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Details of the National Development Fund's internal investment methods have been determined

  • 30 August 2023
  • 19:19
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Details of the National Development Fund's internal investment methods have been determined

Upon approval of the National Development Fund's investment policy statement, the fund was permitted to invest in the domestic market in nine different ways.

Using the public relations report published by the National Development Fund, the fund's mission in domestic investment,(Downlod Document) as stated in the aforementioned statement, is to maximize investment returns by converting a large portion of its resources into different investment sectors to preserve and increase intergenerational assets.

National Development Fund's investment philosophy is based on obtaining stable and long-term returns over a long period of time. The investment goals of this fund include the sustainable increase of the fund's resources, the promotion of sustainable development and improvement of the indicators of economic development, the establishment of a knowledge base for the country, the strengthening of the private sector, etc.

There is no doubt that all investment plans must include the main objective of the National Development Fund, which is "to sustainably increase the fund's resources and maintain the value of the fund's assets by participating in investment plans with significant added value."

Methods of investment allowed

There are nine ways in which the National Development Fund may invest according to this statement.

Which includes,

  • The purchase and sale of stocks on the domestic market
  • The purchase and sale of Rial and foreign currency bonds on the capital markets
  • The purchase and sale of bank bonds in Rial and foreign currencies
  • The creation and investment of all types of capital market funds
  • Creating joint funds with financial institutions and banks
  • The intermediation of finance
  • Involvement in investment plans
  • Investing in the form of acquiring all kinds of assets to collect the fund's claims
  • Deposit types in banks and financial institutions in rials and foreign currencies

National Development Fund investment of 80% in the oil industry

The National Development Fund's asset allocation policy stipulates that a maximum of 80% of its daily investments will be allocated to oil, gas, and petrochemicals. The daily investment amount may not exceed 20% in the fields of power plants, water supply and transfer for industry, export-oriented industries, high-tech industries, biotechnology, health and food security, and financial and logistic markets. Moreover, a maximum of 10% of the daily value of investments in other areas related to clearing will be used to collect the claims of the fund.

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