On April 22 of this year, the shareholders of Transilvania Investments are invited to vote for the strategy that will form the basis of the investment fund’s activities for the next 4 years. An annual growth of at least 6% in the unit’s net asset value and an annual reduction of at least 7% in the trading discount are the most important goals of the investment fund team. The strategy proposed to the shareholders for approval is published on the website transilvaniainvestments.ro

The general meeting of shareholders comes at a time when Transilvania Investments recorded its best financial results in the last 5 years, with a profit of 237 million lei, which is about 270% more than the previous year, and with assets under management worth 1.82 billion lei , having increased by 28%. The unitary net asset recorded a record value of 0.8019 lei at the end of 2023.

These results allow the investment fund to allocate resources for development and investment and to reward shareholders both through the provision of dividends (0.015 lei/share, a return of more than 5%, compared to the average trading price of the previous year) and through its own share buyback programs.

At the general meeting of shareholders to be held in Brasov, the investment fund will present itself to the shareholders with a new executive team, which is currently in the process of authorization by the ASF, and a strategy for the next four years that will meet the expectations of investors. The main objective: to maximize returns for investors and ensure stable growth of net assets.

Among the most important areas of activity is the restructuring of the historical portfolio of holdings that have exhausted their growth potential. The investment fund has already taken the first steps in this direction, exiting the shares of some companies, the politician said Entrance for further implementation in order to provide sources of investment financing with higher estimated indicators. Among them, assets in the tourism sector create important opportunities for development. Solutions such as working under international brands, intended for hotels in the ARO Palace portfolio, can also be implemented in other tourism companies in which the foundation is the main shareholder.

Other courses of action that the fund team offers to shareholders are active trading in order to maintain an adequate level of portfolio liquidity, as well as efficient and centralized use of real estate assets, including companies in the industrial sector.

This strategy, based on balance and efficiency, will allow Transilvania Investments to maintain the medium risk profile associated with the managed portfolio. For the first time, for the period of 2024-2028, the fund defines clear goals for the annual increase of the unitary value of net assets (Unitary Net Asset Value (VUAN)) – not less than 6%, as well as for the annual reduction of the trade discount – not less than 7%. %.

In addition, as an element of novelty, Transilvania Investments will gradually review the company’s sustainability policies and procedures (environmental, social, management) so that by 2028 the fund integrates risks related to sustainable development into its investment decisions and takes into account the negative impact investment decisions on sustainability factors. At the same time, the fund offers a step-by-step implementation of non-financial reporting, according to the relevant standards.

Information documents related to the fund’s strategy, as well as other items on the agenda of the general meeting of shareholders convened on April 22-23 this year in Brasov, are available on the company’s website, in AGOA April 2024 and AGEA Sections April 2024. Shareholders , who will not be able to participate in person, have the opportunity to vote electronically or by mail, until April 19

The article is supported by Transilvania Investments