Power Corp. of Canada C100 Power Financial Corp PPG Industries inc T106 PPL Corp PrairieSky Royalty Ltd P104 Praxair inc Precision Castparts Corp Priceline.com inc W106 Primero Mining Corp V102 Principal Financial Group inc G101 Progressive Waste Solutions Ltd Prologis inc W Q104 ProMetic Sciences de la vie inc DE000PSM7770 ProSiebenSat.1 Media AG Prudential Financial inc Prudential plc Prysmian SPA 167 IT Public Service Enterprise Group inc D109 Public Storage Publicis Groupe SA V107 Puma Biotechnology inc QBE Insurance Group Ltd K101 Qorvo inc QUALCOMM inc Quanta Services inc E Quebecor inc., classe B L100 Quest Diagnostics inc Rackspace Hosting inc Raging River Exploration inc

106 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts AT Raiffeisen Bank International Rakuten inc Ralph Lauren Corp AU000000RHC8 Ramsay Health Care Ltd B01C3S908 Randgold Resources Ltd A109 Range Resources Corp B24CGK904 Reckitt Benckiser Group plc Recruit Holdings Co. Ltd 890 JP Red Electrica Corp. SA Red Hat inc L101 Redevances Aurifères Osisko ltée B2B0DG904 Reed Elsevier plc F107 Regeneron Pharmaceuticals inc EP100 Regions Financial Corp Reitmans (Canada) Limitée, classe A Rémy Cointreau SA BMG7496G1033 RenaissanceRe Holdings Ltd Renault SA Repsol SA Republic Services inc ResMed inc Resona Holdings inc D103 Restaurant Brands International inc Restoration Hardware Holdings inc GB00BMHTPY25 Rexam plc Rio Tinto Ltd Rio Tinto plc RioCan Real Estate Investment Trust Rite Aid Corp Roche Holding AG Rock Tenn Co., classe A Rockwell Automation inc Rockwell Collins inc Rogers Communications inc., classe B Rohm Co. Ltd 226 JP GB00BVYJ8N82 Rolls-Royce Holdings plc Romarco Minerals inc Roper Industries inc Ross Stores inc Royal Bank of Scotland Group 363 B7T LR Royal Caribbean Cruises Ltd B03MLX903 Royal Dutch Shell plc, classe A B03MM4906 Royal Dutch Shell plc, classe B RSA Insurance Group plc 202 GB00BKKMKR RWE AG NZRYME0001S4 Ryman Healtcare Ltd SABMiller plc Safran SA 596 B058TZ Saipem SPA L302 Salesforce.com inc Sampo OYJ, classe A C101 SanDisk Corp

107 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts B5B23W909 Sands China Ltd B1VQ25903 Sandvik AB Sandvine Corp JP Sankyo Co. Ltd Sanofi Santen Pharmaceutical Co. Ltd 588 JP Santos Ltd SAP SE Saputo inc J106 SBA Communications Corp., classe A M102 SCANA Corp Scentre Group AU000000SCG CH Schindler Holding AG B11TCY906 Schindler Holding AG - part. cert Schlumberger Ltd Schneider Electric SA Seadrill Ltd 912 B09RMQ G7945M107 Seagate Technology plc K100 Sealed Air Corp Secom Co. Ltd Securitas AB, classe B 6 SE AU000000SEK6 Seek Ltd JP Seiko Epson Corp SEMAFO inc Sempra Energy ServiceNow inc P B00ZQQ907 SES SA B0FS5D909 Seven & I Holdings Co. Ltd Seven Bank Ltd 329 JP B1FH8J905 Severn Trent plc SGS SA BMG8063F1068 Shangri-La Asia Ltd Sharp Corp K200 Shaw Communications inc., classe B Shikoku Electric Power Co. inc JP Shimadzu Corp JP Shimamura Co. Ltd JP Shimano inc Shin-Etsu Chemical Co. Ltd JP Shionogi & Co. Ltd B2QKY0906 Shire plc Shiseido Co. Ltd Showa Shell Sekiyu KK Siemens AG K102 Sienna Senior Living inc Sigma-Aldrich Corp Sika AG Silver Wheaton Corp Simon Property Group inc Singapore Airlines Ltd 248 SG1V SG1P Singapore Press Holdings Ltd SG1F Singapore Technologies Engineering Ltd

108 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts B02PY2901 Singapore Telecommunications Ltd SJM Holdings Ltd 398 HK Skandinaviska Enskilda Banken AB, classe A B1Q3J3907 SKF AB, classe B Sky plc Skyworks Solutions inc US83088M SMC Corp Smith & Nephew plc Smiths Group plc 457 B1WY Snam SPA Q806 Société de Diamant Stornoway Société Générale Sodexo Softbank Corp Solvay SA B62G7K908 Sompo Japan Nipponkoa Holdings inc AU000000SHL7 Sonic Healthcare Ltd CH Sonova Holding AG Sony Corp South32 Ltd 789 AU000000S32S Southwestern Energy Co Soutwest Airlines Co Spark New Zealand Ltd Spectra Energy Corp Splunk inc U105 Sprint Corp SSE plc St. Jude Medical inc Standard Chartered plc Standard Life plc 474 B16KPT Stanley Black & Decker inc JP Stanley Electric Co. Ltd Staples inc Starbucks Corp B1CNDB906 StarHub Ltd Starwood Hotels & Resorts Worldwide inc A State Street Corp Statoil ASA Stericycle inc Stillwater Mining Co Q NL STMicroelectronics NV AU000000SGP0 Stockland Stora Enso OYJ, classe R Stryker Corp Stuart Olson inc Subsea 7 SA B3B8D0900 Suez Environnement Co CH Sulzer AG Sumitomo Chemical Co. Ltd Sumitomo Corp Sumitomo Electric Industries Ltd Sumitomo Metal Mining Co. Ltd

109 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Sumitomo Mitsui Financial Group inc Sumitomo Mitsui Trust Holdings inc Sumitomo Realty & Development Co. Ltd Sun Hung Kai Properties Ltd Suncor Energy inc Suncorp Group Ltd Y109 Sunedison inc JP Suntory Beverage & Food Ltd SunTrust Banks inc P103 Superior Plus Corp Suzuken Co. Ltd 403 JP Suzuki Motor Corp Svenska Cellulosa AB SCA, classe B 292 B1VVGZ Svenska Handelsbanken AB, classe A Swedbank AB, classe A Swire Pacific Ltd, classe A B083BH906RTS Swiss Prime Site AG ACI00MQT5 Swiss Re AG Swisscom AG AU000000SYD9 Sydney Airport Symantec Corp Symrise AG Syngenta AG Synopsys inc Sysco Corp Sysmex Corp. 189 JP T108 T. Rowe Price Group inc Tahoe Resources inc Taiheiyo Cement Corp JP Taisei Corp JP Taisho Pharmaceutical Holdings Co. Ltd Takeda Pharmaceutical Co. Ltd Y409 Tamarack Valley Energy Ltd E106 Target Corp Tate & Lyle plc AU000000TTS5 Tatts Group Ltd GB Taylor Wimpey plc TDC AS TDK Corp. 477 JP H TE Connectivity Ltd Technip SA Teck Resources Ltd, classe B Tele2 AB, classe B 219 B97C Telecom Italia SPA Telefonica SA Telenor ASA TeliaSonera AB Telstra Corp. Ltd M103 Telus Corp Tenaris SA B01BN5908 Terna - Rete Elettrica Nazionale SPA Tesco plc

