OUR NEWSLETTER

 

• Iranian Stock Market posts strong recovery in November with the main index rising 20% in Euro Terms
• Optimism regarding the incoming Biden administration has fueled a positive feeling in the country and across numerous asset classes
• The currency appreciated by over 5% in the month of November and also global commodity prices contributed to the Iran Stock markets recovery from a very volatile previous 3 months

 

• The Iranian stock market continued its sharp decline in October, extending its unprecedented losses from the july peak to more than 50% in Euro terms
• This is the most severe fall that the TSE has ever experienced over its 32-year recorded history since the iranian revolution in 1979
• More than 70% of this contraction is due to significant share price declines in IRR terms and 30% can be attributed to the weakening currency over the course of the past three months

 

• Market continued to decline as it did previous month with index falling by 31% in USD$ terms
• The housing market had also experienced unprecedented levels of appreciation and the rental market increased by 27% over a 12 month period
• Gold ETF market remains very popular with investors looking to hedge against IRR devaluation with a total market of $100m USD now listed on the Tehran Stock exchange

 

• Market slowed down and dropped by 8-10% in August with the correction imminent (bubble starting to burst)
• The market sold off for the 1^st time since October 2019 with investors taking profits as the market capitalization of the TSE reached $400 bln
• Monthly growth in base money of IRR dropped by 2.2% which demonstrates that the TSE is in bubble territory

• Tehran Stock Exchange generated a positive return of 9.9% in Euro Terms despite IRR depreciating by 12%
• $1 billion USD was injected into the local Forex Market by the Central Bank of Iran
• Government continuing the privatization initiative with blocks of companies in governmental owned refineries and automotive companies being sold via the stock market

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market continue to rally 60% and 47% in IRR terms over during this month ending June 2020, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms was 39% in TSE and 28% in Farabourse market. This was mainly due to 15% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year 1399 (March 2020) to end June, total issuance on the fixed income market reached 1.1 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 15% at the end of June.

Economic Review

• This issue reviews the updates on the government contractionary actions in foreign exchange market and banking sector. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market continue to expand moderately 11% and 9% in IRR terms over during this month ending May 2020, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms was 2% in TSE and 1% in Farabourse market. This was mainly due to 8% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year 1399 (March 2020) to end May, total issuance on the fixed income market reached 0.5 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 15% at the end of May.

Economic Review

• This issue reviews the updates on overall economy outlook and the recent rally of the stock market. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market continue to expand 74% and 57% in IRR terms over the past two months ending April 2020, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 61% in TSE and 46% in Farabourse market. This was mainly due to 8% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year 1399 (March 2020) to end April, total issuance on the fixed income market reached 0.2 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 16% at the end of April.

Economic Review

• This issue reviews the updates on housing market and the recent inflation targeting announcement published by the CBI. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market expanded 19% and 21% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 8% in TSE and 10% in Farabourse market. This was mainly due to 10% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end-February 2020, total issuance on the fixed income market reached 6.5 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 20.87% at the end of February.

Economic Review

• This issue reviews the updates on unemployment and economic participation rate by Statistical Center of Iran. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market expanded 13% and 9% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 10% in TSE and 6% in Farabourse market. This was mainly due to 3% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end January, total issuance on the fixed income market reached 5.9 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 19.76% at the end of January.

Economic Review

• This issue reviews the updates on investment share in GDP and industrial production statistics published by Monetary and Banking Research Institute, Tehran Chamber of Commerce and IMF. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market expanded 21% and 22% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 14% in TSE and 15% in Farabourse market. This was mainly due to 6% depreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end-December, total issuance on the fixed income market reached 5.4 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 20.48% at the end of December.

Economic Review

• This issue reviews the updates on housing market, industrial production and trade published by Central Bank of Iran and Ministry of Industry. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The Tehran Stock Exchange (TSE) and junior Farabourse (IFB) markets remained flat during November 2019, inching up 1% and 3% in IRR terms respectively. With an 11% depreciation of the IRR against the unofficial USD rate, the month-on-month loss in dollar terms was 9% on the TSE and 7% on the IFB respectively.

Debt Markets

• From the start of the Iranian calendar year (March 2019) up until the end of November, the total issuance on the fixed income market reached 4.3 billion US$ based on the unofficial exchange rate. The yield to maturity (YTM) remained stable at 20.8% at the end of November.

Economic Review

• This issue reviews the latest updates on the unemployment and economic activity rates published by Statistical Center. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets

• During October 2019, Tehran Stock Exchange (TSE) and junior Farabourse (IFB) markets recorded loss of 4% and 9% in IRR terms, respectively. Based on the unofficial exchange rate, the month-on-month loss moderated in dollar terms by around 3%. Hence, TSE and IFB declined by 2% and 6% in USD terms, respectively.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end- October, total issuance on the fixed income market reached 3.3 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 20.5% at the end of October.

Economic Review

• This issue reviews the latest updates on inflation and banking sector facilities published by Statistical Center and Central Bank. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• Investors continued to drive equity markets up in the Tehran Stock Exchange (TSE) and junior Farabourse (IFB) markets in September. Following the rally of previous months, Iranian markets increased by around 16% in IRR terms over the course of the month. Based on the unofficial exchange rate, the month-on-month gain in dollar terms extended by 13% in the TSE and 12% in the Farabourse market. The IRR appreciation against the USD rate was 3% over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end-September, total issuance on the fixed income market reached 1.5 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 21% at the end of September.

Economic Review

• This issue reviews the latest updates on the liquidity and banking sector Basel 3 assessment published by Central Bank and Monetary and Banking Research Institute. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• Both Tehran Stock Exchange (TSE) and junior Farabourse (IFB) market expanded 10% in IRR terms over the month. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 16% in TSE and 17% in Farabourse market. This was mainly due to 6% appreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end August, total issuance on the fixed income market reached 1.15 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 22% at the end of August.

