infoactionNews for shareholders www.fondaction.com

Fondaction participated to the extentof $3.2 million in a private placementenabling 4IQ Holding to acquire SacSanté inc., the manufacturer of SacMagique products. 4IQ Holding is ayoung management firm with interests

in companies involved in the distribution of cosmetics and other consumer products sold in pharmacies. The firm has approximately thirty employees in Montréal.

Group BBH obtained a $1 million investment. The company designs, manufactures and distributes gloves,ropes, workwear and other safety items. It has licence agreements with such recognizable brands as Terra (boots,workwear and gloves), Gardena (gardening gloves) and

Roots (fashion gloves for women). Its products are distributed at Rona, Costco and other stores. The company employs 38 people in the municipality of Dorval.

Fondaction has invested $1 million in the Coopérative forestière de Petit Paris, located in Saint-Ludger-de-Milot, in Saguenay–Lac-Saint-Jean.During peak periods, the co-op puts some 350 people towork, either directly or through its subsidiaries. In an effort to minimize the negative impacts of its activities, it has developed and put in place an environment managementsystem. It generally operates on land certified by the FSC (Forest Stewardship Council) which guarantees the practice of sustainable forestry.

Fondaction has invested $3 million in Aptilon, a company that enables pharmaceutical, biotech and medical device companies to effectively

contact and advertise to physicians and other healthcare professionals via the Internet. Aptilon is a rapidly growing business with global reach. It provides about sixty specialized positions in Montréal.

New investments Planning a move?Have you recently moved? Or maybe you have just startedto pack your boxes. Did youknow you can send us achange of address directly from the Fondaction website?Update your contact information in just a few clicks.And as you update your file, why not take the opportunity to add your email address? This way, you’ll be sure to receive any noticesfrom Fondaction.

Here’s what to do:1. Go to www.fondaction.com

2. Click on this button to update your contact information

3. Enter your reference numberfor subscriptions by banktransfer (7-digit number on page 2of your investment statement)

4. Enter your contact information

To find out more about 40% tax credits, online contributions,PD, RRSP loans, etc., visitwww.fondaction.com. It’s allthere! Or feel free to contactShareholder Servicesat 1 800 253-6665.

www.fondaction.com

Lump-sum subscriptions again being accepted!As of June 1, 2011Fondaction has started to accept lump-sum contributionsagain. Don’t delay if you want to use this savings methodand take advantage of the tax credits for 2011. During its last RRSP campaign, Fondaction had to stop acceptinglump-sum contributions as of January 26. This year again,Fondaction‘s share issue is limited to $150 million. Make your contribution today!

Contribute online: it’s quick and easyVisit your financial institution’s website.* In your payments file,you can enter “Fondaction subscription” as one of your payees and make your contributions online. Use the 7-digitreference number on page 2 of your investment statement.

* Bank transfers to Fondaction can be made at any financial institution, except CIBC and Laurentian Bank.

40% Tax credits

+ RRSP

General meeting of shareholdersThe next Annual General Meeting will be held on Saturday, September 17, 2011. Sometime in the next few days, you’ll receive a notice of themeeting with a more detailed look at Fondaction’sresults, a statement of your shares and a proxyform, which you can complete and return to us, if needed.

This investment is made by way of a prospectus. The prospectus contains important, detailed information on the securities offered. A copy of the prospectus can be obtained at Fondaction's offices or from its website. Investors are advised to read the prospectus before making an investment decision.

Mettre à jour mes coordonnées

Fondaction CSN ends fiscal 2010-2011 with a 5.3% returnFondaction posted a 5.3% return for its fiscal year ended May 31, 2011, compared to 2.0% for the previous year. Share value therefore rose to $9.57, up $0.46 from a year ago, and $0.19 since July 12, 2011.While venture capital investments in Québec fell 9% in 2010,Fondaction injected $129.3 million in Québec SMEs in the past year. A total of $572.5 million was invested or committed in this asset class as at May 31, 2011, up 20% over the previous year. To date, these investmentshave helped create and maintain 23,154 jobs in Québec.

Fondaction's net assets stood at $843 million as at May 31, 2011, for an increase of 20.6%. The Fund had107,320 shareholders, of whom a growing number chooseto subscribe by payroll deduction. This steady growth allowsFondaction to take more action to support job creationand maintain employment in Québec as well as to promote sustainable business development.

With the 40% tax credits that can be combined with the RRSP deduction, Fondaction makes it easier to save for retirement while contributing to a vibrantQuébec economy.

Thank you for choosing Fondaction.

1510-Infoaction-juillet2011ANG_Infoaction-juillet2011ANG 11-08-11 14:39 Page1

Access your account at www.fondaction.com!

