Iran: a bargain, but risky

As Western sanctions against Iran have been dismantled, investors have been champing at the bit to access it. Iran has the fourth-largest oil reserves and the largest gas reserves of all, but is not highly dependent on them. The oil and gas industry comprised just 10% of GDP in 2014.

Iran has a diverse economy, with the car industry the second-biggest contributor to GDP, and 30 sectors represented on the stock exchange. The population is young and highly literate. Throw in lots of spare capacity and there’s scope for growth of 6%-8% over the next few years.

A price-to-earnings ratio of 5.5 and dividend yield of 13% arguably makes up for the risk that sanctions could be reimposed. The only fund currently available is Charlemagne Capital’s Turquoise Variable Capital Investment. The minimum investment is $125,000.


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