Economic Review

• This issue reviews the latest updates on the Tehran housing market and Producer Price Index (PPI) published by Central Bank and Statistical Centre, respectively. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market expanded 3% and 6% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 11% in TSE and 14% in Farabourse market. This was mainly due to 7% appreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end-July, total issuance on the fixed income market reached 1.1 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 22.73% at the end of July.

Economic Review

• This issue reviews the latest GDP growth statistics published by Statistical Center. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets

• The TEDPIX index and junior Farabourse (IFB) market expanded 12% and 14% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 19% in TSE and 21% in Farabourse market. This was mainly due to 5% appreciation of IRR exchange rate over the month.

Debt Markets

• For the start of the Iranian calendar year (March 2019) to end-June, total issuance on the fixed income market reached 1 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 22.24% at the end of June.

Economic Review

• This issue reviews the latest unemployment statistics published by Statistical Center and Central Bank of Iran. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market ticked up 3% and 6% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month gain in dollar terms accelerate by 8% in TSE and 11% in Farabourse market. This was mainly due to 5% appreciation of IRR exchange rate over the month. Debt Markets In the second month of the Iranian calendar year of 1398 (April 2019 to May 2019), no new issuance was reported. Economic Review This issue reviews the latest trade statistics, Producer Price Index (PPI) and liquidity to GDP ratio published by Statistical Center and Central Bank of Iran. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centres.

Equity Markets The TEDPIX index and junior Farabourse (IFB) recorded best monthly performance in March and April since September

2018. TEDPIX and IFB rallied 29% and 24% in IRR terms over

the course of two months, respectively. Based on the unofficial exchange rate, the gains in dollar terms accelerate by 23% in TSE and 18% in Farabourse market.   Debt Markets In the first month of the Iranian calendar year of 1398 (March 2019 to March 2020), no new issuance was reported.   Economic Review This issue reviews the latest consumer price index statistics and Iranian household budget expenditure report published by Statistical Center and Central Bank of Iran. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market ticked up 4% and 9% in IRR terms over the month, respectively. Based on the unofficial exchange rate, the month-on-month loss in dollar terms accelerate by 7% in TSE and 2% in Farabourse market. This was mainly due to 11% depreciation of IRR exchange rate over the month.   Debt Markets From the start of the Iranian calendar year (March 2018) to end-February, total issuance on the fixed income market reached 3.8 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 21.5% at the end of February.   Economic Review This issue reviews the latest updates on Iran’s growth prospect for the medium term and the foreign exchange market environment over the month. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index remained flat and junior Farabourse (IFB) market ticked up 3% in IRR terms over the month. Based on the unofficial exchange rate, the month-on-month loss in dollar terms accelerate by 7% in TSE and 4% in Farabourse market. This was mainly due to 7% depreciation of IRR exchange rate over the month.   Debt Markets From the start of the Iranian calendar year (March 2018) to end-January, total issuance on the fixed income market reached 3.6 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 21.4% at the end of January.   Economic Review This issue reviews the latest updates on the Tehran housing market and Central Bank measures in the money market. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index remained flat and junior Farabourse (IFB) market increased by 5% in IRR terms over the past month. Based on the unofficial exchange rate, the month-on-month gains in dollar terms was 7% in Farabourse market. This was mainly due to 2% appreciation of IRR exchange rate over the month. Debt Markets From the start of the Iranian calendar year (March 2018) to end-December, total issuance on the fixed income market reached 3.5 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 21.3% at the end of December. Economic Review This issue reviews the latest updates from Ministry of Mine and Industry on the industrial production, exports and non-oil trade balance and Tehran Chamber report on the PPI. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market lost 11% and 12% respectively in IRR terms over the month. Based on the unofficial exchange rate, the month-on-month gains in dollar terms accelerate by 17% in TSE and by 16% in Farabourse market. This was mainly due to 24% appreciation of IRR exchange rate over the month. Debt Markets From the start of the Iranian calendar year (March 2018) to end-November, total issuance on the fixed income market reached 2.6 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 24.2% at the end of November. Economic Review This issue reviews the latest updates from Tourism sector and Central Bank report on the inflation. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market lost 6% and 9% respectively in IRR terms over the month. Based on the unofficial exchange rate, in dollar terms the TSE gained 6% and the Farabourse added 2% due to the 11% appreciation of the IRR over the month. Debt Markets From the start of the Iranian calendar year (March 2018) to end-October, total issuance on the fixed income market reached 2.0 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 24.9% at the end of October. Economic Review This issue reviews latest updates on the Tehran housing market and Central Bank measures in the money market. In addition we include a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market gained 42% and 43% respectively in IRR terms over the month. Based on the unofficial exchange rate, the month-on-month gains in dollar terms declined by 9% on both TSE and Farabourse markets. Debt Markets From the start of the Iranian calendar year (March 2018) to end-September, total issuance on the fixed income market reached 1.4 billion US$ based on the unofficial exchange rate. Yield to maturity (YTM) remained stable at 28.5% at the end of September. Economic Review This issue reviews the latest updates from World Bank on Iran’s macro-economy. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macro­economic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

