Over the last four years, Fondul Proprietatea (FP) has posted an annualized return of almost 10 percent. In spite of setbacks encountered by some of the fund’s underlying assets, Franklin Templeton’s management has increased FP’s net asset value per share. FP has attracted more than EUR 1.2 billion to Romania in portfolio investment, much from international institutional investors.
“Since the listing on the Bucharest Stock Exchange (BVB, we have worked relentlessly to unlock the potential of the Fund’s underlying portfolio companies and generate value for its shareholders. Today, we are particularly proud to see that our efforts have yielded results in the following areas: an increase in share price by approximately 85 percent as at 20 January 2015 (78 percent as at 31 December 2014); an increase in NAV – net asset value – ( by over 21 percent as at 20 January 2015 (25 percent as at 31 December 2014); and a significant reduction in the discount to NAV to less than 30 percent as at 20 January 2015 (26 percent as at 31 December 2014). These are key achievements and we would also like to thank our shareholders and business partners for their continued commitment and support,” Greg Konieczny, Fund Manager of FP said.
Looking at the Fund’s objectives for 2015, FP official said the company will continue to focus on maximizing returns for FP shareholders, grow the NAV per share and reduce the discount to NAV.
The planned corporate actions include the launch of a fifth buy-back programme in February, a cash distribution of RON 0.05 per share at the end of June, as well as the secondary listing of FP on the London Stock Exchange, which is expected to complete in the second quarter of this year.
„In addition, a key objective for us will focus on being very actively involved in further improving corporate governance and financial results of our portfolio companies,” Konieczny also said.
In his turn, U.S. Charge d’Affaires a.i. Dean Thompson, attending the event said Fondul is the world’s largest closed end fund. FP is now covered by approximately 20 analysts/researchers and the fund enjoys a five star Morningstar rating.
„FP’s promotion of the sale of minority stakes in state controlled enterprises has deepened Romania’s capital markets, allowing both Romanian and international investors to recognize and invest in the opportunities that Romania has to offer. These are impressive achievements and I praise Fondul’s managers for their accomplishments. I also applaud Fondul’s coordination and cooperation with the EBRD (European Bank for Reconstruction and Development ) and like-minded government allies who are working towards improving corporate governance in all state-controlled entities,” U.S. diplomat said.