Fondul Proprietatea (“the Fund”) celebrates one year since it began trading on the Specialist Fund Market of the London Stock Exchange (“LSE”) by means of global depositary receipts (“GDRs”) on 29 April 2015. As a result of the secondary listing, the Fund has seen an extended investor base, broader research coverage from a larger number of international brokers, as well as increased visibility of the Fund and Romania among institutional investors. Moreover, Fondul Proprietatea is now the fifth largest fund by net asset value and the largest frontier market fund the on the LSE.
In 2015, Fondul Proprietatea pursued the listing on the London Stock Exchange, specifically to expand its investor base and increase its visibility, given that LSE offered access to a wide range of investors, including a substantial pool of closed-end fund institutional investors, with over USD 100 billion under management. The Fund is pleased to announce that it achieved this goal, since the GDR facility (which allows one third of the Fund’s shares to be traded as GDRs on the LSE) has reached its full capacity in January 2016.
The percentage of foreign institutional investors in the total share capital of the Fund has grown from 53% in March 2015 to 60% at the end of March 2016. Many of these investors have also become active investors in portfolio companies or other companies listed on the Bucharest Stock Exchange.
Greg Konieczny, Fund Manager of Fondul Proprietatea, commented: “We are delighted to see that the Fund’s secondary listing on the London Stock Exchange has propelled it to an upper league, where the Fund and its portfolio companies have easier access to a diversified pool of long-term investors and broader research coverage from international brokers. Therefore, we encourage other Romanian companies, such as Hidroelectrica and OMV Petrom, to list in London in order to reach greater liquidity, a larger base of investors and more visibility.”
Launched in December 2005, the Fund was established to compensate Romanians whose properties were confiscated by the former communist government. An international tender was announced in December 2008, and Franklin Templeton officially took over as investment manager and sole administrator of the Fund on 29 September 2010. The Fund is an alternative investment fund and its investment objective is the maximization of returns and per-share capital appreciation via investments mainly in Romanian equities and equity-linked securities. The Fund has been trading on the Bucharest Stock Exchange since 25 January 2011 and has been listed on the Specialist Fund Market of the London Stock Exchange by means of global depositary receipts (“GDRs”) on 29 April 2015.