FINANCIAL STATEMENTS AS AT NOVEMBER 30, 2014

Transcription

1 FINANCIAL STATEMENTS AS AT NOVEMBER 30, 2014

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 November 30, 2014, May 31, 2014 and June 1, 2013, and the statements of comprehensive income, changes in net assets and cash flows for the six-month periods ended November 30, 2014 and 2013, 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 November 30, 2014, May 31, 2014 and June 1, 2013, and its financial performance and its cash flows for the six-month periods ended November 30, 2014 and 2013 in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board CPA auditor, CA, public accountancy permit No. A CPA auditor, CA, public accountancy permit No. A Montréal, December 23, 2014 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 November 30, 2014 May 31, 2014 June 1, 2013 Assets Development capital investments 5 5,634 5,444 5,306 Other investments 6 5,196 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 ,465 11,197 10,469 Liabilities Notes Accounts payable Other liabilities Net defined benefit liability Share redemptions payable Securities sold under repurchase agreements ,066 1,160 Net assets 18 10,484 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 SIX-MONTH PERIODS ENDED NOVEMBER 30 (in millions of Canadian dollars, except net income per share) Note Revenues 21 Interest Dividends and distributions Rental income, fees and other income Gains (losses) on development capital investments, other investments and investment property Realized Unrealized Transaction costs (1) (1) Total operating expenses 22 Corporate expenses Development capital investment and other investment expenses Shareholder Services and Economic Training development and administration expenses Income before income taxes Income taxes Net income Item of other comprehensive income that will not be reclassified to net income Remeasurement of the net defined benefit liability 25 (3) 10 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 SIX-MONTH PERIODS ENDED NOVEMBER 30 Share capital Class A shares (Note 18) Contributed surplus (Note 18) Retained earnings Accumulated other comprehensive income Net assets (Note 18) (in millions of Canadian dollars) Series 1 Series 2 Subscribed 2014 Balance at beginning of period 7, , ,131 Net income Other comprehensive income (3) (3) Share issues Net change in share subscriptions - - Share redemptions (204) (3) (21) (36) (264) Change in outstanding redemptions Transfer (Note 18) 75 (75) - Balance at end of period 7, ,660 (2) 10, Balance at beginning of period 7, ,309 Net income Other comprehensive income Share issues Net change in share subscriptions - - Share redemptions (220) (4) (27) (21) (272) Change in outstanding redemptions (7) (1) (1) (9) Transfer (Note 18) 70 (70) - Balance at end of period 7, , ,699 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 SIX-MONTH PERIODS ENDED NOVEMBER 30 (in millions of Canadian dollars) Operating activities Net income Non-cash items Interest capitalized on development capital investments (2) (1) Interest capitalized on notes 9 10 Amortization of premiums and discounts 4 5 Gains (losses) on development capital investments, other investments and investment property Realized (77) (24) Unrealized (201) (251) Post-employment benefits 4 - Depreciation of property and equipment and amortization of intangible assets 3 3 Deferred income taxes (2) Changes in non-cash items Accounts receivable 6 35 Refundable taxes on hand 2 1 Income taxes (3) - Accounts payable (1) (32) Other Acquisition of development capital investments (188) (315) Proceeds of disposal of development capital investments Acquisition of other investments (3,917) (4,737) Proceeds of disposal of other investments 3,957 4,545 Acquisition of investment property (3) Financing activities Shares issued and subscribed Shares redeemed (269) (276) Issuance of notes Repayment of notes (70) (84) (26) 20 Investing activity Acquisition of property and equipment and intangible assets (4) (4) Increase in cash 9 29 Cash at beginning of period 16 9 Cash at end of period Supplemental information (amounts included in operating activities) Interest received Dividends and distributions received Taxes paid 15 8 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 periods 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 period ended November 30, 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 Note 2.5. These separate financial statements are the only financial statements presented by the Fonds. They have been approved for issue on December 23, 2014 by the Board of Directors. 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 through net income under Interest. 8. INVESTMENT PROPERTY Investment property is property held by the Fonds for renting or value appreciation purposes, or both, or for sale. 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. 9. CASH Cash includes bank accounts used in operating and managing development capital investments and other investments. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 8

10 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 20.0% 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; 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. 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) 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 income, fees and other income Rental income is recognized on a straight-line basis over the term of the lease, while fees 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, other investments and investment property, including derivative financial instruments, are recognized at the time of sale and presented under Gains (losses) on development capital investments, other investments and investment property. The amount of such gains and losses is the difference between the proceeds of disposal and average cost. All unrealized gains and losses on the measurement to fair value of financial instruments are recognized in net income at the time of measurement to fair value and presented under unrealized gains (losses). 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. 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 10

12 NOTES TO FINANCIAL STATEMENTS 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 period. 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, 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 period 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. 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. 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) 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 net income under 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 Interim Management Discussion and Analysis for the Six-month Period Ended November 30, 2014, 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 November 30, 2014 Unsecured Listed shares 716, , ,896 Unlisted shares and units 2,638, ,196 3,172,387 Loans, bonds and advances 1,528,313 (5,914) 1,522,399 Secured Loans 18,095 (11,273) 6,822 4,900, ,778 5,633,504 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 $406.0 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 November 30, 2014 Unsecured 80, , , ,613 1,522,399 Average effective rate (%) Secured 178 6,644 6,822 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 $268.8 million (May 31, 2014: $258.2 million; June 1, 2013: $268.9 million). Excluding these advances, the average effective rate would be 6.9% (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 November 30, 2014 Cost 563, , ,047 2,004, ,542 4,900,726 Unrealized appreciation (depreciation) 10, , , ,216 (77,877) 732,778 Fair value 574, ,940 1,171,087 2,470, ,665 5,633,504 Funds committed but not disbursed 1 118, , , , ,525 1,001,533 Guarantees and suretyships 2 8,638 8, ,475 1,035,967 1,296,227 2,651, ,190 6,643,675 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 $305.6 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 24 months (May 31, 2014: 20 months; June 1, 2013: 18 months); and an amount of $695.9 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 8.4 years (May 31, 2014: 7.2 years; June 1, 2013: 8.1 years). Commitments amounting to $168.5 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 November 30, 2014, 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 (in thousands $) Cost appreciation Fair value November 30, 2014 Listed shares and unlisted units 2,270, ,882 2,672,546 Bonds 2,302, ,558 2,406,269 Money market instruments 116, ,145 4,689, ,488 5,194,960 Derivative financial instruments ,689, ,075 5,195,547 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 $1,989.2 million (May 31, 2014: $1,847.1 million; June 1, 2013: $1,522.3 million), mainly including $1,162.1 million (May 31, 2014: $1,020.9 million; June 1, 2013: $910.3 million) in U.S. dollars, $197.0 million (May 31, 2014: $199.3 million; June 1, 2013: $199.8 million) in euros, $180.2 million (May 31, 2014: $172.4 million; June 1, 2013: $92.4 million) in yens and $161.5 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 November 30, 2014 Fair value 56, , , , , ,498 2,406,269 Cost 56, , , , , ,183 2,302,711 Par value 55, , , , , ,848 2,186,537 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 November 30, 2014 Fair value 80,447 33,915 1, ,145 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 November 30, 2014 Fair value 1 Listed stock index option contracts Written call options (80) (77) (157) Written put options (5) (31) (36) Foreign currency forward contracts (55) (55) Interest rate futures Interest rate forward contracts (210) (210) Stock index futures (350) (108) - (458) Notional amount Listed stock index option contracts Written call options 4,630 5, Written put options 5,786 3, Foreign currency forward contracts 56,408 56,408 Interest rate futures 3,418 79,676 2,088,866 2,171,960 Interest rate forward contracts 179, ,378 Stock index futures 23,297 2,089 25, 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, Sales 81, 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 $0.6 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 $1.0 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 $0.6 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 $1.0 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 1 Information (in thousands $) Energy and materials Consumer discretionary and consumer staples Financials and utilities technology, telecommuni -cations services and healthcare Industrials Governments and government agencies Total November 30, 2014 Listed shares and unlisted units 449, , , , ,504 2,672,546 Bonds 92,491 41,789 85, ,707 58,773 1,499,493 2,406,269 Money market instruments 1,389 43,007 71, ,145 Fair value 542, , ,557 1,408, ,277 1,571,242 5,194,960 Funds committed but not disbursed 2 18,808 18, , , ,557 1,427, ,277 1,571,242 5,213,768 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 2 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 2 16,903 16, ,830 42, ,661 1,244, ,775 1,601,603 4,391, This breakdown does not take into account changes in asset allocation resulting from derivative financial instruments. 2. Funds committed but not disbursed to international infrastructure funds represent other investments that have already been agreed to and for which amounts have been committed by the Fonds but have not been disbursed at the reporting date. Disbursements are subject to compliance with the agreement s terms and conditions. These commitments, having a weighted average maturity of 6.1 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 $0.4 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 $0.6 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 November 30, 2014, 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 November 30, 2014 Financial assets Development capital investments Unsecured Listed shares 931, ,896 Unlisted shares and units 3,172,387 3,172,387 Loans, bonds and advances 475,682 1,046,717 1,522,399 Secured Loans 6,822 6,822 Other investments 931, ,682 4,225,926 5,633,504 Listed shares and unlisted units 2,618,034 54,512 2,672,546 Bonds 2,394,979 11,290 2,406,269 Money market instruments 116, ,145 Derivative financial instruments ,618,034 2,511,711 65,802 5,195,547 Accounts receivable relating to development capital investments and other investments sold 71,034 71,034 Cash 24,890 24,890 Securities purchased under reverse repurchase agreements 215, ,785 Financial instruments related to securities sold under repurchase agreements 137, ,357 Financial liabilities Accounts payable relating to development capital investments and other investments purchased 50,322 50,322 Derivative financial instruments (193) (852) (1,045) Securities sold under repurchase agreements (353,142) (353,142) 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 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 period. 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 November 30, 2014 Fair value as at May 31, ,053,976 1,076,144 10,875 4,140,995 Realized gains (losses) 12,056 2,196 (6,504) 7,748 Unrealized gains (losses) 63,435 (6,419) 8,840 65,856 Purchases 115,145 55, ,785 Sales and settlements (72,225) (50,949) (7,284) (130,458) Transfer of a financial instrument out of Level 3 (30,000) 1 (30,000) Fair value as at November 30, ,172,387 1,046,717 6,822 4,225,926 Unrealized gains (losses) on development capital investments held as at November 30, ,008 (4,814) 3, ,675 November 30, 2013 Fair value as at May 31, ,807,561 1,170,369 10,476 3,988,406 Realized gains (losses) (6,578) 1,266 (5,312) Unrealized gains (losses) 21,001 (16,800) (1,916) 2,285 Purchases 81,551 49,135 1, ,886 Sales and settlements (48,822) (100,689) (769) (150,280) Fair value as at November 30, ,854,713 1,103,281 8,991 3,966,985 Unrealized gains (losses) on development capital investments held as at November 30, ,740 (18,050) (1,916) (7,226) 1. An unsecured loan has been transferred from Level 3 to Level 2 as its 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 $) November 30, 2014 Listed shares and unlisted units Hedge fund units Bonds Total Fair value as at May 31, ,051 25,485 11,261 87,797 Realized gains (losses) (16) Unrealized gains (losses) 4,177 (605) 29 3,601 Purchases Sales and settlements (1,660) (25,868) (27,528) Fair value as at November 30, ,512 11,290 65,802 Unrealized gains on other investments held as at November 30, , ,329 November 30, 2013 Fair value as at May 31, , ,293 10, ,469 Realized gains (losses) (40) 2,604 2,564 Unrealized gains (losses) 1,803 (2,908) 87 (1,018) Purchases Sales and settlements (1,048) (188,450) (189,498) Fair value as at November 30, ,395 58,782 10, ,000 Unrealized gains (losses) on other investments held as at November 30, ,803 (1,845) 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 significant 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) November 30, 2014 Development capital investments Unlisted shares and units 547,804 Capitalized cash flows Capitalization rate 5.8% % (8.4%) EBITDA margin %1 5.7% % (15.8%) 2,281,286 Adjusted net assets Adjusted net assets N/A 2 106,885 Recent transactions ,412 Other3 - - Loans, bonds and advances 765,874 Discounted cash flows Required rate of return 2.5% % (7.7%) 268,838 Adjusted net assets Adjusted net assets N/A 2 18,827 Other - - 4,225,926 Other investments Unlisted units 54,512 Manager s quote - - Bonds 11,290 Other ,802 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 and liquidation 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: November 30, 2014 May 31, 2014 June 1, 2013 Number Fair value (in thousands $) Number Fair value (in thousands $) Number Fair value (in thousands $) Subsidiaries Operating companies , , ,838 Investment entities 30 1,004, ,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 $139.7 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 November 30, 2014, the Fonds indirectly had 87 additional subsidiaries and 98 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 November 30, 2014 (May 31, 2014: from 102% to 105%; June 1, 2013: 102%) and the fair value of the securities loaned is $327.4 million (May 31, 2014: $311.3 million; June 1, 2013: $83.6 million). 11. INVESTMENT PROPERTY The investment property held by the Fonds comprises office space for rental. The following table presents the changes in the fair value of the investment property for the six-month periods ended November 30. (in thousands $) Balance at beginning of period 27,689 25,328 Increase in office space 2,871 - Change in fair value recognized in net income Balance at end of period 31,376 25,328 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. Significant unobservable inputs used in measuring the investment property are as follows: Fair value (in thousands $) Valuation techniques Unobservable inputs Input value November 30, 2014 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 $) November 30, 2014 May 31, 2014 June 1, 2013 Accounts receivable relating to development capital investments and other investments sold 71, , ,421 Accrued dividends and interest 67,248 73,580 71,597 Other 26,207 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 November 30, 2014 Cost 42,451 11,702 16,615 70,768 Accumulated depreciation (2,019) (8,707) (12,504) (23,230) Net carrying amount 40,432 2,995 4,111 47,538 Change during the period Net carrying amount as at May 31, ,099 2,556 3,923 47,578 Acquisitions ,229 2,149 Disposals (182) - (182) Depreciation (676) (290) (1,041) (2,007) Net carrying amount as at November 30, ,432 2,995 4,111 47,538 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 No item of property and equipment was impaired as at November 30, 2014 (none as at May 31, 2014 and June 1, 2013). In addition, as at November 30, 2014, 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 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 (in thousands $) Information systems development November 30, 2014 Cost 25,633 Accumulated amortization (18,749) Net carrying amount 6,884 Change during the period Net carrying amount as at May 31, ,542 Acquisitions 1,606 Amortization (1,264) Net carrying amount as at November 30, ,884 May 31, 2014 Cost 24,028 Accumulated amortization (17,486) Net carrying amount 6,542 Change during the year Net carrying amount as at May 31, ,594 Acquisitions 3,745 Amortization (1,797) Net carrying amount as at May 31, ,542 June 1, 2013 Cost 20,283 Accumulated amortization (15,689) Net carrying amount 4,594 No intangible asset was impaired as at November 30, 2014 (none as at May 31, 2014 and June 1, 2013). In addition, as at November 30, 2014, 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 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 November 30, 2014, May 31, 2014 and June 1, 2013, the interest rate is 4%. 16. CREDIT FACILITIES As at November 30, 2014, 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 November 30, 2014, May 31, 2014 and June 1, 2013, these facilities are unused, and they were not used during the periods then ended. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 30

32 NOTES TO FINANCIAL STATEMENTS 17. ACCOUNTS PAYABLE (in thousands $) November 30, 2014 May 31, 2014 June 1, 2013 Accounts payable relating to development capital investments and other investments purchased 50, , ,862 Accrued expenses and other 57,123 57,573 60,752 Derivative financial instruments 1, , , , , 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) Transfer During the period, the Board of Directors approved an increase in the issued and paid-up capital on Class A shares, Series 1 of $75 million through a transfer from retained earnings (November 30, 2013: $70 million). As at November 30, 2014, the Fonds had, since its incorporation, transferred the following cumulative amounts: $1,977 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. FONDS DE SOLIDARITÉ DES TRAVAILLEURS DU QUÉBEC (F.T.Q.) 31

