Shareholders of the Romanian investment fund Fondul Proprietatea have recently agreed in principle to the fund’s secondary listing on the Warsaw Stock Exchange. This should be done by late 2012, with the plan for listing ready by May, and approved by the end of June, according to Greg Konieczny, Executive Vice President Templeton Emerging Markets Group and Portfolio Manager at Fondul Proprietatea. He added that “we have several meetings and discussions with investment banks, local authorities and those in Poland, so we have a good understanding of what we can and can not do".

“The main reason why we want to list the fund on the Warsaw Stock Exchange is to attract other shareholders, to enlarge the shareholder base, and to record a long-term increase of the fund,” said Greg Konieczny.

Franklin Templeton, the fund’s manager, has recommended the listing on the Warsaw Stock Exchange since July 2011. In January this year, Greg Konieczny said that Fondul Proprietatea’s secondary listing on the Warsaw Stock Exchange remains is still on for the first half of this year, even if the process is slowed down by discussions on legislation with representatives of the National Securities Commission.

Fondul Proprietatea was created in 2005 as a joint stock company with a special purpose to provide compensation to people whose real estate assets had been confiscated by the Romanian state during the communist regime and who can no longer receive restitution in kind. The Romanian investment fund posted a profit of around EUR 128 million in 2011, and is listed on the Bucharest Stock Exchange, symbol FP.

The fund’s portfolio is focused on the electrical energy sector, oil and natural gas – around 88 percent of its net assets. The biggest unlisted company in its portfolio of shares is Hidroelectrica, while the biggest listed company where Fondul Proprietatea owns shares is OMV Petrom.

Irina Popescu, irina.popescu@romania-insider.com