April & May 2017 No 126, Volume 11

April & May 2017 - Volume 11, No 126

Tochal Mountain, Tehran. April 2017.

Summary

Equity Markets

The Tehran Stock Exchange has made steady gains over the past two months, rising 2.0% in March and 2.9% in April in US$ terms. During the final month of the last Iranian calendar year (from 19 Feb to 21 Mar 2017), the market’s total trade value increased 91% compared to the previous month, from 1.1 billion US$ to 2.1 billion US$, while the number of shares traded rose 78% from 20 billion shares to 36 billion.

Economic Review

This issue reviews the economic performance, consumption value in GDP and trade balance in the Iranian calendar year 1395 (March 2016 to March 2017). In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a factsheet report, as well as an economic calendar released by local and international statistics centres.

1 Iran Investment Monthly Table of Contents 3 Market Overview 3 Market Insight

6 Performance & Updates

8 Sector Insight

11 Company Overview

12 Market Snapshot

14 TSE & Junior Market Performance

16 Top Ranked Companies

18 TSE Statistics

18 FX Movements

20 Iran’s Fixed Income Market 24 Economic Review

24 Latest Updates

26 Macroeconomic Data 29 Turquoise Partners

29 About Turquoise Partners

31 News & Views

2 Iran Investment Monthly Market Overview Market Insight April & May 2017 - Volume 11, No 126

Rouhani: 4 More Years

Results of the Iranian presidential election were announced on the morn- ing of Saturday 20th May and showed that the incumbent, Hassan Rou- hani, comfortably defeated his conservative rival with a winning margin of approximately 57% to 39%. Rouhani campaigned on the promise of a more open, prosperous, and internationally integrated economy, and that message appears to have been welcomed by the Iranian urban middle-class and young population.

During his election campaign, he pledged to secure the lifting of non-nuclear sanctions that have remained in place. Rouhani will now have four more years to make incremental changes and, crucially, assign major oil and gas contracts. Shervin Shahriari Chief Investment Officer Despite the more organised opposition, the president won at least 4 million more votes than four years ago. The strong popular mandate Rou- hani received is promising in our view, both at home and abroad, boost- ing his ability to reduce tensions with the west and bring more foreign capital and economic growth to the country. We will discuss the market’s reaction to Rouhani’s re-election at length in next month’s newsletter.

Market Insight

Iran’s main stock market remained flat in March, but performed solidly in the month of April. The TSE Overall Index returned -0.2% and +1.4% in EUR terms in March and April respectively (as per our NAV calendar month). We are happy to report that our Fund delivered its third consecutive month of strong alpha, returning +2.6% and +3.3% in EUR terms for the B and C share classes respectively in March. The fund performance in April was just as solid, returning +2.2% and +2.4% in EUR terms for the B and C share classes respectively.

Since inception at the end of 2015, the positive performance of both our share classes has surpassed that of the Index over the same period, with markedly lower volatility. Of particular interest is not only our outsized positive performance since the start of this year, but also our ability to protect the portfolio during sharp market downturns. For example, in Q2 2016, our Fund returned +1% whilst the broader index was down almost 10%.

3 Iran Investment Monthly Market Overview Market Insight April & May 2017 - Volume 11, No 126

Comparative Performance: Rebased Index & NAV Net in EUR April 26, 2017

TSE Overall Index Class C Class B

130.5 124.6 124.3

Looking more closely at the drivers behind our portfolio’s strong performance last month, 2 out of the 3 industries with the largest weighting in our portfolio outperformed the broader market, where this is illustrated in the chart below:

Rebased Index in EUR

Overall Index Financial Index Construction Index

Considering the cyclical behaviour of the property market in Iran, it is en- couraging to see this recent upturn, which is a strong indication of the be- ginning of a multi-year rebound. As such, we maintain our overweight exposure to carefully selected stocks in the Real Estate sector, where our picks returned +6% vs. the broader Real Estate sector which was up +3% in April.

Justifying our strongly held view to be overweight the broader financial sector, but underweight domestic banks, Financials Ex-Banks returned a very impressive +6% in April. This was predominantly driven by Investment Com- panies, which have benefited from broad strength in the overall market. Our decision to focus on Investment Companies that have recently been trading at a deeper discount relative to their NAV was vindicated in April, where Iran Industrial Development Company (IDIC), a 7% weighting in the portfolio, rose by more than +16% in the month.

The Chemical sector also experienced a solid month where the sector gained approximately +2%. Attractive valuations contributed to the healthy performance of the sector, which still enjoys a P/E ratio of 5.8x and dividend yield of 14%. This compares favourably with the broader market’s P/E ratio of 7x and dividend yield of 11%. Additionally, our overweight exposure to

4 Iran Investment Monthly Market Overview June 2016 - Volume 10, No 116

this sector serves as a proxy hedge in a depreciating Rial environment, given much of this sector’s top line are in US$.

In the run-up to the elections and given the strong YTD performance of many of our holdings, we took partial profits on select outperforming stocks. Whilst our base case was for a Rouhani re-election, we believed it was pru- dent to hold a little extra cash so that we had some available ‘dry powder’ to re-purchase some of our favourite companies at cheaper prices, should we get a pullback.

Looking at our current portfolio composition, we are very happy with all our holdings and weightings. We believe that we have taken the right steps to mitigate our portfolio’s systemic risk exposure, and to continue to deliver strong absolute and relative returns for our investors going forward.

5 Iran Investment Monthly Market Overview Performance & Update April & May 2017 - Volume 11, No 126

Summary - March 2017 Market Capitalization (billion US$) 115 b$ TSE & Farabourse Junior Market Free Float 21% TSE & Farabourse Junior Market Number of Listed Companies1 564 TSE & Farabourse Junior Market Overall Index Performance (US$)2 2.0% (MTD) TSE Turnover (billion US$)2 2.9 b$ TSE & Farabourse Junior Market Dividend Yield (%) 3 11% TSE P/E 7× TSE

1 152 companies are listed in Over-The-Counter (OTC) or off-exchange market named as “Base Market” in Farabourse junior market which trading of these companies are done directly between two parties. 2 Calculated based on market IRR per US$ exchange rates. 3 Calculated based on market data ending 1395 Iranian calendar year.

Summary - April 2017 Market Capitalization (billion US$) 118 b$ TSE & Farabourse Junior Market Free Float 21% TSE & Farabourse Junior Market Number of Listed Companies1 563 TSE & Farabourse Junior Market Overall Index Performance (US$)2 2.9% (MTD) 4.7% (YTD) TSE Turnover (billion US$)2 2.0 b$ TSE & Farabourse Junior Market Dividend Yield (%) 3 11% TSE P/E 7× TSE

Tehran Stock Exchange & Junior Market Trade by Value1 - March & April 2017

Iran Farabourse (Junior Market) Trade Volume (million US$)

Tehran Stock Exchange (Main Market)Trade Volume (million US$) US$ Million

Source: Tehran Stock Exchange Iran Farabourse Company All figures in US$ are converted from IRR at the free market rate 1 Trading volume month on month in US$ term - TSE includes mainly equity while Farabourse has more fixed income instruments and smaller equities.

