The Securities and Exchange Organization has issued an establishment license for the 138th mutual fund in the country.
“Eftekhar Hafez” mutual fund has been successfully underwritten and listed with 20 billion rials ($750,000 million) of capital in primary subscription, according to SENA. The fund was designed to be a small scale fund.
Of the shares put up for subscription, 1,000 were special shares. Also, institutions bought 15,640 of Eftekhar Hafez’s shares, while individual investors grabbed 3,360 shares.
Eftekhar Hafez has been created, and will be managed by Hafez Brokerage Co.
Sahm Yasan Behdad, a subsidiary of Sabin Economics and Business Group, which works in asset management will be dealing the mutual fund’s shares.
Novin Investment Bank, the first Iranian investment Bank established in 2007, worked as consultant for setting up the fund.
Eftekhar Hafez will buy back its shares from their investors and also sell shares to the public based on supply and demand. These shares are priced at the fund’s net asset value.
The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. There is no legal limit on the number of shares Efthekhar Hafez can issue.
Mutual fund laws are explained in Article 1 of the Law for Development of New Financial Instruments and Institutions, based on the overall policies of the Article 44 of the Constitution, ratified in 2009.
