Franklin Templeton manager plans to restructure the 3 billion-euro portfolio of Fondul Proprietatea (Property Fund) by selling its assets on the Stock Exchange or to strategic investors, which could leave the Fund with around 35 companies, half as many as it has now. The Fund currently has representatives in 20 of the companies in its portfolio, according to the fund's manager, Greg Konieczny.
In order to compensate former owners, Fondul Proprietatea received stakes from the Romanian state, mostly minority interests in over 80 companies. Over the last five years, the Fund's various local management teams shied away from active management, with more than half the companies in the portfolio yet to be listed, some of which have gone insolvent, with the portfolio continuing to have significant exposure to the energy sector - considered to be a strategic one for the economy, and a sector where the main partner of discussion is the Romanian state.
Franklin Templeton taking over management of the more than 660 billion dollars in overall assets, should bring about changes at Fondul Proprietatea. Especially since Franklin Templeton collects 15 million euros per year for four years for its mandate as fund manager.
"We have inherited a portfolio that includes more than 80 companies and we will seek to raise the value of the companies through new investments as well as by selling stakes, if we get a good price or if there is no potential to go on. In order to sell we will have to find a buyer. I must admit there are companies in the portfolio of Proprietatea that we would have never invested in," said Grzegorz Konieczny, portfolio manager at Franklin Templeton, the manager of Fondul Proprietatea.
Franklin Templeton manager plans to restructure the 3 billion-euro portfolio of Fondul Proprietatea (Property Fund) by selling its assets on the S
