Romanian investment fund Fondul Proprietatea posted an audited net profit of EUR 128 million (RON 543.8 million), an increase of around EUR 20 million (RON 87.6 million) compared to the net profit for 2010, the fund has recently announced. Fondul Proprietatea had a nine-month profit in 2011 of EUR 127 million.

The fund’s net assets reached EUR 3.3 billion (RON 14.4 billion) at the end of December 2011, down 5.6 percent over the same period in 2010.

Fondul Proprietatea, listed on Bucharest Stock Exchange (BVB) on January 25, 2011, has the largest free float on the BVB at EUR 1.3 billion. Over 74 percent of the fund’s paid share capital (9.97 billion shares) of the Fund were traded on the BVB in 2011. A total of 1.8 billion shares of the Fund were traded on the BVB during the fourth quarter of 2011, compared to 3.6 billion shares in the third quarter and 2.3 billion shares in the second quarter. The value of all trades in the Fund’s shares exceeded EUR 1.2 billion (RON 5.1 billion), according to the fund.

Fondul Proprietatea’s listing on BVB has attracted large foreign institutional investors into the Fund. These investors increased their holdings in Fondul Proprietatea to over 43 percent of the paid share capital by the end of 2011. Manchester Securities Corp with 11 percent in the fund and Georgia Palade van Dusen, with 6.13 percent, are the largest shareholders holding more than 5 percent of the fund.

Fondul Proprietatea’s secondary listing on the Warsaw Stock Exchange remains to be done in the first half of this year.

The fund’s portfolio is focused on the electrical energy sector, oil and natural gas – around 88 percent of its net assets. The biggest unlisted company in its portfolio of shares is Hidroelectrica, while the biggest listed company where Fondul Proprietatea owns shares is OMV Petrom. Read the full report here (Pdf version).

Fondul Proprietatea is managed by Franklin Templeton, and is listed on the Bucharest Stock Exchange, symbol FP. The fund's shares were trading at RON 0.52 per share on WEdnesday morning ( February 15 ).

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)