These financial instruments are among new innovative funds in IRAN’s capital market and are certified and endorsed legally by Iranian Stock Exchange Organization (SEO). In recent years, authorities have developed a general regulatory framework for design and development of such financial instruments to expose Iranian citizens to fixed income and risky assets. The development of financial institutions and instruments act asks trustee and other elements of fund creation process, to register these funds in Iranian judiciary platform. Funds established following this act are asked to invest based on a certified article of association and publicly announced indenture.
Objects and Strategies of the Fund
Creation of a portfolio of fixed income assets is at the centre of the investment strategy of this fund. The other objective is: exposing financial institutions and natural persons to fixed income assets in order to manage other risky assets as diversifying criteria. In addition to the advantages indicated, regarding the downtrend of interest rates in Iran’s economy for coming years, investing in these funds comparatively with future rates would become more attractive for different types of investors.
Professional Background of Creators and Managers of the Fund
• Establishment of the first Iranian fixed income fund with a pre-determined guaranteed rate of return.
• Establishment of the first Iranian fixed income fund with a minimum level of profit prediction
Fund Management Structure
• Fund manager- Middle East Bank Brokerage Company
• Fund trustee- Novin Negar Asia Portfolio Management Company
• Fund auditor- Sokhan-e-Hagh Auditing Firm
Fund Investment Attractiveness and Advantages
• 15 percent of return calculated on a daily basis, payable on a monthly schedule
• Liquidity arrangement and redeemable at any Middle East Bank branch
• Tax exemption of units
• Low risk and appropriate return regarding to average fixed income return in Iran’s economy
• No preload fee
Minimum and Maximum Units per Investor
The minimum units at any time should not be less than 10 units for any investor and the maximum number of units should not exceed from maximum 10 percent of all fund’s outstanding units i.e. 2500000 units for any investor. Meanwhile, in underwriting period the value of any unit is one million RLS and during fund lifetime it is equal to net asset value per unit at any given time.
Processes of Unit Issuance
• Through Middle East Bank Brokerage company (1st floor ,No.277, Dastgerdi (Zafar) Street, Between Africa Blvd. and Valiasr Street, Tehran, Iran)
• Submission of birth certificate and national identification card and the completed application form of the unit issuance
• Minimum level of investment is 10 million RLS
• Remittance of funds bank account introduced in the ofoghfund.mebbco.com website
• Singing the receipt of units issued
Bank Account Specifications
Account number 1005-10-810-707071156 on behalf of “Middle East Bank OFOGH Mutual Fund”, opened in Middle East Bank Mahestan branch (branch code 1005)
Process of Redemption
• Submission of birth certificate and identification card
• Filling the redemption request form by investor
Profit Distribution Method
After activating the fund operation, at the end of any profit distribution intervals, the difference between the current and the nominal value of any unit will be calculated and proportionate to the sum of units held by any investor and will be remitted to the account for investors holding those units at the end of that interval.
For more information please call: 86083708 or contact us through www.ofoghfund.mebbco.com website.