Foreign institutional investors now control 60 percent stake in Fondul Proprietatea

One year since its secondary listing on the London Stock Exchange, the closed-end fund Fondul Proprietatea (FP) said that more foreign institutional investors bought its shares.

The fund, which is managed by Franklin Templeton, said that the global depositary receipts (GDR) facility has reached its fully potential at the beginning of this year.

Thus, the percentage of foreign institutional investors in the total share capital of the Fund has grown from 53 percent in March 2015 to 60 percent at the end of March 2016.

Fondul Proprietatea said these investors have also made deals with shares in portfolio companies or other companies listed on the Bucharest Stock Exchange.

“Therefore, we encourage other Romanian companies, such as Hidroelectrica and OMV Petrom, to list in London in order to reach greater liquidity, a larger base of investors and more visibility,” said Greg Konieczny, fund manager of Fondul Proprietatea.

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The size of the fund stood at EUR 2.56 billion in March. The listed equities comprise 35 percent of FP’s net asset value (NAV).

Hydroelectricity producer Hidroelectrica, which is currently in insolvency, accounts for 23.2 percent of the fund’s NAV.

More than half of FP’s holdings are energy companies, which are either electricity generators and distributors or oil and gas producers.

Ovidiu Posirca