With sanctions expected to be lifted within months, there’s a good chance the country’s $110 billion Tehran Stock Exchange will rally, as international money managers are scrambling to get in there in time. Bloomberg reports that firms like Charlemagne Capital and First Frontier Capital in London are already starting to build sanctions-compliant funds. While economic sanctions have not yet been lifted, the investors want to start gaining exposure early, before that day comes. Iran and world powers are negotiating over Tehran’s nuclear power program hoping to seal a final deal before a self June 30 deadline. Tehran’s main index reportedly trades at about 5.5 times earnings – much lower than other frontier markets. “But with no previous experience in the country, it’s a pretty risky move for asset managers,” Business Insider has warned in a recent article. The firms are reportedly teaming up with local companies to build the least risky funds possible, the report said. Until oil sanctions are lifted, the firms are reportedly looking at the banking, telecommunications, metals, and cement industries.
