Charlemagne Capital has announced the launch of a new fund investing in the Iranian stock market to capitalise on opportunities created by the lifting of sanctions.
The new fund will be managed with Turquoise Partners, which is the biggest private Iranian financial services provider and oversees about 90% of foreign investment in the Tehran stock market.
Charlemagne's Stefan Böttcher will manage the new fund and oversee a team from Turquoise based in Iran. The fund will be launched in roughly one month’s time, depending on when trade sanctions are lifted.
Commenting on the new launch, the CEO of Charlemagne Capital, Jane Sutcliffe, said: ‘For many years Charlemagne has helped customers invest in emerging markets. We believe that Iran is showing one of the largest mismatches between perception and reality that we have seen for years.’
‘The relationship with Turquoise Partners offers the combination of our global and regional emerging markets experience, along with the knowledgeable expertise from Turquoise about Iran and its markets that ultimately lead to a best in class solution for our clients.’
The two firms believe Iran has many factors making it attractive for investment, including the largest reserves of oil and gas in the world and a highly educated population. The asset managers believe the country’s potential for growth is 6%-8% when sanctions are lifted.
In addition, Charlemagne said Iran has a diverse economy with oil accounting for 18% compared to Saudi Arabia’s 50%. The service industry makes up 51% of the economy and agriculture makes up 12%.
Final details of the fund are currently unavailable, but it will be domiciled in European jurisdiction and will comply with EU sanctions.