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State Pension Fund to Launch ETF

State Pension Fund to Launch ETF State Pension Fund to Launch ETF

The Civil Servants Pension Fund (CSPF), the second largest pension fund in Iran, is planning to launch an exchange-trade fund, the CEO said. 
The new ETF is dubbed as “Wealth Management” and will be launched in line with efforts “to reform the investment structure of the CSPF”, Mahmoud Tahmasebi said, without giving further details. 
The ETF is listed with Iran Fara Bourse and its subscription will commence Saturday. About 100,000 civil pensioners have already registered for subscription. 
Tahmasebi said the ETF will start operation with an initial nominal capital of 4 trillion rials ($17 million) but there are plans to increase the capital by 10 trillion rials within a month.
Apart from pensioners, other investors can also subscribe. Each unit is priced at 10,000 rials and there is no limit on the number of units each investor can buy.   
CSPF is an independent legal entity under the governance of the Ministry of Welfare and Social Security, and run as an insurance company. It has major stakes in several entities, namely gas and petrochemical holdings, financial and insurance companies, pharmaceuticals, food, agricultural and construction companies. 
The new ETF will be an addition 46 ETFs already operating in the domestic capital market, the largest of which is a state-controlled ETF with government shares in three banks and two insurance companies.  

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