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June 13 2021
The SEO announced compiling the regulations related to the “Leverage Investment Fund”, including the Articles of Association (AOA) and Prospectus. This fund which is in favor of both risky and risk averse investors, is the first fund that simultaneously has both issuance and cancellation mechanisms for investment and transfer ownership of investment units. The main portfolio of such leverage investment funds Investment contains stocks and rights issued. Meanwhile, the type of fund's portfolio management is “active”, which means that the fund manager can invest in stocks and rights issued based on the definition of the portion of securities. There are two types of units: Ordinary and Preferred. Issuance and cancellation mechanism of units is used for incoming and outgoing the investment applicants, while for the preferred units, this process is being done via “preferred units’ transactions” in the stock exchange. Additionally, since the preferred units are considered as a support for the issuance of ordinary units, therefore, it is not revocable and can only be traded through the market. The biggest advantage of this type of fund is the possibility of investing risky and risk-averse investors at the same time. Accordingly, risky people can invest in the fund’s preferred units, and risk-averse investors can obtain the minimum return mentioned in the fund’s prospectus by investing in the fund’s ordinary units. Considering the good return on long-term investment in the Iranian capital market and simultaneous response to the needs of both risk-averse and risky people, it is expected that investors this fund will be welcomed by investors.