  Equity Markets The Tehran Stock Exchange (TEDPIX Index) rose 13% in IRR terms in August. Market gains reflect the sharp devaluation of the rial since early 2018. Debt Markets From the start of the Iranian calendar year (March 2018) to end-August, total issuance on the fixed income market reached 761 million US$ based on the unofficial exchange rate*. Yield to maturity (YTM) remained stable at 28% at the end of August. Economic Review This issue reviews recent developments in Iran’s foreign exchange market and analyzes other markets’ performance in the context of the IRR devaluation. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The Tehran Stock Exchange (TEDPIX Index) rose 9% in IRR terms in July. Market gains reflect the sharp devaluation of the Rial since early 2018. Debt Markets From the beginning of the Iranian calendar year (March 2018) to end-July, total issuance on the fixed income market reached 1.48 billion US$1. Yield to maturity (YTM) rose from 26% in June to 28% at the end of July. Economic Review This issue reviews academic studies on the relationship between Currency Devaluation and Stock Market performance in emerging markets. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The Tehran Stock Exchange (TEDPIX Index) rose 17% in IRR terms in June and recorded its best performing month since September 2012. This equity market rally was the first significant move since the depreciation of the IRR accelerated in early 2018. Debt Markets Since the beginning of the Iranian calendar year (March 2018), total issuance on the fixed income market reached 685 million US$ by end-June. Yield to maturity (YTM) rose from 23% in May to 26% at the end of June. Economic Review This issue reviews the UNCTAD Foreign Direct Investment report on the Iranian economy in 2017. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets The Tehran Stock Exchange (TEDPIX Index) rose 2% in IRR terms in May. Just as other markets (gold and real estate) started to adjust following recent volatility on the foreign exchange market, the stock market also began to react to these changes in May after falling for two months on the negative news of the US exit from the JPCOA. Debt Markets Since the beginning of the Iranian calendar year (March 2018), total issuance on the fixed income market reached 289 million US$ by end-May. Yield to maturity (YTM) rose from 20% in March to 22% at the end of May. Economic Review This issue reviews the recent developments on the foreign exchange market, housing market and inflation after the US decision to exit the JPCOA. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summary, as well as an economic calendar released by local and international statistics centers.

Equity Markets In March and April, the increased regional tensions and macro uncertainties regarding the USA’s decision on JPCOA resulted in a surge of speculative demand in the foreign exchange and gold markets. The Tehran Stock Exchange (TEDPIX Index) declined 5% in IRR. Debt Markets In the Iranian calendar year of 1397 (March 2017 to March 2018), total issuance within the fixed income market doubled to 16 billion US$ year on year. In late March and early April, the only issuance was 11 million US$ equivalent worth of Mortgage Backed Security (MBS) papers. Economic Review This issue reviews the recent CBI decision to unify the official and free market exchange rates and the macroeconomic outlook after the USA’s decision to exit the JPCOA. The latest developments in the Iranian currency market are reviewed in the “Insight into the Iranian Currency Market” report separately. In addition, we have included a separate report covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet summery, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index and junior Farabourse (IFB) market remained stable in Rial terms and gained 3.6% and 3.9% in US$ terms respectively in the month of February. The foreign exchange market stabilized with IRR appreciating 3.5% against the US$. Debt Markets The fixed income market witnessed an active month with the issuance of a number of Islamic T-bills and government Musharakah and Salaf notes. Total fixed income issued papers soared 37% in IRR terms, taking the value of issued papers to 10 billion US$ in the month of February. Economic Review This issue reviews the recent updates from the Privatization Organization concerning the value of privatized companies and the latest updates from the Central Bank of Iran regarding 9-month real growth in GDP constituents. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calendar released by local and international statistics centers.

Equity Markets The TEDPIX index returned 2.3% in Rial terms and lost 5.2% in US$ terms in the month of January, as the volatile foreign exchange market weighed on markets. The junior Farabourse market gained 5.4% in Rial terms and lost 2.3% in US$ terms. Debt Markets The fixed income market witnessed a very active month by issuing a number of Islamic T-bills and Musharakah Sukuk notes. Islamic T-bills issuance soared 36% in US$ terms with the issuance of 1.4 billion US$ notes in the market. Economic Review This issue reviews the latest updates from the Central Bank of Iran on the housing market, inflation rate and economic growth. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calendar released by local and international statistics canters.

Equity Markets The main and junior markets ended December with gains of 4.8% (TEDPIX Index) and 0.3% respectively in local currency terms, lifted by a rise in global commodity markets. In US dollar terms, the TSE rose 1.1% while the Farabourse was down 3.3%. Debt Markets As a good tracking indicator, average yields on short-term government debt securities rose by just over half a percent from 15.79% in November to 16.36% in December, bringing the third consecutive month of such an up-tick. Economic Review This issue reviews the latest updates from the Central Bank of Iran on the interbank lending market. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calender released by local and international statistics canters.

Equity Markets The main and junior markets ended November with gains of 4.0% and 6.0% respectively in local currency terms, lifted by falling bank deposit rates and gains in global commodity markets. In US dollar terms, the TSE rose 1.9% while the Farabourse was up 3.8%. Debt Markets On the bond market, T-Bill yields to maturity have declined in recent months and have stabilized since October between 15% and 16%. The CBI managed to fix one-year deposit rates at 15% by setting harsh penalties for banks violating the cap. Economic Review This issue reviews the latest updates from International Monetary Fund on Iran’s macro-economy. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calendar released by local and international statistics centers.

Equity Markets Iran’s main and junior markets ended October with gains of 2.5% and 2.6% respectively in local currency terms. However, in US dollar terms, a 3.3% fall in the Rial resulted in losses of 0.8% for both markets. The TSE’s total trading volume had a minor decline of 4% for the month at 843 US$ million, while trading on the Iran Farabourse (IFB) increased 21% to 1 billion US$ (from 961 million US$) in October. Debt Markets The fixed income market was active in October with the issuance of 4 billion US$ of fixed income instruments, of which 3 billion US$ were treasury bills. In support of the recent CBI decision to place a 15% cap on one-year deposit rates, the average YTM of T-bills stood at 14.76% by end-October. Economic Review This issue reviews the latest updates in the banking sector, foreign exchange market, and inflation rate. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calendar released by local and international statistics canters.