110 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts 88160T101 Tesla Motors inc Tesoro Corp Teva Pharmaceutical Industries Ltd Texas Instruments inc Textron inc J106 The ADT Corp The Bank of New York Mellon Corp The Boeing Co The Charles Schwab Corp The Dai-ichi Life Insurance Co. Ltd 461 B601QS The Estée Lauder Cos. inc., classe A The Gap inc The Hartford Financial Services Group inc The Hershey Co The J.M. Smucker Co The Link Real Estate Investment Trust HK The Macerich Co C103 The Mosaic Co The North West Co. inc The Procter & Gamble Co The Progressive Corp GB00B8C3BL03 The Sage Group plc The Sherwin-Williams Co The Southern Co The Swatch Group AG 324 CH The Swatch Group AG - BR E109 The Travelers Cos. inc The Walt Disney Co The Weir Group plc 697 GB The Western Union Co Thermo Fisher Scientific inc Thomson Reuters Corp ThyssenKrupp AG Tiffany & Co J207 Time Warner Cable inc Time Warner inc TJX Cos. inc T-Mobile US inc Tobu Railway Co. Ltd Toho Co. Ltd 434 JP Tohoku Electric Power Co. inc Tokio Marine Holdings inc Tokyo Electric Power Co. inc Tokyo Electron Ltd Tokyo Gas Co. Ltd TonenGeneral Sekiyu KK Toray Industries inc TORC Oil & Gas Ltd TORC Oil & Gas Ltd, reçus de souscription Toshiba Corp Tourmaline Oil Corp V Toyo Seikan Group Holdings Ltd

111 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts Toyo Suisan Kaisha Ltd Toyota Motor Corp Tractor Supply Company D107 TransCanada Corp TransDigm Group inc B5W3ND904 Transocean Ltd Transurban Group Travis Perkins plc 243 GB B61JC6908 Treasury Wine Estates Ltd JP Trend Micro inc J109 Trevali Mining Corp Trimble Navigation Ltd TripAdvisor inc Tullow Oil plc Turquoise Hill Ressources Ltd A200 Twenty-First Century Fox inc., classe B Twitter inc L H Tyco International plc Tyson Foods inc., classe A IT UBI Banca - Unione di Banche Italiane Scpa CH UBS Group AG BE UCB SA S303 Ulta Salon, Cosmetics & Fragrance, inc Umicore SA Under Armour inc., classe A Unibail-Rodamco SE Unicharm Corp UniCredit SPA 711 IT NL Unilever NV B10RZP905 Unilever plc Union Pacific Corp D100 Uni-Select inc United Continental Holdings inc United Overseas Bank Ltd United Parcel Service inc., classe B United Rentals inc United Technologies Corp United Therapeutics Corp. 161 US91307C JP United Urban Investment Corp B39J2M903 United Utilities Group plc P102 UnitedHealth Group inc UOL Group Ltd 48 SG1S UPM-Kymmene OYJ US Bancorp USS Co. Ltd JP K102 Valeant Pharmaceuticals International inc Valeo SA 471 FR Y100 Valero Energy Corp Vallourec SA 261 FR P105 Varian Medical Systems inc F100 Ventas inc Veolia Environnement

112 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts 92340R106 Veresen inc Verisk Analytics inc., classe A Y V104 Verizon Communications inc Vermilion Energy inc Vertex Pharmaceuticals inc F DK Vestas Wind Systems AS VF Corp Viacom inc., classe B P B1XH02900 Vinci SA C839 Visa inc., classe A Vivendi SA B16GWD903 Vodafone Group plc Voestalpine AG Volkswagen AG Volvo AB, classe B Vornado Realty Trust Vulcan Materials Co Walgreens Boots Alliance inc Wartsila OYJ Abp L109 Waste Management inc Waters Corp H Weatherford International plc Wells Fargo & Co Wesfarmers Ltd West Fraser Timber Co. Ltd West Japan Railway Co JP Western Digital Corp Western Forest Products inc Westfield Corp AU000000WFD Westjet Airlines Ltd Westpac Banking Corp A200 Westshore Terminals Investment Corp Weyerhaeuser Co WH Group Ltd Wharf Holdings Ltd Wheelock & Co. Ltd 175 HK Whirlpool Corp GB00B1KJJ408 Whitbread plc A200 Whitecap Resources inc Whitting Petroleum Corp Whole Foods Market inc DK William Demant Holding AS William Morrison Supermarkets plc Williams Cos. inc G Willis Group Holdings plc B17KC6900 Wilmar International Ltd Wisconsin Energy Corp Wolseley plc Woodside Petroleum Ltd Woolworths Ltd Workday inc H WorleyParsons Ltd

113 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Quantité Coût Juste valeur Actions et parts B8KF9B904 WPP plc WR Berkley Corp W202 WSP Global inc WW Grainger inc KYG Wynn Macau Ltd Wynn Resort Ltd B100 Xcel Energy inc Xerox Corp Xilinx inc JP Yahoo Japan Corp Yahoo! inc Yakult Honsha Co. Ltd JP Yamaha Motor Co. Ltd Y100 Yamana Gold inc Yamato Transport Co. Ltd JP Yamazaki Baking Co. Ltd Yangzijiang Shipbuilding (Holdings) Ltd Yara International ASA JP Yokogawa Electric Corp BMG Yue Yuen Industrial Holdings Ltd Yum! Brands inc Zillow Group inc M P102 Zimmer Holding inc Zodiac Aerospace V103 Zoetis inc Zurich Insurance Group AG Total - actions et parts

114 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 01877PAA0 Alliance Pipeline L.P. 7,23 % ZAB8 Capital Power L.P. 4,60 % Z8P8A Banque Canadienne Impériale de Commerce 3,40 % A79 Gouvernement du Canada 1,25 % AC8A VW Credit Canada inc. 3,60 % D53A La Banque de Nouvelle-Écosse 3,61 % NAH0 Daimler Canada Finance inc. 2,23 % BAA2 Choice Properties L.P. 3,00 % Rachetable à compter du ZAE6 Shoppers Drug Mart Corp. 2,01 % AM3 Rogers Communications inc. 5,80 % YJ6 Banque Nationale du Canada 1,24 % Taux variable AB7 Powell River Energy inc. 6,45 % B29 Gouvernement du Canada 1,00 % ZAS6 Enbridge inc. 5,00 % AF1 VW Credit Canada inc. 2,20 % ZAW2 George Weston Ltd 3,78 % ZDS2 Banque Canadienne Impériale de Commerce 2,65 % ZAN5 Financement-Québec 3,50 % G76 La Banque de Nouvelle-Écosse 2,74 % ZAD9 Emera inc. 2,96 % ZAU8 Bell Canada 5,00 % TAE2 PSP Capital inc. 2,26 % NAK3 Daimler Canada Finance inc. 2,28 % J24 La Banque de Nouvelle-Écosse 2,60 % BAB0 Choice Properties L.P. 3,00 % Rachetable à compter du AC8 Brookfield Asset Management inc. 5,29 % AD6 VW Credit Canada inc. 2,90 % RH6 Banque de Montréal 5,45 % A95 Banque Toronto-Dominion 2,43 % VX8 Banque Nationale du Canada 2,69 % ZAF2 Banque de Montréal (NHA MBS) 2,10 % BU7 Banque Royale du Canada 2,36 % ZAQ8 Financement-Québec 3,50 % WAF5 OMERS Realty Corp. 3,04 % H3 Banque de Montréal 2,24 % ZAJ3 Enbridge Income Fund 2,92 % ZC60 Banque Toronto-Dominion (NHA MBS) 1,70 % PDM2 Canada Housing Trust No 1 1,70 % AD8 Home Trust Co. 2,28 % ZLB0 Banque Canadienne Impériale de Commerce 2,22 % MAZ6 TELUS Corp. 1,50 % ZAM8 American Express Canada Credit Corp. 2,31 % J9 La Banque de Nouvelle-Écosse 1,33 % HAH0 BMW Canada inc. 2,33 % ZAF3 Shoppers Drug Mart Corp. 2,36 % ZAP6 Caterpillar Financial Services Ltd 2,29 % WAG3 OMERS Realty Corp. 2,50 % WAA0 NBC Asset Trust 7,24 % FE9 Banque Royale du Canada 2,82 % VAL4 bcimc Realty Corp. 2,79 % ZDU7 Hydro-Québec 5,50 % NAN7 Daimler Canada Finance inc. 1,42 %

