Fondul Proprietatea : May 2021 Factsheet

FUND DESCRIPTION

MONTHLY REPORT	31 May 2021

SHARE PRICE (RON) AND DISCOUNT (%) SINCE LISTING ON BVB

Fondul Proprietatea (the Fund) is a joint stock company operating as an Alternative Investment Fund (AIF) with an unlimited lifetime, incorporated in Romania. The Fund was listed on the Bucharest Stock Exchange on 25 January 2011, and on the Specialist Fund Market of the London Stock Exchange ("LSE") by means of Global Depositary Receipts ("GDRs") on 29 April 2015.

INVESTMENT OBJECTIVE

The Fund's investment objective is the maximisation of returns to shareholders and the increase of the net asset value per share via investments mainly in Romanian equities and equity-linked securities.

ALTERNATIVE INVESTMENT

FUND MANAGER

FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.À. R.L. as of 1 April 2016

PORTFOLIO MANAGER

Johan Meyer - Portfolio Manager

Călin Meteș - Deputy Portfolio Manager

Daniel Naftali - Deputy Portfolio Manager

FUND DETAILS AS AT 31/05/2021

2.15																			16%
1.85																			3%
1.55																			-10%
1.25																			-23%
0.95																			-37%
0.65																			-50%
0.35																			-63%
																	5/1/21
1/11	9/11	5/12	1/13	9/13	5/14	1/15	9/15	5/16	1/17	9/17	5/18	1/19	9/19	5/20
							Share Price				Discount / Premium (%)

NAV/Share:

RON 1.8358 / USD 0.4549 / EUR 0.3732

Ordinary Share Price:

RON 1.7300 / USD 0.4286 / EUR 0.3516

GDR price (1 GDR = 50 shares):

RON 86.37 / USD 21.40 / EUR 17.56

Current Share Price Discount1: 5.76%

Current GDR Discount1: 5.91%

Fund NAV: RON 10.89 billion / USD 2.70 billion / EUR 2.21 billion

Market Capitalisation (Excluding treasury shares):

RON 10.26 billion / USD 2.54 billion / EUR 2.09 billion /

Average Daily Turnover on the BVB2:

RON 5.15 million / USD 1.28 million / EUR 1.05 million

Average Daily Turnover on the LSE2: RON 4.79 million / USD 1.19 million / EUR 0.97 million

Base Currency of Fund:	Romanian Lei (RON)
Date of Fund Launch:	28 December 2005
Performance Inception Date:	31 December 2010 for NAV
	25 January 2011 for Ordinary Share Price
	29 April 2015 for Global Depositary Receipts
Number of Issued Shares:	7,210,158,254
Number of Shares Corresponding to	6,846,345,904
Paid Share capital:
Number of Paid Shares less	5,931,882,475
Treasury Shares:
Number of Voting Rights13:	5,932,607,596
Subscribed Share Capital:	RON 3,749,282,292.08

Cumulative									2-Yr3	3-Yr3	5-Yr3	Since perf.
Performance %		1-Mo	3-Mo	YTD	6-Mo	9-Mo	1-Yr	incept.4
NAV RON5		4.44	11.79	12.58	18.99	18.98	21.66	17.68	17.74	18.22	172.11
Ordinary Share Price RON6	6.23	15.49	24.25	38.05	45.88	53.30	41.30	32.07	29.26	460.15
GDR USD7		6.85	14.56	29.96	40.66	50.16	66.77	46.40	31.86	28.39	197.18
Performance data is shown rounded to the nearest hundredth.
The Fund uses these indicators as they are directly related to the performance objectives of the Fund included in the Investment Policy Statement.
AVERAGE ANNUAL DISCOUNT %1									Current
	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	YTD
	Discount
Ordinary Share Price	55.67	50.09	40.74	30.87	29.12	32.08	28.05	29.54	29.38	21.06	4.97	5.76
GDR	-	-	-	-	29.51	29.98	27.39	29.53	30.34	22.17	6.64	5.91