Equity Markets The Tehran Stock Exchange bounced back sharply in September, almost erasing all its year-to-date (YTD) losses as the overall index rose by 3.7% in Euro terms last month. Contributing to this strong positive performance, the Iranian Rial appreciated 0.6% versus the Euro, thereby providing notable relief after 6 consecutive months of decline that had seen the Rial fall by 15% - the most since 2012. Debt Markets The Central Bank of Iran’s (CBI) recent policy to lower interest rates helped to bring about an acceleration in the rise of government bond prices, with yields consequently falling by more than 2.8%. As a result, effective yields on short dated government debt securities fell to 18%, the lowest since the emergence of the Iranian government debt market in February 2016. Economic Review This issue reviews the latest trade statistics and recent regulations that were taken by the government to compact illegal trade. In addition, we have included sections covering the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a fact-sheet report, as well as an economic calender released by local and international statistics centres.

Equity Markets The Tehran Stock Exchange Overall Index ended August with gains of 2.1% in local currency terms and 0.4% in US$ terms. Since the Iranian Rial tends to closely track changes in the dollar, we witnessed a minor depreciation of the Rial of about 1.7% over the month. The TSE market’s total trading volume remained stable at approximately 1 US$ billion m/m and the total number of shares traded increased 10% to some 17 billion. Debt Markets The upcoming issuance of new fixed instruments to the value of 2.2 billion US$ from the government to encourage greater investing in fixed income Sukuk was one of the major updates in August. The average daily debt market activity in terms of both value (US$) and volume (number of bonds) increased on the Iran Farabouse Exchange by 23% and 13%, respectively. Economic Review This issue gives an overview of Household Budget Expenditure, a recent comprehensive survey on Iranian households’ consumption behaviour across 79 cities published by the Central Bank of Iran.

Equity Markets The Tehran Stock Exchange Overall Index ended July with gains of 3.7% in local currency terms and 2.9% in US$ terms, making it the best performing month since the start of 2017. Since the Iranian Rial tends to closely track changes in the dollar, we witnessed a minor depreciation of the Rial of about 0.8% over the month. The TSE market’s total trading volume rose 112% to approximately 1 US$ billion m/m, while the total number of shares traded increased 91% to some 16 billion. Debt Markets The average daily debt market activity in terms of both value (US$) and volume (number of bonds) expanded on the Tehran Stock Exchange by 180% and 184%, respectively. On the Iran Farabourse Exchange which has a greater variety of fixed instruments, the value (in US$ terms) of average daily activity declined by 11%. Economic Review This issue gives an overview of the banking sector credit facilities, consumer price index update, and the Tehran housing market report published by the Central Bank of Iran.

  Equity Markets The Tehran Stock Exchange declined 2% in local currency terms in June, but with the Iranian Rial depreciating against the US$, the overall index slipped nearly 3% in US$ terms over the month. The market’s total trading volume fell 75% to 500 million US$ from 2.0 billion US$ in May, while the number of shares traded dropped 73% to 8 billion from 31 billion. Debt Markets The average daily debt market activity in terms of both value (IRR) and volume (number of bonds) declined on the Tehran Stock Exchange by 70% and 71%, respectively. On the Iran Farabourse Exchange with new variety in fixed instruments, the value of average daily activity in terms of value (IRR) increased by 2% . Economic Review This issue gives an overview of the Foreign Direct Investment (FDI) inflows to the country released by the Ministry of Economy. Total FDI for 2016 is officially estimated to be 3 billion US$, indicating that despite the removal of sanctions, it will take more time for FDI to recover to its historic average.

Equity Markets The Tehran Stock Exchange rose 1% in local currency terms in the month of May and with the Iranian rial appreciating against the US$, the overall index gained nearly 2% in US$ terms over the month. The market’s total trading volume was 81% higher than in April, rising from US$ 1.1 billion to US$ 2.0 billion, while the total number of shares traded rose 55% from 20 billion to 31 billion. Economic Review This issue addresses recent developments in Iran’s E-commerce sector, focusing on the latest government and private sector initiatives that have driven this booming market. 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 centers.

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 canters.

  Equity Markets Iranian equity markets remained mostly flat in IRR terms in February, whilst returning around 1% in US$ terms. Two key factors contributed to this market equilibrium: the IRR per US$ exchange rate has stabilized and real interest rates remain high due to structural issues in the banking sector. However, the month also saw a number of positive develop­ments in economic fundamentals that are worth noting. Economic Review This issue reviews the latest developments highlighted in Iran’s country report published by the International Monetary Fund in coordination with the Central Bank of Iran. 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.

Equity Markets Iranian equity markets fell slightly in January in local currency terms, dragged down by losses in the banking sector. In 1395 Iranian calender year (March 2016 to March 2017) the Central Bank of Iran enforced the implementation of International Financial Reporting Standards (IFRS) and other international banking requirements by all Iranian banks, which included restating their financial results for the current fiscal year (ending March 20 2017). Economic Review This issue reviews the banking sector credit facilities and the Tehran housing market report published by the Central Bank of Iran. 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 canters.

Equity Market Iran’s equity markets gave back a small portion of their year-to-date gains by registering a loss of ~1% in December in USD terms. For the third month, the TSE overall index flirted with levels close to the peak reached in May 2016 but closed out December 2016 just below the 80,000 mark. In our view, the lack of clarity over the currency market and banking sector, combined with other uncertainties such as the direction of global oil prices and political headlines, have weighed on equity markets. Economic Review This issue reviews the latest job market statistics and Iranian household budget expenditure report published by the Statistical Center and Central Bank of Iran. 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.

quity Market Whilst the Iranian equity markets posted small negative returns in the month of November in local currency terms, the depreciation of the Iranian Rial (IRR) last month was especially notable, as emerging markets around the world digested the news of the unexpected US election result. The sharp decline in the IRR was in line with other major emerging market currencies as the projected US infrastructure spending spree under the new administration caused US$ bond yields to rise and subsequently the US$ to strengthen across the board. Economic Review This issue reviews academic and empirical studies of the IRR/US$ exchange rate referencing research done by both local and foreign economists. 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 the economic calendar released by local and international statistics canters.