115 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 87262KAA3 Groupe TMX Limitée 3,25 % ACW2 Province de l'ontario 1,75 % YAA9 Brookfield Power Corp. 5,25 % ZAS4 Financement-Québec 2,40 % ZDU4 Province de Québec 4,50 % GH1 Banque Royale du Canada 2,77 % PEA7 Canada Housing Trust No 1 2,35 % BAA3 TD Capital Trust III 7,24 % ZAF1 Enbridge Income Fund 4,10 % B86 Gouvernement du Canada 1,75 % AH4 Loblaw Cos. Ltd 3,75 % ZAB5 Brookfield Asset Management inc. 3,95 % AB7 Power Corp. of Canada 7,57 % AA2 Transcontinental inc. 3,90 % BR5 Thomson Reuters Corp. 3,37 % YR9 Gouvernement du Canada 3,75 % DN4 Province de l'alberta 2,00 % GAA3 Scotia Plaza 3,21 % AP5 Cominar Real Estate Investment Trust 3,62 % AA6 WestJet Airlines Ltd 3,29 % Z5E6 First National Bank (NHA MBS) 1,75 % BAC8 Choice Properties L.P. 3,00 % Rachetable à compter du ZAV1 Greater Toronto Airports Authority 5,96 % ZAA7 Saputo inc. 2,65 % ZAT2 Financement-Québec 2,45 % MAK9 TELUS Corp. 5,05 % JX3 Banque Royale du Canada 2,35 % AAA8 BP L.P. 3,24 % D92 Gouvernement du Canada 1,50 % ZCL0 Caisse Centrale Desjardins du Québec 1,75 % B28 Banque Nationale du Canada 1,74 % A9 Banque Toronto-Dominion 1,69 % ZAD9 Capital Desjardins inc. 5,19 % YAB0 General Motors Financial of Canada Ltd 3,08 % YZ1 Gouvernement du Canada 3,50 % JP1 Metropolitan Life Global Funding I 3,03 % M86 Banque Royale du Canada 4,35 % Variable et rachetable à compter du ZBD5 Bell Canada 3,25 % AR3 Fairfax Financial Holdings Ltd 7,25 % WAB8 NBC Asset Trust 7,45 % HSW4 Banque HSBC Canada 1,82 % AF9 CDP Financial inc. 4,60 % ZAD1 Inter Pipeline Ltd 3,45 % AL4 Cominar Real Estate Investment Trust 4,94 % BJ3 Thomson Reuters Corp. 4,35 % TAF9 PSP Capital inc. 3,03 % DQ1 Banque Canadienne Impériale de Commerce 3,15 % Variable et rachetable à compter du ZAE7 Capital Desjardins inc. 3,80 % Variable et rachetable à compter du ZAL1 TransAlta Corp. 5,00 % AA4 Mississagi Power Trust 6,92 % ZEG4 Province de Québec 4,50 % X3 Province de la Colombie Britannique 3,70 %

116 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 12741RAB5 Cadillac Fairview Finance Trust 4,31 % RAC1 Leisureworld Senior Care L.P. 3,47 % GVL5 Goldman Sachs Group inc. 3,55 % AG9 Brookfield Asset Management inc. 5,30 % AS0 Rogers Communications inc. 5,34 % WAK4 OMERS Realty Corp. 2,97 % VJN6 Banque de Montréal 3,40 % AAD6 Province de l'ontario 4,00 % BJ2 TELUS Communications inc. 10,65 % AB3 Granite Reit Holdings L.P. 3,79 % Rachetable à compter du AG1 Reliance L.P. 4,08 % BAE4 Choice Properties L.P. 3,60 % ZAE3 AltaGas Ltd 3,72 % BS3 Thomson Reuters Corp. 3,31 % Rachetable à compter du ZAL3 Suncor Energy inc. 3,10 % Rachetable à compter du NAA7 Metro inc. 3,20 % Rachetable à compter du ZEH2 Province de Québec 4,25 % R4 Banque Toronto-Dominion 2,62 % PAE5 Algonquin Power Co. 4,65 % ZAG9 Enbridge Income Fund 4,85 % AC0 North West Redwater Partnership 2,10 % Rachetable à compter du MAD8 OPB Finance Trust 1,88 % KD5 Banque Royale du Canada 1,97 % V6B6 Banque de Montréal 2,12 % MBA0 TELUS Corp. 2,35 % Rachetable à compter du BL7 TELUS Communications inc. 9,65 % ZDM0 Banque Nationale du Canada 3,26 % Variable et rachetable à compter du AR1 Cominar Real Estate Investment Trust 4,16 % ZU1 Gouvernement du Canada 2,75 % AAW4 Province de l'ontario 3,15 % M38 La Banque de Nouvelle-Écosse 2,90 % Variable et rachetable à compter du BAF1 Choice Properties L.P. 3,60 % Rachetable à compter du AA1 BMO Subordinated Notes Trust 5,75 % Variable et rachetable à compter du AV4 Fairfax Financial Holdings Ltd 5,84 % LAH1 Cameco Corp. 3,75 % ZEL3 Province de Québec 3,50 % PDL4 Canada Housing Trust No 1 2,40 % ZAE3 Toronto Hydro Corp. 2,91 % 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 % ZAG8 AltaGas Ltd 3,57 % QAA6 Heathrow Funding Ltd 3,00 % Rachetable à compter du ZBD8 Enbridge inc. 3,94 % Rachetable à compter du ZEP4 Province de Québec 3,00 % ZBF0 Bell Canada 4,70 % AJ0 Loblaw Cos. Ltd 4,86 % Rachetable à compter du BBU3 First Capital Realty inc. 3,90 % AA2 Bankers Hall L.P. 4,38 % AC0 West Edmonton Mall Property inc. 4,06 % DAA4 IPL Energy inc. 8,20 % BA8 Rogers Communications inc. 4,00 %

