“The operating income mainly comprises the gross dividend income, the changes in fair value of financial instruments at fair value through profit or loss, interest income and the net realized gains/ losses from transactions with financial instruments. The changes in fair value of the equity investments of the Fund are recognized in profit or loss. The operating income is influenced by the performance of the portfolio companies and their decisions on dividend distributions, by the changes in the share price of listed companies as well as by money market performance”, the report shows.
According to the report, “the loss from equity investments at fair value through profit or loss during Q1/2024 was mainly generated by the decrease in the BVB share price of Alro SA (total impact RON 8.4 million)”.
The equity exposure amounted to 76.0% of the Fund’s NAV as at 31 March 2024. As at that date, the portfolio was composed of holdings in 24 companies (5 listed and 19 unlisted), a combination of privately held and state-controlled entities. The largest company listed is Alro SA (4.5% of Net Asset Value). The largest non-listed company is the Bucharest Airport Company (37.6% of Net Asset Value).
The total value of assets stood at RON2.8 billion at end-March 2024, lower by 4.7% than at the end of 2023.
“The liquid assets of the Fund during Q1 2024 included current accounts and term deposits with banks. All instruments were denominated in RON, with maturities of up to one year. The most important cash inflows during Q1 2024 were related to the proceeds from disposal of the entire stake in Engie Romania SA (RON 432.6 million) and the interest received of RON 8.5 million, while the most significant cash outflows were related to net dividends paid (RON 68.8 million) and to the dividend withholding tax payments performed (RON 44.7 million)”, the report reads.
FP, managed by Franklin Templeton, has a market value of RON2.9 billion after its shares have been on a straight line so far in 2024, amid deals worth RON150 million, as per stock market data.
At end-March 2024, Fondul Proprietatea’s main shareholders were the finance ministry (5.9% voting rights), Fondurile de Pensii Private NN (11.2%), the Silver Point Capital Funds (4.9%), pension funds Allianz Tiriac and Allianz Tiriac Asigurari SA (4.1%), Fondul de Pensii Metropolitan Life and Metropolitan Insurance (4.7%)