Equity Market In October, the market regained the peak it last touched in May 2016, once again hitting the 80,000 mark. During October some 80% of companies listed on the TSE released their Q2 earnings and half-year financial reports, as well as their projections for the third and fourth quarters of the Iranian calendar year 1395. Economic Review This issue reviews Iran’s macroeconomic outlook according to results of the Tehran Chamber of Commerce survey and outlines a summary of developments in the petrochemical sector. 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 the economic calendar released by local and international statistics centers.

Equity Market September was a positive month for the internal and external business climate in Iran while being a flat month for the performance of the stock market. Domestically, there were a number of positive indicators in September, which continue to highlight the growth potential of the economy following the nuclear deal. Low investment activity & volumes on the market are explained by investors waiting for Q2 earnings, which will be reported for approximately 80% of the TSE member firms. Economic Review This issue reviews the economic updates published by the Central Bank, which discusses the debts owed to the banking system by the government and the private sector. In addition, we have included sections to cover the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a factsheet report as well as the economic calendar released by local and international statistics centers.

Equity Market The month was once again characterised by significant progress in the Iranian economy and on external trade, but very little progress on the integration of Iran with the international financial system. There are two issues to be dealt with to open up the financial system and allow money and investment to reach Iran. The first can be sorted out quickly by Iran. This is the removal of the dual currency system. The second issue is the question of the Global banks involvement with Iran. Economic Review This issue reviews the key steps taken by the Iranian monetary authorities to stabilize the domestic economy over the past three years. In addition, we have included sections to cover the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a factsheet report as well as the economic calendar released by the Statistical Center of Iran.

Equity Market The market is now up by 24% year-to-date, just 5% off this year’s peak at the end of March. The average price to earnings ratio rose to 7.1, surpassing the 20-year average of the TSE by more than one percentage point. Daily average trade values stood at $70 million, a month-on-month increase of 25%. Mining and basic metals led the gains on the TSE, rising 20% and 13% respectively. Economic Review This issue reviews the recently published quarterly economic growth and GDP data from the Statistical Center of Iran. In addition, we have included sections to cover the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a factsheet report as well as the economic calendar released by the Statistical Center of Iran.

Equity Market The Tehran Stock Exchange index fell by 3.5% in June, decreasing for the third consecutive month. The muted performance of the equity market over the second quarter, leading to a 10% correction on the index, has been due in large part to the frustrated expectations of locals regarding large foreign portfolio inflows into the equity market. Whilst significant progress is being made in the economy on many fronts, it is clear that the reluctance of the international banking system to engage with Iran remains a significant limiting factor to a substantial increase in foreign direct investment and portfolio inflows. Economic Review This issue reviews the recent developments in the Iranian fixed income market. In addition, we have included sections to cover the latest macroeconomic data published by relevant organizations and senior macroeconomic strategists in a factsheet report and the economic calendar released by the Statistical Center of Iran.

Equity Market The Iranian stock market index fell by 2.5% in Euro terms, recording the second consecutive decline in May. We believe the single most important reason for the negative performance of the equity market in the last couple of months has been the impediments to foreign capital flows being able to find their way into the capital markets and into the economy in general. Another significant hurdle is the presence of the dual exchange rate structure. Despite the SWIFT system being available to all Iranian and International banks to transact through, the fact that transactions must be done at the official exchange rate of 30,500 Rials to the US$ versus a parallel market rate of 34,500, has effectively precluded SWIFT as a way of transacting in the Rial. Economic Review This issue reviews the recent developments in the Tehran housing market, inflation and the banking sector’s latest agreement on lowering deposits rates. In addition, we have included sections to cover the latest macroeconomic data published by reputed organizations and senior macroeconomic strategists in a factsheet report and the economic calendar released by the Statistical Center of Iran.

Equity Market For the past two months, the Tehran Stock Exchange has been experiencing some volatility after its initial positive reaction to the lifting of sanctions. The main index fell 4.6% in Euro terms in April causing it to lose almost all the 5% it had gained during the month of March. This fall is the result of difficulties faced by foreign investors with regards to money transfers into the Iranian market. Until now, international banks have been reluctant to involve themselves with the Iranian financial market, but, hopefully, more banks will be willing to come into Iran taking in to consideration the diplomatic efforts encouraging remarks to the UK and European banks. Economic Review This issue reviews the Iran’s first non-oil trade surplus and Producer Price Index (PPI) released by the Trade Promotion Organization and Central Bank of Iran. In addition, we have included sections to cover the latest macroeconomic data published by reputed organizations and senior macroeconomic strategists in a factsheet report and the economic calendar released by the Statistical Center of Iran.

Equity Market The Tehran Stock Exchange (TSE) bucked an important historical trend in February. Traditionally experiencing a decline as the end of the Iranian year approaches, the TSE instead gained 9% and 14% in IRR and USD terms, respectively. Both institutional and individual investors tend to sell off part of their portfolios in February and early March in order to realise profits prior to year-end, which in turn, puts prices under pressure. Howev­er, despite the significant sales by some institutional investors, the TSE saw positive performance due to high buying demand from other investors. These gains brought the total market capitalization to over 111 billion USD. Economic Review This issue reviews the latest statistics released by the Central Bank of Iran and Statistical Center of Iran on the Consumer Price Index, real GDP growth and Gini coefficient. In addition, we have included sections to cover the latest macroeconomic data published by both reputed financial research organizations in a factsheet report and the economic calendar released by the Statistical Center of Iran

Market Overview 2 The Tehran Stock Exchange ended down 1.5% for the month of December and 10.6% over 2015. This is the second consecutive year that the market has fallen, recording a total loss of 30% over the past two years – the most severe decline ever. This negative trend and the bear market are, however, likely to be coming to an end with the hope of economic relief from the removal of sanctions in January. Iranian stock valuations have become reasonably attractive as stocks traded 5.5 times higher than their projected earnings as of December 31st. This is 10% lower than the average valuation of the market over the past two decades. This being said, declining oil and commodities prices weighed heavily on the market in December. Country Highlights 4 The most recent and important news about the country will be mentioned in this section. Economy 6 This issue reviews both the Iranian government’s new budget and five-year development plan in addition to identifying the strongest sectors in the country’s post-sanctions economy.