117 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 02138ZAH6 AltaGas Ltd 4,40 % BAC6 Genworth MI Canada inc. 4,24 % ACG7 Province de l'ontario 3,50 % ZCR4 Canadian Natural Resources 3,55 % Rachetable à compter du AJ0 Province du Nouveau-Brunswick 3,65 % ZAM8 AltaLink L.P. 3,40 % Rachetable à compter du PEF6 Canada Housing Trust No 1 2,90 % Y2 George Weston Ltd 4,12 % Rachetable à compter du AG9 Lower Mattagami Energy 3,42 % LAK4 Cameco Corp. 4,19 % Rachetable à compter du JC9 Banque Royale du Canada 3,04 % Variable et rachetable à compter du ZES8 Province de Québec 3,75 % ZAS2 Westcoast Energy inc. 3,43 % Rachetable à compter du P27 La Banque de Nouvelle-Écosse 3,04 % Variable et rachetable à compter du JJ1 Banque Canadienne Impériale de Commerce 3,00 % Variable et rachetable à compter du WAM0 OMERS Realty Corp. 3,33 % ZAM6 Enbridge Income Fund 3,95 % Rachetable à compter du AC6 ENMAX Corp. 3,81 % Rachetable à compter du ZAM5 AltaGas Ltd 3,84 % Rachetable à compter du MAX1 TELUS Corp. 3,75 % Rachetable à compter du CAD6 Hydro Ottawa Holding inc. 2,61 % Rachetable à compter du ZAE1 Pembina Pipeline Corp. 3,54 % Rachetable à compter du PER0 Canada Housing Trust No 1 2,55 % RQ6 Wells Fargo & Co. 3,87 % ZAE4 Nova Gas Transmission Ltd 8,90 % D50 Gouvernement du Canada 2,25 % DQ7 Province de l'alberta 2,35 % BG1 Province de Nouvelle-Écosse 2,15 % PAE6 Alimentation Couche-Tard 3,60 % Rachetable à compter du ZAA6 Brookfield Renewable Energy Partners ULC 3,75 % Rachetable à compter du ACX0 Province de l'ontario 2,60 % VAP5 bcimc Realty Corp. 2,84 % Rachetable à compter du KR4 Banque Royale du Canada 2,48 % Variable et rachetable à compter du DAK8 Westcoast Energy inc. 8,85 % ZEV1 Province de Québec 2,75 % TAB1 AGT Ltd 8,80 % AA8 Lievre Power Financing Corp. 5,56 % ZAC4 Alliance Pipeline L.P. 6,77 % ZAE9 Brookfield Asset Management inc. 4,82 % JM7 Banque Royale du Canada 3,45 % Variable et rachetable à compter du AC9 Industrielle Alliance 2,64 % Variable et rachetable à compter du AE2 NAV Canada 7,56 % AR4 La Banque de Nouvelle-Écosse 2,58 % Variable et rachetable à compter du DW8 Bell Canada 7,00 % ZAD9 Loblaw Companies Ltd 6,45 % ZAF4 Loblaw Companies Ltd 6,50 % LJ5 Province de l'ontario 6,50 % ZAC8 Bell Canada 6,55 % EK4 Province de la Colombie-Britannique 5,70 % AM9 Ontario School Boards Financing Corp. 5,48 % AC5 Hydro One inc. 7,35 % ZAA7 Greater Toronto Airports Authority 7,05 %

118 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 29251ZAD9 Enbridge inc. 7,22 % AP2 Ontario School Boards Financing Corp. 4,79 % AU6 Gaz Métro inc. 7,05 % 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 % GY3 Hydro-Québec 6,00 % AB9 Aéroport de Montréal 6,95 % ZAB6 Hydro One inc. 6,93 % TAA6 North Battleford Power L.P. 4,96 % PAA4 55 Ontario School Board Trust 5,90 % AA1 SEC L.P. and Arci Ltd 5,19 % 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 % ZAG0 Financement-Québec 5,25 % ZAU1 Loblaw Companies Ltd 6,05 % AA3 University of Ontario Institute of Technology 6,35 % EAB7 FortisAlberta inc. 6,22 % ZCM6 Hydro-Québec 6,50 % VR6 Province de l'ontario 5,60 % PAJ0 Brookfield Asset Management inc. 5,95 % 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 % ZAG3 Enbridge inc. 5,08 % ZAB5 Suncor Energy inc. 5,39 % 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 % ZDK6 Province de Québec 5,00 % 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 % ZAY6 Hydro One inc. 5,49 % AU0 407 International inc. 7,13 % AA9 Winnipeg Airport Authority inc. 5,21 % 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 % FW2 Province de Nouvelle Écosse 4,70 % B98 Province de l'ontario 4,65 % ZBE5 407 International inc. 4,45 % ZBV9 TransCanada PipeLines Ltd 4,55 %

119 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Obligations 56502FAA9 Manulife Finance Delaware L.P. 5,06 % Variable et rachetable à compter du ZAK1 EPCOR Utilities inc. 4,55 % ZBF2 407 International inc. 4,19 % Rachetable à compter du ZAF3 AltaLink L.P. 3,99 % MAA4 OPB Finance Trust 3,89 % AH6 Aéroport de Montréal 3,92 % AD8 North West Redwater Partnership 3,70 % Rachetable à compter du TW5 Province du Manitoba 3,35 % ZBC2 Nova Scotia Power inc. 4,50 % ZBB8 CU inc. 4,72 % Rachetable à compter du ZBK5 Hydro One inc. 4,59 % Rachetable à compter du MAU7 TELUS Corp. 5,15 % DK0 Province de l'alberta 3,45 % DH2 Ville de Toronto 4,15 % ZBG1 Enbridge inc. 4,57 % ZAD3 Pembina Pipeline Corp. 4,81 % Rachetable à compter du ZAE9 Inter Pipeline Ltd 4,64 % Rachetable à compter du ZAD2 Union Gas Ltd 4,20 % Rachetable à compter du ZBN9 Hydro One inc. 4,17 % Rachetable à compter du ZBE2 CU inc. 4,09 % Rachetable à compter du ZBH6 Bell Canada 4,75 % Rachetable à compter du ZAN4 Enbridge Income Fund 4,87 % Rachetable à compter du ZH0 Gouvernement du Canada 1,50 % NAB5 Metro inc. 5,03 % Rachetable à compter du MAY9 TELUS Corp. 4,75 % Rachetable à compter du CAE4 Hydro Ottawa Holding inc. 3,64 % Rachetable à compter du ZBK1 407 International inc. 3,30 % Rachetable à compter du AY8 Gaz Métro inc. 3,30 % Rachetable à compter du ZBD0 Nova Scotia Power inc. 3,61 % Rachetable à compter du FZ5 Province de Nouvelle Écosse 3,45 % ACC6 Province de l'ontario 3,45 % JU3 Province de la Saskatchewan 3,90 % ZAH6 Toronto Hydro Corp. 3,55 % Rachetable à compter du UB9 Province du Manitoba 4,05 % ZS6 Gouvernement du Canada 3,50 % ZER0 Province de Québec 3,50 % ZBR4 Bell Canada 4,35 % Rachetable à compter du AE4 Lower Mattagami Energy 4,18 % ACY8 Province de l'ontario 2,90 % B94 Gouvernement du Canada 1,25 % TAG3 Province de la Colombie-Britannique 2,80 % 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 ZAC0 Banque Toronto-Dominion 4,78 % 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 Total - obligations

120 Relevé des autres investissements ( non audité ) au 31 mai 2015 Description Valeur nominale Coût Juste valeur Instruments du marché monétaire 6832Z52Y5A Province de l'ontario, bon du trésor 0,71 % Z7VK7 Gouvernement du Canada, bon du trésor 0,52 % Z7VK7 Gouvernement du Canada, bon du trésor 0,54 % PF485 La Banque de Nouvelle-Écosse, acceptation bancaire 0,79 % UF57 Province de Québec, bon du trésor 0,76 % Z52Z2 Province de l'ontario, bon du trésor 0,68 % UFD0 Province de Québec, bon du trésor 0,70 % PFG0 Enbridge Pipelines inc., papier commercial 0,96 % AFG7 Province de la Saskatchewan, note promissoire 0,69 % Z53A6 Province de l'ontario, bon du trésor 0,71 % Z7WA8 Gouvernement du Canada, bon du trésor 0,53 % Z7WA8 Gouvernement du Canada, bon du trésor 0,63 % UZ5 Province de Nouvelle-Écosse, note promissoire 0,72 % NFL5 TransCanada PipeLines Ltd, papier commercial 1,02 % RFP5 Province de Québec, note promissoire 0,69 % FQ7 Canadian Wheat Board, papier commercial 0,69 % X42 Province de la Colombie-Britannique, note promissoire 0,67 % Z7VP6 Gouvernement du Canada, bon du trésor 0,58 % Z7VP6A Gouvernement du Canada, bon du trésor 0,60 % Z7VP6 Gouvernement du Canada, bon du trésor 0,65 % RG66 Province de Québec, bon du trésor 0,74 % Z7WF7 Gouvernement du Canada, bon du trésor 0,59 % Z7WF7 Gouvernement du Canada, bon du trésor 0,62 % UGJ6 Province de Québec, bon du trésor 0,75 % RGJ8 Province de Québec, note promissoire 0,75 % UY8 Province de Nouvelle-Écosse, note promissoire 0,76 % WY7 Province de la Colombie-Britannique, note promissoire 0,75 % Z53G3 Province de l'ontario, bon du trésor 0,76 % Z7VR2 Gouvernement du Canada, bon du trésor 0,61 % Z7VR2 Gouvernement du Canada, bon du trésor 0,64 % Z53H1 Province de l'ontario, bon du trésor 0,76 % Z8X91 Province du Nouveau-Brunswick, bon du trésor 0,76 % UH71 Province de Québec, bon du trésor 0,75 % Z53J7 Province de l'ontario, bon du trésor 0,76 % HK3 Bell Canada, papier commercial 0,98 % Z53K4 Province de l'ontario, bon du trésor 0,76 % RJ89 Province de Québec, note promissoire 0,76 % Z7WR1 Gouvernement du Canada, bon du trésor 0,63 % Z7WW0 Gouvernement du Canada, bon du trésor 0,66 % Total - instruments du marché monétaire

