June 24 (SeeNews) - Romanian investment fund Fondul Proprietatea [BSE: FP] will remain listed on the London Stock Exchange as investors will be able to invest in it via global depositary receipts, the fund's manager Franklin Templeton Investments told SeeNews on Friday.
"Whilst this [the Brexit vote] marks an unprecedented step for the UK, we do not foresee any material impact for the fund from this development," Greg Koniecnzy, portfolio manager and CEO of Franklin Templeton Investments, said in an emailed statement to SeeNews. "From a portfolio perspective, the fund has no investments in the UK nor any indirect material exposures to the UK economy."
However, Franklin Templeton Investment Management Limited Bucharest Branch is a branch of a UK regulated firm and there may be a need to evaluate this arrangement but it is far too early to know if that will be needed, he added.
"Following the decision to exit the EU, there will be a long period of negotiations which are expected to run for at least 2 years, and the UK will remain an EU member state and retain all associated rights during this time. We will monitor and manage this aspect going forward.”
Blue chip Fondul Proprietatea was set up in 2005 to compensate pre-Communist era owners whose property was nationalized.
It has been trading on the Bucharest stock exchange since 2011 and has been listed on the Specialist Fund Market of the London Stock Exchange by means of GDRs in April 2015.
The fund's shares were trading 3.27% down at 0.68 lei on the BVB by 1408 CET on Friday.
(1 euro = 4.5366 Romanian lei)