Fondul Proprietatea shareholders renew management contract with Franklin Templeton
The shareholders of the property restitution fund Fondul Proprietatea (FP) renewed the mandate of Franklin Templeton as the manager of the fund, in a General Assembly held on June 28, Wall-street.ro reported.
This is the ninth consecutive year that Templeton manages FP, the initial management mandate being signed in 2010.
In the Extraordinary General Meeting on June 28, FP shareholders approved the new Statement of Investment Policy that sets prudential rules for the investment policy and introduces a target for the “discount” -- the differential between the actual price of the FP share and the most recent evaluation of the net asset value (VUAN) of the fund, per share.
Specifically, under the Investment Policy, the manager (Templeton) should use its resources in order to meet the Discount Objective -- namely by using the revenues from dividends to purchase back shares or distribute cash to shareholders.
“The discount between the closing price of the shares issued by FP in each trading day on the Bucharest Stock Exchange and the most recently published VUAN must be equal to or less than 15% in at least two thirds of the trading days during the reporting period (Discount Objective),” the document mentions.
This has been the policy followed by Templeton at the request of the FP shareholders in the past as well, but the new contract provides more quantitative indications on when such instruments can be used.