121 Relevé des autres investissements ( non audité ) au 31 mai 2015 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats à terme - position acheteur F135ZS61607 Gouvernement du Canada, 3,50 %, ,28 CAD VGM5F04NEW Indice Euro StoXX ,30 EUR MFSM5F04USD Indice Mini MSCI EAFE 1 890,53 USD Total - contrats à terme - position acheteur Contrats à terme - position vendeur FUSD Dollar américain 1,20 CAD (100) FUSD110615A Dollar américain 1,20 CAD (6) FUSD Dollar américain 1,20 CAD (1 166) FAUD Dollar australien 0,96 CAD FEUR Euro 1,35 CAD (50) F135D Gouvernement du Canada, 2,25 %, ,84 CAD (102) F135YZ11607 Gouvernement du Canada, 3,50 %, ,48 CAD (251) ESM5F04NEW Indice S&P 500 E-Mini 2 094,56 USD FGBP Livre sterling 1,88 CAD (176) Total - contrats à terme - position vendeur (1 848) Contrats d'options - position vendeur SX5E3400A Indice Euro StoXX ,00 EUR (55) (58) SX5EF Indice Euro StoXX ,00 EUR (48) (39) SX5E3450A Indice Euro StoXX ,00 EUR (39) (27) Total - contrats d'options - position vendeur (142) (124) Total - instruments financiers dérivés (142) (1 803) * Total des autres investissements * * De ces totaux, un montant de 2,0 M$, représentant la juste valeur négative des instruments financiers dérivés et un montant de 0,1 M$ représentant le coût de ces instruments financiers dérivés, sont présentés sous Créditeurs aux états financiers du Fonds de solidarité des travailleurs du Québec (F.T.Q.) au 31 mai Titres vendus en vertu de conventions de rachat Au 31 mai 2015, la juste valeur des titres en portefeuille vendus en vertu de conventions de rachat est de 257,1 M$. Ces titres sont des obligations. Ces transactions ont été exécutées entre le 26 mai 2015 et le 29 mai 2015, tandis que leurs échéances se situent dans l'intervalle compris entre le 1er juin 2015 et le 25 juin Le collatéral reçu est de 262,3 M$. Le prix de rachat à payer est de 256,8 M$. 35

122 INDEX OF THE SHARE OF THE FONDS IN INVESTMENTS MADE BY THE SPECIALIZED FUNDS, AT COST (UNAUDITED) AS AT MAY 31, 2015

123 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances BDR Capital s.e.c. Securities of eleven compagnies 21,274 3,635 24, FIER Partenaires, société en commandite Amorchem, s.e.c. Capital St-Laurent, s.e.c. Fonds Brightspark II, s.e.c. Fonds CTI sciences de la vie, s.e.c. Fonds d'amorçage Cycle-C3E, s.e.c. Fonds d'investissement inovia II, société en commandite Fonds d'investissement Réal, s.e.c. Fonds d'investissement Réal III, s.e.c. Fonds Propulsion III s.e.c. GO capital s.e.c. Novacap Industries III, s.e.c. Novacap Technologies III, s.e.c. Novacap Technologies IV, s.e.c. Rho Canada Capital de Risque, s.e.c. Société en commandite AgeChem 37,458 37,458 Funds committed but not disbursed 13,883 51, Fonds Bio-Innovation, société en commandite Securities of ten companies 7,069 2,125 1,001 10,195 Funds committed but not disbursed 2,150 12, Fonds de solidarité FTQ Investissements croissance I, s.e.c inc Colo-D inc Distech Contrôles inc. 1,333 1,333 ibwave Solutions inc Lumenpulse inc. 3,334 3,334 5,948 5, Fonds de solidarité FTQ Investissements croissance II, s.e.c. First financial year Fonds de solidarité FTQ Investissements technologiques I, s.e.c. Axesnetwork Solutions inc Bonlook inc Cadens Imagerie Médicale inc E2metrix inc Embrionix Design inc GCS Medical inc mconcierge Systems inc Réflex Photonique inc ,165 1,000 3, Fonds d'investissement de la culture et des communications, société en commandite Attraction Média inc. Carpediem film & TV inc. Datsit Studios inc. De Marque inc. Gestion Juste pour Rire inc. Groupe Phaneuf inc. GVGS inc. (Laboratoire de test Enzyme) Hibernum Créations inc. La Compagnie Larivée, Cabot, Champagne Laboratoires GSS inc. Lotb Productions inc. (Echo Média) Max Films inc. Média Cineflix inc. Media-Max inc. Studios Budge inc. Via Éditorial, société en commandite Vivavision inc. Wilson & Lafleur, limitée Securities of six other companies 1,678 6,818 4,107 12,603 Funds committed but not disbursed ,555 1

