NAV Discount of Romanian Closed-end Funds

With the remaining Romanian SIFs publishing their NAV reports for March we follow up on our yesterday’s flash news regarding Fondul’s current NAV, with comparison of Romanian close-end funds’ NAV discount.

Current Price To NAV Discount (%)

Source: Bloomberg, InterCapital Research

Among the observed funds, the highest discount was recorded by SIF Muntenia with a discount rate amounting to 64%, followed by SIF Banat (53%), SIF Transilvania (49%), SIF Moldova (36%), SIF SIF Oltenia (36%) and Fondul (34%).

Out of the observed SIFs one should highlight SIF Transilvania whose discount amounts to roughly half of their NAV, despite the rather favourable asset class structure with listed equities accounting for 89% of the fund’s assets. One should also highlight SIF Oltenia who will soon hold a shareholders meeting where they will vote on a share buy-back program through which 30,000,000 shares (representing 5.1709% of share capital) are to be bought back at a maximum price of RON 2.75 per share.

Note that the Romanian Law prohibits any single shareholder to hold more than a 5% stake in the observed SIF funds. Although it might not be the key reason why, it is certainly a contributor to why some SIFs have such a high discount to their NAV.

To read more about Fondul’s current NAV please click on the following link.