Fondul Proprietatea set to shift to international assessment standard

Fondul Proprietatea (Property Fund-FP) is getting ready to fall in line with foreign investment funds by adopting international standards for the valuation of assets part of its portfolio. The move will make the Fund more easily understandable by foreign investors, but it will also make it more sensitive to Stock Exchange movements.
FP is on the finishing straight as regards preparations for floatation on the Bucharest Stock Exchange (BSE), with the shift to international standards for portfolio assessment as a necessary step for increased visibility among foreign investors.
At the request of manager Franklin Templeton, the National Securities Commission (CNVM) has decided to suspend the old assessment norms for the Fund’s net assets and has given new valuation instructions until the international assessment methods are approved and included in the Fund’s internal regulations.
The value of the Fund’s net assets is given by the cumulate value of the 83 companies part of its portfolio, out of which only 27 are traded on the BSE and thus have a transparent market value. According to the latest reports, the Fund’s net assets stood at 13.49bn RON in late October.