33 NOTES TO FINANCIAL STATEMENTS 18. NET ASSETS (CONTINUED) 3. NET INCOME PER CLASS A SHARE Net income per share is based on the weighted average number of Class A shares, which was 334,427,078 (November 30, 2013: 332,979,642). 4. NET ASSETS CLASS A Series 1 Series 2 Subscribed Total (in thousands) Number $ Number $ $ $ November 30, 2014 Net assets as at May 31, ,886 10,029,119 3, , ,131,203 Net income 350,054 3, ,629 Other comprehensive income (2,708) (27) (2,735) Share issues 8, , , ,359 Net change in share subscriptions Share redemptions (8,666) (261,123) (118) (3,561) (264,684) Change in outstanding redemptions 337 9,287 9,287 Net assets as at November 30, ,984 10,378,011 3, , ,484,249 November 30, 2013 Net assets as at May 31, ,951 9,210,014 3,490 97, ,308,516 Net income 400,878 4, ,070 Other comprehensive income 10, ,131 Share issues 9, , , ,209 Net change in share subscriptions Share redemptions (9,607) (267,802) (171) (4,773) (272,575) Change in outstanding redemptions (292) (8,671) (8,671) Net assets as at November 30, ,137 9,597,282 3, , ,698, 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) 60% rule The Fonds may make development capital investments in any business enterprise with or without security. However, in any given financial year, the proportion of unsecured development capital investments made in qualified business enterprises must represent an average of at least 60% of the Fonds average net assets of the previous financial year. If the Fonds fails to reach this percentage, the share issues giving rise to tax credits for the following financial year are limited to a prescribed percentage of the total value of shares in the preceding financial year, except for shares acquired through payroll deductions and employer contributions stipulated in agreements concluded at the end of the preceding financial year. The percentage of average qualified development capital investments to the average net assets of the preceding year was 65.1% as at May 31, 2014 (May 31, 2013: 66.0%). Since the minimum percentage prescribed by the 60% rule has been reached as at May 31, 2014, the 60% rule does not limit share issues for the financial year. 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 Further to the Government of Québec budget tabled before the National Assembly on June 4, 2014, the number of shares giving rise to labour-sponsored fund tax credits that the Fonds may issue during the financial year ending May 31, 2015 is limited to an amount of $650 million. 2. 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 $8.8 million (November 30, 2013: $9.6 million) on the notes is presented as a deduction of interest in the Statement of Comprehensive Income and capitalized under Notes. 22. TOTAL OPERATING EXPENSES For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Salaries and benefits 38,677 40,028 Advertising and information 8,139 7,124 Occupancy expenses and rent 5,006 4,990 Management fees 3,377 3,332 Professional fees 2,263 4,176 Stationery and office supplies 2,206 2,260 Travel and entertainment 1,368 1,572 Shareholder reporting costs 1,282 1,285 Custodial fees and trustee s fees Depreciation of property and equipment 2,007 1,966 Amortization of intangible assets 1, ,016 67, KEY MANAGEMENT PERSONNEL COMPENSATION For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Salaries and short-term benefits 1,221 1,227 Post-employment benefits Directors remuneration and fees ,684 2,508 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 a transfer from retained earnings. Since these income taxes are refundable and that, in management s opinion, the issued and paid-up share capital will be increased sufficiently to recover them, these income taxes are not presented in the Statement of 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 a transfer from retained earnings. This tax of $17.4 million (May 31, 2014: $29.2 million; June 1, 2013: $30.3 million) was entirely applied against income taxes payable following a transfer approved by the Board of Directors during the period. 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: For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Current 13,638 7,202 Deferred (2,238) (278) 11,400 6,924 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: For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Income before income taxes 365, ,994 Tax rate to which the Fonds is subject 46.6% 46.6% Income taxes 170, ,989 Non-taxable dividends and distributions (22,940) (49,634) Refundable dividend tax on hand (17,437) (14,049) Realized and unrealized capital gains (losses) Non-taxable portion and federal rate difference (68,474) (67,712) Refundable federal tax (35,999) (35,611) Québec tax deduction (15,324) (15,135) Other items 1,470 (2,924) 11,400 6,924 Items giving rise to deferred income tax assets are as follows: (in thousands $) November 30, 2014 May 31, 2014 June 1, 2013 Development capital investments (1,884) (2,846) (3,447) Investment property (1,645) (1,650) (1,514) Property and equipment and intangible assets (3,915) (3,925) (3,733) Net defined benefit liability 10,292 8,329 8,538 Other ,027 3, 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 November 30, The most recent actuarial valuation of the pension plans for funding and solvency purposes was as at December 31, 2013 and the next valuation will take place by December 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 period are as follows: (in thousands $) For the six-month periods ended November 30, 2014 November 30, 2013 Present value Net defined Present value 2013 Fair value Net defined of pension Fair value of benefit of pension of plan benefit obligation plan assets liability obligation assets liability Balance at beginning of period (228,410) 187,378 (41,032) (189,433) 147,207 (42,226) Current service cost (6,509) (6,509) (6,150) (6,150) Interest (4,921) (4,921) (4,190) (4,190) Interest income 3,931 3,931 3,188 3,188 Impact on net income (11,430) 3,931 (7,499) (10,340) 3,188 (7,152) Remeasurements Return on plan assets, excluding revenue 5,225 5,225 5,796 5,796 Loss arising from changes in demographic assumptions (9,252) (9,252) Gain (loss) arising from changes in financial assumptions (7,751) (7,751) 16,054 16,054 Experience loss (773) (773) Impact on other comprehensive income (8,524) 5,225 (3,299) 6,802 5,796 12,598 Fonds contributions 3,171 3,171 7,458 7,458 Employee contributions (2,527) 2,527 - (2,117) 2,117 - Benefits paid 1,915 (1,915) (836) - (612) 3,783 3,171 (1,281) 8,739 7,458 Balance at end of period (248,976) 200,317 (48,659) (194,252) 164,930 (29,322) As at November 30, 2014, the weighted average duration of the defined benefit obligation is 17.7 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 period are as follows: Present value of obligation and net defined benefit liability For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Balance at beginning of period (2,860) (2,546) Current service cost (54) (52) Interest (61) (55) Impact on net income (115) (107) Remeasurements Loss arising from changes in demographic assumptions - (139) Gain (loss) arising from changes in financial assumptions (116) 190 Impact on other comprehensive income (116) 51 Benefits paid Balance at end of period (3,061) (2,584) 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 period November 30, 2014 November 30, 2013 Pension plans Medical plans Pension plans Medical plans Discount rate Rate of increase in salaries Defined benefit costs recognized Rate at end of previous period Discount rate 4.00 and 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. Impact on the defined benefit obligation as at November 30, 2014 Change in assumption Increase in assumption (impact in thousands $) Decrease in assumption (impact in thousands $) Discount rate 0.50% (20,738) 23,698 Rate of increase in salaries 0.50% 6,203 (6,122) Life expectancy 1 year 5,004 (5,032) 5. COMPOSITION OF PENSION PLAN ASSETS Funded plan assets are held in trust and their breakdown is as follows: (in %) November 30, 2014 November 30, 2013 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 participant 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 For the six-month periods ended November 30, 2014 November, Actuarial gain (loss) arising from post-employment benefits (3,415) 12,649 Deferred income taxes 680 (2,518) (2,735) 10,131 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 period 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 period and presents the end-of-period balances appearing on the Balance Sheet. For the six-month periods ended (in thousands $) November 30, 2014 November 30, 2013 Transactions Interest 11,019 12,833 Dividends and distributions 12,080 4,277 Rental income, fees and other income 1, Total operating expenses 3,122 3,150 Interest expense on notes 8,758 9,515 Issuance of notes 56, ,204 Repayment of notes 69,576 84,325 Disbursements for development capital investments 60,475 39,733 Capital repayments on development capital investments 30,299 73,228 Balances November 30, 2014 May 31, 2014 Development capital investments, at cost 2,445,423 2,401,628 Accounts receivable 10,050 16,325 Accounts payable Notes 443, ,459 Other information Funds committed but not disbursed 516, ,255 The Fonds engaged two of its associates to manage portfolios with assets totalling $631.2 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 $1.4 million to the FTQ for the six-month periods ended November 30, 2014 (November 30, 2013: $1.2 million) under an agreement that calls for compensation to be paid for services rendered in respect of economic training, social audits, shareholder development, and support and guidance of certain activities. These transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. The Fonds incorporated the Fondation de la formation économique du Fonds de solidarité des travailleurs du Québec (F.T.Q.) (the Fondation ) under Part III of the Québec Companies Act and appoints the members of the Fondation s Board of Directors. The Fonds granted a loan of $5 million to the Fondation at a variable, contingent interest rate, with a fair value of $3.8 million (May 31, 2014: $3.6 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 $10.9 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 $3.3 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 six-month period ended November 30, 2014 are the first 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 Period ended November 30, 2013 Other comprehensive Net income income Comprehensive income Income reported under Canadian GAAP - Part V 410, ,991 Unrealized gains (losses) a (5,613) (5,613) Post-employment benefits b (645) 12,649 12,004 Depreciation of property and equipment d Income taxes e 76 (2,518) (2,442) Income reported under IFRS 405,070 10, ,201 Income per share reported under Canadian GAAP - Part V $1.23 $1.23 Income per share reported under IFRS $1.22 $ 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 $5.6 million, under Gains (Losses) unrealized, for the six-month period ended November 30, 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 $-0.6 million and $12.6 million, respectively, for the six-month period ended November 30, 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. 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 $0.3 million for the six-month period ended November 30, 2013 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 $) Period ended November 30, 2013 Net income Other comprehensive income Comprehensive income Post-employment benefits 128 (2,518) (2,390) Reversal of depreciation expense recognized under Canadian GAAP attributable to the investment property portion (70) (70) Impact of the different depreciation expense under IFRS Total adjustment to income taxes reported under IFRS 76 (2,518) (2,442) 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 INTERIM MANAGEMENT DISCUSSION AND ANALYSIS FOR THE SIX-MONTH PERIOD ENDED NOVEMBER 30, 2014

45 INTERIM MANAGEMENT DISCUSSION AND ANALYSIS FOR THE SIX-MONTH PERIOD ENDED NOVEMBER 30, 2014 This interim 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 six-month period ended November 30, The interim MD&A complements and supplements the financial statements as at November 30, 2014 and contains financial highlights, but does not contain the financial statements of the Fonds. To facilitate the understanding of events and uncertainties presented herein, this interim MD&A should be read together with the financial statements and the notes thereto. The financial information presented in this interim 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 interim 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 statements of the Fonds in accordance with Part V for the period ended November 30, 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 December 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 financial statements as at November 30, 2014 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 8717, Berri Street, Montréal, Québec H2M 2T9. You can also get a copy of the annual 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 and the six-month period ended November 30, This information is derived from the Fonds audited financial statements. Financial data for the six-month period ended November 30, 2014 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 Six-month period or years ended (in millions of dollars, unless otherwise specified) November 30, 2014 (IFRS) (six-month period) May 31, 2014 (IFRS) May 31, 2013 (Part V) May 31, 2012 (Part V) May 31, 2011 (Part V) May 31, 2010 (Part V) Revenues a Net income b Net assets 10,484 10,131 9,301 8,525 8,178 7,294 Class A shares outstanding (number, in thousands) 334, , , , , ,951 Total operating expense ratio c (%) Portfolio turnover rate d : Development capital investments (%) Other investments (%) Trading expense ratio e (%) Number of shareholders (number) 613,958 f 613, , , , ,511 Issues of shares Redemptions of shares Fair value of development capital investments g 6,644 6,415 6,144 5,757 5,207 4,784 a For the six-month period ended November 30, 2014 and the financial year ended May 31, 2014, revenues include realized and unrealized gains and losses, distributions, rental income, fees and other income, which is not the case for the financial year ended May 31, 2013 and the prior years. b 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. c The total operating expense ratio is obtained as follows: for a six-month period, by dividing total operating expenses in net income for the six-month period by the net assets attributable to security holders of the Fonds at the end of that six-month period; for a year, 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 total operating expense ratio for the six-month period ended November 30, 2014 is presented on a non-annualized basis. d 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 portfolio turnover rate for the six-month period ended November 30, 2014 is presented on a non-annualized basis. e The trading expense ratio represents transaction costs expressed, for the six-month period, as an annualized percentage of net assets at the end of the sixmonth period and, for the year, as a percentage of average net assets. f As at May 31, g These investments include funds committed but not disbursed as well as guarantees and suretyships. 2

47 CHANGE IN NET ASSETS PER SHARE Six-month period or years ended (in dollars) November 30, 2014 (IFRS) (six-month period) May 31, 2014 (IFRS) May 31, 2013 (Part V) May 31, 2012 (Part V) May 31, 2011 (Part V) May 31, 2010 (Part V) Net assets per share, beginning of six-month period/year a Impact of the transition to IFRS Net assets per share, beginning of six-month period/year after impact of the transition to IFRS a Increase from operations b : Interest, dividends and distributions and rental income, fees and other income c Realized gains Unrealized gains Total operating expenses d (0.20) (0.45) (0.40) (0.39) (0.38) (0.37) Income tax and capital tax (0.03) (0.06) (0.05) (0.09) (0.08) (0.09) Decrease from other comprehensive income (0.01) Variance from issues and redemptions of shares - (0.01) (0.02) (0.01) (0.02) (0.02) Variance from the transfer of Class G shares Net assets per share, end of sixmonth period/year a a The amount of net assets per share is based on the actual number of shares outstanding at the relevant time. b The increase from operations is based on the weighted-average number of shares outstanding during the relevant six-month period or financial year. c For the six-month period ended November 30, 2014 and the financial year ended May 31, 2014, this item includes distributions as well as rental income, fees and other income. d For the year ended May 31, 2013 and the prior years, distributions as well as rental income, fees and other income were presented as a reduction of total operating expenses. ECONOMIC CONDITIONS AND OUTLOOK World and the United States Over the last few months, the downward trend in prices for commodities such as copper, gold and especially oil, geopolitical crises around the world, particularly persistent conflicts in Ukraine and the Middle East, and more recently, the Ebola epidemic in West Africa have all contributed, in one way or another, to casting a shadow over the global economic outlook. The economic conditions in many emerging countries, particularly in Latin America, also continues to be a source of concern, due to the major depreciation of their currency, high inflation or significant capital flight, among other factors. The situation has many economists worried that in the coming quarters these countries will lose their ability to continue playing the role of economic engine that they have played in the global economy in recent years. In the Eurozone, the situation is not much better. In the last few months, economic growth has been very weak: among other things, German real GDP contracted, which was a hard pill to swallow, as this country had always been the pillar of the zone s economy for the previous quarters. Facing persistent economic weakness in the Eurozone, the European Central Bank has taken action in recent months by implementing new monetary easing measures. Despite this, in the current conditions, most economic indicators seem to suggest that the Eurozone economy will continue to have tepid growth in the coming quarters. 3