6 Iran Investment Monthly Market Overview Performance & Update April & May 2017 - Volume 11, No 126

Performance & Updates

Iranian calendar year 1395 (21 March 2016 to 21 March 2017) In the Iranian calendar year 1395 (ending 21 March 2017), the average daily trading value stood at one billion shares or 61 million US$ equivalent. In terms of valuation multiples, the P/E of the automotive sector fell to 12× by the end of the year from an overvalued multiple of 27× a year earlier. Similar corrections in P/E ratios were seen in the Basic Metal, Fabricated Metal Products and Metal Ores Mining sectors. The overall market P/E stood at 6.8× at the end of the last Iranian calendar year, slightly above its 7-year average of 6.0×.

Moving forward, we see two key drivers for the market to continue its good performance. Firstly, the Central Bank of Iran (CBI) appears to be taking a much more active role in managing both the currency and interest rates after a period of high volatility in these two key markets. As a result, T-Bill yields declined from 26% in mid-February to the present 21%. We expect rates to decline a little further down the line, which will support equity investors. The second boost for the market came from the May 19 presidential election when the incumbent president Rouhani was re-elected with an overwhelming majority. We expect a firmer demand for equities in the election aftermath if Rouhani pushes forward with his bid to further attract foreign investment and remove the remaining sanctions on Iran.

Market Activity Index volatility (as calculated using the standard deviation of the daily returns in US$ terms) was 0.7% on average for the TSE and the Farabourse in March, and even lower at 0.4% in April. On the TSE, market activity increased to a daily average of 103 m$ in March, but returned to 62 m$ in April which is equivalent to the three month daily average. On the Farabourse, however, which is highly focused on fixed income instruments market activity declined by 18% and 28% in March and April, respectively.

In April, increases in the top sectors of the TSE (in terms of US$ traded value) compared to the previous month were led by Sugar (+354%), Ceramic & Tiles (+191%) and Food & Beverage (+175%). In April, top performers in terms of total weekly return in the index were Sugar (38%), IT (36%) and Ceramic (32%). In terms of the highest P/E ratios, Electric Machinery, Engineering Services and Auto were top with P/E ratios of 16×, 15× and14×, respectively.

7 Iran Investment Monthly Market Overview Sector Insight April & May 2017 - Volume 11, No 126

Best Performing & Worst-performing Sectors - April 2017

37.9% Sugar 36.1% IT 32.5% Ceramics & Tiles Engineering Services -0.8% % Sector 24.9% Construction Base Metals -4.6% Performance1 22.5% Automotive Banking -4.9% Telecommunication -8.3% Metallic Ore -8.6%

15.8 Electric Machinery & Apparatus 15.5 Engineering Services

13.8 Auto Best Performing Sectors Other Non Metallic Mineral Products 7.0 11.8 Sugar Other Financial Intermediates 6.4 P/E 11.0 Cement Chemical & By Products 5.8 Diversified Industrial (Holdings) 5.3 Telecommunications 4.7

354% Sugar and By-products

Under- Performing Sectors 191% Ceramics & Tiles 175% Food Products and Beverages ex. Sugar Financial leasing -58% 152% Computer & related activities Insurance & Pension Funding exp. % Trading Compulsory Social Security -61% Value2 66% Machinery & Equipment Refined Petroleum Products & Nuclear Fuel -71% Chemical & By Products -72% Banks -74%

Source: Tehran Stock Exchange, Note: Sectors with more than 5 companies included (exp. Telecommunication) 1Growth of sector’s index month on month in IRR term. 2Growth of trading volume month on month in US$ term.

8 Iran Investment Monthly Market Overview Sector Insight April & May 2017 - Volume 11, No 126

Sector Insight

Pharma Sector Iran’s pharmaceutical sector is one of the most diverse and resilient non-oil sectors in the economy, attracting increased government and private sector investment over the past 30 years. The government’s localization policy in strategic centres, including health and pharmaceutical industries, has helped the sector to benefit from a high market share of around 96% in terms of volume. However, in terms of value, 55% of the market is accounted for by domestic producers and 45% is imported. After the Iran-Iraq war, the need for a resilient health sector was promoted by the government through providing incentives to the private sector that promoted investment. Most large and small cities have registered pharmaceutical manufacturers, and there are more than 30 specialized distribution companies with over 10,000 drug-stores operating across the country. Per capita medicine consumption is high among Iranian households at 514 units per person, the second highest in Asia. In 2014, the market value of phar- maceuticals totalled 4 billion $US, with 41 billion units produced or imported. The majority of local manufacturers are listed on the Tehran Stock Exchange and they supply 90% of domestically produced medicines (in value terms). The pharmaceutical sector is also the ninth largest sector on the TSE in terms of market capitalization.

Pharmaceutical Sector Market Capitalization Breakdown by Companies

12% - Tamin Pharma 6% - Sina Pharma 9% - Dr. Abidi Pharma 5% -Sobhan Darou 8% - Darou Pakhsh Holding 5% -Zahravi Pharma 7% - Alborz Investment Holding 4% -Barkat Pharma 6% - Razak Pharma 3% - Osveh Pharma 6% - Alborz Darou 3% - Jaber Ebn Hayan

• Market Cap : 3.9 (B $)* - 4% total market cap • 12 companies account for 75% of the sector’s market cap • Number of Companies: 28 • Average Sector P/E: 7.2× • Average Market P/E: 6.9×

Pharmaceutical Industry Updates & Developments 1. After sanctions were removed in early 2016, international pharmaceutical companies from Europe visited their Iranian peers to discuss possible joint venture projects and investment in designated expansion projects. 2. Due to growing conflicts and high demand for drugs and medical equipment in neighbouring countries, Iranian manufacturers are capable of exporting and expanding their market share in these countries. 3. Iran is a leading player in Asia after India in biotechnology products, especially in biosimilars. Since 2013 Iran started producing GM foods and18 types of recombinant medicines.

