Fondul Proprietatea

Fund Information / Factsheet • Oct 14, 2016

Fondul Proprietatea (FP) 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

The Fund's investment objective is the maximization of returns and per-share capital appreciation via investments mainly in Romanian equities and equity-linked securities. Alternative Investment Fund Manager

Monthly Report 30 September 2016

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

GDR price (1 GDR = 50 shares):

NAV/Share:

Ordinary Share Price:

RON 41.41/ EUR 9.30 / USD 10.40 Current Share Price Discount⁶: 31.36% Current GDR Discount⁶: 29.19%

RON 1.1698/ EUR 0.2627/ USD 0.2938

RON 0.8030 / EUR 0.1804 / USD 0.2016

• Fund NAV: RON 11.36 billion / EUR 2.55 billion / USD 2.85 billion Market Capitalisation (Excluding treasury shares): RON 7.80 billion / EUR 1.75 billion /
• USD 1.96 billion Average Daily Turnover on the BVB1: RON 24.65 million / EUR 5.54 million /
• USD 6.19 million Average Daily Turnover on the LSE1:

RON 3.86 million / EUR 0.87 million / USD 0.97 million

as of 1 April 2016 Investment Manager Franklin Templeton Investment Management Limited UK,

Bucharest Branch – since 29 September 2010. Portfolio Manager

FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.À R.L.

Grzegorz Konieczny

Fund Description

Investment Objective

2015.

Fund Details as at 30/09/2016

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: 10,965,850,801 Number of Shares Corresponding to Paid Share capital: 10,602,038,451

Subscribed Share Capital: RON 9,320,973,180.85

Paid Share Capital: RON 9,011,732,683.35 Cash Distributions per Share

	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

Fund Identifier

Bucharest Stock Exchange Symbol: FP

London Stock Exchange Symbol: FP. Bloomberg: FP RO (for BVB) and FP/ LI (for GDRs)

ISIN: ROFPTAACNOR5

ASF Public Register No: PJR09SIIR/400006/18.08.2010 CIVM Registration No: AC-4386-1/28.06.2016

References

¹ For the period 1 – 30 September 2016

² Annualized rate of return ³ The NAV per Share Total Return is calculated in RON by geometrically

linking total returns for all intermediate periods when official NAV is published. Each total return for a single period is calculated using the following formula: the NAV per share as at the end of the period plus any cash distribution during the period, dividing the resulting sum by the official NAV per share at the beginning of the period. The resulting single period total returns are geometrically linked to result in the overall total return

⁴ The Share Price Total Return is calculated in RON 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

⁵ 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

⁶ The discount is calculated based on the latest published NAV at the date of the calculation. For Current Discount, the values are calculated based on the 30 September 2016 NAV.

⁷ For the period 4 January – 30 September 2016

⁸ Net cash and receivables includes bank deposits, current bank accounts, short-term treasury bills and bonds, dividend receivables, receivables from transactions with financial instruments, as well as other receivables and assets, net of all liabilities (including liabilities to shareholders related to the returns of capital) and provisions.

⁹ Based on the paid share capital

¹⁰ 363,812,350 shares unpaid by Ministry of Public Finance

¹¹ 891,770,055 treasury shares acquired in the sixth buyback program.

								incept.
NAV RON3	0.21	2.21	11.20	5.82	7.89	1.26	4.54	30.97
Ordinary Share Price RON4	1.13	10.61	11.31	5.95	8.64	(2.03)	8.49	81.02
GDR RON5	(0.62)	10.05	15.90	6.69	11.22	N/A	N/A	2.29
NAV USD3	0.83	4.99	10.05	11.00	7.48	(4.99)	(1.73)	4.64
Ordinary Share Price USD4	1.76	13.61	10.15	11.14	8.22	(8.07)	1.98	42.05
GDR USD5	0.00	13.04	14.70	11.92	10.80	N/A	N/A	2.39

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 DISCOUNT6
--------------------------	--

	2015	YTD7	Current Discount
Ordinary Share Price	55.67%	50.09%	40.74%	30.87%	29.12%	32.46%	31.36%
GDR	-	-	-	-	29.51%	30.71%	29.19%

PORTFOLIO STRUCTURE

Asset	% of NAV
Listed Equities	28.59
Unlisted Equities	64.93
Net Cash & Receivables8	6.48

Sector	% of NAV
Power utilities: generation	30.53
Power & Gas utilities: distribution, supply	25.61
Oil & Gas	23.50
Infrastructure	7.90
Banks	2.64
Heavy Industry	1.77
Aluminium	0.78
Postal services	0.52
Others	0.28
Net Cash and receivables 8	6.48

	%
The Bank of New York Mellon (depository bank for Global Depository Receipts)	34.48
Foreign institutional investors	21.92
Romanian private individuals	18.44
Romanian institutional investors	13.41
Foreign private individuals	3.30
Ministry of Public Finance10	0.04
Treasury shares 11	8.41
Total Number of Shareholders	7,341

TOP 10 HOLDINGS

Security name	% of NAV
Hidroelectrica SA	28.78
OMV Petrom SA	23.11
CN Aeroporturi Bucuresti SA	5.57
ENEL Distributie Banat SA	5.49
ENEL Distributie Muntenia SA	4.01
Engie Romania SA	3.93
ENEL Distributie Dobrogea SA	3.53
BRD Groupe Societe Generale SA	2.46
Electrica Distributie Muntenia Nord SA	2.24
Electrica Distributie Transilvania Sud SA	1.96
Total	81.08

Shareholder As at % of total voting rights Elliott Associates 21 October 2015 21.06 City of London Investment Mgmt. 5 April 2016 5.04 SHAREHOLDERS STRUCTURE9 LARGEST SHAREHOLDERS

Source: Ownership disclosures submitted by shareholders.

© 2016 Franklin Templeton Investments. All rights reserved.

Description of NAV Basis

Net Asset Value is calculated according to regulations currently applying to Fondul Proprietatea, 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 either shareholders' equity value per latest annual financial statements (proportionally with the stake held) or by using valuation methods in accordance with International Valuation Standards (fair value principles). Any holding in companies going through an insolvency or reorganization procedure is valued either at zero or at the value provided by an independent valuer, using valuation methods in accordance with International Valuation Standards (fair value principles). Any holding in companies under judicial liquidation procedure, or any other liquidation procedures, as well as in companies under temporary or final suspension of operation, is valued at zero until the procedure is finalised.

Starting with the NAV report as at 29 January 2016, the accounting records under IFRS are used for the computation of NAV non-portfolio items.

Contact Us:

tel: +40 21 200 9600 Fax: +40 21 200 9631/32 email: investor.relations@fondulproprietatea.ro web: www.fondulproprietatea.ro Fund's headquarters are at 78-80 Buzesti Str, 7th Floor, Bucharest District 1, 011017, Romania. Fund's Fiscal Identification Code (CIF): 18253260 and Trade Registry registration no: J40/21901/2005.

Monthly Report 30 September 2016

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 Management Limited United Kingdom, Bucharest Branch.

This report is issued in Romania by Franklin Templeton Investment Management Limited United Kingdom, Bucharest Branch, at 78-80 Buzesti Str, Premium Point, 7th and 8th Floors, Bucharest 1, 011017, ROMANIA registered with ASF Public Register No. PJM01SFIM/400005.