48 All this uncertainty surrounding the global economic outlook can be felt on the stock markets: the latter were highly volatile in the last few months and, despite that, many stock indexes reached new highs. After recording a decrease in GDP in the first quarter of 2014, in particular due to poor weather conditions during the winter, the U.S. economy rebounded in the second quarter. This recovery is explained notably by sustained growth in real consumption, particularly in durable goods, faster growth in business investment and a greater change in inventory. U.S. GDP continued to grow in the third quarter, but at a slower pace than in the previous quarter. Despite some apprehensions regarding the ability of the U.S. economy to continue to firm up in the coming quarters, economists generally seem relatively optimistic that it will do just that. Several economic indicators such as manufacturing and non-manufacturing indexes also seem to point to sustained economic growth for the coming quarters. Recent gains in the labour market (monthly average of 258,000 net hires for the last six months) drove down the unemployment rate, which was 5.8% in November 2014, compared to 6.3% in May In the U.S. real estate sector, existing home sales grew somewhat after a temporary downturn during the winter of 2014, while new home sales and housing starts remained fairly weak during the same period. Many specialists in this sector believe that the situation should improve in the coming year. Furthermore, last spring, several economists expected inflation to rise in the United States, but inflation has actually stayed relatively low and stable for the last six months, and in all likelihood, the situation should not change much in the coming year. In addition, given that the unemployment rate fell below 6% and the bond purchase program has ended, economists expect that, as long as economic growth continues and inflation remains weak, the Fed will be in a position to order the first increase in the key interest rate toward the middle of It is important to remember that this rate has remained unchanged at 0.25% since December Canada and Québec After a rough start to the year, the Canadian economy recovered in the second quarter of 2014 and continued to grow in the third quarter, albeit at a slower pace. However, it is important to point out that this economic growth was very asymmetrical, as the Western provinces posted higher growth than Ontario, Québec and the Atlantic provinces. The recovery of the U.S. economy, which started in spring 2014, explains some of the robustness of the Canadian economy over the recent months. More specifically, starting in the second quarter of 2014, Canada saw an increase in consumer and business spending as well as a steep increase in the volume of exports. This growth in the volume of exports stems from the positive contribution of many sectors, including automobiles and parts, which did particularly well. Despite this good news, many economists wonder if the Canadian economy will have the capacity to maintain this pace of growth in the coming quarters, particularly on the exports front, given the concerns about the capacity of the U.S. economy to continue to firm up, the decline in oil prices and the difficulties seen in Europe and several emerging countries. Overall, in the last six months, the Canadian unemployment rate inched down from 7.0% in May 2014 to 6.6% in November Many economists believe that it should continue to fall in the coming quarters as long as the Canadian economy continues to grow. In general, inflation has remained weak in Canada in recent months. The annual variation in the Canadian CPI has been 2.2% on average since May In the opinion of many experts, inflation should edge up slightly in The Canadian real estate market showed strong resilience in the last six months. After slowing at the beginning of the year, home sales started to go up in spring According to many economists, they should gradually slow over the coming quarters mainly due to the anticipated intensification of tensions related to accessibility. Lastly, to the extent that the economic recovery continues across the country in the coming quarters, the Bank of Canada may be prompted to modify its monetary policy, particularly by raising the discount rate (which has been at 1% since September 2010). Many economists believe that such an increase will likely not happen before fall During the last six months, short-term (2 years) and long-term (10 years) Canadian government bond rates posted a slight decrease. During the same period, investment-grade corporation credit spreads trended up while provincial credit spreads remained relatively stable. The Canadian dollar traded at $US0.88 on November 30, 2014, compared with $US0.92 on May 31, In light of current conditions, we forecast that the Canadian dollar will fluctuate between $US0.85 and $US0.91, 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 six months, notably due to the weakness in household consumption and business investment. The unemployment rate was 7.6% in November 2014, down from 8.0% in May 2014; this rate is higher than for Canada (6.6%) and for Ontario (7.0%). According to many economists, economic growth in Québec should remain weak in the coming months, especially given the current fiscal austerity context. The Fonds will therefore definitely continue to play an important role in contributing to creating and maintaining jobs in Québec and by working with Québec companies that have the will and the desire to expand abroad while generating economic spinoffs for Québec. Despite the positive signs suggesting an economic recovery built on a stronger foundation that seem to be appearing on the horizon in North America, economic and financial issues still abound elsewhere in the world, particularly in Europe and 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 six-month period, the Fonds posted comprehensive income of $351 million, compared to $415 million for the corresponding period of the prior year. The Fonds return was 3.5% for the six-month period, compared to the return of 4.4% posted for the same period a year ago. The value of the Fonds shares increased by $1.07 compared to the value in effect since July 4, 2014 to stand at $31.36 as at January 5, The Fonds net assets amounted to $10.5 billion as at November 30, 2014 compared to $10.1 billion as at May 31, For the last 12 months (from December 1, 2013 to November 30, 2014), the Fonds generated a return of 7.4%, the same as for the corresponding period in As a result of its mission, a significant portion of the Fonds portfolio is comprised of private securities and specialized funds. Consequently, the Fonds did not benefit from the full effect of the increase in global stock markets that occurred during the last few months. 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 Six-month periods ended November 30 Assets under management at end of period* $M 2014 (IFRS) Weight % Return % Assets under management at end of period* $M 2013 (IFRS) Weight % Development capital investments 5, , Other investments** 5, , , , Other income Total operating expenses (0.6) (0.7) Income tax (0.1) (0.1) Fonds return (six-month period) Fonds return (last 12 months) * Assets under management at end of period refer to the fair value, at the end of the six-month period, 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 % 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 3.5% for the six-month period, compared to the gross return of 6.6% generated for the corresponding period in Taking into account this return and given the level of mission-driven investments made by the Fonds, the assets in this sector represented $5.2 billion at the end of the six-month period or 49.5% of assets under management as at November 30, 2014 (51.4% as at November 30, 2013). 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 3.5% of the Investments sector for the most recently ended six-month period is largely explained by the following: the return of 3.4% generated by our private securities and specialized funds portfolio during the six-month period (compared to 3.0% for the corresponding period in 2013). Overall, this performance is attributable to the general strength of the portfolio, which produced interest and dividend revenues and, in addition, generated an increase in value during the six-month period in a low economic growth environment in Québec. The depreciation of the Canadian dollar over the last six months is a factor that contributed positively to this increase in value; the return of 4.0% generated by our portfolio of listed securities during the six-month period. This return was earned in an environment in which the Canadian stock markets were very volatile and, in general, did not perform as well as in the corresponding period of the prior year, when conditions were much more favourable, which enabled our portfolio to generate a return of 23.2%. Other Investments sector The Other Investments sector manages the Fonds assets that are not invested in partner companies. Other investments consist of the following portfolios: cash and money market, bonds, shares, international infrastructure funds, high-income securities and absolute return strategies. 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 six-month period, the Other Investments sector earned a gross return of 4.8%, up from the gross return of 3.4% recorded for the corresponding period in The assets of this sector represented $5.3 billion, or 50.5% of the Fonds assets under management as at November 30, 2014 (48.6% as at November 30, 2013). 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 4.8% 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 6.2% for the shares and other securities 1 portfolios. These portfolios had generated a return of 9.7% for the corresponding period of the prior year, when economic conditions were characterized by a widespread increase in stock markets; the positive return of 3.5% on our fixed-income portfolio for the six-month period, compared to the negative return of 1.0% for the corresponding period in 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. 1 Other securities are comprised of the following portfolios: international infrastructure funds, high-income securities and absolute return strategies. 6

51 RETURN BY ASSET CLASS Six-month periods ended November 30 Assets under management at end of period $M 2014 (IFRS) Weight % Return % Assets under management at end of period $M 2013 (IFRS) Weight % Development capital investments Private securities and specialized funds 4, , Listed securities , Other investments Fixed-income securities 2, , (1.0) 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 and 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 2, which stands at approximately 1.2% on a six-month basis. For the six-month period ended November 30, 2014, the ratio of total operating expenses to net assets attributable to security holders of the Fonds at the end of the six-month period (on a non-annualized basis), calculated using the method prescribed in the Regulation, was 0.6% (0.7% for the corresponding period of the previous year). Expressed in dollars, total operating expenses amounted to $66.0 million for the six-month period ended November 30, 2014, down $2.0 million compared to the corresponding period of the prior year. ANALYSIS OF CASH FLOWS, BALANCE SHEET AND OFF-BALANCE SHEET ITEMS Cash flows Cash flows from operating activities of the Fonds totalled $39 million for the six-month period, up from $13 million for the corresponding period in the prior year. Changes in these cash flows mainly resulted from our current operations. Cash flows from financing activities were a negative total amount of $26 million for the six-month period, compared to a positive total amount of $20 million for the corresponding period in In addition, cash flows from investing activities of the Fonds represented a net cash outflow of $4 million for the six-month period, the same as for the corresponding period in As at November 30, 2014, the Fonds had lines of credit of $80 million available for its working capital requirements. These lines of credit were not used during the six-month period, and their outstanding balance was nil as at November 30, Source: Bloomberg (based on a sample of 168 Canadian retail balanced funds) 7

52 Balance sheet and off-balance sheet items Balance sheet development capital investments increased from $5.4 billion as at May 31, 2014 to $5.6 billion as at November 30, This $190 million increase results mainly from our net disbursed investments of $70 million (disbursed investments of $210 million less disinvestments of $140 million) and the increase in value of development capital investments during the six-month period. On a commitment basis, the Fonds made development capital investments of $240 million during the six-month period, compared to $69 million for the corresponding period of the previous year. Funds committed but not disbursed increased from $963 million as at May 31, 2014 to $1.0 billion as at November 30, In addition, balance sheet other investments increased by $121 million during the six-month period to $5.2 billion as at November 30, 2014 ($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 result of the stock market appreciation. The Fonds uses derivative financial instruments in particular to increase its revenues or reduce its financial risks, to safeguard the value of its assets, to facilitate the management of its portfolios, to modify its asset allocation and to enhance its returns within allocated risk limits. MISSION OF THE FONDS, OBJECTIVES AND STRATEGIES 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 will amount to $650 million in shares giving rise to laboursponsored fund tax credits and will have no impact on its share return or its ability to redeem its shares. However, it will reduce both the ability of the Fonds to invest in Québec SMEs and, the ability of Quebec workers to save for retirement. Except for the foregoing, there have been no material changes in the Fonds mission, objectives, strategies and business model since the issuance of the last annual MD&A. 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 income 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 will continue to be 30%. Despite this decision by the Government of Canada, the Fonds will continue to make representations and proposals to convince 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 60% 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 represent a significant tax increase for Québec workers who save (annual increase of $418 for the average Fonds shareholder who invests $2,785 per year), could reduce subscriptions and, consequently, job-creating investments in the Québec economy. 8

53 60% RULE The 60% rule set out in the Fonds Incorporation Act stipulates that the Fonds average unsecured investments in qualified business enterprises must represent at least 60% of its average net assets of the previous financial year. The Fonds may invest the remaining assets in other financial vehicles for asset diversification and sound management purposes. The calculation method for this rule is based on the value of the Fonds assets, which depends in part on interest rate fluctuations and on the performance of stock markets and the economy in general. As at May 31, 2014, the value of average qualified investments 3 amounted to $5.8 billion, or 65.1% of the average net assets of the previous financial year (compared to 66.0% as at May 31, 2013). Since the minimum percentage prescribed was reached as at May 31, 2014, the amount of share issues for the year will not be limited by the 60% rule. However, as noted previously, as part of the Québec budget tabled on June 4, 2014, the Government of Québec decided to limit share issues by taxadvantaged funds for the fiscal year. This limit for the Fonds amounts to $650 million in shares giving rise to a tax benefit. As at November 30, 2014 and May 31, 2014, the Fonds was also in compliance with all other limits and rules set out by 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. RECENT DEVELOPMENTS 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 November 30, 2014 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. PAST PERFORMANCE This section presents the past performance of the Fonds. The past performance of the Fonds does not necessarily indicate how it will perform in the future. YEAR-BY-YEAR RETURNS OF THE FONDS The following chart shows the Fonds annual performance and illustrates how the Fonds performance has changed from year to year for the last ten financial years ended May 31 and the six-month period ended November 30, These investments include funds committed but not disbursed as well as guarantees and suretyships. 9

54 The annual performance 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 performance sometimes differs from the annual compound return to the shareholder because the annual performance of the Fonds is calculated taking into account share issues and redemptions made during the year, which have a dilutive or accretive effect on net income (net loss) per share, as the case may be. The non-annualized performance for the six-month period ended November 30, 2014 is calculated by dividing net income per share for the six-month period by net assets per share at the beginning of the six-month period. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER At the current value of $31.36 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 performance of the Fonds since, as explained above, it does not take into account the dilutive or accretive effect of share issues and redemptions made during the year. Since the inception of the Fonds, the annual compound return to the shareholder has been 3.9%. ANNUAL COMPOUND RETURNS TO THE SHAREHOLDER (INCLUDING TAX CREDITS) Let s take, for example, a shareholder who has invested an equal amount each year through payroll deduction. Including the Québec and federal labour-sponsored fund tax credits (each amounting to 15%) that this shareholder has received, at the current value of $31.36 per share, this shareholder earned an annual compound return of 16.1% and 11.5% 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. 10

55 SUMMARY OF INVESTMENT PORTFOLIO As at November 30, 2014, 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 30.2 Specialized funds 10.5 Listed securities Other securities Cash and money market 2.0 Bonds 22.7 Shares 25.0 High-dividend shares International infrastructure funds The following table presents the issuers of the top 25 positions held by the Fonds as at November 30, 2014, 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, those classes are aggregated. However, with respect to other investments, debt and equity securities of an issuer are not aggregated. Issuers % of net assets Development capital investments (18 issuers)* 30.0 Other investments (7 issuers)** * The 18 issuers representing, as a group, 30.0% of the Fonds net assets are (in alphabetical order): Camoplast Solideal inc. Cogeco Câble inc. Corporation Financière L'Excellence ltée Entreprises québécoises publiques 5 FinTaxi, s.e.c. Fonds immobilier de solidarité FTQ inc. 5 Fonds immobilier de solidarité FTQ I, s.e.c. 5 Fonds immobilier de solidarité FTQ II, s.e.c. 5 Gestion TFI inc. La Coop fédérée Metro inc. Société de gestion d'actifs forestiers Solifor, société en commandite 5 Société en commandite Groupe CH SSQ Financial Group 6 TMX Group Limited Transcontinental inc. Trencap s.e.c. VC, société en commandite ** The 7 issuers representing, as a group, 13.7% of the Fonds net assets are: Province of Ontario 4.6% Province of Québec 3.0% Government of Canada 2.3% Financement-Québec 1.5% Canada Housing Trust No 1 0.9% Hydro-Québec 0.8% Canadian Imperial Bank of Commerce 0.6% 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 investee. Includes all of the Fonds investments in SSQ, Life Insurance Company Inc. and its subsidiary, SSQ General Insurance Company Inc. Includes also the Fonds investment in SSQ, Mutual Holding Inc. 11

56 CONTRIBUTION TO QUÉBEC S ECONOMIC DEVELOPMENT In keeping with its mission, the Fonds made investments over the six-month period that contributed to creating, maintaining or saving quality jobs in various sectors of the Québec economy. In the current economic conditions, the Fonds continues to play an active role in the development and growth of Québec companies. As such, during the six-month period, the Fonds invested $240 million, on a commitment basis, to support development projects in the Québec economy. Here are a few examples of the Fonds contribution to Québec s economic development during the six-month period. To support Maibec Inc. in a project aimed at broadening its market position and increasing its purchasing power, the Fonds reinvested $10 million in this company, which employs over 650 people in Québec. The Fonds invested close to $5 million in Rudsak Inc., an investment that will help it pursue expansion plans for its store network. This company already has over 300 employees in Québec. The Fonds also participated, for an amount of $20 million, in the project involving the combination of Osisko Gold Royalties Ltd. and Virginia Mines Inc. to create a new leading intermediate royalty company with two world-class gold royalty assets in Québec. The Fonds also participated with the Caisse de dépôt et placement du Québec and Investissement Québec in recapitalizing the Fonds Anges Québec capital, s.e.c., (the Fonds contributed $15 million of the total $85 million) in order for entrepreneurs to have access to the capital they need for projects that required seed or start-up capital. To that end, Anges Québec works closely with a number of key Québec organizations interested in the development and growth of technological innovations. So far, Anges Québec members have invested and reinvested in over 50 promising businesses in the seed or start-up stage. TRENDS AND OUTLOOKS TRENDS IN THE SAVINGS MARKET AND RRSP The debate on retirement plans, on which the D Amours report (Innovating for a Sustainable Retirement System Summary) is still the primary reference, continues in the current context of fiscal austerity in Québec and discussions on taxation and programs. In addition, the act respecting VRSPs (Voluntary Retirement Savings Plans) came into force on July 1, 2014, and its implementation will span a long period of time. This obviously reminds us of the importance of Quebecers personally taking responsibility for their savings. A careful analysis of the behaviour of investors in Canada and Québec shows that they seem to have a more favourable perception of stock and financial markets in 2014 than they had the previous year. This boost in investor confidence in stock and financial markets across the country is largely explained by the very good returns the markets have provided in recent years. Despite everything, many investors point out that they still remember the financial crisis of and that, although stock markets increased in recent years, they continue to be very conservative when it comes to selecting savings products; this conservatism is increased even further in today s context of stock market volatility and uncertain global economic outlook for the coming quarters. For the next RRSP campaign, the Fonds shares (which generated a return of 7.4% for the 12-month period ended November 30, 2014) will be part of the good choices of financial products available to Québec s savers, given their low volatility and their advantageous return enhanced by the savings from the tax credit to which they give rise. The local representative (LR) network and the Fonds employees will continue their ongoing work of raising awareness on the importance of saving early in life and the advantages of systematic savings. 12

57 FONDS OUTLOOK 7 The phase-out of the federal income tax credit and the $650 million limit imposed by the Government of Québec on the Fonds issues of shares giving rise to labour-sponsored fund tax credits 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. There have been no material changes to the other outlooks presented in our last annual MD&A. RISK MANAGEMENT Sound risk management practices are vital to the success of the Fonds. We manage our risk within a framework taking into account the nature of our activities and the risks we can reasonably assume considering the desired return/risk ratio and 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 December 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. The Fonds uses derivative financial instruments in particular to increase its revenues or reduce its financial risks, to safeguard the value of its assets, to facilitate the management of its portfolios, to modify its asset allocation and to enhance its returns within allocated risk limits. During the six-month period ended November 30, 2014, 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, a policy that 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, has continued in two other sectors (Shareholder Services and Information Technologies) during the six-month period. In the normal course of business, the Fonds is exposed to various risks; the principal ones are presented hereafter. 7 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 December 23, 2014, 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. 13

