“The Fund’s negative evolution in the first half of 2020 was impacted by the net unrealised loss from equity investments at fair value through profit or loss amounting to RON1.96 billion, generated by OMV Petrom SA, as a result of the negative evolution of this company’s share price during the first semester of 2020 (total impact – decrease of RON 696.6 million, share price drop of 27.5%) and the decrease of RON1.26 billion in the value of unlisted holdings in the portfolio following the valuation update process (mostly related to CN Aeroporturi Bucuresti SA, E-Distributie companies and Hidroelectrica SA). This was partially offset by the gross dividend income from portfolio companies of RON 1,151.2 million recorded during this period,”, the report reads.
On June 30, 2020, the net asset value (NAV) per share reached RON1.5622 and the net asset value of the Fund was RON10.14 billion ($2.35 billion), Hidroelectrica, Nuclearelectrica and Romaero being the main contributors to the Fund’s performance, while OMV Petrom, Aeroporturile Bucuresti, Engie and Salrom were the main detractors during the period.
The Fund’s report also shows that the discount for the ordinary shares listed on the Bucharest Stock Exchange was 19.79% end-June 2020, versus 23.05% end-December 2019, while for the Global Depositary Receipts (GDRs) listed on the London Stock Exchange, the discount was 20.73% versus 25.76 % on December 31, 2019.
The Fund’s total assets reached RON10.6 billion on June 30, 2020, down 11% versus December 31, 2019, and its total debts stood at RON467 million, over nine-fold higher than at the of 2019.
The income from dividends mainly came from the companies E-Distributie (special dividend of RON522.9 million), Hidroelectrica SA (RON399.5 million), OMV Petrom SA (RON175.6 million) and Nuclearelectrica SA (RON34.9 million).