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NDFI's Asset Under Management, portfolio, and Operating Profit

  • 11 June 2022
  • 11:11
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NDFI's Asset Under Management, portfolio, and Operating Profit

Mohammad Mehdi Bakhshi,  Head of the Statistics and Planning of the National Development Fund  of Iran explain abourt NdfI's AUM, portfolio and  operational profit

Head of NdfI's statistic and planing department, in an interview with the Public Relations of the NDFI, stated that Since its establishment in 2010 until now, the National Development Fund of Iran (NDFI) has managed assets amounting to 139 billion USD, which is allocated following top-level policies and regulations through different channels and in different domains. NDFI was founded to accumulate a part of the national oil and gas revenue by transforming it into long-term wealth and productive assets and preserve the future generations' share of these natural resources.
NDFI's entire assets originate from Iran's oil and gas exports.
He stated that during its 11-year operation until the end of March 2022, about 79% of the resources (110 billion USD) have been provided to the government and the private sector in the form of loans (indirect investment) while about 21% (29 billion USD) are kept as a cash deposit. NDFI facilities are allocated to government in format of stabilization and development loans (74 billion USD) and private sectors (36 billion USD) through adequate securities and must be repaid as scheduled along with the predetermined interest rates. Most of the facilities have been granted to developmental projects and generally span 4–7 years. The repayment of these facilities mostly began three years ago, realizing over 7 billion USD in operating profit (0.5% annually). This trend is expected to rise in the coming years following the increase in repayments.
Considering the vision and efforts of NDFI's executive board to expand the Fund's scope of activity, in a session scheduled in June 2022 by the Board of Trustees, the executive board's request for authorization of direct investment inside and outside the country was approved and its guidelines were defined. This approval greatly expands NDFI's scope of activity, optimizes expenses, and will boost its profitability in the coming years.

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