Franklin Templeton gets one-year mandate at Fondul Proprietatea
The shareholders of the Romanian investment fund Fondul Proprietatea renewed for one year the mandate of the fund's manager, Franklin Templeton, in line with the proposal made by the Romanian state (6% of FP's shares).
Franklin Templeton opted for a full, four-year mandate. The Romanian state, however, seeks to replace Templeton with another manager, more in line with its proposed development strategy.
The shares of Fondul Proprietatea dropped by more than 3% upon the announcement of the shareholders' meeting, but it couldn't have been approved without the consent of the majority of the shareholders by the sole will of the Government.
The policy conducted by Franklin Templeton, in line with the shareholders' mandate, was bringing FP's price in line with the value of its portfolio and cashing the portfolio as close as possible to its value.
Hidroelectrica's IPO this summer was the latest significant move under Templeton's management.
The Romanian Government wants, however, to turn Fondul Proprietatea into a more active player by placements in infrastructure projects financed under the Resilience Facility, for instance.
(Photo: Timon Schneider/ Dreamstime)