Did you know we provide secure online access toyour personal account? You’ll find useful information

on your investments, including your balance and detailsof your transactions. For instance, if you contributethrough payroll deduction, you’ll see the payments that your employer has made to your RRSP or non-RRSPaccount. You can also view your investment statementsand Relevé 10 slips and print them, if necessary.

When you register for online access, you will be asked for your social insurance number and postal code. It’s a safe and easy process.

Visit our website to discover your account online!1. Go to www.fondaction.com

2. Click on the icon

3. Fill in the fields or click on “Inscription en ligne” (Online registration)

What if your employer doesn’t offer payroll deduction?

It’s a simple procedure with no cost to your employer! Just contact us and we will make the necessary

arrangements with your employer to give you and your co-workers access to Fondaction’s

payroll deduction method.

Call Shareholder Services at 1 800 253-6665, and we

will be happy to help you decide which

contribution method is right for you.

Stop worrying and start saving!Payroll deduction and pre-authorized withdrawals are the easiest ways to save for retirement. That’s becausewhen you put money aside on a regular basis, you don’t feel the pinch.

Payroll deduction or pre-authorized withdrawals:which is better?

Payroll deductionPayroll deduction is a contribution methodoffered by employers. When you choosethis method, you authorize your employerto deduct a given amount from your salaryand deposit it in your Fondaction RRSP. This way, you benefit from income tax savings at each pay period.

Let’s do the math!A $5,000 investment saves you $3,920 in incometaxes for the year!

By choosing payroll deduction, you don’t have to be concerned about the annual $150 million share issue limit.When limiting measures need to be applied, Fondactionallows shareholders to continue contributing through payroll deduction.

Pre-authorized withdrawalsAvailable to everyone, pre-authorized withdrawals are another hassle-free savings method! You authorize Fondactionto withdraw a given amount from yourbank account at regular intervals. It’s an easy way to build your retirementnest-egg.

How to sign upGo to the forms section at www.fondaction.com and complete the “Request for Change” form today.

Feel free to contact Shareholder Services, at 1 800 253-6665. We will be pleased to help you determine which contribution method is best for you.

* Estimate based on a marginal tax rate of 38.37% and 40% tax credits, under the tax regulations applicable as at January 1, 2011.

PAIE

Fondaction and the wood industryFondaction’s Presidentand Chief Executive Officer, Léopold Beaulieu,has agreed to chair theCommittee of experts promoting the use of wood innon-residential construction, a working group mandated to propose strategies for increasing the use of wood in non-residential construction in Québec. The working group, announced by Finance Minister Raymond Bachand in his budgetspeech last March, is composed of representatives from the government, academia and the construction industry.

Companies raking in top honoursEnergia Award 2010 for Technopôle AngusThe Société de développement Angus (SDA) won the Energia Award 2010, in the Sustainable/Green Building category, for phase VII of the Technopôle Angus building at 4100 Molson, the first multi-tenant building in Québec to obtain LEED Gold certification. Like the other Technopôle Angus projects, this structure features an energy-efficient designand other environment friendly innovations, including a rainwater harvesting system andlandscaping that uses indigenous plants. The four-storey building houses the Montréal Heart

Institute, among others. The Energia Award is awarded by the Association québécoise pour la maîtrise de l’énergie (AQME),which promotes research, development and innovation in the field of energy efficiency.

Fondaction has contributed to the development of Technopôle Angus since its inception.

Rideau achieves CarbonNeutral® certificationRideau Recognition Solutions is the first North American company in the human resources industry to obtain CarbonNeutral® certification for reducing its carbon footprint to net zero.All greenhouse gas (GHG) emissions relating to Rideau’s operations were first quantified

and then reduced through a combination of internal changes. For the remaining emissions, the company received carboncredits to support the development of renewable energy and clean technology projects in Brazil, China, Thailand and Turkey.Rideau is one of Canada’s fastest growing companies.

Fondaction has supported the company’s development since 2001.

Notable CEOsClaude McMaster, President and CEO of D-BOX Technologies Inc., was named “2011 SGF CEO of the Year,” in acompetition organized by the QuébecTechnology Association in conjunction with SGF. The event provides a venue for technology leaders to recognize,in their peers, exemplary leadership and contributions to the visibility ofQuébec’s information and communications technologies industry.

The two runners-up were Éric Chouinard, of iWeb, and Andy Kulakowski, of Speedware, two other companies that receive Fondaction’s support.

Net contribution Total tax savings Annualper pay per pay investment

$41 $151 $5,000 *

26 pay periods

Particulier

Entreprise

Accéder à mon compte

1510-Infoaction-juillet2011ANG_Infoaction-juillet2011ANG 11-08-11 14:19 Page2

Access your account at www.fondaction.com!

