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.