Investment management firm Franklin Templeton has officially taken over the management of Fondul Proprietatea, after the fund's shareholders vote earlier today, according to Ziarul Financiar. Mark Mobius (in picture), executive chairman of Templeton Asset Management, has come to Romania to attend this meeting.

The management company had won the bid to run the assets of Fondul Proprietatea, but was yet to be officially named fund manager. Fondul Proprietatea has assets worth EUR 3.4 billion and Frankin Templeton will cash in a EUR 16 million commission a year for managing its assets. A listing on local and foreign stock exchanges is planned for the beginning of next year.

The Proprietatea fund is a closed investment fund created to compensate former owners whose properties were confiscated during the communist regime and which cannot be redeemed in nature. The Fund has participations in 88 companies, most of which in the energy sector. The Fund’s listing on the stock exchange has been delayed one year to another. Listing 20 percent of the Fund’s shares should attract $ 500 million, according to Franklin Templeton representatives.

The main shareholders in the fund are the Finance Ministry, with 56,98 percent of the shares, 3,469 individuals, who have 31,62 percent of the shares and other firms, with 11,39 percent.

Romania-insider.com