Fondul Proprietatea's secondary listing on the Warsaw Stock Exchange remains to be done in the first half of this year, even if the process is slowed down by discussions on legislation with representatives of National Securities Commission, said Greg Konieczny, Executive Vice President Templeton Emerging Markets Group and Portfolio Manager at Fondul Proprietatea.

This secondary listing for the Romanian investment fund is necessary, because this will increase the visibility of the fund. Mark Mobius, CEO of Franklin Templeton, added that Franklin Templeton wants “as wide a distribution of shares in this fund as possible.”

The US Ambassador to Romania, Mark Gitenstein made his remarks during a conference organized to celebrate Fondul Proprietatea's first year on the Bucharest Stock Exchange. “Despite last year’s results proving that foreign investors are interested in Romania, the stock exchange is still not valued enough,” he said. Fondul Proprietatea’s listing at EUR 1.3 billion was the biggest in Romania and attracted the attention of private investors, becoming the most traded shares on the stock exchange in 2011, the US Ambassador said.

Talking about the Romanian economy, the US Ambassador said that Romania must continue the reforms, but they should just be the first step towards economic recovery. “Cost cuts alone will not ensure economic growth. It must come with private and state investments, there must be a partnership between government and companies. Fondul Proprietatea’s success has shown us that this is possible and I look forward to seeing more investors, both foreign and Romanian.”

Fondul Proprietatea is managed by Franklin Templeton, which took over the fund’s management in 2010, and is listed on the Bucharest Stock Exchange with symbol FP. Fondul Proprietatea was created in 2005 as a joint stock company with a special purpose to provide compensation to the persons 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.

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

(photo source: Warsaw Stock Exchange)