Fondul Proprietatea (FP), a Franklin Templeton closed-end fund focused on Romania, looks to gain the attention of private banks and family offices after its listing on the London Stock Exchange last April.
According to FP’s investment manager, Greg Konieczny, the fund will give private banks access to the Romanian market – which had been fairly restrictive until recently. Konieczny tells PBI that the Romanian economy has seen healthy growth levels after poor performance post the financial crisis. Last year’s GDP growth was close to 4% and this year’s growth should be close to 5%. He suggests that there is additional upside to be had as Romania plays catch up with the rest of the European Union.
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Konieczny was not able to disclose any of the private banks or family offices that have opted into the fund, but he says that FP has been in talks with many of the large players and that there has been a significant focus on the UK market.
The fund has AuM of $3 bn, FP’s five years performance generated returns of over 70% to shareholders, NAV/share increased by 30%, distributed almost EUR 1.5 bn to shareholders through dividends, returns of capital and by buying back shares, as well as reduced the discount from over 50% to 30%.
The portfolio of the fund is split between listed (40%) and unlisted equities (60%). The majority of the holdings are within the energy sector, focussing on oil, gas and electricity where there is exposure to both generation and distribution. There are also allocations towards Romanian airports and salt mines.
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