Templeton: RON is overvalued by over 50 pc

Mark Mobius, one of the world’s most reputed investors and Chairman of Templeton Asset Management, said in an interview granted to “Financiarul” daily newspaper that the is overvalued by over 50 per cent, according to basic evaluations, which does not necessarily mean the Romanian currency will be weaker against the euro or the USD, as several short-term factors will help determine its market value, ”Financiarul” writes. The Franklin Templeton Group is still hopeful it will manage to increase the value of the Proprietatea Fund (FP) portfolio, even if there are topics over which it has a view different from government’s, Mark Mobius said. Templeton, which took over the Proprietatea Fund management in autumn 2010, has already entered twice into conflict with the Romanian state, over a 400 M RON donation Romgaz had to make into the state budget and the setting up of giant national power companies Electra and Hidroenergetica. Mobius however does not see these two instances as conflicts with the Romanian government, with which he cooperates to increase the Fund’s asset value. He however draws attention to the Romanian state and the FP needing to have a similar end-goal, namely increasing the value of FP company portfolio.
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Mobius views reform of corporate governance practices along with company privatizations via the stock exchange as the first step towards a rebound of Romanian economy. The FP top official continues believing that FP’s future listing on the stock exchange and state participation in more enterprises would significantly increase liquidity on the Romanian capital market.