Fondul Proprietatea is a joint stock company (S.A.) and a closed-end fund, established in 2005 by the Romanian State in order to compensate the persons abusively deprived of their properties by the former communist government and no longer possible to be compensate in kind. In 2010, after obtaining the approval of the National Securities Commission, the Fund was officially registered as AOPC (other closed end investment funds).

The Fund’s share capital consists mainly of in kind contributions of the Romanian state, including equity participations in a number of Romanian listed and not listed companies, the most relevant being:

 

- OMV Petrom S.A. – oil company (listed)

- Hidroelectrica S.A. – energy producer (not listed)

- Romgaz S.A. – natural gas producer (not listed)

- CN Aeroporturi Bucureşti S.A. – Bucharest airports operator (not listed)

- Nuclear Electrica S.A. – operator of Cernavodă nuclear plant (not listed)  

 

Strengths:

 

Weaknesses:

 

Since January 25, 2011 the shares issued by Fondul Proprietatea S.A. are traded on the market managed by the Bucharest Stock Exchange with the symbol FP.

In the first day, the shares of FP traded without a fluctuation limit at a medium price of 0.64 Romanian lei/share.

After almost 6 months on the Bucharest Stock Exchange FP shares are traded around 0.52 lei/share.

In July 2011 Franklin Templeton Investment Management Ltd., the manager of the Fund, recommended a secondary listing of the Fondul Proprietatea shares on the Warsaw Stock Exchange.

More details regarding Fondul Proprietatea can be found on the Fund’s web page:

www.fondulproprietatea.ro