First FOF Will Help Finance Knowledge-Based Companies

Iran launched the first ever fund of funds (FOF) on Sunday as part of measures to promote knowledge-based companies. 
The FOF is named ‘Setaregan’ (stars in Persian) and started operation after officials from three founding institutions signed an investment agreement, the Securities and Exchange News Agency reported.  
Also known as a multi-manager investment, FOF is a pooled investment fund that invests in other types of funds. Its portfolio contains different underlying portfolios of other funds. 
FOF strategy aims to achieve broad diversification and appropriate asset allocation with investments in a variety of fund categories that are all wrapped into one portfolio.