How to get exposure to Iran

I listened to podcast with Mr. Pal and was really interested in what he had to say about Iran, does anyone know how, as a US citizen, you could get exposure to Iran? I haven't been able to find any companies, ETFs that are tradable on Etrade for example.

Comments

  • Like you, I've been unable to identify a way to invest in Iran on a trading platform.
  • edited November 2017
    During our wonderful family holiday in Iran earlier this month I have been able to open a bank account at Saman Bank (one of the few Iranian banks that allow foreigner without residency in Iran to open an account) thanks to the help and direction of my excellent Iranian brokerage firm Behgozin (www.en.behgozinbroker.com). They also took care of my brokerage account including a license from the Security Exchange Organization (SEO).

    Next step would be to find an exchange house here in Dubai (where I live) to transfer the money to my Iranian bankaccount and from there to my brokerage account. One of my Iranian friends recommended a reliable provider that he used frequently, due to the sanctions a direct bank-to-bank transfer is not possible.

    I requested a conference call with Beghozin's product specialist, it seems they have a serie of mutual funds and fixed income funds. I might go 50% in one of these funds and the other 50% in some individual stocks IF I can get access to cheap and reliable data of the 600 individual companies listed on the Teheran Stock Exchange.

    Will update you on major developments.
  • @Hugo75

    Thanks for the information, this is very interesting to me. Pleas do keep us updated on any developments which occur. Happy hunting!

    Regards,

    David
  • edited January 1
    Small update from my end. The first batch of money has been transferred from Dubai to my Iranian bank account this week, batches 2-10 will follow the coming months. It took me a while to get online access to bank and broker but it worked out in the end. Lots of great help from my broker, I can really recommend them (Behgozin).

    English information is pretty difficult to find, no Iranian version of Morningstar yet I am afraid. For now I expect to start with 50% of a general Iran tracker (Kardan ETF) and 50% of Behgozin's most successful mutual funds which focuses on earnings/free cash flow, low debt and (increasing) ROIC, called Sina Mutual Funds.

    Not sure what are historical Iran tracker performance, but Sina mutual fund performance (after 1% cost) were:
    2012: 35%
    2013: 92%
    2014: 187%
    2015: -28%
    2016: 10%
    2017: 23% (4% index outperformance)

    This is all in local currency (IRR) which lost significant against US$ (1:12000 in 2012 to 1:36000 now). This is also one of the main risk as far as I am concerned. But I still hope eventually the Iranian market will open up completely for foreign capital and this should allow to create a more stable currency.

    Together with my Greek banks this investment is my only real long term investment which means I will not sell NO MATTER WHAT for at least 15 years.
  • I have a cousin who is a banker in Zanzibar.
    He is offering interest rate of 100% but you do have
    To convert account to local currency. Inflation rate expected to be
    Less than 100% within next decade..
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