The Securities and Exchange Organization has approved Kian application for setting up a gold ETF.
Kian Gold ETF will provide clients with exposure to a traditionally popular asset class through the capital market. The fund will also provide an indirect exposure to foreign currency –another popular asset class- as Iran’s gold market is closely following the international prices.
“We haven’t had financial products through which investors can invest in gold or foreign currency,” said Mona Hajaliasghar, Deputy CEO of Kian Capital Management. Recently, with the introduction of Gold funds, investors can easily get exposures on gold by buying the funds units. Kian Gold ETF is the second gold fund that received approval from the SEO. Since Iranian gold market is pretty open and prices follow international markets, investment in gold exposes investors to foreign currency as well. “The fund’s main underlying asset will be official Iranian gold coin (8.133 Grams of 18-karat gold) with the possibility of investing up to 30% of the funds in gold derivatives, long position in gold call option and net obligation of uncovered position in contract.” Ms. Hajialiasghar said.
“Our asset management strategy is to design and introduce to the market products of much-needed asset classes people are used to investing in traditionally,” she stated. “We have been in constant dialogue with the SEO during past couple of years to set up gold, currency and real estate funds for our investors. Unfortunately, since these products do not exist in the market, the process of approval and preparing the guidelines and regulations has been lengthy and slow.”
“Our team started the application process for a gold ETF more than two years ago. Receiving the approval from SEO is an achievement for us and will help our brand to keep its status as an outstanding asset management team in Iran” Mona said.
Kian Gold fund’s public offering shall be held mid-November after registration in the Company office is completed.