Source: Tehran Stock Exchange, Turquoise Partners

9 Iran Investment Monthly Market Overview Sector Insight April & May 2017 - Volume 11, No 126

Top TSE Sector Market Capitalization (%) - April 2017

5.30% Metal Ores Mining 8.40% Telecommunications 9.60% 6.20% Basic Metals Diversified Industrials

8.40% 6.20% 5.30% 9.60% 20.70% 5.40% 27.90% 9.30% 7.20%

9.30% Monetary Intermediation 5.40% 20.70% Automotive Chemicals 7.20% 27.90% Refined Petroleum Other

TSE & Pharmaceutical Sector Performance (Index re-based to 100 in US$ terms) Pharmaceutical Index TSE Overall Index Re-based to 100 in US$

10 Iran Investment Monthly Market Overview Company Overview April & May 2017 - Volume 11, No 126

Company Overview Alborz Pharmaceutical Activity : Pharmaceutical

Price (IRR) 13,238 Date: 30-Apr-17 52 wk range* (IRR) 15130- 13238 Official US$-IRR 32,604 Ticker DALZ Market US$-IRR* 37,700 Industry Pharmaceutical * This exchange rate has been used in this report to convert figures from IRR to US$. It should be noted that this exchange rate is subject to fluctuation Market TSE** * Adjusted closing price range **Tehran Stock Exchange

Performance Stock Data* TSE & Alborz Pharmaceutical Co. Share Price Index (in US$) Market cap (m$) 238.34 Shares outstanding (m shares) 680 Alborz Pharmaceutical Free float 27% TSE Financial year end 20-Mar Avg daily value traded** (m$) 1,401 Avg daily volume traded (m shares) 107 Forward P/E 7.5×

* All figures in US$ are converted from IRR at the free market rate ** Average approximate daily values taken over a period of 12 months Re-based to100, adjusted for dividends and share capital increases Re-based to 100 in US$ Key Data* (Million US$) 2017 E** 2016 A** 2015A** Highlights Revenue 88,323 75,531 65,429 Net Profit 31,532 27,107 20,018 • Alborz Pharmaceutical Co, one of Iran’s largest pharmaceutical produc- EPS (Cents) 4.5 5.9 6.5 ers, started operations in 1976. * All figures in US$ are converted from IRR at the market rate • Alborz Pharma is the 6th largest local pharmaceutical producer in the country. Key Ratios • Alborz is the largest producer of cardiac medications in Iran, and has the 2016/17 A** 2015/16A** 2015/14A** most advanced machinery for making syringes. P/B 4.3 4.6 3.9 • Products are subject to government price control, and the average price P/Sales 2.7 2.6 2.0 of domestic medicines is a third of comparable global products. • The company ranked third among its peers in the local market in the first Debt/Equity 72.7 68.5 78.0 half of Iranian calendar year 1395 (March - August 2016). ROE 58% 64% 60% ** Gregorian year stated is the year during which the company’s fiscal year comes to an end on March 20th.

Company Information

Alborz Pharmaceutical Company was established in 1976. The company is a Major Shareholders subsidiary company of Sobhan Pharma group and Alborz Investment company. Sobhan Pharma Group 66.9% The company is one of the largest pharmaceutical manufacturer in the country. 15 Khordad Foundation 6.2% Bank Maskan Financial Group 3.1% Address: No. 3,4,5 Navak Alley, Africa St. Tehran, Iran Telephone: +98 (21) 8867 5741-43 Social Insurance Fund for Villagers & Nomads 3.1% Website: www.alborzdarouco.ir Iran Insurance Co. 2.6%

Source: Firouzeh Asia Brokerage, Turquoise Partners 11 Iran Investment Monthly Market Overview Market Snapshot April & May 2017 - Volume 11, No 126

Market Snapshot - March 2017 Iran & Regional Markets Iran: A 20 Year Snapshot, Asset Class Returns in US$ (%) P/E Multiple Comparison Far outliers GOLD Near outliers MSCI Morocco 19.3 Kuwait 18.2 Median Qatar 14.6 Mean Shade: 95% confidence PROPERTY MSCI Arabian Markets 14.1 MSCI GCC Countries 14.2 Near outliers Far outliers MSCI Egypt 15.6 TEDPIX Saudi Arabia 14.9 UAE 10.1 Returns in US$ (%) -40 -20 0 20 40 60 80 100 120 140 Iran 6.9

TEDPIX Tehran Exchange Dividend Price Index Turquoise Iran Fund 5.6 All figures in US$ are converted from IRR at the free market rate Sub Fund B/C, as of ending March 2017

Iran & International Markets

3 4 Tehran Stock Exchange MSCI Emerging Markets MSCI Frontier Markets

Average P/E Average P/E Average P/E 6.9 14.94 13.5 1 Annual Performance in $ Annual Performance in $ Annual Performance in $ -12.9% 21.3% 20.8% Annualized 10 Year in $ 2 Annualized 10 Year in $ Annualized 10 Year in $ 9.7% 4.6% 2.0%

20.6 Chemicals 24.5 Information Technology 43.3 Financials 10.2 Basic Metals 24.1 Financials 12.9 Telecom. Services 9.7 Monetary Intermediation 10.4 Consumer Dis. 9.6 Consumer Staples 8.5 Telecommunications 7.5 Materials 9.2 Energy 8.9 Refined Petroleum 7.3 Energy 6.6 Materials

Sector Breakdown (%) 42.1 Others Sector Breakdown (%) 26.3 Others Sector Breakdown (%) 18.4 Others

1.TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index) performance calculated in US$ for the Period of March 2016 to March 2017 2.TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index)10 year annualized performance calculated in US$ 3.MSCI Emerging Markets Index (US$) - March 2017 4.MSCI Frontier Markets Index (US$) - March 2017 Source: Tehran Stock Exchange - Central Bank of Iran - MSCI Inc., Kamcoonline. All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

12 Iran Investment Monthly Market Overview Market Snapshot April & May 2017 - Volume 11, No 126

Market Snapshot - April 2017 Iran & Regional Markets Iran: A 20 Year Snapshot, Asset Class Returns in US$ (%) P/E Multiple Comparison Far outliers GOLD Near outliers MSCI Morocco 21.4 Kuwait 16.0 Median Qatar 14.4 Mean Shade: 95% confidence PROPERTY MSCI Arabian Markets 14.0 MSCI GCC Countries 14.0 Near outliers Far outliers MSCI Egypt 16.1 TEDPIX Saudi Arabia 14.6 UAE 10.0 Returns in US$ (%) -40 -20 0 20 40 60 80 100 120 140 Iran 7.1

TEDPIX Tehran Exchange Dividend Price Index Turquoise Iran Fund 5.5 All figures in US$ are converted from IRR at the free market rate Sub Fund B/C, as of ending April 2017

Iran & International Markets

3 4 Tehran Stock Exchange MSCI Emerging Markets MSCI Frontier Markets

Average P/E Average P/E Average P/E 7.1 15.2 13.8 1 Annual Performance in $ Annual Performance in $ Annual Performance in $ -7.6% 19.1% 11.3% Annualized 10 Year in $ 2 Annualized 10 Year in $ Annualized 10 Year in $ 8.8% 2.5% -0.5%

20.7 Chemicals 25.1 Information Technology 43.0 Financials 9.6 Basic Metals 24.0 Financials 12.5 Telecom. Services 9.3 Monetary Intermediation 10.5 Consumer Dis. 9.5 Consumer Staples 8.4 Telecommunications 7.3 Materials 9.5 Energy 7.2 Refined Petroleum 7.2 Energy 6.5 Materials