58 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; finance and services to communities; information technologies, telecommunications and health; consumer discretionary and consumer staples; industries; energy and materials) and geographic areas, within the limits allowed by its Incorporation Act. The Fonds financial assets are especially sensitive to listed share prices and fluctuations in bond interest rates (Canada bond rates and credit spreads). The Fonds financial assets are also sensitive to exchange rate fluctuations, but since most of its transactions are in Canadian dollars, the Fonds direct exposure to currency risk is reasonable. Furthermore, hedging mechanisms such as foreign currency forward contracts may be used. The Fonds performs sensitivity analyses and simulations to inform senior management of material levels of market risk exposure. It uses derivative financial instruments to reduce its market risk exposure and safeguard the value of its assets. The following table presents a sensitivity analysis for each of the three market risk categories to which the Fonds financial assets are exposed, namely changes in interest rates, listed share prices and exchange rates. These analyses reflect the changes made to the hedging level for the Fonds exposure to interest rate risk and currency risk. As part of the revision of the other investments portfolio, 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. SENSITIVITY OF THE FONDS RESULTS TO MARKET RISK (in millions of dollars) November 30, 2014 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Change in bond interest rates* 1% increase in bond interest rates (180) (180) (179) 1% decrease in bond interest rates Change in listed share prices** 10% increase in listed share prices % decrease in listed share prices (356) (333) (253) Change in exchange rates*** 10% appreciation of the Canadian dollar (234) (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 of interest rate forward and futures contracts aimed at safeguarding assets. ** This analysis is performed on listed shares held by the Fonds presented under Development capital investments and Other investments in the financial statements. In this analysis, the impact on results takes into account the use of stock index futures. *** This analysis is performed on securities denominated in foreign currencies held by the Fonds presented under Development capital investments and Other investments in the financial statements. In this analysis, the impact on results takes into account the use of foreign currency forward contracts. The value of unlisted financial instruments in the development capital investments portfolio is established using approved and accepted valuation techniques. These techniques are based on a set of assumptions that take into account market conditions such as 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. 14

59 CREDIT AND COUNTERPARTY RISK The Fonds exposure to credit risk stems mainly from its mission-driven development capital investments, which are generally unsecured. Its other investment activities generally entail less of this risk since the counterparties concerned are typically more financially solid (governments, banks, etc.). Credit risk is the potential for loss due to the failure of a partner company (financial instruments presented under Development capital investments), issuer or counterparty in a transaction (financial instruments presented under Other investments) to honour its contractual obligations or due to a degradation of its financial position. The Fonds manages this risk through several means, including a due diligence process to ensure that the credit risk level is acceptable. The Fonds maintains a sound diversification of its assets through the Integrated Financial Assets Management Policy. Compliance with this policy therefore enables managing the concentration risk associated with the exposure to an issuer or group of issuers with common characteristics (industries, credit ratings, etc.). EXPOSURE TO CREDIT AND COUNTERPARTY RISK (fair value as a percentage of net assets) November 30, 2014 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Weight of the five largest investments (Development capital investments) 17.4* 17.1* 19.5* Weight of the five largest issuers or counterparties (Other investments) 12.3** 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 9.1% as at November 30, 2014 (8.9% as at May 31, 2014 and 9.6% as at June 1, 2013). ** All of these securities are issued or guaranteed by the governments of Québec, Ontario and Canada. 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) November 30, 2014 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) Compliant with internal criteria 5,299 5,142 4,989 Under watch In turnaround ,634 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 November 30, 2014, the weighted average credit rating of bonds was AA-, as it was as at May 31, 2014 and as at June 1,

60 CLASSIFICATION OF BONDS INCLUDED IN THE OTHER INVESTMENTS PORTFOLIO* (fair value in millions of dollars) November 30, 2014 (IFRS) May 31, 2014 (IFRS) June 1, 2013 (IFRS) AAA AA A BBB ,406 2,510 2,392 * 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 November 30, 2014, the ratio of liquid assets 8 as a percentage of assets under management was 59.5% (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. 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. Since the issuance of the last annual MD&A, there have been no material changes in the level and management of operational risk. OTHER RISKS The Fonds is also exposed to other risks, such as strategic and reputation risks, which could result in negative financial consequences. Since the issuance of the last annual MD&A, there have been no material changes in the management of these risks. With respect to strategic risk, the phase-out of the tax credit announced by the federal government in its March 2013 budget, which will be effective as of January 1, 2015 (for the 2015 tax year, the total tax credit granted to taxpayers will decrease from 30% to 25%), 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 60% 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, 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 will amount to $650 million in shares giving rise to labour-sponsored fund tax credits) will reduce both the ability of the Fonds to invest in Québec SMEs and the ability of Quebec workers to save for retirement. However, this limit will have no impact on its share return or its ability to redeem its shares. 8 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. 16

61 Reputation risk evolved favourably in the last few months, in particular as a result of the announcement of proposed changes to the Fonds governance, the arrival of Robert Parizeau as a director and his appointment as Chairman of the Board of Directors, the appointment of Gaétan Morin as new President and Chief Executive Officer and the good financial results generated by the Fonds. GOVERNANCE On February 6, 2014, the Fonds announced an important governance reform project that includes the following proposals: 1. 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 both the Fonds and the FTQ Reconfiguration of the Board of Directors in particular to increase from 17 to 19 the number of directors, a majority of which must now be elected each year by the shareholders. 3. Enshrinement of the rule adopted in 2009 requiring any investment to be approved by an Investment Board made up of a majority of members independent from the Fonds and the FTQ 9 ; since 2009, this rule has granted a veto to the independent members, including at the real estate funds. Furthermore, in order to increase the power of these Boards, the amount at which an investment must be submitted to the Board of Directors will be increased. 4. Creation of three new committees composed of a majority of members independent from the Fonds and the FTQ 9, namely (i) Governance and Ethics, (ii) Human Resources and (iii) Risk Management. 5. The duration of Board members terms will be limited to 12 years. After the announcement of this reform, several actions were taken by the Fonds to implement these changes. Robert Parizeau, who joined the Board of Directors in February 2014, became its first independent Chairman on May 14, In addition, two of the proposed new committees, the Governance and Ethics Committee and the Human Resources Committee, have already been formed. Through its budget tabled on June 4, 2014, the Government of Québec announced that, in light of the principles presented by the Fonds, it will propose amendments to the Fonds Incorporation Act. These amendments were tabled before the National Assembly on November 26, 2014 as part of Bill 28. RISK GOVERNANCE The Management Committee, comprised of the President and CEO and executives, is responsible for the global management of the Fonds operations. Because risk governance is an essential part of integrated financial assets management, the Fonds has put in place a management framework to ensure that risk management and control strategies and resulting operational decisions take the established level of acceptable risk into account. An Integrated Risk Management Advisory Committee has also been set up. The governance structure that supports the Fonds, in particular with respect to risk management, was as follows as at November 30, 2014: 9 Including FTQ-affiliated unions 17

62 The Fonds governance structure also includes the decision-making boards of the Fonds immobilier de solidarité FTQ. Furthermore, in order to bring into action its regional and local commitment, the Fonds created, several years ago, within its investment network of all the administrative regions of Québec, the Fonds régionaux de solidarité FTQ and the Fonds locaux de solidarité FTQ. 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. Since the issuance of the last annual MD&A, there have been no material changes to the Integrated Risk Management Policy and the Integrated Financial Assets Management Policy. Since the issuance of the last annual MD&A, there have been no material changes in the mandate, roles and responsibilities of the main governing bodies of the Fonds (Board of Directors and other committees); however, these mandates, roles and responsibilities are currently being reviewed in light of the creation of new committees. In addition, in the last few months, the Governance and Ethics Committee tasked a sub-committee with analyzing the decision-making process with respect to investment files (including the authorization of an investment, but also any changes to a file and any disinvestment as well as the periodic follow-up of approved files) in order to make recommendations to the Committee. The recommendations arising from this analysis will have an impact on the scope of the mandate, the roles, the responsibilities and the composition of the various governance bodies of the Fonds. VALUATION FRAMEWORK During the last six-month period, the Fonds updated its valuation principles. The changes did not have a material impact on the value of the development capital investments portfolio. The update to the valuation principles was approved by the Audit Committee in November Since the issuance of the last annual MD&A, there have been no material changes in the management framework that governs the procedure for valuing development capital investments. MANAGEMENT S REPORT ON INTERNAL CONTROLS The Fonds has had for several years a financial compliance framework program commonly known as Confor. While not required to apply Regulation respecting Certification of Disclosure in Issuers Annual and Interim Filings, the Fonds has decided to base its work upon the principles stated in this regulation, thereby demonstrating its willingness to respect best practices in financial governance. Management is responsible for designing and maintaining internal control over financial reporting as well as disclosure controls and procedures. These controls are developed to provide reasonable assurance that the financial information is reliable and that the financial statements are prepared in accordance with IFRS. However, because of its inherent limitations, internal control over financial reporting may not prevent or detect certain misstatements on a timely basis. Management must periodically evaluate control design and effectiveness. The design of internal control over financial reporting has been evaluated using the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework, a recognized financial governance framework. During the six-month period, no change has occurred that has materially affected, or is reasonably likely to materially affect, internal controls. 18

63 STATEMENT OF DEVELOPMENT CAPITAL INVESTMENTS, AT COST AS AT NOVEMBER 30, 2014

64 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 November 30, 2014 ("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 November 30, 2014 is prepared, in all material respects, in accordance with the dispositions of article 18 of the Regulation respecting development capital investment fund continuous disclosure. 1 CPA auditor, CA, public accountancy permit No. A Montréal, December 23,

65 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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) 287, ,725 V Bestar inc. 25 1, ,813 V02252 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 Polycor inc. 15 9,738 9,738 V Fonds immobilier de solidarité FTQ II, s.e.c ,000 25,000 V02828 Groupe Robert inc ,940 12,991 34,931 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 régional de solidarité Abitibi- Témiscamingue, société en commandite Fonds régional de solidarité Côte-Nord, société en commandite Fonds régional de solidarité Estrie, société en commandite Fonds régional de solidarité Lanaudière, société en commandite Fonds régional de solidarité Laurentides, société en commandite Fonds régional de solidarité Laval, société en commandite Fonds régional de solidarité Mauricie, société en commandite ,105 16,105 V ,985 21,985 V ,114 20,114 V ,587 12,587 V ,532 21,532 V ,524 21,524 V ,708 12,708 V03588 Mines Virginia inc. 15 9,712 9,712 V Fonds d'investissement de la culture et des communications, société en commandite 25 26,700 26,700 V03748 Fonds régional de solidarité Bas Saint-Laurent, société en commandite Fonds régional de solidarité Chaudière- Appalaches, société en commandite Fonds régional de solidarité Gaspésie-Îles-de-la- Madeleine, société en commandite Fonds régional de solidarité Montérégie, société en commandite Fonds régional de solidarité Outaouais, société en commandite ,160 16,160 V ,574 18,574 V ,573 12,573 V ,478 24,478 V ,478 30,478 V

66 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 1996 Fonds régional de solidarité Québec, société en commandite Fonds régional de solidarité Saguenay-Lac-Saint- Jean, société en commandite ,976 24,976 V ,971 24,971 V03586 Groupe Solmax inc. 15 1,618 8,859 10,477 V03615 Mines Richmont inc. 15 9,219 9,219 V Fonds régional de solidarité Nord-du-Québec, société en commandite 40 12,000 12,000 V Québec inc. (Manoir Richelieu) 25 45,579 45,579 V16026 Exploration Azimut inc V04288 Fonds régional de solidarité Centre-du-Québec, société en commandite 40 9,616 9,616 V04352 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 8,043 8,043 V04396 Marketing Léger inc. 20 1,000 1,250 2,250 V Fonds Bio-Innovation, société en commandite 35 31,592 31,592 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 3,264 3,264 V04981 Partenaires MidCap V05454 SIDEX, société en commandite 15 15,000 15,000 V FinTaxi, s.e.c ,400 53,600 68,000 V05683 Fonds immobilier de solidarité FTQ inc , ,839 V05025 Junex inc V05601 Lumira Capital I Québec société en commandite 35 3,999 3,999 V05720 Produits Intégrés Avior inc. 20 2,250 2,250 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 V

67 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 2004 Corporation Aurifère QMX V06287 Fonds d'investissement MSBI, société en commandite 45 8,927 8,927 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 7,868 7,868 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 26,520 26,520 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 3,553 3,553 V06351 RHO Fund Investors 2005, L.P. 45 3,758 3,758 V11625 SAIL Plein Air inc. 25 6,000 5,196 11,196 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 ,374 32,374 V12363 Coveo Solutions inc. 45 6,318 6,318 V12251 Emerald Cleantech Fund II L.P. 40 6,469 6,469 V11778 Entreprises SMD ltée 20 3,500 3,500 V11515 Exploration Dios inc V11976 FCPR Aerofund 20 7,576 7,576 V11792 Fiducie du Chantier de l'économie sociale 40 12,000 12,000 V06285 Fonds CTI sciences de la vie, s.e.c. 35 2,865 2,865 V11965 Fonds ID s.e.c ,000 10,000 V11741 Fonds Propulsion III s.e.c. 45 5,306 5,306 V06283 Gestion Rivière du Diable inc. 25 2, ,291 V11457 Les alcools de spécialités Greenfield inc ,000 30,000 V12378 NAPEC inc ,985 1,660 21,645 V12130 Relay Ventures Fund L.P. 45 3,424 3,424 V12024 Ressources Cartier inc V12031 Rho Canada Capital de Risque, s.e.c ,830 19,830 V11984 Société en commandite Agechem 35 15,756 15,756 V06248 Sonaca S.A V

68 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 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 V12531 Fonds d'investissement inovia II, société en commandite 45 3,924 3,924 V12317 GO capital s.e.c. 45 1,625 1,625 V12016 Groupe Bikini Village inc. 25 1,275 1,275 V12655 Investissement (12348) s.e.n.c. (Bandsintown Group) 45 12,029 12,029 V12348 Les Industries Spectra Premium inc ,000 2,603 12,603 V06225 MMV Financial inc V12373 Novacap Industries III, s.e.c ,698 24,698 V12234 Novacap Technologies III, s.e.c. 45 5,010 5,010 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 2,869 2,869 V Administration LVER inc. 25 1,850 1,850 V13113 Alimentation Coop Port-Cartier V12496 BDR Capital s.e.c ,133 64,133 V13558 Cogeco Câble inc , ,000 V12924 Corporation Financière L'Excellence ltée , ,000 V13127 Dalkotech inc. 20 5, ,700 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 6,250 29,120 V13530 Gestion TFI inc , ,000 V14754 GLV inc ,061 25,000 57,061 V13155 Groupe AGF inc ,000 4,200 24,200 V12541 Groupe Gecko Alliance inc. 45 1,470 1,470 V12870 HR Stratégies inc V11531 Ontario Venture Capital Fund LP 45 5,049 5,049 V13245 Placements Montrusco Bolton inc ,055 20,055 V13132 Rho Ventures VI, L.P ,969 19,969 V12930 Sonaca Montréal inc. 20 4,473 4,473 V11595 VantagePoint Cleantech Partners II, L.P ,938 19,938 V N Plus inc ,166 14,166 V

69 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 2009 A.M. Pappas Life Science Ventures IV, LP 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 ,360 18,360 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 11,809 33,311 V14354 Média Cineflix inc ,925 10,925 V13243 Premier Tech ltée 15 39,813 39,813 V01387 Société en commandite Groupe CH 25 40,000 40,000 V ,620 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 Radialpoint Safecare inc ,917 15,918 V14302 Ressources Géoméga inc V14798 Royal Nickel Corp V14827 Saladexpress inc. 30 8,318 8,318 V03768 Scierie Dion & Fils inc. 15 1,000 1,000 V14350 Serdy Média inc. 25 2, ,833 V13802 Société de Diamant Stornoway 15 11,605 14,700 26,305 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 4,429 4,429 V12982 AmorChem, société en commandite 35 4,664 4,664 V14317 Bombardier inc ,779 49,779 V13647 Cogeco inc ,000 40,000 V15279 Corporation Aurifère Aurvista V14828 Fonds Alpha+ Montrusco Bolton 40 20,095 20,095 V13562 Fonds Capital Culture Québec, société en commandite 25 10,000 10,000 V