Market Overview 2 The Tehran Stock Exchange ended the month of November with a 0.5% fall by its main index leading to a year to date performance of -9%. The continued rout in the global commodities and oil markets were contributing factors towards the negative atmosphere in the market this month. On the upside, trading volumes reached $643 million in November showing a 32% increase in comparison to the past month. With an increase of 2.8%, Pharmaceuticals were the best performing group in terms of market cap amongst the 10 largest industries. This jump can be traced back to optimism towards the removal of sanctions which may potentially lead to lower transaction costs and eventual better outlook for trade. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 This issue reviews Iran’s government fiscal balance and current account outlook in light of lower oil prices along with statistical survey on GDP breakdown by Iran’s provinces released by Statistical Center of Iran.

Market Overview 2 The Iranian’s stock market snapped out of its 2 month losing streak as the overall index rose by 2.4% in October. Stabilization in oil prices and approval of a stimulus package by the government resulted in this modest turnaround for the market. The package included a variety of actions from injecting fresh money to the interbank lending market by the Central Bank of Iran to facilitating retail financing for purchase of locally produced automobiles, household goods and property. Industrial companies welcomed this package by reflecting a 2.5% gain on average in their share prices. The package aimed to bring down sticky interest rates as well as encourage consumption in order to provide a new momentum for the slowdown in the Iranian economy. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 This issue reviews a brief outline of Iranian taxation system released by Iranian National Tax Administration Office in 2015.

Market Overview 2 The Iranian stock market continued its downward trend, dropping more than 4.2% in September. This was largely due to reactivation of trading tickers of some of the large blue chip companies that were suspended by the regulator due to significant changes to their earnings. New earnings forecasts announced by these companies were adjusted downwards which resulted in sharp correction of their share price on the market. As example, shares of steelmakers, miners and refineries ended the month with a 10% loss in value. Having said that, small cap companies were amongst the best performers in September. Food companies like dairy producers ended the month recording double digit gains based on rumors about the government allowing a 10% rise in the selling price of their regulated products. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 7 This issue reviews a distinctive transitional economic plan for the next six months along with statistical survey results released by Statistical Center of Iran.

Market Overview 2 Year to date (YTD) performance of the market has reached to the low of - 6.5 % by end of August. According to data gathered by Turquoise Partners, trading volumes, excluding block and bond trades, dropped to less than $30 million a day, the lowest level this year. On the valuation side, stocks traded at 5.6 times projected earnings, which is higher than 5.1 multiple in April. The decrease in corporate earnings in recent months is the reason for divergence between valuations and the direction that the stock market has taken. In line with this, listed companies lowered their profitability forecasts for the current fiscal year by 3% in August to $14.5 billion. 50% of the negative earnings adjustments belong to the base metal sector as the global metal prices continued to fall.   Country Highlights 5 The most recent and important news about the country will be mentioned in this section.   Economy 6 In this issue, the possibility of Iranian government and companies accessing global debt markets post sanctions and its impact on the financial sector in Iran is examined.

Market Overview 2 With global prices being as low as they are at the moment, analysts estimate a 50% cut in earnings forecasts for these companies in the current year, in comparison to actual performance for the previous fiscal year. Dominated by bearish sentiment towards commodity producers, the market is experiencing a fall in trade volumes as investors become more defensive and move on to safer investments such as fixed income products and bank deposits. The weighted average forward P/E of the market peaked at 6, before falling to 5.8 in the middle of the month. The final result by the end of the month was a mere 2.8% gain, a number far less than expected considering the positive political sentiment that came from the deal in Vienna.   Country Highlights 4 The most recent and important news about the country will be mentioned in this section.   Economy 5 This issue continues analyzing the Iranian post-sanctions economy general profile by highlighting other major developments many researchers and analysts has been considering over the past month.

Market Overview 2 The average price to earnings ratio of the market stood at 5.5 at the end of June, about 0.5 points lower than the 20 year average valuation of the Iranian stock market. Shares in the automotive sector showed a positive performance in June as the index grew by 8.6%. Shares of Iran Khodro, the largest automotive manufacturer in Iran, gained 9% in value. The sector’s average P/E ratio reached 15, the highest valuation amongst the top 10 largest industries in terms of market cap. Based on a survey by a private financial consultancy firm in June, more than half of those active on the market predicted that banks will benefit the most from the nuclear deal in Vienna. Once sanctions are lifted, banks will be faced with a number of important developments, such as the opening of banking routes, Letter of Credit (LC) and trade and finance which would lead to the resumption of more activity for Iranian banks.   Country Highlights 4 The most recent and important news about the country will be mentioned in this section.   Economy 5 A general overview of foreign investment and expected major economic developments in post sanction economy of Iran, will be detailed in this section.

Market Overview 2 The market recorded a drop of 3.7% in May with more than 11% plunge from its peak on April 6th. Daily trade value reached their lowest level in 30 months and the total market cap fell below $100 billion for the first time in more than 2 years. The Annual General Meeting (AGM) season also kicked off in May and more than 50 listed companies held their annual meetings. The common message which came out of the AGM’s was that most companies are facing difficulties with full warehouses, problems in selling products and cash flow difficulties. The Securities and Exchange Organization (SEO) announced a new set of rules and regulations in May. The daily price fluctuation limit increased from 8 % to 10% which means that a single stock can fluctuate from -5% to +5% in value relative to the last closed price. This is considered a good development for the Iranian market which is trying to move towards a more liberalized environment.   Country Highlights 5 The most recent and important news about the country will be mentioned in this section.   Economy 6 Key macroeconomic variables forecast, latest updates on Tehran real estate market and Iran’s latest developments in OPEC will be detailed in this section.

