Fondul Proprietatea, a £2.75 billion Romanian closed-end fund managed by Franklin Templeton, is planning a secondary listing in London.
Romania set up Fondul Proprietatea as a sovereign fund in 2005 to compensate eligible Romanian citizens whose property was confiscated under the communist regime. Franklin Templeton won the mandate to manage the fund in 2010.
The fund told the Romanian stock market: ‘Given that the feedback from international institutional investors that the fund manager has met during road-shows to the United States of America, Canada, the United Kingdom and other European countries has remained very supportive of the secondary listing of the fund, in order to attract additional demand for the fund’s shares, and the potential benefits such as broadening the foreign institutional investor base not currently active in Romania.
It also said the secondary listing would offer 'increased visibility of the fund, increased research coverage and potential valuation uplift and that 'the fund manager will be working with a view to complete the process as soon as possible.’
The fund has returned 44.8% over the past year, compared with 17.6% from the MSCI Romania index.