70 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 Fonds d'amorçage Cycle-C3E, s.e.c. 45 5,077 5,077 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 2,710 2,710 V14948 Fonds stratégique à rendement absolu HRS, s.e.c ,000 50,000 V14730 Groupe Crête division St-Faustin inc. 15 1,133 1,133 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 2,250 2,250 V14814 Les Investissements Nolinor inc. 20 1,125 1,125 V14769 Magnus Poirier inc V03002 Milestone Pharmaceutiques inc. 35 5,157 5,157 V14985 Nunavik Nickel Mines Ltd V15314 Ressources Monarques inc V15054 Rona inc ,375 35,375 V15367 Scandinave Spa in Whistler inc. 25 1,861 1,861 V Québec inc. (Forage Boréal) 15 2,150 2,150 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 ,000 15,000 V15783 Erfa Canada 2012 inc. 35 3,106 3,106 V15297 Financement YPG inc. 25 7,701 7,701 V16027 Fonds de solidarité FTQ investissements croissance I, s.e.c. Fonds de solidarité FTQ Investissements technologiques I, s.e.c ,897 6,897 V ,000 4,000 V15320 Germain Larivière inc. 25 1,174 1,174 V14464 Gestion SMS inc V15483 GLyPharma Thérapeutique inc. 35 2,227 2,227 V15331 Groupe Colabor inc ,000 30,000 V06111 Groupe MBI inc , ,927 V15261 Groupe PCM inc V15362 Groupe QuébéComm inc. 25 3,000 3,000 V14747 Innovation Thrasos inc. 35 7,291 7,291 V14257 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 V

71 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 Lumira Capital II, société en commandite 35 5,894 5,894 V13774 Maibec inc. 15 8,644 2,136 10,780 V02502 Mine Barlow inc V15436 Produits alimentaires Viau inc. 30 5,000 5,000 V14878 Société en commandite Free 2 Play 25 6,900 6,900 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 V03963 Yellow Média Limitée 25 1,747 1,747 V Canada inc. (Groupe DCM) 20 8,000 8,000 V15945 Accedian Networks Corporation 45 1,252 1,252 V13081 Adetel Group 45 4,691 4,691 V15890 AJW Technique inc ,000 12,000 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 Humania Assurance inc ,000 10,000 V15294 Les Brasseurs du Nord inc ,750 15,750 V15958 Les Réseaux Accedian inc. 45 7,764 7,764 V11761 Les Serres du St-Laurent inc. 30 1,000 1,000 V03758 Lunetterie New Look inc ,000 15,000 V17373 Macadamian Technologies inc V17250 Propair inc V16025 Ressources Falco ltée V16292 Vision 7 International ULC 25 14,000 14,000 V inc V18194 Acquisition Glacier II inc ,895 58,895 V17590 Adventure Gold inc V13715 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 3,750 5,925 V18185 Decolin inc. 25 5,000 5,000 V

72 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 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 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 18,537 V14766 Leprohon inc V18174 Lumenpulse inc. 20 3,303 3,303 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 1,800 1,800 V17399 Novacap Industries IV, s.e.c. 40 4,536 4,536 V17668 Orckestra inc. 45 2,800 2,800 V18164 PRCL Research inc V17211 Redevances Aurifères Osisko ltée 15 14,281 14,281 V18105 Ricardo Média inc V17379 Rudsak inc. 25 4,950 4,950 V14788 Sterinova inc. 35 4,500 4,500 V16093 Super Aqua Club inc. 25 3,000 3,000 V17395 Technologies Tremcar inc. 20 5,000 5,000 V13729 Tuango inc. 25 5,000 2,500 7,500 V17516 Versant Venture Capital V, L.P. 35 1,128 1,128 V16155 Xenon Pharmaceuticals inc V18203 Yamana Gold inc. 15 3,405 3,405 V general partners of limited partnerships V05605 Total 716,127 2,638,191 1,528,313 18,095 4,900,726 8,638 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 $4,900,726,000 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 November 30, In addition, this statement presents a list of the guarantees and suretyships granted by the Fonds. 9

73 Statement of Development Capital Investments, at Cost AS AT NOVEMBER 30, 2014 (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 Industry segment legend Energy Materials Industrials Consumer discretionary Consumer staples Health care Financials Information technology Telecommunication services Utilities 10

74 Entreprises québécoises publiques, at cost APPENDIX A AS AT NOVEMBER 30, 2014 (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. Cogitore Resources inc. Corporation Fiera Capital Corporation Groupe Mercator Transport Corporation Océanique Iron Ore Ergorecherche ltée Exploration Azimut inc. Exploration Dios inc. Exploration Midland inc. Forage Orbit Garant inc. GLV inc. Groupe Canam inc. Groupe CGI inc. Groupe d'alimentation MTY inc. Groupe DMD Connexions santé numériques inc , , ,410 3, ,856 5,201 3,371 21,360 9,298 2,538 V12924 R A GMT 67524Q 29482C V04288 V11976 V N V C 39945C 55378N APTILON Hecla Mining Company Héroux-Devtek inc , L Industries Lassonde inc. 30 2, Innergex Énergie renouvelable inc. Junex inc ,369 1, B V05601 Lamêlée minerais de fer ltée Le Groupe Jean Coutu (PJC) inc. Lumenpulse inc. Manac inc. Metro inc. Mines Agnico Eagle Limitée Mines de la Vallée de l'or ltée Mines Richmont inc. Mines Virginia inc. Nunavik Nickel Mines Ltd ,332 7,468 6, , Q V15264 V06118 V11740 V18101 V06004 V02088 V12100 V15314 Opsens inc. 45 1,

75 Entreprises québécoises publiques, at cost APPENDIX A AS AT NOVEMBER 30, 2014 (In thousands $) Description Industry Segment Listed Shares Quincaillerie Richelieu ltée Redevances Aurifères Osisko ltée Ressources Cartier inc. Rogers Sugars inc. Royal Nickel Corp , , W V18105 V R V14827 SEMAFO inc Stella-Jones inc. Technologies D-Box inc. Technologies Interactives Mediagrif inc. Technologies Sensio inc. TransForce inc. WSP Global inc ,701 5,533 12,153 1,283 12,785 12,761 V02986 DBOX V Y V Q Xebec Adsorption inc. 20 2, Yamana Gold inc. 15 Total 287, V12055 Industry segment legend Energy Materials Industrials Consumer discretionary Consumer staples Health care Financials Information technology Telecommunication services Utilities 2

76 RELEVÉ DES AUTRES INVESTISSEMENTS (NON AUDITÉ) IN FRENCH ONLY AS AT NOVEMBER 30, 2014

77 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 88579Y101 3M Co A.P. Moeller - Maersk AS, classe B ABB Ltd Abbott Laboratories Y109 AbbVie inc ABC-Mart inc. 528 JP Aberdeen Asset Management plc 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 V109 Aecon Group inc Aegon NV Aeon Co. Ltd FR Aéroports de Paris H105 AES Corp Y108 Aetna inc Aflac inc GB00BK1PTB77 Aggreko plc U101 Agilent Technologies inc AGL Energy Ltd B0ZNPN 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 NL 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 Alleghany Corp Allergan inc Alliance Data Systems Corp Alliant Energy Corp Allianz SE Allstate Corp Alstom SA 434 FR AltaGas Ltd

78 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Altera Corp Altice SA R107 Altus Group Ltd 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 142 B39VJC JP Asahi Glass Co. Ltd Asahi Group Holdings Ltd Asahi Kasei Corp Ashland inc KYG0535Q1331 ASM Pacific Technology Ltd ACI02GTQ9 ASML Holding NV Assa Abloy AB, classe B

79 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 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 B1QGR4907 Atlas Copco AB, classe A 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 Avon Products inc Axa SA Axis Capital Holdings Ltd 14 BMG0692U B/E Aerospace inc GB Babcock International Group plc W209 Badger Daylighting Ltd 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 302 HK IE Bank of Ireland Bankia SA Banque Canadienne Impériale de Commerce Banque de Montréal D106Z Banque Laurentienne du Canada Banque Nationale du Canada Banque Royale du Canada Banque Toronto-Dominion Barclays plc Barrick Gold Corp

80 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 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. 954 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 Idec 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 141 B1XCBX Bombardier inc., classe B Y108 Bonavista Energy Corp Boral Ltd BorgWarner inc Boston Properties inc Boston Scientific Corp Bouygues SA BP plc Brambles Ltd 646 B1FJ0C 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 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

81 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 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 Canadian Energy Services & Technology Corp W 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 CapitaLand Ltd CapitaMall Trust 260 SG1M G104 Capstone Mining Corp Cardinal Energy Ltd G Y108 Cardinal Health inc CareFusion Corp T Carlsberg AS, classe B CarMax inc Carnival Corp Carrefour SA Casino Guichard Perrachon SA Catamaran Corp Caterpillar inc Cathay Pacific Airways Ltd 155 HK CBS Corp., classe B CCL Industries inc., classe B Celanese Corp., série A DE000CLS1001 Celesio AG 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 C109 CGI Group inc., classe A CH Robinson Worldwide inc W A103 Chartwell Retirement Residences Chemtrade Logistics Income Fund P R208 Cheniere Energy inc

82 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Chesapeake Energy Corp Cheung Kong Holdings Ltd Cheung Kong Infrastructure Holdings Ltd Chevron Corp 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 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 Compagnie de St-Gobain B3DCZF902 Compagnie Financière Richemont SA Compagnie Générale des Établissements Michelin SCA Compass Group plc ConAgra Foods inc Concho Resources inc P US Concur Technologies inc C104 ConocoPhillips Consolidated Edison inc Constellation Brands inc., classe A P

83 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 21037X100 Constellation Software inc Contact Energy Ltd Continental AG Continental Resources inc U101 Copper Mountain Mining Corp N Core Laboratories NV Corning inc K105 Costco Wholesale Corp G2554F113 Covidien plc Crédit Agricole SA 650 FR Credit Suisse Group AG Cree inc C101 Crescent Point Energy Corp CRH plc Croda International plc Crown Castle International Corp Crown Holdings inc 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 798 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 Delek Group Ltd Delhaize Group SA G Delphi Automotive plc Delta Air Lines inc Denbury Resources inc Denso Corp Deutsche Bank AG Deutsche Boerse AG Deutsche Post AG Deutsche Telekom AG Devon Energy Corp M AU000000DXS1 DEXUS Property Group R101 DH Corp Diageo plc Diamond Offshore Drilling inc C A103 DirectCash Payments inc A309 DIRECTV

84 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Discover Financial Services Discovery Communications inc., classe A F 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 Don Quijote Holdings Co. Ltd 249 JP C205 Dorel Industries inc., classe B Dover Corp Dow Chemical Co E109 Dr Pepper Snapple Group inc DTE Energy Co C204 Duke Energy Corp E.I. du Pont de Nemours and Co E.ON SE East Japan Railway Co Eastman Chemical Co G Eaton Corp. plc ebay inc Ecolab inc Edenred 746 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 Eli Lilly & Co Elisa OYJ EMC Corp Emerson Electric Co Empire Co. Ltd, classe A Ems-Chemie Holding AG Enagas SA N105 Enbridge inc Encana Corp Endo International plc 96 IE00BJ3V B4TWTW909 Enel Green Power SPA Enel SPA R105 Enerflex Ltd Energen Corp N R108 Energizer Holdings inc Enerplus Corp ENI SPA

85 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts G3157S106 Ensco plc, classe A Entergy Corp G P101 EOG Resources inc EQT Corp L U502 Equinix inc L107 Equity Residential Ericsson LM, classe B Erste Group Bank AG 590 AT Essex Property Trust inc Essilor International European Aeronautic Defence and Space Co. NV Eutelsat Communications SA 104 FR BMG3223R1088 Everest Re Group Ltd 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 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 NL Fiat Chrysler Automobiles NV M106 Fidelity National Information Services inc Fifth Third Bancorp Financière Sun Life inc Finning International inc FireEye inc Q B100 First Capital Realty inc 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

86 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Fortum OYJ Franco-Nevada Corp Franklin Resources inc D857 Freeport-McMoRan inc 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 Gas Natural SDG, SA B0C2CQ902 GDF Suez GEA Group AG 299 DE B1WGG9901 Geberit AG Gemalto NV General Dynamics Corp General Electric Co General Growth Properties inc General Mills inc V100 General Motors Co Genuine Parts Co B102 Genworth MI Canada inc George Weston Ltd Gibson Energy inc Gilead Sciences inc Givaudan SA GB GKN plc Glaxosmithkline plc Global Logistic Properties Ltd 295 SG2C Goldcorp inc Golden Agri-Resources Ltd G104 Goldman Sachs Group inc Google inc., classe A P P706 Google inc., classe C AU000000GPT8 Group Great Canadian Gaming Corp C106 Great-West Lifeco inc Groupe Canam inc C JP GungHo Online Entertainment inc H&R Real Estate Investment Trust Hamamatsu Photonics KK 526 JP Hang Lung Properties Ltd Hang Seng Bank Ltd Hankyu Hanshin Holdings inc Hargreaves Lansdown plc Harley-Davidson inc C101 HCA Holdings inc

87 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 40414L109 HCP inc Health Care REIT inc K 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 Herbalife Ltd 419 G4412G T105 Hertz Global Holdings inc H107 Hess Corp Hewlett-Packard Co High Liner Foods inc Hikari Tsushin inc Hirose Electric Co. Ltd 693 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 Capital Group inc Home Depot inc 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 Humana inc Husky Energy inc Hutchison Post Holdings Trust 300 SG2D Hutchison Whampoa Ltd ILF I.L.F. Ltd, série , classe B B288C9908 Iberdrola SA Ibiden Co. Ltd 202 JP IGM Financial inc Iliad SA Illinois Tool Works inc Illumina inc Iluka Resources Ltd

88 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts B011GL903 Imerys SA IMMOFINANZ AG 238 AT Imperial Oil Ltd Incitec Pivot Ltd US45337C1027 Incyte Corp Inditex SA Industrielle Alliance, Assurance et services financiers inc Industrivarden AB 291 SE DE Infineon Technologies AG A105 Information Services Corp Ing Groep NV Ingersoll-Rand plc 646 G Ingram Micro inc., classe A 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 638 B85KYF F104 IntercontinentalExchange Group inc International Business Machines Corp International Flavors & Fragrances inc International Paper Co Intertape Polymer Group inc Intertek Group plc Intesa Sanpaolo Intuit inc Intuitive Surgical inc E G491BT108 Invesco Ltd GB00B17BBQ50 Investec plc SE Investment AB Kinnevik, classe B Investor AB, classe B 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 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 B1Y1SQ901 Jeronimo Martins SGPS, SA JFE Holdings inc JP JGC Corp Johnson & Johnson

89 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Johnson Controls inc Johnson Matthey plc 242 B70FPS H100 JPMorgan Chase & Co JSR Corp R104 Juniper Networks inc B627LW906 JX Holdings inc ACI00RQT4 K+S AG 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 836 BE KDDI Corp Kellogg Co Keppel Corp. Ltd 856 B1VQ5C SG1R Keppel Land Ltd Kering Kerry Group plc, classe A Kerry Properties Ltd 215 BMG M100 Keuring Green Mountain inc Keyence Corp Keyera Corp Kikkoman Corp Kimberly-Clark Corp B101 Kinder Morgan inc Kingfisher plc Kinross Gold Corp Kirin Holdings Co. Ltd KLA-Tencor Corp Kobe Steel Ltd Kohl's Corp Komatsu Ltd B09M9D905 Kone OYJ, classe B Koninklijke Ahold NV NL Koninklijke Boskalis Westminster NV Koninklijke DSM NV Koninklijke KPN NV Koninklijke Philips 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 669 JP Kyushu Electric Power Co. inc L Brands inc La Banque de Nouvelle-Écosse R409 Laboratory Corp. of America Holdings

90 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Labrador Iron Ore Royalty Corp Lafarge SA Lam Research Corp Land Securities Group plc B05M8B904 Lanxess AG Las Vegas Sands Corp Lawson inc Legacy Oil + Gas inc Legal & General Group plc Legg Mason inc B11ZRK906 Legrand SA AU000000LEI5 Leighton Holdings Ltd T102 Leisureworld Senior Care Corp 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 Linde AG Lindt & Spruengli AG-PC Lindt & Spruengli AG-REG Linear Technology Corp A108 LinkedIn Corp., classe A LKQ Corp Lloyds Banking Group plc Loblaw Companies Ltd Lockheed Martin Corp Loews Corp GB00B0SWJX34 London Stock Exchange Group Lonza Group AG L'Oreal SA Lowe's Cos 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 R106 Manulife Financial Corp Mapfre SA 306 ES E

91 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Marathon Oil Corp Marathon Petroleum Corp A Marks & Spencer Group plc Marriott International inc., classe A Marsh & McLennan Cos inc Martin Marietta Materials inc Marubeni Corp 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 619 JP McGraw Hill Financial inc Q103 McKesson Corp MDU Resources Group inc Mead Johnson Nutrition Co MeadWestvaco Corp US58501N1019 Medivation inc Medtronic inc MEG Energy Corp B60DQV902 MEIJI Holdings Co. Ltd Y105 Merck & Co. inc Merck KGaA 452 DE B0744W900 Metcash Ltd 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 641 B00L2M JP Minebea Co. Ltd JP Miraca Holdings inc Q104 Mitel Networks Corp 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 JP Mitsubishi Motors Corp JP Mitsubishi Tanabe Pharma Corp