Market Overview 2 The Tehran stock market experienced two volatile months in March and April due to various and sometimes conflicting news with regards to the nuclear negotiations between Iran and EU3+3. The index gained 2.8% in March in the hope of a potential deal. The trend continued in early April following announcement of a joint statement by the negotiating parties. The bull market however, did not last long and index lost almost all that it had gained in the second half of April.   Country Highlights 6 Announcement of a joint statement by Iran and the EU3+3 negotiating teams in Lausanne and the global and domestic reactions to the announcement is covered in this section.   Economy 7 Non-oil trade surplus, reduction of banking interest rates, lower PPI growth rate and the reduction in the number of government cash hand-out recipients will be discussed in this issue.

Market Overview 2 After 4 consecutive months of declining, the Tehran Stock Exchange (TSE) index dropped by 2.4% in February. The TSE index fell to a level last seen in September 2013 and the average price to earnings ratio decreased in the last week of the month to their cheapest level since August 2012. 75% of listed companies released their forecast of next year’s earnings which were on average 6% lower than their budget for the current Iranian calendar year. The government increased tariffs on steel imports to the highest level over the past 10 years and decreased royalty fees of the iron ore mining companies from 30% to 18%. In spite of these developments, the stock market didn’t react positively and the mining and metals index fell by more than 5%.   Country Highlights 4 The most recent and important news about the country will be mentioned in this section.   Economy 5 Foreign trade of the country, construction activities, and 3rd quarter GDP growth will be detailed in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) index decreased for the third consecutive month in January. The index dropped by 5% and monthly trade value stood at a one year low of $747 million. The average P/E ratio of the market reached 5.3, the lowest level since October 2013. According to the new reports released by listed companies, total projected earnings dropped by 4% compared to the previous announcements. Declining by 20%, the basic metals sector was the biggest loser among top ten large listed industries in January. This was the steepest drop in this sector since

2008. NICIC, the largest producer of copper in the Middle East, experienced a hit of 19% this

month and shares of all steel producers fell by double digits as well.   Country Highlights 5 The most recent and important news about the country will be mentioned in this section.   Economy 6 Real estate market and inflation, Iran’s mining industry, and productivity of privatized companies will be discussed in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) index dropped by 3.8% in December, making 2014 the worst performing year since 2008. Following the best year in its history with a 131% return in 2013, the TSE fell by more than 21% during 2014. The average forward P/E ratio decreased from 7.1 at the beginning of 2014 to 5.3 at the end of the year. As more than half the weight of the Iranian market cap belongs to companies which produce commodities, the recent decline in global commodity prices was a dominant factor in the market in December. During the course of the month, the petrochemical sector lost 5% of its value, metal ore mining stocks plunged 9% on average, and the basic metals sector experienced a loss of 3.5%.   Country Highlights 4 The most recent and important news about the country will be mentioned in this section.   Economy 5 Iran’s GDP growth and inflation, the effect of oil price decline on the government budget, and industrial production will be detailed in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced massive fluctuations in November as investors kept an eye on the final round of nuclear negotiations. Optimism on a possible political breakthrough increased significantly in the first three trading weeks of November, resulting in a 3% jump in the main index of the market. However, the negotiations resulted in an extension of talks for another 7 months; as a result, the main index dropped 6% from its previous peak, ending November with a loss of 3.4%. The banking sector index first increased by 10 percent and then dropped by 11 percent after the news about the extension of the nuclear talks came out. The index of the petrochemical sector fell by 7 percent as a result of decreasing oil prices and the negative outlook on the prices of petrochemical products. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 Iran’s trade balance and exchange rate, inflation rate, and natural gas industry will be discussed in this section.

Market Overview 2 With a 3.5% gain in the main index, October was the second best performing month of 2014 for the Tehran Stock Exchange (TSE) after July. A great number of earning reports were also released this month which mostly were in line with expectations. There were not many surprises in terms of positive adjustments for companies except for pharmaceuticals and the cement sector due to the approved permission by the government to increase prices. The cement sector index increased by 7 percent. The banks had the weakest reports as their cost of money rose faster than the revenues generated from loans. However, its index grew by 7 percent due to the political optimism of investors. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 Money market developments, housing market developments, and government fiscal performance will be covered in this section.

Market Overview 2 Following further sell-offs in August, the Tehran Stock Exchange (TSE) extended its losses in September as the main index of the market fell in all trading weeks, causing the month to end with the index approximately 1.5% lower. The pharmaceutical sector was the best performing sector among top ten sectors by market cap. This sector grew by 7.4 percent in September due to the government’s decision that medicine producers are allowed to increase the price of their products by 10 to 15 percent on average. For the first time in the history of the Iranian capital market, an exchange traded real estate fund was introduced to investors in September. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 Real estate market, lending activities in the economy, and unemployment will be discussed in this section.