124 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) 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. 15,750 15, Metcalfe s.e.c. 1,358 1,726 3, St-Paul Québec inc ,917 2, St-Vallier inc. 2,083 2, Rand s.e.c. 1,704 1, Richelieu s.e.c ,944 3, Charest s.e.c. 2,140 2, Honoré-Mercier s.e.c. 28,725 28, Québec inc. 3,800 3,800 Brossard-sur-le-Fleuve s.e.c. 2,217 2,217 Carré Chambord s.e.c. 1 1 Condominiums Le George V s.e.c Condominiums Renaissance Blainville s.e.c. 1,283 1,283 Condos Wanklyn-Milot s.e.c. 3,850 3,850 Développement Joseph-Morin, s.e.c Développements Wilfrid-Carrier s.e.c. 8,543 8,543 Espace MV1 s.e.c. 1 1 Espace MV2 s.e.c. 1 1 Espace MV3 s.e.c. 2,700 2,700 Espace MV4 s.e.c. 1,300 1,300 Espaces Lebourgneuf Phase III s.e.c. 2,800 2,800 Fonds accès terrains Québec s.e.c. 1 1 Fonds d'investissement de Montréal (F.I.M.), société en commandite 1,630 1,630 Fonds d'investissement de Montréal (F.I.M.) II, société en commandite Fonds d'investissement de Montréal (F.I.M.) III, société en commandite 3,999 3,999 Graham-Mont-Royal s.e.c. 7,194 7,194 R.P.A. Mont-Joli s.e.c R.P.A. Rawdon s.e.c. 1,209 1,209 Société en commandite Bourassa- Pelletier 10 9,713 9,723 Société en commandite Château Hymus 1 1 Société en commandite D.P.L.S. 2,920 2,920 Société en commandite des Bassins I 2, ,313 Société en commandite GII, Ilôt 10 (Comm-bur) Société en commandite GII, Ilôt 10 (Résidentiel) 1,176 1,176 Société en commandite Griffintown II 3,168 3,168 Société en commandite Griffintown II, Phase II 2,777 2,777 Société en commandite Griffintown II, Phase II (Commercial) 2,348 2,940 5,288 Société en commandite Griffintown II, Phase II (Condos-Tour 1) 1,118 2,804 3,922 Société en commandite Griffintown II, Phase II (Condos-Tour 2) 1,141 2,668 3,809 Société en commandite Griffintown II, Phase II (Tour 3) Société en commandite Griffintown II, Ilot 09 (locatif) 3,833 3,833 Société en commandite Héritage Pointe-Claire 1 1 Société en commandite immobilière T.D.C. 5,050 5,050 Société en commandite Laurin/ St-Louis Phase I 8,266 15,726 23,992 Société en commandite QDS 29,700 29,700 Société en commandite Rose de Lima Société en commandite St-Bruno-sur-le-Lac Phase 4 2,000 4,000 6,000 St-Paul/Du Palais s.e.c. 3,928 3,928 Technoparc Bromont Phase I s.e.c. 1,601 1,601 Urbania Phase VII s.e.c. 1 1 Wanklyn-Milot s.e.c. 4,674 4, general partners of limited partnerships ,192 41,460 25, ,387 Direct holdings : Terrain Boul. Lucille Teasdale, Terrebonne 2,596 Terrain Boul. Le Corbusier, Laval 11, ,360 2

125 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) 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. C.C.L. II, société en commandite Complexe d'affaires 440, s.e.c. 1,825 1,825 Condos Miscéo s.e.c Fonds d'acquisition québécois, s.e.c. 2,929 2,929 Le 160 de l'évêché, s.e.c. 1,983 1,983 Riverside St-Lambert s.e.c. 1, ,400 Sfère-Ahuntsic s.e.c. 1,483 1,483 Société en commandite 1190 Jeanne-Mance 6 2,193 2,199 Société en commandite 544 de l'inspecteur 3,374 3,374 Société en commandite Alfred-Nobel Société en commandite Alphonse T. Lépine 1,725 1,725 Société en commandite Ann-Ottawa 1,504 2,892 4,396 Société en commandite Beauharnois Société en commandite Boisé du Ruisseau Clair 1,000 1,000 Société en commandite Claude Baillif 1,045 1,045 Société en commandite Inspecteur-William Société en commandite Les Berges Brossard Société en commandite De La Dauversière Société en commandite Place Dunant Société en commandite Square Mont-Royal 7 7 Société en commandite Ste-Hélène Village de la Gare s.e.c. 1, , general partners of limited partnerships ,498 7,232 3,191 25,921 Direct holding : Terrain ave. du Lac-Clermoutier, Chertsey 1,295 27, Fonds immobilier de solidarité FTQ II, s.e.c de Bleury s.e.c. 4,100 4, Henri-Bourassa ouest s.e.c. 2,581 2,581 Capital BLF inc. 15,092 15,092 Espaces Lebourgneuf s.e.c. 3,471 3,471 Faubourg la Grande Place, s.e.c. 1,218 1,218 Fonds d'acquisition québécois II, s.e.c. 5,213 5,213 Hôtel Particulier:Le Ste-Hélène s.e.c. 3,838 3,838 Immobilière Concorde-Corbusier s.e.c. 3,400 3,400 Les Haltes du Roi s.e.c Neuvième Avenue s.e.c ,710 3,120 Société en commandite Ann-Ottawa 2,892 2,892 Société en commandite Cavelier de La Salle 4,003 4,003 Société en commandite CDTI de Hull 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 ,702 6,548 3,191 53,441 Direct holdings : Condominium 410 des Récollets, Montréal 615 Terrain ave. du Lac-Clermoutier, Chertsey 1,295 55,351 3

126 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) 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) Centre-Ouest Centre local de développement (CLD) de la MRC de Caniapiscau Centre local de développement (CLD) de la MRC de Maskinongé 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 Fjord Centre local de développement (CLD) du Haut-St-François 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 au Cœur de la Montérégie Centre local de développement Beauharnois-Salaberry Centre local de développement de Brome-Missisquoi Centre local de développement de l'île d'orléans 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 Memphrémagog 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 MRC Robert-Cliche Centre local de développement de la Municipalité régionale de comté de Bellechasse inc 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 Lachine (CLD Lachine) Centre local de développement de Longueuil «CLD» Centre local de développement de Manicouagan Centre local de développement de Québec 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 Domaine-du-Roy inc 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 Centre local du développement du Témiscamingue (C.L.D.T.) CLD de la MRC de Lotbinière Conseil Économique de Beauce (CEB) 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 de Lasalle (CLD) Corporation de développement économique et communautaire Centresud/Plateau Mont-Royal Développement économique - CLD Gatineau

127 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) 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) Fonds local de solidarité (FLS) de la MRC de La Jacques-Cartier 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 Joliette La Société de développement économique de Drummondville (CLD Drummond) inc 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) Société de développement économique de Lévis (CLD) Société de développement économique Rivière-des-Prairies - Pointe-aux- Trembles - Montréal-Est (CLD) Société de développement économique Ville-Marie (CLD) SOLIDE de la M.R.C. de Matane SOLIDE de la M.R.C. de Vaudreuil-Soulanges SOLIDE de la MRC des Jardins-de-Napierville SOLIDE de la MRC du Fjord-du-Saguenay SOLIDE de Mercier/Hochelaga-Maisonneuve ,762 10,638 Funds committed but not disbursed 45,832 56, Fonds régionaux de solidarité FTQ, société en commandite Abitibi-Témiscamingue 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) 1,300 1,122 2, Québec inc. (Pétroles Témis) A. & L. Pinard inc Abitibi Royalties inc Adventure Gold inc Agritibi R.H. inc. 1,585 1,585 ASDR Fabrication inc Atelier Tangente inc Climatisation Abitibi-Témiscamingue Experts inc Corporation Aurifère Monarques Corporation Aurifère QMX Corporation d'or Intégra Corporation de capital de ressources canadiennes Entrepreneur Minier Promec inc Ferabi inc Géliko inc Groupe MBI inc. 1,901 1,901 Groupe Technosub inc H.P. Hydraulique inc Industries Wood4 inc Les Aciers J.P. inc. et Immobilière J.P. inc Les équipements de forage VersaDrill inc Les Grains du Témis inc. et Ferme des Prés d'or inc LVL Global inc ,118 Machineries Horticoles d'abitibi inc Machines Roger International inc. 1,382 1,382 Matamec Explorations inc Mines de la Vallée de l'or ltée Mines Richmont inc Modulabec inc Propair inc. 1,173 1,173 Transport Clément Bégin inc VCC-Massénor inc ,728 10, ,305 5