Sector Breakdown (%) 44.8 Others Sector Breakdown (%) 26.0 Others Sector Breakdown (%) 19.0 Others

1.TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index) performance calculated in US$ for the Period of April 2016 to April 2017 2.TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index)10 year annualized performance calculated in US$ 3.MSCI Emerging Markets Index (US$) - April 2017 4.MSCI Frontier Markets Index (US$) - April 2017 Source: Tehran Stock Exchange - Central Bank of Iran - MSCI Inc., Kamcoonline. All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

13 Iran Investment Monthly Market Overview TSE & Junior Market Performance April & May 2017 - Volume 11, No 126

TSE & Junior Market Performance Tehran Stock Exchange: TEDPIX*, March 2017

Re-based,to 100 in US$ Re-based in US$

Volume million shares Million Shares

Source: Tehran Stock Exchange *TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index) All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

Iran Farabourse (Junior Market): IFX*, March 2017

Re-based,to 100 in US$ Re-based in US$

Volume million shares Million Shares

Source: Iran Farabourse Company *Iran Farabourse (Junior Market) Overall Index (Total Return) All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

14 Iran Investment Monthly Market Overview TSE & Junior Market Performance April & May 2017 - Volume 11, No 126

TSE & Junior Market Performance Tehran Stock Exchange: TEDPIX*, April 2017

Re-based,to 100 in US$ Re-based in US$

Volume million shares Million Shares

Source: Tehran Stock Exchange *TEDPIX Tehran Exchange Dividend Price Index (Dividend & Price Index) All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

Iran Farabourse (Junior Market): IFX*, April 2017

Re-based,to 100 in US$ Re-based in US$

Volume million shares Million Shares

Source: Iran Farabourse Company *Iran Farabourse (Junior Market) Overall Index (Total Return) All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

15 Iran Investment Monthly Market Overview Top Ranked Companies April & May 2017 - Volume 11, No 126

Top Ranked Companies - March 2017 Turnover Value* % Total Turnover (million US$)

Mapna Group is the largest and most well-known Iranian enterprise operating MAPNA Group 0.4% in the construction and development of thermal power plants under the EPC 8.3 scheme, as well as independent power plants (IPP), oil & gas, and rail trans- portation projects.

The Asan Pardakht Persian branded ‘AP’, was founded in 2009 in the Asan Pardakht Co. 0.3% field of electronic payment card systems. The company developed its 8.9 activity in selling mobile recharge, air time and bill payment services. AP is one of the initial 12 electronic payment service providers (PSP) in Iran.

SAIPA is the second largest Iranian vehicle manufacturer. SAIPA Investment Group is the investment arm of SAIPA Group and SAIPA Group 0.3% specialises in managing the financial assets of the group in the 5.8 public markets.

The company was founded in 1974 as a joint venture Polyacryl Iran Public with the American Du Pont De Nemours Company. It 0.1%

Top 5 Traded by Value Traded 5 Top manufactures polyester yarns, staple products, Corporation 3.0 anti-pilling polyester tow and acrylic fibres. Its nominal annual capacity is about 125,000 tonnes.

Kalber Dairy Co. was founded in 1994 and is based in Tehran. It makes dairy products, such Kalber Dairy Co. 0.1% as cheese, yogurt, doogh and pasteurized 1.7 milk.

Market Cap % Total Market Cap. (million US$) Persian Gulf PGPIC was established in the first phase of the privatization of Iran’s pet- Petrochemical 6.6% rochemical sector when the National Petrochemical Company (NPC) trans- 6,594 ferred its shares in a number of petrochemical companies to PGPIC, pav- Industry ing the way for the formation of Iran’s first private petrochemical holding company. NPC has continued in its role as a policy making body.

The Mobile Telecommunication Company of Iran, also known as Mobile Communi- MCI, is the country’s largest mobile phone operator with a market cation Company 4.6% share of over 54%. The first SIM card was issued in Iran by MCI in 4,573 1994 and a network for 9,200 mobile phone numbers was created. of Iran The company currently has more than 57 million clients providing a full range of services including 3G and 4G.

The Telephone Company of Iran was established in 1931 Iran Telecommuni- when the Iranian government purchased and combined 4.2% small scale telephone companies. With technological ad- cation Company 4,357 vancements throughout the 50’s-70’s, the Telecommuni- cation Company of Iran was established in 1971 as the only responsible administrator for the country’s entire telecommunication infrastructure. Mobarakeh Steel Company, one of the largest industrial complexes in the country, started its Mobarakeh Steel 3.3% operations in 1991 with a nominal capacity of Manufacturing 3,260 2.4 million tons per annum. Mobarakeh Steel is the largest steel producer in the Middle East and North Africa region.

Top 5 by Market Capitalization Top The National Iranian Copper Industries Co. cov- National Iranian ers all copper mine operations throughout the Copper Ind. Co. 3.0% country. This company is active in extraction 3,029 & utilization of copper mines, production of copper concentrates & manufacturing copper products.

Source: Tehran Stock Exchange, Firouzeh Asia Brokerage. All figures in US$ are converted from IRR at the official rate of 32,336 IRR. * Weekly data as of trading week ending 29 March 2017. 16 Iran Investment Monthly Market Overview Top Ranked Companies April & May 2017 - Volume 11, No 126

Top Ranked Companies - April 2017 Turnover Value* % Total Turnover (million US$)

SAIPA is the second largest Iranian vehicle manufacturer. SAIPA Investment SAIPA Group 1.0% Group is the investment arm of SAIPA Group and specialises in managing the 13.5 financial assets of the group in the public markets.

The Asan Pardakht Persian branded ‘AP’, was founded in 2009 in the Asan Pardakht Co. 0.7% field of electronic payment card systems. The company developed its 8.8 activity in selling mobile recharge, air time and bill payment services. AP is one of the initial 12 electronic payment service providers (PSP) in Iran.

Founded in 1957 and listed on the public markets in 1975, Sabet Khorasan Sugar Company is one of the leading Sugar holding com- Sabet Khorasan 0.4% panies in Iran. The company has also invested in agriculture research 5.5 companies and education centres in the field of sugar production. Sugar Company

The company was founded in 1974 and is based in Sakht Ajand Co. Tabriz, Iran. It’s activity is in the field of construction 0.4%

Top 5 Traded by Value Traded 5 Top and real estate projects in Iran. 4.8

Tehran Oil Refining Co. was founded in 1971 with initial capacity of 85,000 BPSD. The com- Tehran Oil Refining 0.4% pany is involved in crude oil and hydrocarbon Co. 4.8 refining, making various oil by-products. It is a subsidiary of National Iranian Oil Refining and Distribution Company. Market Cap % Total Market Cap. (million US$) Persian Gulf PGPIC was established in the first phase of the privatization of Iran’s pet- Petrochemical 6.8% rochemical sector when the National Petrochemical Company (NPC) trans- 7,017 ferred its shares in a number of petrochemical companies to PGPIC, pav- Industry ing the way for the formation of Iran’s first private petrochemical holding company. NPC has continued in its role as a policy making body.