Did you know we provide secure online access toyour personal account? You’ll find useful information

on your investments, including your balance and detailsof your transactions. For instance, if you contributethrough payroll deduction, you’ll see the payments that your employer has made to your RRSP or non-RRSPaccount. You can also view your investment statementsand Relevé 10 slips and print them, if necessary.

When you register for online access, you will be asked for your social insurance number and postal code. It’s a safe and easy process.

Visit our website to discover your account online!1. Go to www.fondaction.com

2. Click on the icon

3. Fill in the fields or click on “Inscription en ligne” (Online registration)

What if your employer doesn’t offer payroll deduction?

It’s a simple procedure with no cost to your employer! Just contact us and we will make the necessary

arrangements with your employer to give you and your co-workers access to Fondaction’s

payroll deduction method.

Call Shareholder Services at 1 800 253-6665, and we

will be happy to help you decide which

contribution method is right for you.

Stop worrying and start saving!Payroll deduction and pre-authorized withdrawals are the easiest ways to save for retirement. That’s becausewhen you put money aside on a regular basis, you don’t feel the pinch.

Payroll deduction or pre-authorized withdrawals:which is better?

Payroll deductionPayroll deduction is a contribution methodoffered by employers. When you choosethis method, you authorize your employerto deduct a given amount from your salaryand deposit it in your Fondaction RRSP. This way, you benefit from income tax savings at each pay period.

Let’s do the math!A $5,000 investment saves you $3,920 in incometaxes for the year!

By choosing payroll deduction, you don’t have to be concerned about the annual $150 million share issue limit.When limiting measures need to be applied, Fondactionallows shareholders to continue contributing through payroll deduction.

Pre-authorized withdrawalsAvailable to everyone, pre-authorized withdrawals are another hassle-free savings method! You authorize Fondactionto withdraw a given amount from yourbank account at regular intervals. It’s an easy way to build your retirementnest-egg.

How to sign upGo to the forms section at www.fondaction.com and complete the “Request for Change” form today.

Feel free to contact Shareholder Services, at 1 800 253-6665. We will be pleased to help you determine which contribution method is best for you.

* Estimate based on a marginal tax rate of 38.37% and 40% tax credits, under the tax regulations applicable as at January 1, 2011.

PAIE

Fondaction and the wood industryFondaction’s Presidentand Chief Executive Officer, Léopold Beaulieu,has agreed to chair theCommittee of experts promoting the use of wood innon-residential construction, a working group mandated to propose strategies for increasing the use of wood in non-residential construction in Québec. The working group, announced by Finance Minister Raymond Bachand in his budgetspeech last March, is composed of representatives from the government, academia and the construction industry.

Companies raking in top honoursEnergia Award 2010 for Technopôle AngusThe Société de développement Angus (SDA) won the Energia Award 2010, in the Sustainable/Green Building category, for phase VII of the Technopôle Angus building at 4100 Molson, the first multi-tenant building in Québec to obtain LEED Gold certification. Like the other Technopôle Angus projects, this structure features an energy-efficient designand other environment friendly innovations, including a rainwater harvesting system andlandscaping that uses indigenous plants. The four-storey building houses the Montréal Heart

Institute, among others. The Energia Award is awarded by the Association québécoise pour la maîtrise de l’énergie (AQME),which promotes research, development and innovation in the field of energy efficiency.

Fondaction has contributed to the development of Technopôle Angus since its inception.

Rideau achieves CarbonNeutral® certificationRideau Recognition Solutions is the first North American company in the human resources industry to obtain CarbonNeutral® certification for reducing its carbon footprint to net zero.All greenhouse gas (GHG) emissions relating to Rideau’s operations were first quantified

and then reduced through a combination of internal changes. For the remaining emissions, the company received carboncredits to support the development of renewable energy and clean technology projects in Brazil, China, Thailand and Turkey.Rideau is one of Canada’s fastest growing companies.

Fondaction has supported the company’s development since 2001.

Notable CEOsClaude McMaster, President and CEO of D-BOX Technologies Inc., was named “2011 SGF CEO of the Year,” in acompetition organized by the QuébecTechnology Association in conjunction with SGF. The event provides a venue for technology leaders to recognize,in their peers, exemplary leadership and contributions to the visibility ofQuébec’s information and communications technologies industry.

The two runners-up were Éric Chouinard, of iWeb, and Andy Kulakowski, of Speedware, two other companies that receive Fondaction’s support.

