The Hungarian National Asset Management Inc. started its operation on 1 January 2008 with merger and as the successor of three predecessor organisations - State Privatisation and Holding Company, Treasury Property Directorate and the National Land Fund Management Organisation. Since the transition period, contemporary politics always set out various strategies for the different asset groups and formed institutions to suit these strategies. As a result, each item of these asset groups - such as real estates, lands, companies - were always treated separately. HNAM has created the conditions of a system, under which the state asset proprietary approach is unified.
The most important tasks of the Hungarian National Asset Management Inc. are regulated by the framework rules of the Act on State Assets; the legal act sets out the transactions, processes, objects, in regard of which the HNAM is endowed with exclusive powers in case of state assets.
As one of the most important supporting organisations of the Ministry of National Development, the Hungarian National Asset Management Inc. (HNAM Inc.) exercises ownership rights over state assets of over 17 trillion Hungarian forints, representing almost 50 percent of the annual GDP of Hungary.
The operations of HNAM Inc. are based on Act CXCVI of 2011 on National Assets. Its responsibilities include strategy based and responsible asset management, portfolio rationalisation, property management using modern methods, improving the profitability of national enterprises, and the preservation and development of national assets, in compliance with government policies and the applicable laws.
The national assets managed by HNAM Inc. comprise of companies, real property and intangible property.
Currently HNAM Inc. exercises ownership supervision over more than 500 state-owned business associations, of which it directly exercises ownership rights over about 450 companies. Some of the key companies supervised by HNAM Inc. are MVM Hungarian Electricity Ltd., a major Hungarian energy group, Szerencsejáték Ltd., a dominant player in the market of games of chance, regional transport companies providing local road transport services and Volánbusz Zrt., as well as the water utilities companies and the waste management holding.
As regards the management of state-owned real properties, the main duty of HNAM Inc. is to provide real estate for the performance of state functions and for meeting public demand. The immovable assets comprise of about 553,000 items, of which currently over 510,000 are used by asset management organizations. In addition to performing real property management related task, HNAM Inc. also manages almost 100,000 state-owned movable properties, including a wide range of items from road vehicles through musical instruments to works of art.
As part of its responsible asset management practice, HNAM Inc. always focuses on efficient administration, the formation of partnerships, transparent resource management as well as reliable, predictable, well-thought-out and conceptually sound portfolio management. Through the creation of the framework for a consistent assets register and the formulation of essential asset management principles, the activities of HNAM Inc. opened the door to exercising ownership control in a professional way with an emphasis on economy and efficiency related considerations.