Romania’s Fondul Proprietatea takes foreign investors to Mamaia seaside resort for annual meeting

Romania’s EUR 3.5 billion investment find Fondul Proprietatea will hold its sixth Analyst and Investor Day in the Black Sea resort of Mamaia between June 25 and June 27, according to the fund’s manager, Franklin Templeton. It is the first time this event is held outside the capital city Bucharest.

Mamaia is the most popular Romanian summer resort at the Black Sea and it gets very crowded during the summer. It is also most famous for its intense nightlife.

Over 150 local and international institutional investors from 21 countries, with over USD 900 billion collectively in assets under management and analysts will attend the event. It offers the opportunity for current and prospective foreign and local institutional investors and the analysts covering Fondul Proprietatea to receive updates on the latest developments of the fund, the largest portfolio companies, and the Romanian economy.

“Investors are now looking towards Romanian companies with renewed interest and the Analyst and Investor Days event represents a unique occasion for Fondul Proprietatea and the companies in its portfolio to showcase their strengths and present themselves as attractive investment opportunities,” said Greg Konieczny, fund manager of Fondul Proprietatea.

He added: “At the same time the event represents an ideal opportunity for the government to assure the largest institutional investors in Romania about their commitment to reforms, proper corporate governance in state owned enterprises and improvements in local capital market regulations. The timing of the event is appropriate, as well, given that Romania’s rating was recently upgraded to investment grade by rating agency S&P.”

Mamaia was chosen for proximity to some of the most important companies in the fund’s portfolio. The participants will have the opportunity to visit Nuclearelectrica’s nuclear power plant at Cernavoda and Portul Constanta.

They will also attend presentations from key stakeholders in the capital and energy markets, such as representatives of the International Monetary Fund, U.S. Embassy, National Bank of Romania, Ministry of Energy, Financial Supervisory Authority, Bucharest Stock Exchange and the Department for Energy.

Additionally, the top management of some of the most important companies in the Romanian economy, such as OMV Petrom, Romgaz, Nuclearelectrica, CE Oltenia, Transelectrica, Hidroelectrica and Electrica, which represent over 85 percent of the Fund’s Net Asset Value NAV will present their equity story, Franklin Templeton has said.

Launched in December 2005, Fondul Proprietatea was established to compensate Romanians whose properties were confiscated by the former communist regime. Franklin Templeton Investments officially took over as investment manager and sole administrator of the fund in September 2010.

Currently, 55 percent of the fund’s shares are held by foreign institutional investors, with US hedge fund Elliott owning the largest stake, of some 17 percent.

The fund’s net asset value (NAV) at the end of May, 2014, was EUR 3.47 billion. Its current market capitalization is EUR 2.56 billion.

Andrei Chirileasa, andrei@romania-insider.com

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