about us | newsletter | contact | archive | members area
EMILIA BUNEA, CEO, METROPOLITAN LIFE
The young generation is characterized by the preference of obtaining quick results, easi»
  News:      POLITICS   |   ECONOMICS   |   ENERGY   |   INVESTMENTS   |   APPOINTMENTS   |   GREEN   |   INFRASTRUCTURE   |   REAL ESTATE   |   AGRIBUSINESS   |   DRIVING   |   CITY LIFE   |   EVENTS   |

Fondul Proprietatea celebrates three years since its listing on BSE

Franklin Templeton Investment Management Limited Bucharest Branch, in its capacity of Sole Director and Fund Manager of Fondul Proprietatea celebrates three years since the Fund listing on the Bucharest Stock Exchange and highlights its main achievements and significant impact on the Romanian capital market.

2014-01-23 13:11:12

Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, commented: "Over the last three years, not only has the Fund firmly established itself as the most liquid and visible company on the Bucharest Stock Exchange, but also as a major entry point for foreign investors looking to invest in Romania. Since the listing, the Fund has attracted over EUR 1.2 billion in direct portfolio investments from foreign institutional investors, many of them investing for the first time in the country. We are delighted to see the Fund's increase in share price by over 56% last year and its NAV growth of more than 22% since the listing. Our Bucharest investment team, supported by the Emerging Market analysts around the world, has made tremendous efforts to unlock the value of the portfolio and we are very proud of all the hard work which is now reflected in the Fund's strong performance."

Looking forward to the Fund's fourth year on the stock exchange, Greg Konieczny, Fund Manager of Fondul Proprietatea, added: "In order to generate value for our shareholders, we will continue to implement corporate actions designed to further reduce the discount and increase the Fund's NAV. We will start the third buy-back programme this year and will propose to shareholders in the near future a new plan for the secondary listing of the Fund, which should attract additional interest and demand for the shares and further raise the visibility of the Fund and increase the coverage of Romania among a broader international investor base. We expect that 2014 will be another exciting year in terms of privatizations, as we expect to see some major companies in our portfolio being listed on the stock exchange. This should have the two-fold advantage of making our portfolio more liquid and transparent, in addition to supporting the development of the capital market."


Some of the most significant highlights achieved in the first three years since the Fund's listing were:

The Fund attracted over EUR 1.2 billion in direct portfolio investments from foreign institutional investors. It also diversified the shareholder base, the shareholding of institutional investors in the Fund increasing from 10% (December 2010) to over 63 % (December 2013).

Since listing the share price reached a high record of RON 0.8605 in December 2013 and thus increased by 56.6% compared to 31 December 2012 and 32.5% compared to the first listing day. The discount narrowed at around 30.8% (December 2013) compared to the average discount of 55.7% in 2011 and 50.2% in 2012, while the NAV increased by 22.81 % (31 December 2010 – 31 December 2013).

During the period 25 January 2011 and 31 December 2013, the Fund outperformed the following indices: MSCI Romania, BET Index and BET XT Index.

Since listing, the Fund was the most traded share on the BVB, with average value of trades amounting to over 50% of the total turnover of the Bucharest Stock Exchange.
The Fund delivered substantial returns to both its existing and new shareholders through the share price appreciation and high dividend payments (approximately EUR 600 million in dividends, or roughly RON 0.20/share).

The fund saw a change in the portfolio structure due to an increase in the ratio of listed equities versus unlisted ones: 54.91% listed equities and 42.46% unlisted equities (December 2013) compared to 35% listed equities and 65% unlisted equities (December 2010).

The Fund concluded two buy-back programmes, acquiring 1,341.25 million shares in total (equivalent to 10% of the Fund's paid share capital) through daily acquisitions on the BVB and a tender offer of 600 million shares (4.5% of the Fund's paid share capital). The total value of the two buy-backs programmes, excluding acquisition costs, amounted to RON 1.08 billion.

The Fund Manager took strategic decisions related to the portfolio structure by selling its entire stake in Transgaz and 1.1% of OMV Petrom shares. The proceeds from these transactions can be used for buybacks and other value-enhancing operations for shareholders.

The investment team continued to promote high standards of corporate governance, thus increasing the transparency and information disclosure of portfolio companies. The team also increased accountability and responsibility in portfolio companies through their ongoing monitoring and oversight of the state-owned companies' management.

The Fund Manager also defended the Fund's rights and protected shareholders' interests by engaging in strategic legal actions against third parties.



COMMENTS
There are 0 comments:

 
ADD A COMMENT
 
Name
Email
Comment
Validation Code
   
 
 

0 Comments  |  2365 Views
Daily Info
Sibiu and Timisoara, top priorities for investors in Romania

Sibiu and Timisoara are top priorities for investors who are interested to come to Romania, as revealed by the fifth edition of Cities of Tomorrow conference, organized by the...

Gas prices liberalization in Romania to start in April

The Minister of Energy announced that the prices for domestic gas will go through a liberalization process starting April 1, with no technical reasons to postpone it, as Minis...

Toyota recalls 2.9 million vehicles globally over airbags issues

Toyota Motor Corp said it was recalling a total of about 2.9 million vehicles in Japan, China, Oceania and other regions including its Corolla Axio sedan and RAV4 SUV crossove...

Romania to develop economic component of the strategic partnership with US

Prime Minister Sorin Grindeanu and the Cabinet members had a meeting with the members of the fifth annual economic mission in Romania of the American-Romanian Business Council...

Debate on digital economy at Cluj Innovation Days 2017

About 40 specialists in various domains of digital economy debate its future at Cluj Innovation Days 2017. For two days, on March 30 and 31, the regional forum will be the epi...

 
 
   
advertising

advertising

advertising

advertising

advertising

advertising

More on News
Energy Performance Contracting for public buildings

The Romanian Association for Promoting Energy Efficiency (ARPEE), established in 2012, has as overall scope the mobilization of its members’ resources and competences to ...

Ciolos: Progress in anti-corruption fight can no longer be wiped off through ordinances dedicated to politicians

The progress made in the fight against corruption can no longer be wiped out surreptitiously through emergency ordinances "dedicated to a handful of politicians," former Pr...

EU seals trade deal with Canada

The European Parliament voted in favour of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada, concluding the ratification process of this deal...

President Iohannis wants to address Parliament on 7 February

President Klaus Iohannis sent a letter to the Heads of the two Chambers of the Legislature, in which he reveals that he wants to address Parliament on 7 February, in respec...

Iohannis at Government meeting: I discussed with the PM; I am pleased with how you do your job

President Klaus Iohannis said on Wednesday he had, before the Government meeting, a "very applied" discussion with Prime Minister Sorin Grindeanu, and the head of state tol...

SRI and DNA have no protocol, says SRI Spokesman

Spokesman of the Romanian Intelligence Service (SRI) Ovidiu Marincea stated that the SRI does not have any protocol with the National Anticorruption Directorate (DNA), but ...

Iohannis: 2017 budget is a problematic and risky one

President Klaus Iohannis said that the budget draft for 2017 is a problematic and risky one, pointing that there is the real risk for the deficit of three percent to be exc...