The Romanian investment fund Fondul Proprietatea will continue to be managed by Franklin Templeton, which won another two-year mandate, and will most likely be listed on the London Stock Exchange in fall this year.
The fund’s shareholders on Monday (April 28) approved another mandate for the fund manager, as well as the listing on the foreign market. The best moment for listing will be September – October, said Grzegorz Konieczny, vice-president of Franklin Templeton and fund manager in Romania. The main targets via the listing will be to increase visibility among foreign investors, and increase the fund’s financials.
Mark Mobius, the president of Franklin Templeton, who also attended the shareholder meeting in Bucharest, said Romania’s situation has improved, and things start to move, even if slow.
Under the new management contract, which starts on September 30 this year, when the first contract should have ended, Franklin Templeton gets a management fee of 0.6 percent of the fund’s stock market capitalization, up from the current 0.49 percent. Last year, the company made EUR 10.2 million from Fondul Proprietatea, and in 2012, some EUR 7.7 million.