EghtesadOnline: The underwriting of the Iranian capital market’s first exchange-traded fund on Iran Mercantile Exchange ended last week with the attraction of 157.9 billion rials ($4.15 million) in funding.
Lotus Gold Fund’s underwriting started on Saturday and continued until Wednesday. Considering the founders’ initial 10-billion-rial ($263,157) investment in the fund, its total asset value now stands at 167.9 billion rials ($4.42 million), IME reported.
The investment fund has Bahar Azadi gold coin as its underlying asset and is set to have an asset composition of both derivatives and securities based on gold.
The gold fund will offer no dividend per share and the investor will profit based on the increasing value of purchased units over time. Considering the exchange-traded fund’s active management, earnings are expected to exceed profits made from physical gold trading, Financial Tribune reported.
The ETF’s units will no longer be put up for sale, until the issuance of a permit for its daily trade by the Securities and Exchange Organization and the reopening of “TALA” symbol. IME has yet to report the exact date.