* "Forţa Civică" requests the termination of the contract with the fund management company
On Wednesday, the shareholders of the Proprietatea Fund are being asked to decide on the reduction of the share capital, as well as on other changes to the articles of incorporation. Some of the shareholders are already expressing their unhappiness with "Franklin Templeton", the manager of the Proprietatea Fund.
"The Romanian government must urgently request the termination of the contract with Franklin Templeton, due to its disastrous results and its lack of performance", Adrian Iuraşcu, the president of the "Romanian Civic Forum", the umbrella-association which brings together 11 organizations of assets owners whose properties were seized by the Communist regime.
According to him, "The Representation Committee should react to the lack of performance and the disastrous results of the manager of the fund".
The Proprietatea Fund (symbol: FP) had an unaudited net loss of 7.9 million lei, compared to a net profit of 60.1 million lei, logged in Q3 2010, according to the quarterly report of the Bucharest Stock Exchange.
On the other hand, after the first nine months, the Proprietatea Fund had a net profit of 535.2 million lei, 97.8% higher compared to last year.
Adrian Iuraşcu says that "Franklin Templeton" is acting like it were the true owner of the fund. "It is unacceptable for a foreign manager to do what it wants in strategic sectors", he said.
Marius Murgu, the president of the Association of Private Shareholders of the Proprietatea Fund (AAPFP), has a different opinion. According to him, "on principle, the shareholders are happy with the management of "Franklin Templeton", but are unhappy with the high wages of the managers, compared to the extremely unsatisfying evolution of the price of the stock". Mr. Murgu said: "About 90% of t