The Telephone Company of Iran was established in 1931 when Iran Telecommuni- the Iranian government purchased and combined small scale tele- cation Company 4.1% phone companies. With technological advancements throughout 4,182 the 50’s-70’s, the Telecommunication Company of Iran was established in 1971 as the only responsible administrator for the country’s entire telecommunication infrastructure.

Mobarakeh Steel Company, one of the largest industrial com- Mobarakeh Steel plexes in the country, started its operations in 1991 with a 3.1% nominal capacity of 2.4 million tons per annum. Mobarakeh Manufacturing 3,133 Steel is the largest steel producer in the Middle East and North Africa region.

The National Iranian Copper Industries Co. covers all copper mines operations throughout the country. National Iranian 2.9% This company is active in extraction & utilization of 2,936 copper mines, production of copper concentrates & Copper Ind. Co. manufacturing copper products.

Top 5 by Market Capitalization Top Jam Petrochemical Company is a major petro- Jam Petrochemical chemical producer located in Iran’s Assaluyeh Company 2.7% region by the Persian Gulf. As one of the 2,795 largest petrochemical producers in Iran, Jam produces a variety of petrochemical products, namely olefin, HDPE, LLDPE and butadiene.

Source: Tehran Stock Exchange, Firouzeh Asia Brokerage. All figures in US$ are converted from IRR at the official rate of 32,336 IRR. * Weekly data as of trading week ending 27 April 2017. 17 Iran Investment Monthly Market Overview TSE Statistics April & May 2017 - Volume 11, No 126

TSE Statistics - Week Ending 29 March 2017* TSE Top 5 Performers TSE Worst 5 Performers Close US$ Close US$ Company 29-March-17 % Change Company 29-March-17 % Change Jooshkab Yazd Industries Co. 36.4 25.1 Motorsazan Tractor Mfg. Co. 7.5 -9.7

Iranian Leasing Co. 5.1 22.6 Post Bank Iran 4.0 -9.0

Polyacryl Iran Public Corp. 1.6 22.5 Derakhshan Tehran Mfg. Co. 12.4 -8.1

Mellat Investment Co. 2.2 21.8 Tabriz Oil Refining Co. 11.2 -7.2

Kalber Dairy Co. 6.2 20.1 Behshahr Ind. Dev. Corp. 4.8 -7.2

Index Information Close Index Info 29-March-17 % 21 March 16 TSE Overall Index 77,584 -3.3

TSE30 3,099 -8.3

Iran Farabourse Overall Index 887 10.2

Week Ending Week Ending Description 29-March-17 22-March-17 Market P/E 7.3 7.2

Trade Statistics Week Ending % Change % Change % Change Average Daily Trade Volume 29-March-17 Weekly Monthly Quarterly TSE Average Daily Trade Volume (million US$) 27 -11% 59% 63%

IFB Average Daily Traded Volume (million US$) 42 -50% -49% 31%

FX Movements - March 2017 Market Rate Official Rate

-1.4%** + 0.1%** IRR per US$ IRR per US$

Source: Firouzeh Asia Brokerage, Bonbast All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated. * Weekly data as of trading week ending 29 March 2017. ** 31 March 2017 Vs. 1 March 2017, market exchange rates

18 Iran Investment Monthly Market Overview TSE Statistics April & May 2017 - Volume 11, No 126

TSE Statistics - Week Ending 27 April 2017* TSE Top 5 Performers TSE Worst 5 Performers Close US$ Close US$ Company 27-April-17 % Change Company 27-April-17 % Change Isfahan Sugar Co. 19.5 44.7 Polyacryl Iran Corp. 1.7 -10.9

TideWater Middle East Co. 10.9 20.9 Hamadan Glass Co 22.4 -9.0

Jahrom Power Generation Co. 2.4 20.9 Shahroud Cement Co. 4.4 -8.8

Pegah Dairy Co. 5.3 20.4 Behshahr Industrial Group 3.3 -7.4

Khorasan Sugar Co. 4.9 18.4 Derakhshan Tehran Co. 12.6 -6.9

Index Information Close Index Info 27-April-17 % 21 March 17 TSE Overall Index 79,596 3.7

TSE30 3,096 0.6

Iran Farabourse Overall Index 922 5.4

Week Ending Week Ending Description 27-April-17 20-April-17 Market P/E 7.1 6.9

Trade Statistics Week Ending % Change % Change % Change Average Daily Trade Volume 27-April-17 Weekly Monthly Quarterly TSE Average Daily Trade Volume (million US$) 74 -11% -11% 30%

IFB Average Daily Traded Volume (million US$) 72 -50% -50% -2%

FX Movements - April 2017 Market Rate Official Rate

+1.0%** +0.1%** IRR per US$ IRR per US$

Source: Firouzeh Asia Brokerage, Bonbast All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated. * Weekly data as of trading week ending 27 April 2017. ** 30 April 2017 Vs. 1 April 2017, market exchange rates

19 Iran Investment Monthly Market Overview Iran’s Fixed Income Market April & May 2017 - Volume 11, No 126

Iran’s Fixed Income Market

Background • In 1994, and in line with plans to develop financial products that could assist with the financing of infrastructure projects, the Tehran Municipality was given permission to issue the first debt papers in the post-revolution era using the structure of ‘participation notes’ (Musharakah Papers). • Between 1994 and 2009, the government ministries and municipalities financed their projects through issuing fixed income instruments (such as certificate of deposits, participation papers) with the guarantee of state banks. • These papers were issued in bank branches and were sold to bank customers. • The banking sector used to dominate the funding of investment projects and working capital finance for corporates. • Since 2009, a variety of fixed income instruments have been introduced to public investors and have gradually started to be traded on the Tehran Stock Exchange and Iran Farabourse. • Over the past eight years, due to the tightening of economic sanctions, a lack of foreign funding and inefficiencies in the traditional banking system have put significant pressure on the commercial sector, especially within industries with a high working capital requirement. • In an attempt to increase liquidity, the SEO, the principal financial regulatory body in Iran, has introduced new reg- ulations permitting methods of financing via the equity and debt markets, similar to those in other Islamic bourses.

Period • The tenor of these fixed income instruments ranges between 1 to 5 years.

• The yields on these bonds currently range between 20 - 24% Structure & • Coupons are paid on a semi-annual, quarterly or monthly basis Rates Mechanism • The coupons are collected and distributed through the Central Securi- ties Depository of Iran directly to the investor’s bank account.

• The principal and interest of these notes are guaranteed by a bank, government entity Mechanism or a money and credit institution. • These entities undertake the responsibility of paying the interest and the principal in case the issuer is unable to do so. • This means that the debt owner is essentially taking on the risk of these guarantors, where in the case of T-Bills, this is often the risk of the Treasury or Central Bank of Iran.