92 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Mitsubishi UFJ Financial Group Mitsui & Co. Ltd Mitsui Fudosan Co. Ltd IL Mizrahi Tefahot Bank Ltd Mizuho Financial Group inc Molson Coors Brewing Co., classe B R Mondelez International inc., classe A Monster Beverage Corp Moody's Corp Morgan Stanley Motorola Solutions inc MS&AD Insurance Group Holdings inc. 535 B2Q4CS HK MTR Corp. Ltd Muenchener Rueckver AG Mullen Group Ltd Murata Manufacturing Co. Ltd Murphy Oil Corp Mylan inc G6359F103 Nabors Industries Ltd JP Nagoya Railroad Co. Ltd National Australia Bank Ltd B08SNH908 National Grid plc National Oilwell Varco inc JP Nec Corp B06YV4907 Neste Oil OYJ Nestlé SA NetApp inc D L106 Netflix inc New Gold inc New World Development Co. Ltd 469 HK P103 Newalta Corp 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

93 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Nisshin Seifun Group inc Nissin Foods Holdings Co. Ltd Nitori Co. Ltd 992 JP Nitto Denko Corp H5833N103 Noble Corp Noble Energy inc JP NOK Corp Nokia OYJ Nokian Renkaat OYJ 247 FI Nomura Holdings inc Nomura Research Institute Ltd JP P403 Norbord inc Nordea Bank AB Norfolk Southern Corp B11HK3901 Norsk Hydro ASA North American Energy Partners inc Northeast Utilities Northern Trust Corp Northland Power inc Northrop Grumman Corp Novartis AG Novion Property Group AU000000NVN Novo Nordisk AS, classe B Novozymes AS, classe B 460 B798FW NRG Energy inc 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 685 JP Orange SA H107 O'Reilly Automotive inc Orica Ltd Oriental Land Co. Ltd Origin Energy Ltd Orix Corp

94 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 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 Owens-Illinois inc PACCAR inc U206 Pacific Rubiales Energy Corp Pall Corp US Palo Alto Networks inc Panasonic Corp DK Pandora AS Park24 Co. Ltd Parker Hannifin Corp T105 Parkland Fuel Corp PartnerRe Ltd 682 BMG6852T CH Partners Group Holding AG Patterson Cos inc Paychex inc PCCW Ltd Pearson plc Pembina Pipeline Corp P104 Pengrowth Energy Corp Penn West Petroleum Ltd H6169Q108 Pentair Ltd People's United Financial inc Pepco Holdings inc Pepsico inc Pernod Ricard SA Perrigo Co B0H2K5904 Petrofac Ltd PetSmart inc FR Peugeot SA Peyto Exploration & Development Corp Pfizer inc C108 PG&E Corp Pharmacyclics inc Phillips PHX Energy Services Corp U Pinnacle West Capital Corp Pioneer Natural Resources Co IT Pirelli & C. SPA PNC Financial Services Group 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 Power Financial Corp C PPG Industries inc T106 PPL Corp

95 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 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 Prudential Financial inc Prudential plc Prysmian SPA 299 IT Public Service Enterprise Group inc D109 Public Storage Publicis Groupe SA QBE Insurance Group Ltd V100 QEP Resources inc QUALCOMM inc Quebecor inc., classe B L100 Quest Diagnostics inc Rackspace Hosting inc AT Raiffeisen Bank International Rakuten inc Ralph Lauren Corp AU000000RHC8 Ramsay Health Care Ltd B01C3S908 Randgold Resources Ltd A109 Range Resources Corp Raytheon Co B24CGK904 Reckitt Benckiser Group plc Recruit Holdings Co. Ltd 321 JP Red Electrica Corp. SA Red Hat inc B2B0DG904 Reed Elsevier plc Regeneron Pharmaceuticals inc F EP100 Regions Financial Corp Reitmans (Canada) Limitée, classe A Rémy Cointreau SA BMG7496G1033 RenaissanceRe Holdings Ltd Renault SA Repsol SA Republic Services inc Resona Holdings inc Restoration Hardware Holdings inc GB00BMHTPY25 Rexam plc Rio Tinto Ltd Rio Tinto plc RioCan Real Estate Investment Trust Roche Holding AG Rock Tenn Co., classe A Rockwell Automation inc Rockwell Collins inc Rogers Communications inc., classe B

96 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts JP Rohm Co. Ltd Rolls-Royce Holdings plc B63H GB00BQ1JYL65 Rolls-Royce Holdings plc, classe C Roper Industries inc Ross Stores inc Royal Bank of Scotland Group 363 B7T B03MM4906 Royal Dutch Shell plc, classe B RSA Insurance Group plc 202 GB00BKKMKR Russel Metals inc RWE AG NZRYME0001S4 Ryman Healtcare Ltd SABMiller plc Safeway inc B058TZ909 Safran SA Saipem SPA L302 Salesforce.com inc Salix Pharmaceuticals Ltd 150 US Sampo OYJ, classe A C101 SanDisk Corp B5B23W909 Sands China Ltd Sandvik AB B1VQ Sandvine Corp JP Sankyo Co. Ltd Sanofi Santen Pharmaceutical Co. Ltd 938 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 B09RMQ G7945M107 Seagate Technology plc K100 Sealed Air Corp Secom Co. Ltd Secure Energy Services inc C SE Securitas AB, classe B 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 486 JP B1FH8J905 Severn Trent plc SGS SA BMG8063F1639 Shangri-La Asia Ltd

97 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Sharp Corp K200 Shaw Communications inc., classe B ShawCor Ltd Shikoku Electric Power Co. inc JP Shimadzu Corp JP Shimamura Co. Ltd JP Shimano inc Shin-Etsu Chemical Co. Ltd B2QKY0906 Shire plc Shiseido Co. Ltd Showa Shell Sekiyu KK Siemens AG Sigma-Aldrich Corp Sika AG Silver Wheaton Corp Simon Property Group inc Singapore Airlines Ltd 294 SG1V SG1P Singapore Press Holdings Ltd SG1F Singapore Technologies Engineering Ltd B02PY2901 Singapore Telecommunications Ltd SJM Holdings Ltd 373 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 557 B1WY Snam SPA FR Société BIC SA Q806 Société de Diamant Stornoway Société Financière Manuvie R Société Générale Sodexo Softbank Corp Solvay SA B62G7K908 Sompo Japan Nipponkoa Holdings inc AU000000SHL7 Sonic Healthcare Ltd CH Sonova Holding AG Sony Corp Southwestern Energy Co Spark New Zealand Ltd Spectra Energy Corp Sprint Corp U SSE plc St. Jude Medical inc Standard Chartered plc Standard Life plc 583 B16KPT Stanley Black & Decker inc JP Stanley Electric Co. Ltd N109 Stantec inc Staples inc

98 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts Starbucks Corp B1CNDB906 StarHub Ltd Starwood Hotels & Resorts Worldwide inc A State Street Corp Statoil ASA Stericycle inc Stockland AU000000SGP 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 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 JP Suntory Beverage & Food Ltd SunTrust Banks inc Superior Energy Services inc P103 Superior Plus Corp Suzuken Co. Ltd 709 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 B083BH906 Swiss Prime Site AG ACI00MQT5 Swiss Re AG Swisscom AG AU000000SYD9 Sydney Airport Symantec Corp DE000SYM9999 Symrise AG Syngenta AG Synopsys inc Sysco Corp T. Rowe Price Group inc T Taiheiyo Cement Corp JP Taisei Corp Takeda Pharmaceutical Co. Ltd E103 Talisman Energy inc Tamarack Valley Energy Ltd Y E106 Target Corp Tate & Lyle plc TDC AS JP TDK Corp

99 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts H TE Connectivity Ltd Technip SA Teck Resources Ltd, classe B Tekmira Pharmaceuticals Corp B B97C73904 Tele2 AB, classe B Telecom Italia SPA Telefonica SA ES Telenor ASA TeliaSonera AB Telstra Corp. Ltd M103 Telus Corp Tenaris SA B01BN5908 Terna - Rete Elettrica Nazionale SPA Tesco plc Tesla Motors inc T 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 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 738 GB The Western Union Co Thermo Fisher Scientific inc Thomson Reuters Corp ThyssenKrupp AG M103 Tim Hortons inc J207 Time Warner Cable inc Time Warner inc TJX Cos. inc T-Mobile US inc Tobu Railway Co. Ltd

100 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts JP Toho Co. Ltd 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 Toshiba Corp V106 Tourmaline Oil Corp Toyo Seikan Group Holdings Ltd Toyo Suisan Kaisha Ltd Toyota Motor Corp Tractor Supply Company D107 TransCanada Corp Transocean Ltd B5W3ND Transurban Group Treasury Wine Estates Ltd 137 B61JC JP Trend Micro inc Trimble Navigation Ltd Trinidad Drilling Ltd TripAdvisor inc S106 TRW Automotive Holdings Corp 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 ACI01A0K7 UniCredit SPA Unilever NV NL B10RZP905 Unilever plc Union Pacific Corp Uni-Select inc D United Continental Holdings inc United Overseas Bank Ltd United Parcel Service inc., classe B United Technologies Corp United Urban Investment Corp JP B39J2M903 United Utilities Group plc P102 UnitedHealth Group inc UPM-Kymmene OYJ US Bancorp USS Co. Ltd JP

101 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts 91911K102 Valeant Pharmaceuticals International inc Valeo SA 471 FR Y100 Valero Energy Corp FR Vallourec SA P105 Varian Medical Systems inc F100 Ventas inc Veolia Environnement R106 Veresen inc Y106 Verisk Analytics inc., classe A V104 Verizon Communications inc Vermilion Energy inc Vertex Pharmaceuticals inc F DK Vestas Wind Systems AS VF Corp P201 Viacom inc., classe B Vienna Insurance Group 195 AT B1XH02900 Vinci SA C839 Visa inc., classe A Vivendi SA B16GWD903 Vodafone Group plc Voestalpine AG Volkswagen AG B1QH83908 Volvo AB, classe B Vornado Realty Trust Vulcan Materials Co Walgreen Co 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 KYG WH Group Ltd Wharf Holdings Ltd Wheelock & Co. Ltd 294 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

102 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Quantité Coût Juste valeur Actions et parts G Willis Group Holdings plc B17KC6900 Wilmar International Ltd Windstream Holdings inc A Wisconsin Energy Corp Wolseley plc Woodside Petroleum Ltd Woolworths Ltd Workday inc H WorleyParsons Ltd B8KF9B904 WPP plc WR Berkley Corp WSP Global inc W 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 Kogyo Co. Ltd JP Yamato Transport Co. Ltd Yamazaki Baking Co. Ltd Yangzijiang Shipbuilding (Holdings) Ltd Yara International ASA JP Yokogawa Electric Corp BMG Yue Yuen Industrial Holdings Ltd Yum! Brands inc Zimmer Holding inc P Zodiac Aerospace V103 Zoetis inc Zurich Insurance Group AG Total - actions et parts

103 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations AB6 CI Financial Corp. 4,19 % ZQM0 Banque Toronto-Dominion (NHA MBS) 2,25 % VAP0 Banque de Montréal 1,65 % Taux variable AE4A VW Credit Canada inc. 2,50 % ZBP0 GE Capital Canada Funding Co. 4,24 % PAA0 Alliance Pipeline L.P. 7,23 % NAG2 Daimler Canada Finance inc. 2,33 % ZAA0 Metro inc. 4,98 % ZCH9A Caisse Centrale Desjardins du Québec 1,62 % Taux variable ZAB8 Capital Power L.P. 4,60 % ZF4 Gouvernement du Canada 3,00 % WR0 Banque Nationale du Canada 2,05 % RAA7 Cadillac Fairview Finance Trust 3,24 % A79 Gouvernement du Canada 1,25 % AC8 VW Credit Canada inc. 3,60 % BR2 Ford Auto Securitization Trust 3,02 % YC6 Province de l'ontario 4,40 % NAH0 Daimler Canada Finance inc. 2,23 % BAA2 Choice Properties L.P. 3,00 % Rachetable à compter du T23 La Banque de Nouvelle-Écosse 1,80 % ZAT4 Enbridge inc. 5,17 % ZAE6 Shoppers Drug Mart Corp. 2,01 % AM3 Rogers Communications inc. 5,80 % YJ6 Banque Nationale du Canada 1,52 % Taux variable AB7 Powell River Energy inc. 6,45 % L8 Banque Royale du Canada 3,03 % SP0 Banque de Montréal 2,96 % QS6 Banque Toronto-Dominion 2,95 % ZAS6 Enbridge inc. 5,00 % AAF1 Province de l'ontario 3,20 % AF1 VW Credit Canada inc. 2,20 % ZAW2 George Weston Ltd 3,78 % ZDS2 Banque Canadienne Impériale de Commerce 2,65 % Z59 La Banque de Nouvelle-Écosse 2,10 % ABE9 Ford Credit Canada 2,63 % ZAN5 Financement-Québec 3,50 % G76 La Banque de Nouvelle-Écosse 2,74 % ZAD9 Emera inc. 2,96 % AA2 CI Investments inc. 3,94 % Variable et rachetable à compter du ZAU8 Bell Canada 5,00 % NAK3 Daimler Canada Finance inc. 2,28 % J24 La Banque de Nouvelle-Écosse 2,60 % ZV9 Gouvernement du Canada 1,50 % YX0 Province de l'ontario 4,30 % 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 %

104 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations 13595ZHZ2 Banque Canadienne Impériale de Commerce 2,35 % ZAT7 Hydro One inc. 5,18 % AJ3 VW Credit Canada inc. 2,45 % 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 % A87 Gouvernement du Canada 1,25 % ZLB0 Banque Canadienne Impériale de Commerce 2,22 % ZAM8 American Express Canada Credit Corp. 2,31 % 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 % B37 Gouvernement du Canada 1,25 % ACW2 Province de l'ontario 1,75 % KAA3 Groupe TMX Limitée 3,25 % ZBJ8 Hydro One inc. 2,78 % YAA9 Brookfield Power Corp. 5,25 % HAN7 BMW Canada inc. 2,27 % ZAS4 Financement-Québec 2,40 % ZDU4 Province de Québec 4,50 % JM3 Municipal Finance Authority of British Columbia 2,35 % GH1 Banque Royale du Canada 2,77 % BAA3 TD Capital Trust III 7,24 % ZAF1 Enbridge Income Fund 4,10 % AH4 Loblaw Cos. Ltd 3,75 % MAD5 Tim Hortons inc. 2,85 % ZAB5 Brookfield Asset Management inc. 3,95 % JQ9 Metropolitan Life Global Funding I 2,68 % AB7 Power Corp. of Canada 7,57 % AA2 Transcontinental inc. 3,90 % BR5 Thomson Reuters Corp. 3,37 % ZAD7 Veresen inc. 3,06 % GAA3 Scotia Plaza 3,21 % AP5 Cominar Real Estate Investment Trust 3,62 % ZWG7 Banque Canadienne Impériale de Commerce 2,35 % ZAG7 John Deere Canada Funding inc. 2,35 % 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 ZK2 Banque Nationale du Canada 2,40 % N2 La Banque de Nouvelle-Écosse 2,40 % WAL2 OMERS Realty Corp. 2,47 % ZAV1 Greater Toronto Airports Authority 5,96 % ZAA7 Saputo inc. 2,65 % ZAT2 Financement-Québec 2,45 %

105 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations 87971MAK9 TELUS Corp. 5,05 % PEP4 Canada Housing Trust No 1 2,00 % AAA8 BP L.P. 3,24 % DQ1 Banque de Montréal 4,87 % Variable et rachetable à compter du YZ1 Gouvernement du Canada 3,50 % J0 Province de l'ontario 4,20 % 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 % S47 Banque Toronto-Dominion 2,56 % WAB8 NBC Asset Trust 7,45 % AF9 CDP Financial inc. 4,60 % ZAD1 Inter Pipeline Ltd 3,45 % MAM5 TELUS Corp. 5,05 % AL4 Cominar Real Estate Investment Trust 4,94 % ZCE3 Canadian Natural Resources 2,89 % 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 R57 Banque Royale du Canada 3,18 % Variable et rachetable à compter du ZAH9 Banque Toronto-Dominion 3,37 % ZAE7 Capital Desjardins inc. 3,80 % Variable et rachetable à compter du ZAL1 TransAlta Corp. 5,00 % AA4 Mississagi Power Trust 6,92 % RAB5 Cadillac Fairview Finance Trust 4,31 % MAT0 TELUS Corp. 3,60 % ZBU9 Wells Fargo Financial Canada Corp. 3,04 % RAC1 Leisureworld Senior Care L.P. 3,47 % GVL5 Goldman Sachs Group inc. 3,55 % AG9 Brookfield Asset Management inc. 5,30 % GV0 Banque Royale du Canada 2,86 % 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 % K0 La Banque de Nouvelle-Écosse 2,87 % PCS0 Canada Housing Trust No 1 3,80 % BJ2 TELUS Communications inc. 10,65 % ABH2 Ford Credit Canada 3,28 % AB3 Granite Reit Holdings L.P. 3,79 % Rachetable à compter du AG1 Reliance L.P. 4,08 % ZAD8 Sun Life Financial inc. 4,57 % 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 % PAE5 Algonquin Power Co. 4,65 % ZAG9 Enbridge Income Fund 4,85 % BL7 TELUS Communications inc. 9,65 % ZDM0 Banque Nationale du Canada 3,26 % Variable et rachetable à compter du

