Private Asset Management
According to Clause (17) of Article (1) of Securities Market Act, an
asset management firm is a legal entity which engages in transaction of
securities for investment according to a specified contract and for the purpose
of earing profit. As per Clause (4) of Article (1) of directive of establishment
and operation of asset management firm, asset management is defined as making decision
to purchase, sell, or maintain securities in the name of a specified investor
by the asset management company as per a specified contract for deriving profit
for the investor. By private portfolio it is meant aggregate assets intended
for such asset management (including cash funds, securities and receivables)
which belong to a certain client. The goals of such act is to create a private
portfolio of securities for a client, whether as a real person or legal entity,
appropriate to the personal goals, particulars and preferences, level of risk
tolerance and volume of investment intended by the investor and continuous
management for creating the highest possible return under supervision and
control of the investor
Features & Privileges of Specialized Asset Management
1) Transaction made by experienced specialists,
backed by all-out scientific and new-based analyses
2) Total transparency and supervision, due to
supervision exercised by legal structure (institutions such as the fund’s
administrator, the fund’s auditor, Securities and Exchange Org.) for making
sure of preservation of investors’ rights
3) Asset Management Company is obliged to provide
the investor and the Securities and Exchange Org. with comprehensive report on
quarterly basis; nevertheless, the investor may observe daily and weekly report
on return at the website of the asset management company
4) All of activities of the asset management
company are controlled, in respect of the provisions of the contract, by an
institution called Amin Asset Management, which is operated under supervision
of the Securities and Exchange Org.
5)
High liquidity of investment and mechanism for
reduction or increase in the assets of the portfolio
6) Investor may notify to his asset management
entity at time that he intends to increase or decrease his asset
7) The investment portfolio is exclusively designed
for each investor, according to the his risk tolerance
8) More return is gained in comparison to other
methods of investments due to accepting a higher risk
9)
The investment strategy is determined according
to the risk tolerance, liquidity and the intended investment volume
10) Confidentiality
of client’s information is maintained by the asset management entity
11) Direct
ownership of the investor on his own portfolio assets (as compared to joint
ownership in funds)
12) Availability
of investment in financial instruments, while in other methods of asset
management, like investment funds, it is not possible to make investment in
them, like Securities Exchange- and OTC-traded future contracts and unlisted Iranian
securities issuers (including public and non-public)
13) Availability
of profit to be shared between the investor and the asset manager leads to
serious enhancement of the manager’s motivation for getting access to the
highest profitability
14) It is
obvious that whereas most of the investors’ assets are invested in shares, the
risks existing in the shares do exist in this method too, but the good news is
that the formed portfolios are administered by specialists and professionals.
Our Methods of Analysis and Information Sources
We administer portfolios by adopting the state-of-the-art and
prevailing methods at the reputable financial markets. Our analysis is on the
basis of fundamental analysis and we also use the technical analysis as a side
method of analysis of prices trends and indices, aiming to weigh the market
atmosphere and excitement in respect of each share and industry. Consolidation
of the two approaches is called techno-fundamental method.
The information sources in our company are made up of websites and
on-line and printed sources, such as news agencies, information published by
companies and websites relating to Securities and Exchange Org., reputable
newspapers and scientific sources, foreign analytic and information-providing
websites, etc.
Some of our sources of information are as follows:
www.seo.ir
www.sena.ir
www.codal.ir
www.irbourse.com
www.irfarabourse.com
www.tsetmc.com
www.forexfactory.com
www.kitcometals.com
www.kitco.com
www.bloomberg.com
Conflict of Interest Controlling Procedure
In compliance with Article (14) of Directive of establishment and
activity of asset management companies, in the event of conflict of interest
between the consulting company, such company’s affiliates and/or employees and
the clients, then, we will proceed with its disclosure and controlling, and will
give priority to the clients’ interests. Further, in case the our company or
our employees is/are beneficiary(ies) of a share, then, according to Article
(27) of Directive of Asset Management, we will disclose its report.
Types of Securities or Capital Assets which are consulted for
Investment
According to our Company’s Articles of Association and Directive published
by Securities and Exchange Org. provides consultation concerning the following
securities:
1) All securities traded at Tehran Stock Exchange
and OCT
2) Share certificates issued by companies in
process of getting listed in stock markets and OTCs
3) General share subscription certificates of
companies holding authorization from Securities and Exchange Org.
4) Types of debt securities, like participating
bonds, lease bonds, murabahah bonds
5) Share certificates of private joint stock
companies in need of financial or organizational re-structuring
6) Precious metals traded at Mercantile Exchange
7)
Shares and goods futures contracts traded at
stock market
8) Types of bonds, earning fixed income, such as
participating bonds, Sukuk bonds, mortgage bonds and other securities authorized
by Central Bank of I.R. of Iran or Securities and Exchange Org., deposit
certificates issued by banks or financial and credit institutes authorized by
the Central Bank of I.R. of Iran
9) Derivative instrument bonds traded at the securities
exchange, mercantile exchange, OTC or other exchanges may be set up under
supervision of Securities and Exchange Org., like futures stock contracts, options,
commodity futures contracts
10) Other
bonds approved by the Securities and Exchange Org., like housing facilities
preemption, istisnah bonds, mortgage bonds.
Services Provision Charges
The most significant cost in this section is related to asset
management charge, which may be mutually agreed to be paid on fixed, variable,
performance, etc. bases.
Information Provision and Reporting
Asset management company is obliged to provide each client and the
Securities & Exchange Org. with asset management activity report in
specified periods set out in the asset management contract, which will be
exceed six months. The expiration of the set management contract shall be upon
expiration of term of the contract and refraining from extending the same. Upon
such expiration, the asset management company will be introduce any change in
the portfolio and it will be liable to make payment of the fund of the
portfolio to the investor within two working days, and in case the investor
refrain avoids from selling of other assets of portfolio, it should transfer
such asset to the investor.
Services
Being supported by the knowledge and operation experiences of our specialists,
and in consideration of all aspects of tastes and inclinations of investor and by
applying most modern models of integrated risk management, we offer aggregate
of services concerning asset management.