Franklin Templeton’s promise comes after the administrator has failed to meet the first performance objective, namely to reduce the trading discount at 15%, which the difference between the market price of FP shares and the unitary value of the portfolio.
In June, this discount set at nearly 30%, but reasons beyond Templeton’s control caused an increase of this difference, the administrator said. Some of these reasons are Financial Regulatory Authority ASF’s delay to float the Fund on London Stock Exchange as well as the postponement of public offering by companies.
Templeton’s explanation was accepted by the Representatives Committee, the FP board in charge with monitoring the administrator’s performance and defend the interests of the stockholders.
In 2014, Fondul Proprietatea cashed RON682 million worth of dividends, while in 2015 it cashed RON567 million, mainly due to the small profits of the country’s largest company OMV Petrom (SNP.RO).
Templeton expects to cash a similar amount in 2016, as well, according to the budget.
(English version by Manuela Panescu)