In its press release to announce the new value of its share as of May 31, 2022, Fondaction de la CSN completely ignored the sharp drop of 8.7% in the value of its share during the 2nd half from December 1 to May 31. last.
In this press release published on the eve of the National Day, the management of Fondaction was content to say that the value of its share is now fixed at $15.02, while adding: "This is a slight decline by 2.8% in the fiscal year beginning June 1, 2021."
Let's set the clocks back.
A year ago, on May 31, 2021, Fondaction shares were worth $15.45. But that price had been revised to $16.46 on November 30, following a positive performance in the first half of the new 2021-22 fiscal year.
As a matter of transparency, it was therefore necessary, in my opinion, to notify the shareholders of Fondaction that the new price ($15.02) was down significantly (-8.7%) compared to the previous price ($16.46) which was in force.
To show you how important this information on the 8.7% drop in the share price was to disclose in Fondaction's press release, you should know that this information is part of the "Highlights" reported in the "Report management plan for the year ended May 31, 2022".
THE OMISSION IS TIMELY
Not disclosing in the June 23 press release this 8.7% decline in the share price over the past six months is a timely omission this year!
Focusing attention on the "slight pullback" of 2.8% from the price a year ago would hurt shareholders less than telling them that the price of their shares had actually fallen by 8.7% from the price in effect for the last six months.
With labour-sponsored funds, since the share price is determined twice per fiscal year, at the end of the first semester on November 30 and at the end of the second semester on May 31, it therefore seems essential to me to disclose six-monthly stock performance in earnings releases.
QUESTION TO FONDACTION
"Why did Fondaction not disclose in its June 23 press release that the net shareholder return had fallen by 8.7% in the second half, the share thus falling from $16.46 to only $15.02? Is this not crucial information that should be disclosed to shareholders in the press release? I asked.
Response from Fondaction's spokesperson, Julie Cailliau: "In June, it is the occasion for a review of the year, so we presented the evolution of the financial and extra-financial performance of the last 12 months. »