Do you have labour funds (FTP or CSN)?

If you are 65 or older or retired (but not yet 65), you may be interested in this information. You can also withdraw your labour-sponsored funds if you are 60 years old and receiving your QPP or equivalent plan.

The Facts

The current share price of the QFL Fund is $46.20 and Fondaction (CSN) is $12.67. They have not changed. These prices are based on their net asset values as of November 30. These prices have not moved since the stock market crash. Labour-sponsored funds reassess the value of their shares on November 30 and May 31.

Value of your investment as of May 31

• Smaller companies are very affected by Covid-19, in fact they are much more affected than larger companies. By virtue of their core mandate, these funds are heavily invested in Quebec SMEs. The value of labour-sponsored funds could experience the same downturn as stock market values.
  

• In any case, many of you bought these funds much more for the 75% tax break than for the possibility of share growth.
  

• By selling your equity funds that have retained their full value today, you are able to invest in other funds that have declined. Later on, you will benefit from the recovery of the markets.

Warning!!! Please do not consider this newsletter as a recommendation to sell your labour funds. Because it is not. Neither you nor I have a Crystal ball. However, I would have been remiss and you probably would have been too if I had not brought this situation to your attention.

To redeem your labour-sponsored funds shares, you must apply before May 31, 2020.

Please feel free to contact me if you have any questions or need assistance.

PS. I suggest you read Michel Girard's article on the subject. (french only)