The addendum, which stipulated additional fees Franklin Templeton were to collect from selling assets in Fondul Proprietatea’s portfolio, was “not set in accordance with the regulation for organizing the international tender for appointing the portfolio manager of the fund,” CNVM said in a statement.
Moreover, providing supplemental distribution through special dividend does not meet the objective proposed by Franklin Templeton in course of the international tender for appointing the portfolio manager of Fondul Proprietatea, according to the capital market regulator.
“Given that the Investment Management Agreement and subsequent addendums are approved by the fund’s shareholders and concluded between the fund and the fund manager, the fund manager will carefully consider further steps that may be appropriate and will update investors of any further material developments,” Franklin Templeton said in a statement Thursday.