20 Iran Investment Monthly Market Overview Iran’s Fixed Income Market April & May 2017 - Volume 11, No 126

Iran Debt Securities Market - March & April 2017

Tehran Stock Tehran Stock Tehran Stock Exchange Exchange Exchange

1.3 Iran Farabourse 6.8 Iran Farabourse 254,574 Iran Farabourse (Junior Market) (Junior Market) (Junior Market) Market Value Average Daily Trading Average Daily Trading (billion US$) 5.1 Value (million US$) 31.3 Volume (bonds) 1,219,609

Value & Breakdown of Sukuk Issuance in Iranian Capital Market,2016* (billion US$)

0.28

0.46

0.55

0.62

0.66

0.85

1.04

3.57

Billion US$

Value & Breakdown of Sukuk Issuance in Iranian Capital Market, 2017** (Million US$)

10.81

0.00

Million US$

* In 1395 Iranian calendar year (March 2016 to March 2017) ** In 1396 Iranian calendar year (March 2017 to March 2018) All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated. 21 Iran Investment Monthly Market Overview Iran’s Fixed Income Market April & May 2017 - Volume 11, No 126

Annualized Return for a Selected T-bill1 Snapshot of the Highest Yielding Debt Securtites1 - April 2017

Issuer Type YTM (p.a.) Compound Return (%) Kordestan Cement Co. Participation Bond (Musharaka) 23.900% 23.5% National Iranian Oil Company Participation Bond (Musharaka) 23.400% Telecommunication Company of Iran Lease Note (Ijarah) 23.380%

Simple Return (%) Rayan Saipa Leasing Co Participation Bond (Musharaka) 23.320% 22.1% Mahan Airlines Lease Note (Ijarah) 22.730% Qom Municipal Participation Bond (Musharaka) 22.720% Bank Deposit, Equivalent (%) Mashhad Municipal Participation Bond (Musharaka) 22.720% 21.3% Butane Industrial Group Lease Note (Ijarah) 22.700% Shiraz Municipal Participation Bond (Musharaka) 22.700% Joopar Passenger & Freight Trains Co. Lease Note (Ijarah) 22.610%

1Please note that most T-bills matures in less than one year. 1 This snapshot is a selection of the highest yielding securities with minimum one year maturity in Iran’s debt markets and should not be considered as a solicitation or recommendation by Turquoise Partners. Corporate bonds with above one year maturity is selected in this comparison.

GCC & Iran Sovereign Positions - 2016/17 Iran GCC MENA Debt Instrument Issuance Debt Instrument Issuance Debt Instrument Issuance 8.0 billion US$ 66.5 billion US$ 81.6 billion US$ Sovereign Sovereign Sovereign* 59% 39% 69% Corporate Corporate Corporate* 41% 61% 31%

S&P MENA Sukuk and Iran’s T-bills YTM - Rebased in US$ Term

Re-based to100 in US$ terms S&P MENA Sukuk YTM Iran T-bill Average YTM

* MENA Bonds Source: Tehran Stock Exchange - Iran Farabourse - Kamcoonline - Kuwait Financial Centre - Standard & Poor’s All figures in US$ are converted from IRR at the free market rate, unless otherwise indicated.

22 Iran Investment Monthly Market Overview Iran’s Fixed Income Market April & May 2017 - Volume 11, No 126

Current Snapshot of Funding Sources • There are 69 different fixed income instruments listed on the Iranian securities markets. • Of these 70, 22 are listed on the Tehran Stock Exchange while the remainder are listed on the Iran Farabourse. • Both public and private companies can issue these notes. At the moment, these notes have been issued by government entities as well as corporations.

Turquoise Partners Sovereign Bond Fund • In order to take advantage of this attractive opportunity set, Turquoise Partners launched Iran’s 1st Sovereign Bond Fund in early 2017. • Given the idiosyncratic nature of the yield curve in Iran’s nascent fixed income market, the Fund is actively managed and invests in a range of Iran’s listed sovereign-backed fixed income assets in order to deliver stable and absolute returns over time. • The fund will seek to return 15-20% p.a. net of fees, in local currency terms.

Please contact the Turquoise team for additional information on this opportunity.

23 Iran Investment Monthly Economic Review Latest Updates April & May 2017 - Volume 11, No 126

Latest Updates

Economic Performance in 2016 According to official statistics, Iran’s economy has recovered at unprecedented speed from a period of low GDP growth. The key contributing factors were the surge in oil production, relatively stable global oil prices at 50 US$ per barrel, and further strengthening of non-oil sectors in the first three quarters of the Iranian calendar year 1395 (March-December 2016). The utilization of available production capacity in many leading sectors contributed to this recovery. According to the Statistical Centre of Iran (SCI), which uses a different base year* in their GDP calculation from the Central Bank of Iran (CBI), GDP grew by 7.2% in real terms between March and December 2016, where non-oil GDP increased 5.0% during this period. Agriculture and Service sectors were the top performing non-oil sectors with growth of 5.7% and 5.4% respectively. Manufacturing, which includes petrochemical, basic metals, auto manufacturing and fast moving consumer goods (FMCG) production, grew 4.6%. The mining sector, which includes oil and gas extraction, expanded by 85%. Construc- tion was the only sector to contract, falling 11%. Construction has been in recession for five years for a range of reasons, including high deposit rates offered by banks. Deposit accounts officially yield about 18% in rial terms, dampening the appetite to invest in construction.

According to the latest IMF report in February 2017, GDP growth is projected to stabilize at 4.5% over the medium term as oil production remains at OPEC target levels.

Private Consumption Total consumption in the Iranian economy has been on the rise in the last decade. Private and governmental consumption statistics indicate that this growth trend has not stopped, even under tough sanctions.

According to SCI reports, total consumption makes up 75% of total GDP in real terms as of end-December 2016. Ac- cording to CBI data, consumption was at about 50% of GDP in 2015 based on nominal GDP calculation.

Private Consumption - billion IRR Government Consumption - billion IRR

Source: Statistical Centre of Iran - Central Bank of Iran *The base year for data at constant prices released by the SCI is the Iranian calendar year 1376 (1997)

24 Iran Investment Monthly Economic Review Latest Updates April & May 2017- Volume 11, No 126

Non-oil Trade Balance

5.1% 3.5% Import Growth Export Growth (March 2016 - March 2017) (March 2016 - March 2017)

43.6 b$ 43.9 b$ Imports Exports (March 2016 - March 2017) (March 2016 - March 2017)

Iran’s non-oil trade balance resulted in a surplus of 246 million US$ in the Iranian calendar year 1395 (March 2016 – March 2017), according to official customs statistics. This was only the second surplus since the 1979 revolution. Over the past three years, the government campaign against smuggling has reduced the amount of illegally imported goods from an estimated 25 billion US$ to about 13 billion US$ in the year ending March 2017, according to local officials.

