As of April 2023, Fondul’s NAV reached RON 14.31bn, which would translate into a NAV per share of RON 2.6510, a decrease of 10.3% YoY and a 2.2% MoM increase.

According to the latest Fondul Proprietatea’s NAV report (30 April 2023), Fondul reported a total NAV of RON 14.31bn (EUR 2.90bn), which translates into a NAV per share of RON 2.6510 (EUR 0.5372).

Comparing it on a YoY basis, the total NAV recorded a decrease of 10.3%. Nevertheless, compared to February, NAV increased by 2.2%.

Fondul Proprietatea’s portfolio structure still remained focused on the power utility generation sector (75.9% of NAV), Power & Gas supply utilities (7.6%) and Infrastructure (7.4%) with no significant changes in its portfolio structure. This is also why the three most significant holdings, Hidroelectrica, Aeroporturi Bucuresti, and Engie Romania amount to 84% of the total NAV of the Fund. However, most of those come only from Hidroelectrica with 75.9% as the biggest holding. Finally, regarding the whole power utility generation sector, we emphasize that Fondul decreased its exposure to the power utility generation sector by 3.6 p.p. on a monthly basis, which came on the back of a lower share of Hidroelectrica as a percentage to the whole portfolio.

In terms of the Fund’s portfolio structure, unlisted equities accounted for the vast majority of NAV, standing at 93%. However, it should be noted that unlisted equity noted a 3.6 p.p. MoM decrease as a percentage of Fondul’s total portfolio. On the other hand, Net Cash & Receivables amounted to 5.8%, increasing by 3.6 p.p. MoM as Unlisted equities fell. Finally listed equities amount to only 1.2%.

So overall, during April, Fondul increased its cash position on the “cost” of holding a lower amount of its portfolio in unlisted equity. Also, we remind and emphasize that at the start of this year, Fondul liquidated its position in OMV Petrom, which was previously the second biggest holding after Hidroelectrica with 5.6% of the fund’s NAV in the latest data available for November.

Turning our attention toward the share price’s performance, during the month, the Company’s share price noted a slightly negative development with a 1.2% share price decrease, ending the month at RON 2.08 per share. The current discount to NAV per share stands at 24.8%.

Fondul Share Price & NAV per Share

Source: Bloomberg, InterCapital