FP shareholders were convened for the election of the fund administrator

• "The investment mandate of the FP should focus mainly on the continuation of investments in national entities", is one of the criteria that the administrator must fulfill, subject to the vote of the shareholders

Fondul Proprietatea (FP) shareholders are summoned, on September 27, to an ordinary and an extraordinary meeting, where they will vote on the extension of Franklin Templeton's mandate by one year, from April 2025 to March 2026, or the election of a new administrator, for a period of two years, according to a report published yesterday on the website of the Bucharest Stock Exchange (BVB).

In March of this year, the shareholders approved the administration contract between FP and Franklin Templeton for a duration of one year, until March 2025, but with the modification of the administrator's basic commission to 1.35%, according to the request of the Ministry of Finance.

On the other hand, the Finances had also requested that the strategy applicable to the fund during the mandate period April 1, 2024 - March 31, 2025 should include "the preservation of the current portfolio managed by Franklin Templeton", but the point was not approved by the FP shareholders.

The budget for this year of Fondul Proprietatea did not receive the green light from the shareholders either. According to the convener of the meeting on September 27, the shareholders must approve a series of criteria that must be met by the Fund's administrator, drawn up following the consultation received by the Committee of Representatives from Numis Securities Limited, a member of the Deutsche Bank Group. The criteria also refer to the investment mandate of the FP, which "should focus mainly on continuing investments in national entities, including state-owned enterprises, and which may involve additional direct or indirect investments in unlisted entities".

Also at the end of September, the fund's shareholders will have on the table the appointment for a period of three years of two members of the FP Committee of Representatives, as a result of the expiration of the mandate of Nicholas Paris on April 6, 2024 and the resignation of Martin Bernstein, which became effective on July 12, 2024.

Another point on the agenda refers to the approval of the revised budget for this year's fund.

The importance of FP on the Bucharest Stock Exchange decreased considerably after the sale of the participation in Hidroelectrica, last summer, so that mandatory private pension funds decreased their holdings in FP. In the first six months of this year, four of the seven Pion II funds, namely Aripi, Metropolitan Life, the one administered by BCR Pensii and the one administered by NN Pensii, sold FP shares, without any of the other funds increasing their investment in the company . Thus, the holding of Pilon II in the first half of the year in FP decreased from 17.92% in December last year to 14.12% in June 2024. The most important holdings of the Proprietatea Fund are the 20% stake in Bucharest Airports, the 20% stake in Constanţa Maritime Port Administration and the 49% stake in Salrom.

The stock market valuation of FP amounts to approximately 2.25 billion lei.