Ministry of Finance: "We want the new FP administrator to develop a strategy based on a solid portfolio of holdings"

The Ministry of Finance wants the new administrator of Fondul Proprietatea (FP) to develop a strategy based on a solid portfolio of holdings, which is why it requested "the preservation of the current managed portfolio" of FP, according to the ministry's response to the BURSA newspaper.

Finances sent us: "In the context of convening the meeting of the General Meeting of Shareholders at Fondul Proprietatea for March 26, 2023, the Ministry of Finance, in accordance with the provisions of Companies Law no. 31/1990 with subsequent amendments and additions, requested the addition of several points to the agenda. Among the items on the agenda, the Ministry of Finance requested that "the approval of the Fund Strategy applicable to the mandate period April 1, 2024 and until March 31, 2025, includes the preservation of the current portfolio managed by Franklin Templeton International Services". Thus, through the phrase "preserving the current managed portfolio", the Ministry of Finance considered the preservation of the holdings held by Fondul Proprietatea within the companies in the portfolio, so that the new administrator can develop a strategy for the Fund, in the medium and long term, based on a solid portfolio of holdings".

Thus, from the Finance's response, it appears that the request refers only to FP's holdings in companies and does not include the cash at the fund's disposal.

Today, FP shareholders will decide on the terms of the management contract between the fund and Franklin Templeton for another year, including the remuneration policy, points completed with the requests of the Ministry of Finance on "changing Franklin Templeton's basic management fee to 1.35% " and "preservation of FP heritage". Additions introduced to the agenda at the request of Finance are alternatives to those originally proposed by the administrator, so they are placed separately on the agenda.

The shareholders will also vote on the appointment for a period of three years of two members of the Committee of Representatives of Fondul Proprietatea, as a result of the expiration of the mandates of Nicholas Paris and Omer Tetik.

In addition to Nicholas Paris, whose current mandate expires on April 6, Marian Cristian Mocanu, Dorin Alexandru Badea and Raluca Ana-Maria Nicolescu signed up.

For the position currently held by Omer Tetik, whose mandate also expires on April 6, Marian Cristian Mocanu, Marius Alin Andries, Daniela Nemoianu and Raluca Ana-Maria Nicolescu. Alin Andries is secretary of state within the Ministry of Finance, which is why the Council of FP Representatives considers that he is an eligible candidate but not an independent candidate in terms of the public position he holds.

At the end of February, Fondul Proprietatea had a net asset of 2.33 billion lei, the largest holdings being the stakes in the companies Aeroporturi Bucharest, Porturi Constanţa and Salrom.