Fondul reported a total NAV of RON 10.2bn (EUR 2.19bn) (-5.6% YoY) which translates into a NAV per share of RON 1.4095 (+14% YoY). Share price, as of 15 January amounts to RON 0.848 (+2.2% YoY).
As Fondul Proprietatea published their NAV as of 31 December 2018, we bring you it’s short overview.
According to the latest NAV report, Fondul reported a total NAV of RON 10.2bn (EUR 2.19bn) which translates into a NAV per share of RON 1.4095. When comparing it to the same period last year, their NAV decreased by 5.6%, while NAV per share increased by 14%.
On the other hand, when comparing MoM, Fondul’s NAV increased by 2.3%, while their NAV per share increased by 2.6%. This shows that the Funds NAV was not affected by the turmoil in the Romanian market caused by the series of fiscal measures adopted in December 2018 in order to fill the Governments budget gap, which was met with a lot of investors’ concern, resulting in significant price drops. However, Foundul’s price per share decreased in December by 6.2%
Fondul has recently stated that the impact of the Emergency Government Ordinance on the Fund’s unlisted assets will depend on the level of the price cap for electricity generation companies and the degree to which some of the additional taxes will be passed through in the tariffs by the electricity and gas distribution companies. The share prices of the listed companies in the Fund’s portfolio have already reacted to the potential negative impact from the initial draft and have recovered part of the losses upon the approval of the amended OUG.
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 58.4% of the total NAV.
Meanwhile, when compared to the same period last year, the Fund reduced their net cash & receivables (-9.2 p.p.), while they increased their exposure to unlisted equities (+9 p.p.), which account now for 72.47% of the total NAV. Listed equities remained flattish, accounting for 22.7% of the total NAV.
Turning our attention towards the share’s price performance, as of 15 January, the share price amounted to RON 0.848, marking a 2.2% increase YoY, while NAV per share increased by 14% YoY. The discount to NAV per share increased by 10 p.p YoY and currently stands at 40%. Note that it amounted to 37% on the 31December 2018.
Furthermore, we also observed the historical movement of Romanian close-ended funds’ discount. Among the observed funds, the highest discount was recorded by SIF Muntenia with a discount rate amounting to 65%, followed by SIF Banat (58%), SIF Oltenia (38%). Note that SIF Transilvania and SIF Moldova did not yet post their NAV as of 31 December 2018.
