Wednesday, August 6, 2008

Profits Up for Romania Compensation Fund

05 August 2008
Bucharest _ Romania's leading investment fund, Fondul Proprietatea, on Tuesday reported a net profit of lei 319 million (91.7 million euros) for the first six months of the year, up from 313.1 million at the same time in 2007.

Proprietatea is a a 4 billion euro investment fund set up by the government to compensate people whose assets were seized in the Communist era. Furthermore, Fondul Proprietatea is by the end of this year to name an international fund managers to run its interests.

More than 20 asset managers have already expressed interest in managing the fund, including Goldman Sachs, HSBC, Allianz Global Investors, Societe Generale and East Capital. Appointing fund managers is the next step in Fondul Proprietatea’s ambitious plans to become a flagship fund in Romania’s small asset management market.

Five per cent of the fund, which was set up in 2005, is in cash and the rest is held in stakes in more than 80 Romanian companies, partly or fully owned by the state. The fund aims to become a model for restitution and serve as an example for other countries that suffered similar problems under communist regimes.

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