128 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Bas-Saint-Laurent Canada inc. (Méridien Maritime Réparation) et Canada inc Québec inc. (Réfrigération Air-C) et Québec inc Québec inc. (Carrière Neigette) Québec inc. (Pièces d'autos Sélect) Québec inc. (Multi-Pièces D.L.) Adélard Soucy (1975) inc AMH Canada ltée André Roy Électrique inc Asselin & Asselin arpenteurs-géomètres inc. et Topocom Technologie inc Bois BSL inc Distributions R.M.G. (2004) 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 Gérald Leblond ltée et Québec inc Gestion du Fonds Soutien Bas-Saint-Laurent inc. 1 1 Les Constructions H.L. Thériault inc Les Distributions Arnaud inc Les Produits PBM ltée Placements Gino Bois inc. et Transport C.F. Morin inc Pourvoirie de la Seigneurie du lac Métis inc Productions Québec Multimédia inc Projexco inc Richard Poirier et Frères Électrique ltée ,693 6,266 7,959 Funds committed but not disbursed 500 8,459 Capitale-Nationale Québec inc. (E.B.M. Laser) Québec inc. (Métal Excel inc.) Armeco inc Ascenseurs Maxi inc Auvents W. Lecours inc Corporation Eatsleepmusic.com Distribution Sports Loisirs G.P. inc DK-SPEC inc Engrenage Provincial inc. 1,528 1,528 Équipements supérieurs inc. 1,500 1,500 Filtrum inc Fleurigros 1995 inc Gestion A.V.F. inc Groupe Qualinet inc Groupe Renaud et Ass. inc Imprimerie Nicober inc Industries Métotech inc J.A. Roby inc Laboratoire Hygiènex inc Les Aliments 2000 inc Les Chaussures Henri-Pierre inc Les Distributions Marc Boivin inc Les Industries Rouillard inc Les Vêtements Perlimpinpin inc Machitech inc Maçonnerie Dynamique ltée Métafab (1996) inc Métal Potvin inc Miro Cuisines Tendances inc Mode Avalanche inc Onico inc Panavidéo inc Radio-Onde inc SGPP (Québec) inc. (Simon Giguère Produits Pétroliers) TBC Constructions inc ,435 14, ,782 Funds committed but not disbursed ,532 6

129 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Centre-du-Québec Écofib inc Huppé Meubles inc IPM Canada inc J.I.T. Laser inc Misa Tours Canada inc Nitek Laser inc Paul Rocheleau inc Rénovation Expo inc Vibrotech inc ,720 2,720 Chaudière-Appalaches Québec inc. (Ramp-Art) Québec inc. (Supervac 2000) Québec inc. et L'Usine Tac Tic inc Québec inc Bercomac ltée Canada moteurs importations inc Cométal inc Équipements Demers inc Équipements Plannord ltée Équipements récréatifs Jambette inc Étic Produits Plein-Air inc Fini. U.V. International inc Groupe PCM inc Groupe S.S. inc J.L. Leclerc & fils inc ,225 Les Productions Horticoles Demers inc Mapa Innovations inc. et Les Produits Multi-Formes G.M. inc Marol Express inc., C.R.S. Express inc., Québec inc. et Québec inc. (Transport Express Beauce U.S.A.) 1,000 1,000 Menuiserox inc Portes Veilleux 2000 inc Produits RLC inc. 1,000 1,000 Quéro Métal inc. et Gestion Dovin inc Usine Sartigan inc ,425 8, ,909 Côte-Nord Canada inc. (Les Entreprises Electro Select) Québec inc. (Pompage Pelletier) Québec inc. (Résidence J.R. Lafontaine) Carrosserie Pro 2010 inc Construction Fortin & Lévesque inc Construction J.G.M. inc Fonds Soutien Côte-Nord, société en commandite Gestion du Fonds Soutien Côte-Nord inc. 1 1 Hôtel Mingan inc. 1,812 1,812 Hôtel Motel Le Q'Artier des Îles inc Lajoie Réfrigération inc Les Distributions G.F.D. inc Les Motels de l'énergie inc Les Pétroles Paul Larouche inc Mason Graphite inc Métal 7 inc Nord Industrie inc Pec-Nord inc Plomberie Chauffage O Max inc. et Québec inc Synergica Alliance inc ,420 6,702 8,122 7

130 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Estrie Québec inc. (Multi distribution Sherbrooke inc.) Québec inc. (Armoires NAC) Boccam inc. 1,300 1,300 Acier Fastech inc Amecci inc Ani-Mat inc. 1,038 1,038 Groupe Cabico inc Innotex inc Kemestrie inc LeProhon inc. 1,500 1,500 Les Entreprises Dauphinais inc Les Industries Touch inc Les Quais Bertrand inc Les Viandes Laroche inc M.P. Éco inc Motrec international inc Oasis Tropik Nordik inc Quinco & Cie inc Signalisation de l'estrie inc Sport Powertek inc ,749 11,427 Funds committed but not disbursed 1,550 12,977 Gaspésie - Îles-de-la-Madeleine Canada inc. (Atelier d'usinage Gaspé Machine Works) Québec inc. (Pêcheries Yan Bourdages) B.M.B. (Îles-de-la-Madeleine) inc Duclos & Michaud Télécom inc Fabrication Delta inc Fonds Soutien Gaspésie-Îles-de-la-Madeleine, société en commandite 1,000 1,000 Gaspésie Diésel inc Gestion du Fonds Soutien Gaspésie-Îles-de-la-Madeleine inc. 1 1 Junex inc Les Entreprises P.E.C. inc Les Pêcheries Marinard ltée Pêcheries Vilo inc Serres Jardins-Nature inc ,818 2,660 4,478 Funds committed but not disbursed 25 4,503 Lanaudière ABC Environnement inc. et Québec inc. (Centre de Valorisation de Crabtree) Agro-100 ltée Gestion EDB Mondor inc Gestion Éric Riendeau inc., Viandes Riendeau ltée et Les Aliments Chatel inc. 1,250 1,250 Groupe Manucam inc Laboratoires Bi-Op inc. 1,063 1,063 Labre et Associés, Arpenteurs-Géomètres inc Meubles Jaymar Corp Multi-modèles Martin Gaudet inc Pneus Lanoraie inc Sécurité GMR inc., Québec inc. et Québec inc Triotech Amusement inc Verre Select inc ,177 6,177 Funds committed but not disbursed 750 6,927 8

131 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Laurentides Canada inc. (Aliments Urbains) Canada inc. (Profab mécanique 2010) et Québec inc. (Desco) Québec inc. (Lacelle & Frères) Québec inc. (Les Aliments Kamloops) Autobus Lion inc BMI Canada inc. 1,187 1,187 Canrep inc Complexe Hôtelier St-Jovite/ Mont-Tremblant inc Distributions Denis Fontaine inc. et Québec inc Garage François Thouin inc., Remorques CFT inc. et Canada inc Gestion Estérel inc Gestion hôtelière REVPAR inc Groupe Aviation et Puissance inc Groupe Sima Palsol inc. 7 7 Groupe Star Suites inc. 1,112 1,112 La Petite Bretonne inc Le Groupe Synergie Xpress inc Les Brasseurs du Nord inc. 1,000 1,000 Lev-Fab inc Montour ltée Myre, Pageau & Associés Consultant immobilier inc Palmex International inc Service Alimentaire Desco inc Vision Villégiature inc ,300 8,462 9,762 Funds committed but not disbursed 200 9,962 Laval Québec inc. (Hulix Construction) Québec inc. (Jungle Aventure) Artemano Canada inc Attractions SOS inc Ciel Aventure Québec inc. 1,317 1,317 Collections Unimage inc Cunico ltée Geram Communications inc. et Gerba Entreprises inc Hydrolico International inc K.F. Construction inc Les Bouteilles Recyclées du Québec (B.R.Q.) inc Paris, Ladouceur & associés inc Produits Alimentaires Berthelet inc S.R.A.D. Communications inc Vinyform ltée ,284 6,410 Funds committed but not disbursed 600 7,010 Mauricie Québec inc. (Transport Jacques Labbé) Climatisation Trois-Rivières inc Concept Éco-Plein-Air Le Baluchon inc ,352 Estampage J.P.L. limitée 2,000 2,000 Portes & fenêtres Nouvel Horizon inc ,497 4,248 9