Net contribution Total tax savings Annualper pay per pay investment

$41 $151 $5,000 *

26 pay periods

Particulier

Entreprise

Accéder à mon compte

1510-Infoaction-juillet2011ANG_Infoaction-juillet2011ANG 11-08-11 14:39 Page2

infoactionNews for shareholders www.fondaction.com

Fondaction participated to the extentof $3.2 million in a private placementenabling 4IQ Holding to acquire SacSanté inc., the manufacturer of SacMagique products. 4IQ Holding is ayoung management firm with interests

in companies involved in the distribution of cosmetics and other consumer products sold in pharmacies. The firm has approximately thirty employees in Montréal.

Group BBH obtained a $1 million investment. The company designs, manufactures and distributes gloves,ropes, workwear and other safety items. It has licence agreements with such recognizable brands as Terra (boots,workwear and gloves), Gardena (gardening gloves) and

Roots (fashion gloves for women). Its products are distributed at Rona, Costco and other stores. The company employs 38 people in the municipality of Dorval.

Fondaction has invested $1 million in the Coopérative forestière de Petit Paris, located in Saint-Ludger-de-Milot, in Saguenay–Lac-Saint-Jean.During peak periods, the co-op puts some 350 people towork, either directly or through its subsidiaries. In an effort to minimize the negative impacts of its activities, it has developed and put in place an environment managementsystem. It generally operates on land certified by the FSC (Forest Stewardship Council) which guarantees the practice of sustainable forestry.

Fondaction has invested $3 million in Aptilon, a company that enables pharmaceutical, biotech and medical device companies to effectively

contact and advertise to physicians and other healthcare professionals via the Internet. Aptilon is a rapidly growing business with global reach. It provides about sixty specialized positions in Montréal.

New investments Planning a move?Have you recently moved? Or maybe you have just startedto pack your boxes. Did youknow you can send us achange of address directly from the Fondaction website?Update your contact information in just a few clicks.And as you update your file, why not take the opportunity to add your email address? This way, you’ll be sure to receive any noticesfrom Fondaction.

Here’s what to do:1. Go to www.fondaction.com

2. Click on this button to update your contact information

3. Enter your reference numberfor subscriptions by banktransfer (7-digit number on page 2of your investment statement)

4. Enter your contact information

To find out more about 40% tax credits, online contributions,PD, RRSP loans, etc., visitwww.fondaction.com. It’s allthere! Or feel free to contactShareholder Servicesat 1 800 253-6665.

www.fondaction.com

Lump-sum subscriptions again being accepted!As of June 1, 2011Fondaction has started to accept lump-sum contributionsagain. Don’t delay if you want to use this savings methodand take advantage of the tax credits for 2011. During its last RRSP campaign, Fondaction had to stop acceptinglump-sum contributions as of January 26. This year again,Fondaction‘s share issue is limited to $150 million. Make your contribution today!

Contribute online: it’s quick and easyVisit your financial institution’s website.* In your payments file,you can enter “Fondaction subscription” as one of your payees and make your contributions online. Use the 7-digitreference number on page 2 of your investment statement.

* Bank transfers to Fondaction can be made at any financial institution, except CIBC and Laurentian Bank.

40% Tax credits

+ RRSP

General meeting of shareholdersThe next Annual General Meeting will be held on Saturday, September 17, 2011. Sometime in the next few days, you’ll receive a notice of themeeting with a more detailed look at Fondaction’sresults, a statement of your shares and a proxyform, which you can complete and return to us, if needed.

This investment is made by way of a prospectus. The prospectus contains important, detailed information on the securities offered. A copy of the prospectus can be obtained at Fondaction's offices or from its website. Investors are advised to read the prospectus before making an investment decision.

Mettre à jour mes coordonnées

Fondaction CSN ends fiscal 2010-2011 with a 5.3% returnFondaction posted a 5.3% return for its fiscal year ended May 31, 2011, compared to 2.0% for the previous year. Share value therefore rose to $9.57, up $0.46 from a year ago, and $0.19 since July 12, 2011.While venture capital investments in Québec fell 9% in 2010,Fondaction injected $129.3 million in Québec SMEs in the past year. A total of $572.5 million was invested or committed in this asset class as at May 31, 2011, up 20% over the previous year. To date, these investmentshave helped create and maintain 23,154 jobs in Québec.

Fondaction's net assets stood at $843 million as at May 31, 2011, for an increase of 20.6%. The Fund had107,320 shareholders, of whom a growing number chooseto subscribe by payroll deduction. This steady growth allowsFondaction to take more action to support job creationand maintain employment in Québec as well as to promote sustainable business development.

With the 40% tax credits that can be combined with the RRSP deduction, Fondaction makes it easier to save for retirement while contributing to a vibrantQuébec economy.

Thank you for choosing Fondaction.

1510-Infoaction-juillet2011ANG_Infoaction-juillet2011ANG 11-08-11 14:19 Page1