Fondul Proprietatea

Fondul Proprietatea is a joint-stock company operating as a closed-end investment company (Alternative Investment Fund) without a set lifetime, incorporated in Romania, trading on the Bucharest Stock Exchange since January 2011, and on the London Stock Exchange since April 2015. The fund operates under the control of the general assembly of shareholders.
The objective of the Fund Fund’s is to maximize the returns for the shareholders and the increase of the net asset value per share via investments mainly in Romanian equities and equity-linked securities.
History.
Romania is a country of the former Eastern Soviet bloc where a very large number of properties (factories, enterprises, houses, apartments, buildings, churches and lands) have been nationalised by the communist government.
Fondul Proprietatea was set up by the Romanian state in December <ins>28th</ins> 2005 to indemnify persons whose assets were abusively expropriated by the communist regime (especially in cases when restitution in kind would not be possible) by granting shares in Fondul Proprietatea to the respective persons proportionate to their loss. Romania is the only country in Eastern Europe where it was attempted to find a solution for restitution – at its actual value – of the property confiscated by the previous communist governments.
Following the fulfillment of specific phases strictly determined by law, holders of compensation titles have become shareholders of the Fund. The compensation has been made in shares, representing the actual value of the real estates which are not given back in kind.
The restitution process is wholly independent of Fondul Proprietatea and is managed by the National Agency for Property Restitution, a specialized legal entity of the central administration. The Romanian Government became minority shareholder in Fondul Proprietatea (0.10%) by reallocating shares from its initial holding to eligible claimants.
Company, capital and corporate purpose.
The Fund operates today as a closed-end investment company (Alternative Investment Fund) for an indefinite period. When it was set-up, it was one of the largest closed-end funds in the world with an estimated asset value of € 4 billion 2. Ten years after its set-up, the Fund was the fifth largest closed-end fund in the world with an estimated value of its assets of 3.1 billion euros.3
· "Fondul Proprietatea" is a joint-stock company, established in accordance with the provisions of Title VII of law 247/2005, GOVERNMENTAL DECISION 1481/2005 4 and of Law no. 31/1990. "Fondul Proprietatea" is a corporate body from the registration date at the Trade Register Office besides the Court of Bucharest.
· The main objective is to create profit for its shareholders.
· Last available information on the portfolio on April 2021 5:
On January 25, 2011 Fondul Proprietatea was listed on the Bucharest Stock Exchange, with the FP stock index. The fund is included in the BET index. BET is the first index developed by BVB and represents the reference index for the local capital market. BET reflects the performance of the most traded companies on BVB’s regulated market 7.
FP was listed on the Specialist Fund Market segment of the London Stock Exchange through global certificates of deposit (GDRs) on April 29, 2015, being the 5th largest fund in terms of net assets and the first in a border market present in the ring of the London Stock Exchange.[8]
Fondul Proprietatea is also one of the most important Romanian companies, its market value being of USD 2.86 billion on April 21, 2021. 
In March 2021, the Fund's shares were traded at a record market value of RON 1.7450 / share 9.
Management.
Until the appointment of a selected administration, the fund has been managed provisionally by the Ministry of Public Finance through the Board of Supervisors. After selecting through an international public tender, a management company took over the powers of the administrator of the Fund property. Following a tender selection process, a Selection Commission has recently designed "on June 9, 2009 "Franklin Templeton Investment Management Ltd" 10 as the manager of the fund." Franklin Templeton is the current manager of Fondul Proprietatea.
Portfolio structure.
By the end of March 2021, the portfolio total value was evaluated around RON 10.9 billion In September 2020, Fondul Proprietatea had in its portfolio 33 companies: 7 listed companies, representing 18% of the NPV and 26 unlisted companies, representing 72% of the NPV.
Effectiveness of the fund and challenges.
Romania is the only country in the former Eastern bloc to join the European union where such a problem concerning the situation of property in connection with the collapse of communist regimes remains unresolved. None of the other ex-Soviet bloc countries have raised a real estate issue with such a magnitude at European level.
Given the seriousness of the situation and the inertia of the Romanian state, despite hundreds of convictions of the European Court of Human Rights, the latter launched on 25 February 2010 a pilot-judgment procedure. The hearing was held 6 September 2010. The ruling is expected in September 2010. It could be accompanied by sanctions against Romania such as the obligation to amend its legislation, or the exclusion of the Court.