132 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Montérégie Québec inc. (Service Sérigraphique Professionnel S.S.P.) Agro-Bio contrôle inc Agrocentre Belcan inc Atelier d'usinage Quenneville inc Bousquet Frères Limitée Contrôle Industriel C.T.H. ltée Corporation Norme Internationale inc DCL Nutrition & santé animale inc Domaines Pinnacle inc Elka suspension inc FDC Composites inc Géomap GIS Amérique inc Groupe Exel International inc ICANDA Corporation, Forages M.S.E. inc. et Gestion immobilière M.S.E. inc. 1,950 1,950 Investissements Brasco inc Laboratoires Natrum inc. et Dermolab Pharma ltée Les Cartons Northrich inc Les Produits de Ventilation Lambro inc Les Promotions Universelles inc Les sols Sportica inc M.G.B. Électrique inc Matériaux paysagers Savaria ltée 1,334 1,334 Plombco inc Ricardo Média inc Secco International inc Simaudio ltée Soudure Brault inc Soya Excel inc SPB Psychologie organisationnelle inc Suly inc , ,282 Montréal Canada inc. (Bô Bébé) et Kidiway inc. 1,000 1, Canada inc. (Derme & Cie), Canada inc. et Canada inc Alimentation L'Épicier inc Aliments Horizon Nature inc Allard & Ricard inc Andy transport inc Anodisation Verdun inc. et Anodisation Montréal inc Argon 18 inc. et Cycles Argon-18 inc Corporation Smartsilk inc Emballages Cré-O-Pack International inc Galerie au chocolat inc Groupe Carreaux Céragrès inc. 1,800 1,800 Groupe Lincora inc Le Groupe Conseil Integrim inc Les Investissements Sylnic inc Les Laboratoires de recherche de Lan Wirewerks inc Location Jean Légaré ltée Magnus Poirier inc Manutention Québec inc. 1,150 1,150 Perlite Canada inc Portes et fenêtres Cordy inc Proaction International inc Quincaillerie architecturale Capsol inc Ray-Mont Logistiques inc RB&C Maintenance de voies inc Stylo Bankers (1991) inc Tornatech inc Turbines Essential inc Vulcan Compagnie de Palans ltée ,188 12,188 Funds committed but not disbursed 1,000 13,188 10

133 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Nord-du-Québec Québec inc. (Entretien industriel D.L.B.) Québec inc. (Nord Décoration inc.) Québec inc. (Relais du Lac Caché) Corporation Aurifère Monarques Corporation Éléments Critiques Équipement de bureau Ungava inc Exploration Azimut inc Exploration Dios inc Exploration Midland inc Exploration NQ 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 Les Ressources Yorbeau inc M.A.S. Chibougamau inc Mines Coulon inc Nemaska Lithium inc Redevances Aurifères Osisko ltée Ressources Cartier inc Ressources Géoméga inc Ressources Sphinx ltée Services Pétroliers Chibougamau inc Société d'exploration Minière Vior inc Société de Diamant Stornoway ,569 2,490 6,059 Funds committed but not disbursed 25 6,084 Outaouais Canada ltée (Taxi Loyal) Canada inc. (Vitrerie Vision 2000 enr.) Canada inc. (IEG) Canada inc. (Les Services de la première générale (Gatineau)) Canada inc. (Concept Pro-Métal) Canada inc. (La trappe à fromage) Québec inc. (Activec) Alary, St-Pierre & Durocher Arpenteurs-géomètres inc Auberge & Spa le Nordik inc. 1,392 1,392 Ed. Brunet et associés Canada inc Gestion conseil Immogest-Sweeney inc Imasight inc Laiterie de l'outaouais inc Lauzon - Foresterie (Fiducie) Les Entreprises RGMSP ltée et Canada inc Macadamian Technologies inc. 1,500 1,500 Norgau inc PCI Géomatiques Entreprises inc Philouze Boulanger-Patissier inc Prop-Air 2014 inc. et Canada inc. 1,235 1,235 ProVance Technologies inc ,288 Restaurations Sélect inc Service de Pneus Lavoie Outaouais inc SolaCom Technologies inc. 1 1 Systèmes de test Simbol inc VanillaSoft inc. et VanillaSoft Corporation WMD Moulin de Wakefield développements inc ,048 8, ,233 Funds committed but not disbursed ,933 11

134 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Fonds régionaux de solidarité FTQ, société en commandite (continued) Saguenay - Lac-Saint-Jean Québec inc. (Notre Hôtel) Québec inc. et Québec inc. (Terrassement Jocelyn Fortin ) et Québec inc. 1,000 1, Québec inc. (Interbus) Canada inc. (Société P.C.P.) Canada inc. (Récupère Sol) Québec inc. (Inter-Projet) Québec inc. (Menuiserie St-Henri) Québec inc., Québec inc. (La Voie Maltée) et Québec inc Québec inc. (Giroux Maçonnex) A.S. Nettoyage inc Dynamitage Express inc Garage Marcel Simard inc Gestion du Fonds AP 60 inc. 1 1 Gestion LJ inc Groupe Giroux Maçonnex inc. 1,160 1,160 Industries Bofab inc Isumi Précision ltée Laval Fortin ltée 1,000 1,000 Les Équipements pétroliers Claude Pedneault inc Les Fenêtres AGM inc Les Placements G.M.R. Maltais inc LCR Vêtements et Chaussures Inc Nolicam Location de camions inc Novabrik International inc. 1, ,527 Pétrolex St-Félicien inc Précicast ltée Reboitech inc. et Plani-forêt S.G.F. inc Remac innovateurs industriels inc St-Félicien Diesel (1988) inc SCP 89 inc Transports J.M. Bernier inc ,853 11, ,442 Funds committed but not disbursed ,692 Total Fonds régionaux de solidarité FTQ, société en commandite 26, ,963 3, ,503 Funds committed but not disbursed 6, , Fonds Valorisation Bois, s.e.c. Groupe Lebel (2004) inc. 5,390 5, Novacap Industries III, s.e.c. Corporation de Développement Enviro-Viridis inc. Corporation de Développement Nautilus inc. Gestion Groupe Master inc. IPL inc. La Corporation de développement cuirs Bentley inc. Pipp Mobile Storage Systems inc. Solutions de transport GTI inc. Securities of six other companies 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 16,327 10,992 27, , ,315 12

135 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at May 31, 2015 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and units advances advances Teralys capital Fonds de Fonds, s.e.c. Celtic House Venture Partners Fund IV, L.P EnerTech capital Partners IV, L.P. 3,200 3,200 Fonds Biosciences Merck Lumira (Québec), s.e.c Fonds CTI Sciences de la vie II, s.e.c Fonds Cycle Capital III, s.e.c Fonds d'investissement inovia III, s.e.c. 9,540 9,540 Fonds d'investissement Réal III, s.e.c. 2,083 2,083 Fonds Tandem Expansion I, s.e.c. 15,665 15,665 Georgian Partners Growth Fund I, L.P. 2,465 2,465 Investissements TVM Science de la vie VII, s.e.c. 6,835 6,835 Iris Capital Fund III FCPR 3,367 3,367 Lumira Capital II, L.P. 2,357 2,357 Novacap TMT IV, s.e.c. 1,636 1,636 Rho Canada Capital de Risque II, s.e.c. 5,049 5,049 Sofinnova Capital VII 2,145 2,145 Vanedge Capital I Limited Partnership 2,803 2,803 Capital de Risque Versant V (Canada), s.e.c ,680 59,680 Funds committed but not disbursed 127, , VC, société en commandite Securities of two companies Direct holdings of real estate 123, ,877 This unaudited index details the investments made by the specialized funds as required by the Regulation Respecting Development Capital Investment Fund Continuous Disclosure. 13