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.
The fund manager is Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch.
Romania is the only country in Eastern Europe where it is attempted to find a solution for restitution – at its actual value – of the property confiscated by the previous communist governments.
The establishment of an efficient and quick system to grant equitable compensation was necessary, taking into account the legislative frame regarding the juridical regime applicable to nationalized real estates and the complexity of the problems which occur in practice – especially when restitution in kind is not possible.
Fondul Proprietatea was established in 2005 to assure the financial resources necessary to compensate the persons abusively expropriated.
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 Fund's investment objective is long term capital appreciation via investments primarily in Romanian equities with strict adherence to the principles of value investing. The portfolio is heavily weighted in the Power, Oil and Gas sectors (84% of NAV) through a number of listed and unlisted, privately-held and State-controlled entities.
Fondul Proprietatea's shares are traded on the Bucharest Stock Exchange since 1/25/11 (FP), and on the London Stock Exchange 4/29/15 (FP.).