Fondul Proprietatea posts losses, but smaller discount to NAV at end-Sep

Fondul Proprietatea (FP), the biggest Romanian investment fund with exposure to companies of strategic importance for the local economy, such as Hidroelectrica, OMV Petrom or Nuclearelectrica, ended the first nine months of this year with a net loss of RON 726 million (EUR 150 mln), compared to a profit of RON 1.9 billion (EUR 400 mln) in the same period of 2019, according to its quarterly financial report.

However, its share price continued to recover after the significant drop in the early months of the COVID-19 pandemic.

At the end of September 2020, the fund's share price was 16.7% higher than at the end of March and 7.0% higher than at the end of December 2019.

Meanwhile, the fund's net asset value (NAV) was RON 9.91 bln (EUR 2 bln), and the NAV per share value reached RON 1.5881 per share on September 30, 8.4% lower compared to December 31, 2019.

Thus, the discount of the share price to NAV at the end of September 2020 went down to 18.5%, compared to 23.6% at the end of Q3 2019.

As for the losses in the first nine months, they mainly came from the revaluation of the fund's holdings, which resulted in net losses of RON 1.88 bln (EUR 389 mln).

However, the fund also cashed in gross dividends worth RON 1.22 bln (EUR 251 mln) in the first nine months, up by 68% compared to the same period of 2019.

(Photo: Maximusnd/ Dreamstime)