In 2018, Fondul’s NAV amounted to RON 10.2bn (EUR 2.15bn), which is a decrease of 5.3% YoY.
NAV per share amounted to 1.4095, which is a 13.9% increase. Discount of the Fund’s share price to the NAV ranged between a high of 38.9% and a low of 23.8%.
As Fondul Proprietatea published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, in 2018, Fondul’s NAV amounted to RON 10.2bn (EUR 2.15bn), which represents a decrease of 5.3% YoY.
When observing NAV per share, it amounted to 1.4095, which is a 13.9% increase YoY.
In 2018, the Fund’s NAV per share total return was 19.9% and the Fund’s share price cumulative performance was 9.9%. Note that the company managed to generate positive returns on the NAV and on the share price for their shareholders, despite the 6.2% drop in the share price of the Fund in December. Furthermore, the discount level remains excessively high in the company’s view and they state that their efforts to reduce it significantly below the current levels will continue in 2019, with share buy-backs and cash distributions as key actions that are under their control. Note that the discount of the Fund’s share price to the NAV ranged between a high of 38.9% and a low of 23.8% and ended the year at 35.8%.
The company’s management notes that the increase in the discount level registered at the end of the year was directly influenced by the Emergency Government Ordinance in which the Romanian government adopted series of fiscal measures adopted in December 2018 in order to fill the Government’s budget gap.
Fondul Proprietatea also published their NAV as of 31 January 2019, in which they report a NAV of RON 9.8bn (EUR 2.1bn), which represents a decrease of 4% MoM. Meanwhile Fondul’s NAV per share amounted to RON 1.3692.
Next, when observing the portfolio structure, it remains traditionally oriented towards the power, oil and gas sectors, whereby the two largest holdings, Hidroelectrica and OMV Petrom account for roughly half of the total NAV.
Meanwhile, when compared to the same period last year, the Fund reduced their net cash & receivables (-8.8 p.p.), while they increased their exposure to unlisted equities (+8.5 p.p.), which account now for 71% of the total NAV. Listed equities remained flattish, accounting for 24% of the total NAV.
Turning our attention towards the share’s price performance, as of 15 February, the share price amounted to RON 0.877, marking a 4.6% decrease YoY, while NAV per share increased by 8.9% YoY. The discount to NAV per share increased by 9p.p YoY and currently stands at 36%.