Top Non-oil Export Destinations Top Import Destinations Percentage Share in terms of Export Value Percentage Share in terms of Import Value

20% China 24% China 17% UAE 14% UAE 14% Iraq 13% Korea 7% Turkey 6% Turkey 6% Korea 5% Germany 36% Others 36% Others

Source: Statistical Centre of Iran - Tehran Chamber of Commerce 25 Iran Investment Monthly Economic Review Macroeconomic Data April & May 2017 - Volume 11, No 126

Macroeconomic Data Iran Economic Data Calendar Iran Macroeconomic Forecast Gross Domestic Product Unit 2016/ 17 2017/ 18 2018/ 19 Central Bank of Iran New issue of “Selected Eco- Nominal GDP (Billion US$) 412 438 471 nomic Indicators”, Bahman 1395 (February 2017) Real GDP Growth (%) 6.6 3.3 4.1 Released: April 10, 2017 (Million barrels Crude Oil Export per day) 2.5 2.5 2.7

GDP PPP Per Capita (US$) 18,136 19,050 20,080 IMF Executive Board Concludes 2016 Article IV Consultation with Private Consumption (Billion US$) 194* 214* 237* the Islamic Republic of Iran Released: March 10, 2017 Fiscal Balance Unit 2016/ 17 2017/ 18 2018/ 19 (% GDP at Current Account market prices) 4.2 3.3 3.1

Statistical Centre of Iran Overall Fiscal Balance (% GDP) -1.1 - 1.0 - 0.7 “Selected Results of the 2016 National Population and Housing Fiscal Tax Revenue (% GDP) 7.2 7.6 7.7 Census” Released: March, 2017 General Government Gross Debt (% GDP) 14.9 15.0 15.0

Monetary & Banking Unit 2016/ 17 2017/ 18 2018/ 19 Sector Indicators

Inflation (%) 9.0 11.0 6.2

Broad Money Growth (M2) (%) 28.6 15.4 13.7

Credit to Private Sector Growth (%) 14.4 17.5 16.0

Net Foreign Assets (Billion US$) 119 136 152

External Sector Unit 2016/ 17 2017/ 18 2018/ 19

Total Export (Billion US$) 81.9 94.8 102.0

Oil & Gas Export (Billion US$) 48.6 59.8 65.3

Import (Billion US$) 50.0 67.0 70.1

Trade Balance (Billion US$) 31.9 27.8 31.9

Source: International Monetary Fund - World Economic Outlook, October 2016 - IMF Staff Visit Article IV Mission to Islamic Republic of Iran - Central Bank of Iran - Economic Trends No. 83 Fourth Quarter 1394 Iranian calendar year Central Bank of Iran - New issue of “Selected Economic Indicators”. Mordad 1395 Iranian calendar year All figures in US$ are converted from IRR at the free market rate

26 Iran Investment Monthly Turquoise Partners About Turquoise Partners April & May 2017 - Volume 11, No 126

About Turquoise Partners

Since 2005

Turquoise is a leading investment group based in Iran that offers a full range of financial services to select investors looking at the Iranian market. The group operates across four core areas: investment management, brokerage, corporate advisory and private equity/venture capital. Turquoise also manages more than 90 per cent of all existing foreign portfolio investments on the Tehran Stock Exchange. Its asset management division offers an EU-regulated equity fund tailored specifically to foreign investors and invests exclusively in the Iranian securities markets. The fund is jointly advised by Turquoise Partners and emerging market specialist Charlemagne Capital.

Firouzeh Asia, the group’s brokerage division, is the market leader in foreign investment and execution, and publishes English language market research, news and analysis. In addition, Turquoise is the only Iranian financial services group to have a significant track record in private equity investing and currently manages two listed private equity investment vehicles.

Turquoise’s corporate finance team offers a full suite of advisory services including mergers and acquisitions, restructuring, market entry and capital raising, for international clients seeking to enter the Iranian market as well as leading Iranian companies.

27 Iran Investment Monthly Turquoise Partners About Turquoise Partners April & May 2017 - Volume 11, No 126

Asset Management

Turquoise Asset Management has established an • In early 2017, Turquoise Partners launched the 1st outstanding reputation and robust performance track Sovereign Bond Fund with a target return of 15- record in the Iranian equities market. The group is 20% in local currency terms. The Turquoise Part- known as a leading investment firm with a strategy ners Sovereign Bond Fund is an actively man- of value investing and long term capital growth; it aged strategy with low volatility that invests specializes in attracting foreign investors to invest in in a range of Iran’s sovereign-backed fixed one of the most undervalued financial markets in the income assets with the objective of delivering world. high stable and absolute returns over time. Our investment team is comprised of experienced The fund adopts a concentrated approach, professionals with more than 20 years experience utilizing a core portfolio of Iranian Government across international and domestic financial markets. bonds backed by the Central Bank of Iran Our investment decisions are guided and supported as the ultimate guarantor. Sovereign Fixed by our investment and advisory committees, access Income securities include; Islamic Treasury to detailed market information, and our on-the-ground Bills, Ijarah Sukuk, Musharakah Sukuk & Mu- presence in Iranian financial markets over the last 10 rabaha Sukuks. years. Our commitment to maintaining the highest stan- • Having operated in the Iranian market for dards, along with our long term growth strategy has over a decade, Turquoise has accumulated a allowed us to gain an unparalleled reputation as the first rate database of market data and infor- leading asset management firm inside Iran. mation. The firm’s electronic newsletter, Iran Investment Monthly, has been consistently Asset Management Division: Products & Services published for over 10 years and has a wide readership of over 3,000 investors and Iran Turquoise Partners launched Iran’s first equity enthusiasts. This newsletter and other regular fund in May 2006, tailored for foreign investors. research products of the firm, are the only free With over 10 years of track record, the fund has source of English language research on the grown to be the largest foreign investor on the Iranian economy and capital markets. Iranian capital markets. The investor base of this fund is almost all European with a mix of institutional, family offices, high net worth individuals and private professional investors.

• In 2015, Turquoise Partners and Charlem- agne Capital launched the first EU regulated alternative investment fund for Iran. This fund is now operational and is open to global investors aiming to get exposure to the Iranian market.

