Today we bring you an overview of Fondul Proprietatea and other Romanian close-end funds’ current price to NAV discount.

Current Price To NAV Discount (%)

Among the observed funds, the highest discount was recorded by SIF Banat with a discount rate amounting to 57%, followed by SIF Oltenia (55%), SIF Muntenia (53%), SIF Transilvania (49.4%). Meanwhile, Fondul Proprietatea managed to achieve a price to NAV discount which stands at 12.6%.

We can notice that Fondul Proprietatea clearly has the lowest price to NAV discount, while a discount of price to NAV reports a small deviation within SIF funds. Although the discount to NAV varies among the observed SIF it could be explained by the quality of assets that they hold. Namely, while SIF Banat holds 62.9% of their assets in listed shares, roughly half are listed on the BVB’s most demanding and premier segment, while the rest are in less quality segments. On the flip side, SIF Transilvania, who trades at the smallest discount to price among the observed SIFs (49%) has rather a favorable asset class structure with the highest amount of portfolio invested in listed equities accounting for 81% of the fund’s assets, while another 11% of assets are held in unlisted or listed but untraded financial instruments.

Historic Price To NAV Discount (%)