Paid Share Capital:	RON 3,560,099,870.08
CASH DISTRIBUTIONS PER SHARE12
2021	Dividend	0.0720 RON payable starting 22 June 2021
2020	Dividend:	0.0642 RON July 2020
2019	Dividend:	0.0903 RON July 2019
2018	Dividend:	0.06780 RON June 2018
2017	Cash Distribution:	0.05000 RON June 2017
2017	Special Cash Distribution:	0.05000 RON March 2017
2016	Cash Distribution:	0.05000 RON June 2016
2015	Cash Distribution:	0.05000 RON June 2015
2014	Cash Distribution:	0.05000 RON July 2014
2012	Dividend:	0.04089 RON June 2013
2011	Dividend:	0.03854 RON June 2012
2010	Dividend:	0.03141 RON June 2011
2008-2009 Dividend:	0.0816 RON October 2010

PORTFOLIO STRUCTURE

Asset	% of NAV
Listed Equities	17.25
Unlisted Equities	73.40
Net Cash & Receivables8	9.35

Sector	% of NAV
Power utilities: generation	50.94
Oil & Gas	14.90
Power & Gas utilities: distribution, supply	12.05
Infrastructure	8.64
Heavy Industry	2.08
Aluminium	1.81
Postal services	0.12
Others	0.11
Net Cash and receivables8	9.35

TOP 10 HOLDINGS

Security name	% of NAV
Hidroelectrica SA	50.94
OMV Petrom SA	14.90
CN Aeroporturi Bucuresti SA	5.73
Engie Romania SA	4.95
E-Distributie Banat SA	2.50
CN Administratia Porturilor Maritime SA	2.17
E-Distributie Muntenia SA	2.09
Societatea Nationala a Sarii SA	1.85
Alro SA	1.81
E-Distributie Dobrogea SA	1.63
Total	88.57

FUND IDENTIFIER
Bucharest Stock Exchange Symbol:	FP
London Stock Exchange Symbol:	FP.
Bloomberg:	FP RO (for BVB) and FP/LI (for GDRs)
Reuters:	FP.BX (for BVB) and FPq.L (for GDRs)
ISIN:	ROFPTAACNOR5
ASF Public Register No:	PJR09SIIR/400006/18.08.2010
CIVM Registration No:	AC-4522-6/14.10.2020
LEI Code:	549300PVO1VWBFH3DO07

SHAREHOLDERS STRUCTURE9

	%
Romanian institutional investors	34.26
Romanian private individuals	18.34
The Bank of New York Mellon (depository	17.06
bank for Global Depository Receipts)
Foreign institutional investors	13.81
Foreign private individuals	3.09
Ministry of Public Finance10	0.10
Treasury shares11	13.34
Total Number of Shareholders	8,575

LARGEST SHAREHOLDERS	% of total
Shareholder	As at	voting rights
NN Group	6 March 2020	10.01
Silver Point Capital	4 May 2021	5.07
Funds
Allianz-Tiriac Private	1 July 2019	5.05
Pension Funds

Source: Ownership disclosures submitted by shareholders.

Monthly Report	31 May 2021

DESCRIPTION OF NAV BASIS

THE CURRENT REGULATIONS

Net Asset Value is calculated according to regulations approved by Local Regulator (CNVM Regulation no. 4/2010 as subsequently amended).

Where there is trading activity in the last 30 trading days, shares listed on a regulated market are valued at closing price. The shares admitted to trading on AeRO market (alternative trading system) are valued based on the Reference Price method, respectively the average price. Where there is no trading activity in the 30 trading day-period for listed investments, the unlisted valuation approach applies. Investments in unlisted companies are valued using valuation methods in accordance with International Valuation Standards (according to the fair value principle).

Investments in companies in liquidation, dissolution, bankruptcy, insolvency or judicial reorganization are valued at nil. Investments in companies under temporary or final suspension of operation, are valued at zero until the procedure is finalized.

Starting with the NAV report as at 29 January 2016, the accounting records under IFRS are used for the computation of NAV for the items that are not part of the financial instruments' portfolio (non-portfolio items).

WHAT ARE THE KEY RISKS?

The Fund's portfolio consists mainly of unlisted financial instruments and consequently the performance of the Fund can fluctuate considerably over time.

Risk related to industry sectors: the Fund has a significant exposure in companies in oil, gas and electricity sector. Therefore, the Fund's performance will depend largely on the overall condition of the industries and markets in which the companies in the Fund's portfolio operate.

Risk related to Romania: The Fund holds significant holdings in companies that are controlled by Romanian State. Past experience indicates that management of these companies is often replaced after government changes, which may affect the financial results of such companies in the Fund's portfolio and the Fund's overall performance.