For more information about products and services offered by Turquoise Partners please contact: [email protected]

28 Iran Investment Monthly Turquoise Partners About Turquoise Partners April & May 2017 - Volume 11, No 126

Corporate Advisory Brokerage

Turquoise is the leading investment group based in Firouzeh Asia, the brokerage arm of Turquoise Part- Tehran. We have 10 years of transaction experience ners, is the leading broker offering access to Iranian on the ground in Iran and an extensive network of securities markets for international investors. Over partnerships and collaborations with international in- the years, Firouzeh Asia, as a fully licensed brokerage vestors and leading global advisory firms. company under the Securities and Exchange Orga- nization of Iran, has been a pioneer in servicing in- Our corporate finance team is comprised of senior ternational investors as well as offering professional Iranian and international bankers based locally and services to its domestic clients. Firouzeh Asia has a in London. We deliver mergers and acquisition ad- presence in four major Iranian cities: Tehran, Isfahan, visory, restructuring, market entry and capital rais- Rasht and Yazd. ing services to international clients seeking to enter the Iranian market. We also assist Iranian domestic Brokerage Division: Products & Services corporates to access global markets through strategic partnerships. We seek to combine in-depth local • Securities Dealing knowledge and access with international investment Online trading platform with live market data banking best practices. for all customers Telephone orders In cooperation with Turquoise’s market leading eq- Block trades uity brokerage, we deliver capital markets services, Dedicated trading station for large customers including public markets capital raising and structured products, to Iranian corporate clients and foreign and • Managed Accounts domestic institutional investors. Investment advice (institutional clients only)

Corporate Advisory Division: Products & Services • Capital Market Advisory Listing and IPO advisory • Advisory Reports: in-depth research reports tailored Fixed income securities issuance to the corporate advisory division’s policies, and placement providing due diligence research on specific listed or non-listed companies and their sectors’ out- • Index ETF looks, in English. Launch of Iran’s first index-linked ETF (TSE- 30 ILETF) in January 2015 Client portfolio management

• Equity Research Report: an in-depth research report tailored to the Turquoise Investment Strategy which provides the latest developments in a selected number of listed companies (including their sectors), in English.

For more information about products and services offered by Turquoise Partners please contact: [email protected]

29 Iran Investment Monthly Turquoise Partners About Turquoise Partners April & May 2017 - Volume 11, No 126

Private Equity

Turquoise is one of the only Iranian financial firms with a significant track record in private equity investing. Our investment team has been operating on the ground since 2005 and has invested on its own be- half, with co-investment partners, and as a manager in the most attractive growth sectors of the Iranian economy. Transactions have included private investments in FMCG, financial services, real estate and technology-based venture capital.

Our private equity capabilities include experience in all phases of the investment process including market analysis, due diligence for investors in the Iranian environment, interface with regulators and other governmental authorities, investment restructuring, exit management and undertaking all the reporting and investment monitoring expected of a private equity fiduciary.

Private Equity Division: Products & Services

• The Turquoise Group has made private equity investments both on its own and with partners in a variety of sectors including consumer, financials, technology and real estate amongst others.

• Advisory Reports: in-depth research reports tailored to the corporate advisory division’s policies, providing due diligence research on specific listed or non-listed companies and their sectors’ outlooks, in English.

For more information about products and services offered by Turquoise Partners please contact: [email protected]

30 Iran Investment Monthly Turquoise Partners News & Views April & May 2017 - Volume 11, No 126

News & Views

Recent Research Turquoise in Media

Iran Daily Market Update – May 2017 March 11, 2016 - Financial Times May 17, 2017 “Is Iran really one of the world’s best investments” May 16, 2017 May 15, 2017 Read the full article May 14, 2017 May 13, 2017 March 10, 2016 - Bloomberg Television “Post-Sanctions Iran Offering Investing Opportunities”

Iran Weekly Market Update – April & May 2017 Read the full article May 18, 2017 May 11, 2017 February 28, 216 - Reuters May 04, 2017 “Reformist gains in Iran elections clear way for busi- April 27, 2017 ness boom” April 20, 2017 Read the full article

February 16, 2016 - Bloomberg “Iran’s 20% Yields Tempt Charlemagne as Tehran Returns From Cold”

Read the full article

February 14, 2016 - Reuters “Defying global slump, Iran stocks soar on sanctions relief”

Read the full article

January 28, 2016 - Euromoney “Sanction removal unveils Iran currency hopes”

Read the full article

January 23, 2016 - International Business Times “The Iran rush: European and Asian firms on starting line as sanctions are lifted”

Read the full article

31 Iran Investment Monthly April & May 2017 - Volume 11, No 126

Turquoise Partners No. 10. 7th St. Khaled Eslamboli (Vozara) Ave. Tehran, Iran Tel: + 98 21887 26 681 Fax: +98 21 881 07 746 Email: [email protected]

Firouzeh Asia Brokerage 5th Floor No. 11, Mirza Hassani St. Ghaem Magham Farahani Ave. Tehran, Iran Tel: +98 21 881 06 106 Fax: +98 21 881 07 746 Email: [email protected]

DISCLAIMER This document has been issued by Turquoise Partners for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell any security or other financial instrument or to any particular category of investors in jurisdictions in which such an offer or solicitation to the public or to any particular category of investors is illegal. Although the material in this report is based on information that Turquoise Partners considers reliable, Turquoise Partners does not make any warranty or representation (express or implied) in relation to the accuracy, completeness or reliability of the information contained herein. Any opinions expressed herein reflect a judgment at the date of publication and are subject to change. Turquoise Partners accepts no liability whatsoever for any direct, indirect or consequential loss or damage of any kind arising out of the use of all or any of this material. Where Turquoise Partners provides information in the document, it is provided exclusively for information purposes. The information does not constitute any form of recommendation related to the personal circumstances of investors or otherwise, nor does it constitute any specific or general recommendation to buy, hold, or sell financial instruments and does not thus create any relationship between Turquoise Partners and any investor. The document may not include all the up-to-date information required to make investment decisions. Other more accurate and relevant sources of information may exist. Investors should thus diligently inform themselves about the chances and risks of the investments prior to taking investment decisions. In addition to the financial aspects, this should include, in particular, the legal and tax aspects of the investments. It is strongly recommended that any potential investor should contact a financial adviser and, where required, a lawyer or tax adviser. Furthermore, it should also be considered that the future performance of financial instruments and their return cannot be inferred from their past performance. The value of investments may go down as well as up and investors in financial instruments should be capable of bearing a total loss of investment. Neither Turquoise Partners nor any third party content provider shall be liable for any errors, inaccuracy, delay or updating of the published content of the provided document. Turquoise Partners expressly disclaims all warranties as to the accuracy of the content provided, or as to the use of the information for any purpose, as far as legally possible. This material is for the use of intended recipients only and neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without the prior consent of Turquoise Partners. PERSONS DOMICILED, RESI- DENT OR BASED IN THE UNITED STATES OF AMERICA ITS TERRITORIES OR POSSESSIONS OR WHO MAY OTHERWISE BE CONSIDERED AS UNITED STATES PERSONS, INCLUDING REPRESENTATIVES OF UNITED STATES COMPANIES OR NON-UNITED STATES SUBSIDIARIES OF UNITED STATES COMPANIES SHOULD NOT CARRY OUT ANY ACTION IN BREACH OF U.S. SANCTIONS LAWS.

32 Iran Investment Monthly