106 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations JK7 Municipal Finance Authority of British Columbia 3,35 % AAW4 Province de l'ontario 3,15 % M38 La Banque de Nouvelle-Écosse 2,90 % Variable et rachetable à compter du 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 % ZAB7 Pembina Pipeline Corp. 3,77 % 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 % BBU3 First Capital Realty inc. 3,90 % AA2 Bankers Hall L.P. 4,38 % AF3 Manufacturers Life Insurance Co. 2,93 % Variable et rachetable à compter du MAC7 Tim Hortons inc. 4,52 % KAT8 Shaw Communications inc. 4,35 % AC0 West Edmonton Mall Property inc. 4,06 % DAA4 IPL Energy inc. 8,20 % BA8 Rogers Communications inc. 4,00 % ZAH6 AltaGas Ltd 4,40 % BAC6 Genworth MI Canada inc. 4,24 % AB1 Industrielle Alliance 2,80 % Variable et rachetable à compter du B45 Gouvernement du Canada 2,50 % 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 ZBS2 Banque de Montréal 3,12 % Variable et 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 CW2 Banque Royale du Canada 2,99 % ZAM5 AltaGas Ltd 3,84 % Rachetable à compter du AH9 Manufacturers Life Insurance Co. 2,64 % Variable et rachetable à compter du MAX1 TELUS Corp. 3,75 % Rachetable à compter du EW9 Banque Toronto-Dominion 9,15 %

107 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations 66975ZAE4 Nova Gas Transmission Ltd 8,90 % DAK8 Westcoast Energy inc. 8,85 % TAB1 AGT Ltd 8,80 % AA8 Lievre Power Financing Corp. 5,56 % ZAC4 Alliance Pipeline L.P. 6,77 % ZAE9 Brookfield Asset Management inc. 4,82 % JM7 Banque Royale du Canada 3,45 % Variable et rachetable à compter du AE2 NAV Canada 7,56 % 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 % ZAD9 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 % AX0 Gaz Métro inc. 5,70 % ZAG3 Enbridge inc. 5,08 % ZBL7 Bell Canada 6,17 % 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 %

108 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations 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 % B98 Province de l'ontario 4,65 % AN2 Teranet Holdings L.P. 6,10 % ZBE5 407 International inc. 4,45 % ZBV9 TransCanada PipeLines Ltd 4,55 % ZEF6 Province de Québec 5,00 % 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 % TW5 Province du Manitoba 3,35 % RAA5 Simon Fraser University 5,61 % ZBC2 Nova Scotia Power inc. 4,50 % ZBB8 CU inc. 4,72 % Rachetable à compter du ZAK2 AltaLink L.P. 4,92 % 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 GC0 Province de la Colombie-Britannique 3,20 % ZAL7 AltaGas Ltd 4,50 % Rachetable à compter du ZBE2 CU inc. 4,09 % Rachetable à compter du ZBH6 Bell Canada 4,75 % Rachetable à compter du ZAP1 AltaLink L.P. 4,05 % 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 FZ5 Province de Nouvelle Écosse 3,45 % ACC6 Province de l'ontario 3,45 % JU3 Province de la Saskatchewan 3,90 % UB9 Province du Manitoba 4,05 % ZER0 Province de Québec 3,50 % AE4 Lower Mattagami Energy 4,18 %

109 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Obligations B94 Gouvernement du Canada 1,25 % 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

110 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Description Valeur nominale Coût Juste valeur Instruments du marché monétaire ST38098 Banque Canadienne Impériale de Commerce, 1,10 % acceptation bancaire ST38173 Banque Canadienne Impériale de Commerce, 1,10 % acceptation bancaire ST38079 Gouvernement du Canada, bon du trésor 0,87 % ST38069 Gouvernement du Canada, bon du trésor 0,89 % Z7VJ0 Gouvernement du Canada, bon du trésor 0,90 % Z7V92 Gouvernement du Canada, bon du trésor 0,95 % RZG3 Province de Québec, note promissoire 0,94 % ST37891 Banque Nationale du Canada, acceptation bancaire 1,16 % ST37892 Banque Nationale du Canada, acceptation bancaire 1,16 % Z7UX0 Gouvernement du Canada, bon du trésor 0,87 % Z7UX0 Gouvernement du Canada, bon du trésor 0,88 % Z7UX0 Gouvernement du Canada, bon du trésor 0,94 % UY9 Province de la Colombie-Britannique, note promissoire 0,97 % ZL6 Canadian Wheat Board, papier commercial 0,92 % ST37832 Banque Nationale du Canada, acceptation bancaire 1,15 % ST37833 Banque Nationale du Canada, acceptation bancaire 1,15 % RZP3 Province de Québec, note promissoire 0,95 % ST37909 Province de Québec, bon du trésor 0,96 % UA0 Province de Nouvelle-Écosse, note promissoire 0,97 % RA62 Province de Québec, note promissoire 0,95 % Z52A7 Province de l'ontario, bon du trésor 0,99 % AD1 Canadian Wheat Board, papier commercial 0,91 % Z7U28 Gouvernement du Canada, bon du trésor 0,88 % ST38126 Banque Nationale du Canada, acceptation bancaire 1,18 % ST38128 Banque Nationale du Canada, acceptation bancaire 1,18 % Z7VQ4 Gouvernement du Canada, bon du trésor 0,88 % ST38029 Banque Nationale du Canada, acceptation bancaire 1,18 % ST38037 Banque Nationale du Canada, acceptation bancaire 1,18 % ST38038 Banque Nationale du Canada, acceptation bancaire 1,18 % ST38164 Banque Nationale du Canada, acceptation bancaire 1,19 % ST38175 Banque Nationale du Canada, acceptation bancaire 1,19 % Z7U69 Gouvernement du Canada, bon du trésor 0,89 % Z52G4 Province de l'ontario, bon du trésor 0,99 % ABL0 VW Credit Canada inc., papier commercial 2,33 % AC96 Province de la Saskatchewan, note promissoire 0,49 % CT0 Banque Canadienne Impériale de Commerce, 1,15 % acceptation bancaire 1350Z7VZ4 Gouvernement du Canada, bon du trésor 0,87 % Z53P3 Province de l'ontario, bon du trésor 1,05 % K28 Banque Manuvie du Canada, note promissoire 1,41 % Total - instruments du marché monétaire

111 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats à terme - position acheteur F135ZQ00412 Gouvernement du Canada, 2,75 %, ,03 CAD ADZ4F14MER Indice devise australienne 90,36 USD IXTZ4F13NEW Indice E-Mini Technologie 398,30 USD VGZ4F04NEW Indice Euro StoXX ,03 EUR DEDZ6F13NEW Indice Euro StoXX 50 dividend 110,00 EUR NHZ4F04NEW Indice Nikkei ,00 JPY ESZ4F04NEW Indice S&P 500 E-Mini 2 056,43 USD BAU5F14MER Taux d'intérêt 3 mois acceptations bancaires canadiennes 98,47 CAD EDZ5F14MER Taux d'intérêt 3 mois eurodollar 98,92 USD EDZ6F14MER Taux d'intérêt 3 mois eurodollar 98,00 USD EDU6F14MER Taux d'intérêt 3 mois eurodollar 98,23 USD EDM7F14MER Taux d'intérêt 3 mois eurodollar 97,40 USD ERM5F14MER Taux d'intérêt 3 mois indice Euribor 99,76 EUR ERH6F14MER Taux d'intérêt 3 mois indice Euribor 99,80 EUR ERZ7F14MER Taux d'intérêt 3 mois indice Euribor 98,97 EUR Taux d'intérêt 3 mois livre sterling L Z5F14MER 98,40 GBP F912TR10412 US Treasuries, 1,00 %, ,29 USD F912B US Treasuries, 2,75 %, ,85 USD Total - contrats à terme - position acheteur Contrats à terme - position vendeur FUSD Dollar américain 1,14 CAD (1) FUSD081214A Dollar américain 1,13 CAD (17) FUSD Dollar américain 1,13 CAD (243) FUSD091214A Dollar américain 1,12 CAD (40) FAUD Dollar australien 0,98 CAD CDZ4F14MER Dollar canadien 90,25 USD FEUR Euro 1,42 CAD (4) F135D Gouvernement du Canada, 2,25 %, ,97 CAD (541) NVZ4F14MER Indice devise Nouvelle-Zélande 81,00 USD DEDZ5F13NEW Indice Euro StoXX 50 dividend 111,70 EUR ESZ4F04RBC Indice S&P 500 E-Mini 1 976,19 USD FGBP Livre sterling 1,82 CAD TYH5F04NEW Taux d'intérêt 10 ans obligations du trésor américain 125,85 USD BAH6F14MER Taux d'intérêt 3 mois acceptations bancaires canadiennes 98,21 CAD EDZ7F14MER Taux d'intérêt 3 mois eurodollar 96,98 USD EDU5F14MER Taux d'intérêt 3 mois eurodollar 99,24 USD EDH6F14MER Taux d'intérêt 3 mois eurodollar 98,60 USD EDM6F14MER Taux d'intérêt 3 mois eurodollar 98,53 USD EDH7F14MER Taux d'intérêt 3 mois eurodollar 97,80 USD ERZ5F14MER Taux d'intérêt 3 mois indice Euribor 99,90 EUR ERU6F14MER Taux d'intérêt 3 mois indice Euribor 99,46 EUR ERM7F14MER Taux d'intérêt 3 mois indice Euribor 99,17 EUR Taux d'intérêt 3 mois livre sterling L M5F14MER 98,85 GBP F912VW70412 US Treasuries, 0,88 %, ,82 USD (6) Total - contrats à terme - position vendeur (602) Contrats d'options - position vendeur OSX5E3225 Indice Euro StoXX ,00 EUR (18) (43) 35

112 Relevé des autres investissements ( non audité ) au 30 novembre 2014 Élément sous-jacent Prix de contrat ou d'exercice Nombre d'unités Échéance / livraison Valeur notionnelle Coût Juste valeur Contrats d'options - position vendeur SXSE3300 Indice Euro StoXX ,00 EUR (16) (23) NKYF04NEW Indice Nikkei ,00 JPY (22) (20) ONKSF04NEW Indice Nikkei ,00 JPY (68) (54) ESZ4P1800B Indice S&P ,00 USD (27) (1) ESZ4P1850 Indice S&P ,00 USD (25) (2) ESZ4P1900 Indice S&P ,00 USD (28) (2) ESZ4C2050A Indice S&P ,00 USD (5) (37) ESF5P1925 Indice S&P ,00 USD (27) (11) Total - contrats d'options - position vendeur (236) (193) Total - instruments financiers dérivés (236) (458) * Total des autres investissements * * De ces totaux, un montant de 1,0 M$, représentant la juste valeur négative des instruments financiers dérivés et un montant de 0,2 M$ représentant le coût de ces instruments financiers dérivés, sont présentés sous Créditeurs et autres passifs aux états financiers du Fonds de solidarité des travailleurs du Québec (F.T.Q.) au 30 novembre Titres achetés en vertu de conventions de revente Au 30 novembre 2014, la juste valeur des titres en portefeuille achetés en vertu de conventions de revente est de 215,8 M$. Ces titres sont des obligations. Ces transactions ont été exécutées entre le 12 novembre 2014 et le 28 novembre 2014, tandis que leurs échéances se situent dans l'intervalle compris entre le 1er décembre 2014 et le 10 décembre Le montant payé est de 215,2 M$ et il correspond à la juste valeur des titres reçus. Titres vendus en vertu de conventions de rachat Au 30 novembre 2014, la juste valeur des titres en portefeuille vendus en vertu de conventions de rachat est de 353,4 M$. Ces titres sont des obligations. Ces transactions ont été exécutées entre le 3 novembre 2014 et le 28 novembre 2014, tandis que leurs échéances se situent dans l'intervalle compris entre le 1er décembre 2014 et le 11 décembre Le collatéral reçu est de 360,5 M$. Le prix de rachat à payer est de 353,1 M$. 36

113 INDEX OF THE SHARE OF THE FONDS IN INVESTMENTS MADE BY THE SPECIALIZED FUNDS, AT COST (UNAUDITED) AS AT NOVEMBER 30, 2014

114 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (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 fourteen companies 26,398 3,907 30, FIER Partenaires, société en commandite Capital St-Laurent, s.e.c. Fonds Brightspark II, s.e.c. Fonds CTI sciences de la vie, s.e.c. Fonds d'investissement inovia II, société en commandite Fonds 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. Rho Canada Capital de Risque, s.e.c. Société en commandite AgeChem Securities of three other companies 33,701 33,701 Funds committed but not disbursed 18,275 51, Fonds Bio-Innovation, société en commandite Securities of ten companies 6,983 2, ,071 Funds committed but not disbursed 2,124 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 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. Groupe Star Suites 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. Modus FX inc. Scène Scapin inc. Studios Budge inc. Via Éditorial, société en commandite Vivavision inc. Wilson & Lafleur, limitée Securities of six other companies 1,796 6,123 4,132 12,051 Funds committed but not disbursed 2,173 14,224 1

115 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (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. 15,681 15, St-Paul Québec inc. 1,917 1, St-Vallier inc. 2,083 2, Rand s.e.c. 1,654 1, Richelieu s.e.c ,000 3, Charest s.e.c. 2,010 2, Honoré-Mercier s.e.c. 30,103 30,103 Brossard-sur-le-Fleuve s.e.c. 2,217 2,217 Carré Chambord s.e.c Centre de développement des Biotechnologies de Laval s.e.c. 5,100 5,100 Condominiums Le George V s.e.c Condominiums Renaissance Blainville s.e.c Condos Wanklyn-Milot s.e.c. 4,597 4,597 CPA Fontainebleau, s.e.c Développement Joseph-Morin, s.e.c Développements Wilfrid-Carrier s.e.c. 7,956 7,956 Espace MV1 s.e.c. 1 1 Espace MV2 s.e.c. 1 1 Espace MV3 s.e.c. 2, ,200 Espaces Lebourgneuf Phase III s.e.c. 2,800 2,800 Fonds d'acquisition de Montréal, société en commandite 5,080 5,080 Fonds d'acquisition québécois, société en commandite 5,073 5,073 Fonds d'investissement de Montréal (F.I.M.), société en commandite 1,607 1,607 Fonds d'investissement de Montréal (F.I.M.) II, société en commandite Fonds d'investissement de Montréal (F.I.M.) III, société en commandite 1, ,009 Gérer son Quartier 3,562 3,562 Graham-Mont-Royal s.e.c. 7,194 7,194 Montée des Pionniers Phase 1 s.e.c Montée des Pionniers Phase II s.e.c ,177 1,677 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 9,603 9,613 Société en commandite Château Hymus 1 1 Société en commandite Clairevue Société en commandite D.P.L.S. 1, ,621 Société en commandite des Bassins I 2,500 3,750 6,250 Société en commandite GII, Ilôt 10 (Comm-bur) 2, ,115 5,973 Société en commandite GII, Ilôt 10 (Résidentiel) 1, ,974 6,329 Société en commandite Griffintown II 2,468 2,468 Société en commandite Griffintown II, Phase II 2,777 2,777 Société en commandite Griffintown II, Phase II (Commercial) 2,348 1,600 3,948 Société en commandite Griffintown II, Phase II (Condos-Tour 1) 964 2,200 3,164 Société en commandite Griffintown II, Phase II (Condos-Tour 2) 1,042 1,300 2,342 Société en commandite Griffintown II, Phase II (Tour 3) Société en commandite Griffintown II, Ilot 09 (locatif) 3,768 3,768 Société en commandite Griffintown II, Phase III (Bloc I) 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 15,686 23,952 Société en commandite QDS 28,500 28,500 Société en commandite Rose de Lima Société en commandite St-Bruno-sur-le-Lac Phase 4 2,000 2,305 4,305 Société en commandite Viau Ontario 1 1 Souvenir-Corbusier s.e.c. 1 1 St-Paul/Du Palais s.e.c. 3,928 3,928 Technoparc Bromont Phase I s.e.c. 1,383 1,383 Urbania Phase VII s.e.c. 1 1 Wanklyn-Milot s.e.c. 3,566 3, general partners of limited partnerships ,759 42,797 30, ,962 Direct holdings : Terrain Boul. Lucille Teasdale, Terrebonne 2,596 Terrain Boul. Le Corbusier, Laval 11, ,935 2