Risk related to Global Pandemic: The spread of infectious diseases, such as COVID-19, could have a significant adverse impact on the Fund's operations and Fund's returns.

The outbreak of pandemic as well as any restrictive measures implemented by the government to control such pandemic, could adversely affect the operations and financial results of the Fund's companies.

Other materially relevant risks are unlisted investment risk, and share discount to NAV risk. For full details of all of the risks applicable to this Fund, please refer to the "Risk Factors" section of the Fund in the current prospectus of Fondul Proprietatea.

Important Information and Disclaimers

The above portfolio information is calculated on the basis of the NAV. The Investment Manager for the Fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the Top 10 Holdings list where the protection of such information is in the best interests of the Fund. The price of shares and income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is no guarantee of future performance. In emerging markets, the risks can be greater than in developed markets. Investment in the Fund may not be suitable for all investors; we suggest investors seek guidance from a financial adviser. Read the issue prospectus before investing in this fund/investment firm. FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.À R.L. as alternative investment fund manager and sole director of Fondul Proprietatea SA issues quarterly, semi-annual and annual reports which are published on the Fund's website at www.fondulproprietatea.ro. This is a short summary for the information of existing shareholders only and is not intended to be used as the basis for investment decisions.

Existing and potential investors should refer to the Fund's prospectus and amendment, available at www.fondulproprietatea.ro. All information presented in the report is provided by Franklin Templeton Investment Services S.À R.L., Bucharest Branch.

This report is issued in Romania by Franklin Templeton Investment Services S.À R.L., Bucharest Branch, at 78-80 Buzesti Str, Premium Point, 8th Floor, Bucharest 1, 011017, ROMANIA.

References	8. Net cash and receivables includes bank deposits, current bank accounts, short-term
1.	The discount is calculated based on the latest published NAV at the date of the calculation.	Government securities, dividend receivables, as well as other receivables and assets, net of
For Current Discount, the values are calculated based on the 31 May 2021 NAV.	all liabilities (including liabilities to shareholders related to the returns of capital and dividend
distribution) and provisions.
2.	Share price: for the period 1 - 31 May 2021. GDR: for the period 1 - 28 May 2021.
9. Based on the paid-up share capital as at 31 May 2021 as received from Depozitarul
3.	Annualized rate of return.
Central SA.
4.	The Performance Inception date for the NAV is 31 December 2010, for the Share Price is
10. The total number of shares held by the Ministry of Public Finance is of 370,456,198 shares
25 January 2011, and for the GDRs is 29 April 2015.
out of which 6,643,848 paid shares and 363,812,350 unpaid shares.
5.	The NAV per Share Total Return is calculated in RON by geometrically linking total returns	11. 913,738,308 treasury shares out of which 115,777,021 treasury shares acquired in the
for all intermediate periods when official NAV is published. Each total return for a single period	12th buyback program and 797,961,287 treasury shares acquired in the 11th buyback
is calculated using the following formula: the NAV per share as at the end of the period plus	program.
any cash distribution during the period, dividing the resulting sum by the official NAV per share	12. Distributions since the start of Franklin Templeton Mandates.
at the beginning of the period. The resulting single period total returns are geometrically linked
13. The unpaid shares, own settled shares and shares equivalent of own global depositary
to result in the overall total return.
6.	The Share Price Total Return is calculated in RON by geometrically linking daily total	receipts held by the Fund are excluded from the calculation of the number of voting rights.

returns. Daily total return is calculated as the closing price at the end of the day, plus any cash distributions on that day, dividing the resulting sum by the closing price of the previous day. The resulting single period total returns are geometrically linked to result in the overall total return.

7. The GDR Price Total Return is calculated in USD by geometrically linking daily total returns. Daily total return is calculated as the closing price at the end of the day, plus any cash distributions on that day, dividing the resulting sum by the closing price of the previous day. The resulting single period total returns are geometrically linked to result in the overall

total return.

Contact Us		www.fondulproprietatea.ro
tel.: [phone]	9600	[e-mail]
fax: [phone]	9631/32

Fund's headquarters are at 78-80 Buzesti Str, 8th Floor, Bucharest District 1, 011017, Romania. Fund's Fiscal Identification Code (CIF): 18253260 and Trade Registry registration no: J40/21901/2005.

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