116 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (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 St-Alexandre s.e.c Québec inc C.C.L. II, société en commandite Complexe d'affaires 440, s.e.c. 2,825 2,825 Condos Miscéo s.e.c Immobilière St-Hippolyte, s.e.c 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 3,314 3,314 Société en commandite Alfred-Nobel Société en commandite Alphonse T. Lépine 1,725 1,725 Société en commandite Ann-Ottawa 1,502 2,192 3,694 Société en commandite Beauharnois 8 8 Société en commandite Claude Baillif 1,045 1,045 Société en commandite Inspecteur-William Société en commandite Les Berges Brossard Société en commandite Milton Société en commandite Place Dunant Société en commandite Square Mont-Royal 5 5 Société en commandite Ste-Hélène Village de la Gare s.e.c general partners of limited partnerships ,097 5,880 3,214 19,191 Direct holding : Terrain ave. du Lac-Clermoutier, Chertsey 1,295 20, Fonds immobilier de solidarité FTQ II, s.e.c de Bleury s.e.c. 4,100 4, Henri-Bourassa ouest s.e.c. 2,932 2, Québec inc Capital BLF inc. 1,842 1,842 Espaces Lebourgneuf s.e.c. 3,471 3,471 Faubourg la Grande Place, s.e.c. 1,201 1,201 Hôtel Particulier:Le Ste-Hélène s.e.c. 6 3,827 3,833 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 SEC St-Bruno-sur-le-Lac Phase SEC St-Bruno-sur-le-Lac Phase Société en commandite Ann-Ottawa 2,192 2,192 Société en commandite Cavelier de La Salle 4, ,433 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 ,913 6,644 3,214 35,771 Direct holdings : Condominium 410 des Récollets, Montréal 615 Terrain ave. du Lac-Clermoutier, Chertsey 1,295 37,681 3

117 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (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

118 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (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 régional de solidarité Abitibi-Témiscamingue, société en commandite Québec inc. (Hardy Construction) Québec inc. (Les Réclamations du Nord-Ouest) Québec inc. (Centre Jardin Lac Pelletier) Québec inc. (Consultants B.C.H.) Québec inc. (Dan Extermination) Québec inc. (Forage Boréal) 1,300 1,148 2, Québec inc. (Pétroles Témis) A. & L. Pinard inc Abitibi Royalties inc. 3 3 Adventure Gold inc Agritibi R.H. inc. 1,660 1,660 ASDR Fabrication inc Atelier Tangente inc Centre de peinture L.B.G. inc Corporation Aurifère QMX Corporation d'or Intégra Entrepreneur Minier Promec inc Exploration Azimut inc Exploration Midland inc Ferabi inc Géliko inc Groupe MBI inc. 1,642 1,642 Groupe Technosub inc. 1,021 1,021 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 Les Ressources Yorbeau inc LVL Global inc ,118 Machineries Horticoles d'abitibi inc Machines Roger lnternational inc. 1,133 1,133 Matamec Explorations inc Mines de la Vallée de l'or ltée Mines Richmont inc Modulabec inc Propair inc. 1,350 1,350 Ressources Cartier inc Service Sani Tri inc Transport Clément Bégin inc VCC-Massénor inc ,882 12, ,588 Funds committed but not disbursed ,150 5

119 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Bas-Saint-Laurent, société en commandite Québec inc. (Copeaux de la vallée) Canada inc. (Méridien Maritime Réparation) et Canada 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 Technologies 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 Gestion du Fonds Soutien Bas-Saint-Laurent inc. 1 1 Les Constructions H.L. Thériault inc Les Distributions Arnaud inc Les Électriciens Pierre Roy 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 ,818 6,492 8,310 Funds committed but not disbursed 140 8, Fonds régional de solidarité Centre-du-Québec, société en commandite Écofib inc Huppé Meubles inc IPM Canada inc Misa Tours Canada inc Nitek Laser inc Paul Rocheleau inc Rénovation Expo inc Vibrotech inc ,698 2, Fonds régional de solidarité Chaudière-Appalaches, société en commandite Québec inc. (Ramp-Art) Québec inc. (Supervac 2000) Québec inc. et L'Usine Tac Tic inc Québec inc. 1,000 1,000 Bercomac Limitée Canada moteurs importations inc Cométal inc Équipements Demers inc Équipements Plannord ltée Équipements récréatifs Jambette inc Fini. U.V. International inc Groupe PCM inc Groupe S.S. inc. 1,007 1,007 J.L. Leclerc & fils inc Les Productions Horticoles Demers inc Mapa Innovations inc. et Les Produits Multi-Formes G.M. inc Menuiserox inc Multi-Brosses inc Portes Veilleux 2000 inc Quartz Industrie inc Usine Sartigan inc ,425 6,820 1,000 9,245 Funds committed but not disbursed 500 9,745 6

120 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Côte-Nord, société en commandite Canada inc. (Les Entreprises Electro Select) Québec inc. (Pompage Pelletier) Québec inc. (Parmon Construction) Québec inc. (Résidence J.R. Lafontaine) Carrosserie Pro 2010 inc Construction Fortin & Lévesque inc. 1,050 1,050 Construction J.G.M. inc Fonds Soutien Côte-Nord, société en commandite 1,000 1,000 Gestion du Fonds Soutien Côte-Nord inc. 1 1 Hôtel Mingan inc. 1,842 1,842 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 Nord Industrie inc Pec-Nord inc Synergica Alliance inc ,301 7,984 9, Fonds régional de solidarité Estrie, société en commandite Québec inc. (Multi distribution Sherbrooke inc.) Québec inc. (Armoires NAC) Acier Fastech inc Amecci inc Ani-Mat inc. 1,154 1,154 Boréal - Informations stratégiques inc. 1,018 1,018 Domaines Pinnacle inc Innotex inc Kemestrie inc LeProhon inc Les Cartons Northrich inc Les Entreprises Dauphinais inc Les Industries Touch inc. 1,158 1,158 Les Quais Bertrand inc Les Viandes Laroche inc M.P. Éco inc Motrec international inc Oasis Tropik Nordik inc Scholer Industriel inc Signalisation de l'estrie inc Soudure Brault inc Sport Powertek inc ,327 10,957 Funds committed but not disbursed 1,150 12, Fonds régional de solidarité Gaspésie - Îles-de-la-Madeleine, société en commandite B.M.B. (Îles-de-la-Madeleine) inc Cap sur mer 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 Léo Leblanc & fils inc Les Pêcheries Marinard ltée Les Reboiseurs de la Péninsule inc Pêcheries Vilo inc Serres Jardins-Nature inc ,425 2,264 4,689 7

121 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Lanaudière, société en commandite ABC Environnement inc ABC Environnement inc. et Québec inc Agro-100 ltée Gestion EDB Mondor inc Groupe Manucam inc Laboratoires Bi-Op inc. 1,250 1,250 Multi-modèles Martin Gaudet inc Pneus Lanoraie inc Sécurité GMR inc Triotech Amusement inc Verre Select inc ,500 4, Fonds régional de solidarité Laurentides, société en commandite Canada inc. (Aliments Urbains) Canada inc. (Profab mécanique 2010) et Québec inc Québec inc. (Lacelle & Frères) Autobus Lion inc BMI Canada inc. 1,596 1,596 Canrep inc Complexe Hôtelier St-Jovite/ Mont-Tremblant inc Distributions Denis Fontaine inc Garage François Thouin inc., Remorques CFT inc. et Canada inc Gestion Estérel inc Gestion hôtelière REVPAR inc Groupe Aviation et Puissance inc. 1,117 1,117 Groupe Sima Palsol inc. 7 7 Groupe Star Suites inc. 1,010 1,010 La Petite Bretonne inc. 1,092 1,092 Le Groupe Synergie Xpress inc Lev-Fab inc Montour ltée Myre, Pageau & Associés Consultant immobilier inc Palmex International inc Service Alimentaire Desco inc Vision Villégiature inc ,050 9,226 10,276 Funds committed but not disbursed , Fonds régional de solidarité Laval, société en commandite Québec inc. (Hulix Construction) Québec inc. (Jungle Aventure) Ciel Aventure Québec inc. 1,000 1,000 Forages M.S.E. inc. et ICANDA Corporation 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 ,439 5,565 Funds committed but not disbursed 1,000 6, Fonds régional de solidarité Mauricie, société en commandite Québec inc. (Transport Jacques Labbé) Climatisation Trois-Rivières inc Concept Éco-Plein-Air Le Baluchon inc ,352 Portes & fenêtres Nouvel Horizon inc Simaudio Ltée ,101 2,852 8

122 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Montérégie, société en commandite Canada inc., Canada inc. et Canada inc Agro-Bio contrôle inc Agrocentre Belcan inc Alimentation L'Épicier inc Aliments Horizon Nature inc Allard & Ricard inc Andy transport inc Atelier d'usinage Quenneville inc Bousquet Frères Limitée Contrôle Industriel C.T.H. ltée Corporation Norme Internationale inc Corporation Smartsilk inc DCL Nutrition & santé animale inc Emballages Cré-O-Pack International inc FDC Composites inc Galerie au chocolat inc Groupe Carreaux Céragrès inc. 2,000 2,000 Groupe Exel International inc Groupe Lincora inc Investissements Brasco inc Laboratoires Natrum inc. et Dermolab Pharma ltée Le Groupe Conseil Integrim inc Les industries Cendrex inc Les Investissements Sylnic inc Les Laboratoires de recherche de Lan Wirewerks inc Les Productions Diamant ltée Les Produits de Ventilation Lambro inc Les sols Sportica inc Location Jean Légaré ltée M.G.B. Électrique inc Magnus Poirier inc Matériaux paysagers Savaria ltée Perfecta Plywood ltée Perlite Canada inc Plombco inc Portes et fenêtres Cordy inc Quincaillerie architecturale Capsol inc Ray-Mont Logistiques inc. 1,090 1,090 RB&C Maintenance de voies inc Secco International inc Service sérigraphique professionnel S.S.P. inc Soya Excel inc SPB Psychologie organisationnelle inc Stylo Bankers (1991) inc Tornatech inc Vulcan Compagnie de Palans ltée ,729 1,090 19, Fonds régional de solidarité Nord-du-Québec, société en commandite Québec inc. (Entretien industriel D.L.B.) Québec inc. (Nord Décoration inc.) Québec inc. (Relais du Lac Caché) Cogitore Resources inc Corporation Éléments Critiques Donner Metals Ltd Équipement de bureau Ungava inc Exploration Azimut inc Exploration Dios inc Exploration Khalkos inc. 6 6 Exploration Midland inc Exploration NQ inc Focus Graphite inc Fonds Soutien Baie-James, société en commandite Gestion du Fonds Soutien Baie-James inc. 1 1 Les Consultants de l'arctique inc Les Pétroles M.J. inc M.A.S. Chibougamau inc Mines Coulon inc Mines Virginia inc Nemaska Lithium inc

123 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Nord-du-Québec, société en commandite (continued) Ressources Cartier inc Ressources Géoméga inc Ressources Monarques inc Services Pétroliers Chibougamau inc Société d'exploration Minière Vior inc Société de Diamant Stornoway St-Félicien Diesel (1988) inc ,710 2, ,670 Funds committed but not disbursed 150 5, Fonds régional de solidarité Outaouais, société en commandite Canada ltée (Taxi Loyal) Canada inc. (Vitrerie Vision 2000 enr.) 1,000 1, Canada Ltd (Storeimage) Canada inc. (IEG) Canada inc. (Les Services de la première générale (Gatineau)) Canada inc. (Concept Pro-Métal) Canada inc. (La trappe à fromage) Québec inc Alary, St-Pierre & Durocher Arpenteurs-géomètres inc Auberge & Spa le Nordik inc. 1,330 1,330 Ed. Brunet et associés Canada inc Gestion conseil Immogest-Sweeney inc Imasight inc Laiterie de l'outaouais inc Macadamian Technologies inc. 1,500 1,500 Norgau inc PCI Géomatiques Entreprises inc Philouze Boulanger-pâtissier inc ProVance Technologies inc ,286 Restaurations Sélect inc Service de Pneus Lavoie Outaouais inc SolaCom Technologies inc. 1 1 Systèmes de test Simbol inc Terrapro Construction inc. 1,437 1,437 WMD Moulin de Wakefield développements inc Zeligsoft inc ,048 9, ,961 Funds committed but not disbursed 1,850 13, Fonds régional de solidarité Québec, société en commandite Québec inc. (E.B.M. Laser) Agora Communication inc Armeco inc Ascenseurs Maxi inc Auvents W. Lecours inc Chemco inc Corporation Eatsleepmusic.com Distribution Sports Loisirs G.P. inc DK-SPEC inc Engrenage Provincial inc. 1,736 1,736 Filtrum inc Fleurigros 1995 inc Groupe Enode inc Groupe Incursion inc Groupe Qualinet inc Groupe Renaud et Ass. inc Imprimerie Nicober inc J.A. Roby inc Laboratoire Hygiènex inc Les Aliments 2000 inc Les Chaussures Henri-Pierre inc Les Distributions Marc Boivin inc Les Entreprises P.E.C. inc Les Industries Rouillard inc Les Vêtements Perlimpinpin inc

124 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Fonds régional de solidarité Québec, société en commandite (continued) Machitech inc. 1,000 1,000 Maçonnerie Dynamique ltée Métafab (1996) inc Métal Potvin inc Miro Cuisines Tendances inc Mode Avalanche inc Panavidéo inc Radio-Onde inc SGPP (Québec) inc. (Simon Giguère Produits Pétroliers) TBC Constructions inc Vohl inc. et Gestion A.V.F. inc ,491 14, ,744 Funds committed but not disbursed , Fonds régional de solidarité Saguenay - Lac-Saint-Jean, société en commandite Québec inc. (Notre Hôtel) Québec inc. (Interbus) Canada inc. (Société P.C.P.) Canada inc. (Récupère Sol) 1,000 1, Québec inc. (Les Chocolats Lulu) Québec inc. (Inter-Projet) Québec inc. (Menuiserie St-Henri) Québec inc., Québec inc. et Québec Québec inc A.S. Nettoyage inc Cycles Devinci inc. 1 1 Dynamitage Express inc Garage Marcel Simard inc Gestion du Fonds AP 60 inc. 1 1 Gestion LJ inc Groupe Giroux Maçonnex inc Industrie Bois Lamontagne inc Industries Bofab inc Isumi Précision ltée Laval Fortin ltée 1,000 1,000 Les Équipements pétroliers Claude Pedneault inc Les Fenêtres AGM inc Les Lignes du Fjord inc Les Pétroles R.L. inc Les Placements G.M.R. Maltais inc Nolicam Location de camions inc Novabrik International inc. 1, ,522 Oxygène Dolbeau inc Pétrolex St-Félicien inc Précicast ltée Prowatt inc Reboitech inc. et Plani-forêt S.G.F. inc Remac innovateurs industriels inc SCP 89 inc Société de gestion Trois-Trois-Trois inc Transports J.M. Bernier inc ,176 10, ,213 Funds committed but not disbursed , Novacap Industries III, s.e.c. Corporation de Développement Enviro-Viridis inc. Corporation de Développement Nautilus inc. IPL inc. La Corporation de développement cuirs Bentley inc. Securities of six other companies 10,536 8,370 18,906 11

125 Index of the Share of the Fonds in investments Made by the Specialized Funds, at Cost (unaudited) as at November 30, 2014 (in thousands $) Information from Unsecured Secured Total Annual Financial Shares Loans and Loans and Report dated and Units advances advances Société de gestion d'actifs forestiers Solifor, société en commandite Solifor Bloc A-RPF, société en commandite Solifor Bloc B-LP, société en commandite Solifor Bloc Monet, société en commandite Solifor Charlevoix-Saguenay, société en commandite Solifor Lac Métis, société en commandite Solifor Lotbinière, société en commandite Solifor Mauricie, société en commandite Solifor Nicolas Riou, société en commandite Solifor Perthuis, société en commandite 138, , VC, société en commandite Securities of two companies Direct holdings of real estate 122, ,980 This unaudited index details the investments made by the specialized funds as required by the Regulation Respecting Development Capital Investment Fund Continuous Disclosure. 12