Market Overview 2 After experiencing some short-lived relief in the downward trend in July, the Tehran Stock Exchange (TSE) returned to its decline with the overall index falling by 3% in August. The total daily trade value of the market dropped to below $30 million in August, a decline of 70% compared to the boom period of the market in the fourth quarter of 2013. The banking sector index decreased by more than 9 percent after quarterly reports of banks showed that their net margins fell from 3 percent to 2.5 percent. Country Highlights 6 The most recent and important news about the country will be mentioned in this section. Economy 7 GDP growth and inflation, liquidity growth, and Iran’s foreign trade will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) index increased by 6.6 percent in July after decreasing for 6 consecutive months in 2014. With the doubling of the production of auto makers during the first quarter of the current Iranian year compared to the same period last year, the auto sector index grew by 7 percent in July. After the government changed the basis of pricing of petrochemical products from the official exchange rate to the market exchange rate, the price of these products increased by an average of 11 percent on the mercantile exchange. The petrochemical sector grew by 3 percent in July. Country Highlights 5 The most recent and important news about the country will be mentioned in this section. Economy 6 The government’s plan to combat recession, Iran’s tax revenues, foreign trades, and cost of sanctions will be discussed in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) continued its
ve-month negative trend and experienced a 3.2% decline in May, resulting in a 13.5% fall since the beginning of 2014. The average P/E of the market stood at 6.6 at the end of May after the height of 8.5 on January 2nd 2014, reaching its two-decade average of 6. The auto industry was the best performing sector of the market with 10% increase in its index. Country Overview 5 Recent trends in the number of foreign tourists visiting Iran and foreign relation developments in Iran will be covered in this section. Economy 7 Inaction, housing market, and foreign exchange market will be discussed in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) started the Iranian New Year with a negative trend, declining 2.5 percent during April and March. Banks and
nancial intermediaries established a stabilization fund called “market development fund” in order to lower market uctuations. The allocation of hard currency at the of
cial exchange rate to the auto industry resulted in 6 percent increase in the auto industry index. The price of feedstock to petrochemical companies increased, resulting in a decrease in industry pro
tability outlook. The Central Bank put a cap on interest rates that banks pay depositors. Country Overview 5 Iranian New Year’s message by the Supreme Leader, by the President, and by Foreign Heads of States, government’s campaign against registration for cash hand outs, and EU human rights report and the US refusal to grant visa to Iranian Diplomat will be covered in this section. Economy 8 Iran’s exports and imports in 1392, the budget bill for the next Iranian year, the trend in oil production and exports, and the IMF’s report on Iran’s economy will be detailed in this section.

Market Overview 2 The Tehran Stock Exchange all-share index experienced a 3.6% drop in the month of February in continuation of a trend since January. The correction phase of the market has been mostly induced by discussions in the Iranian parliament regarding the implementation of the second phase of the subsidies reform plan as well as the increase in natural gas feedstock prices of petrochemical companies. This correction phase is expected to last until March. Country Overview 5 Catherine Ashton’s visit to Iran and President Rouhani’s visit to Oman and the relations between the two countries are covered in this section. Economy 7 The sharp drop in monthly in?ation rates in February as well as a report on the economic growth rate of the country will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced a 5% decrease during the month of January; this came after a year of consistently positive performance in 2013. The market P/E ratio which at its peak on January 2nd reached 8.5 has declined to less than 8. In the last week of January, the next year’s budget plan was reviewed by the parliament. Country Overview 5 President Rouhani’s speech at the World Economic Forum and the Turkish Prime Minister’s visit to Tehran will be discussed in this section. Economy 7 Oil market’s response to Iran’s oil exports, drop in producer and export price indices and an overview of inaction and industrial production will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced unprecedented daily trade volumes, averaging at USD 250 million per day during December with the TSE all-share index witnessing further growth of 4%. Individual investors, who carried out 70% of purchases, were the main contributors to this increase. Country Overview 6 The implementation of the interim nuclear deal and the Iranian parliament warning three govern- ment cabinet members will be discussed in this section. Economy 8 Iran’s non-oil exports being behind targets, Iran’s receivables from the world and an overview of property prices in 1392 will be covered in this section.

Market Overview 2 The Tehran stock exchange (TSE) reacted signi
cantly to the recent historic agreement in Geneva over Iran’s nuclear program and witnessed good growth in November. Furthermore, the market’s average P/E ratio exceeded 8. With records being set of more than USD200 million daily trade volumes, there is ample evidence of positive sentiment which is encouraging inows of fresh money into the market. Country Overview 5 Iran’s foreign minister tour to Arab countries and President Rouhani’s
rst 100 days in of
ce will be discussed in this section. Economy 7 An overview of Iran’s crude oil production and exports, a new equilibrium for the exchange rate, self-suf
ciency in agriculture, and the shifting of ination from products to services will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced a boom in October. The optimistic political climate helped bring about the highest average daily trade volumes (more than USD 200 million a day) in the history of the TSE. In addition, investors were presented with the six month corporate earnings reports. These reports deflated some of the enthusiasm in the market as companies’ profitability figures were unable to meet investor expectations. Overall, October started with a significant rise and ended in relative calm. Country Overview 5 The nuclear agreement between Iran and the P5+1 will be discussed in this section. Economy 7 The National Development Fund, the selective elimination of cash handouts, the unrealized potential of the country’s mining sector in economic growth, and Iran’s automotive industry in the first six months of 1392 will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) started the month negative but the downward trend did not last throughout the month, and the main index performed positively in the second half of September. Following the political atmosphere entering into a calmer phase, much more of the liquidity in the country was invested into the stock market. The TSE All-Share Index grew by 12.2% in September and the 2013 year-to-date performance of the market was 77% by the end of the month. Country Overview 6 Negotiations over Iran’s Nuclear Program, the 5+1 Group Meeting in Geneva and President Rouhani’s Speech at Tehran University will be discussed in this section. Economy 8 The falling trend in the country’s liquidity growth, Iran’s foreign trade in the
rst half of the current year and an overview of the country’s automotive production in the
rst six months of 1392 are covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) continued its upward trend in early August, but the positive trend didn’t last throughout the month and the index entered into a price correction phase in the second half of August. The Syrian crisis was the main reason behind the market’s weaker performance. The market’s average price to earnings (P/E) ratio reached 6.7, one point higher than the market’s long-term average. Country Overview 5 Post election changes in Iran, the country’s foreign relations and the new government will be discussed in this section. Economy 7 Iran’s ranking of 88th in the Global Competitive Index, its cement output in the
rst
ve months of the current year and the country’s oil exports in July are covered in this section.

Market Overview 2 In July, the Tehran Stock Exchange (TSE) continued its upward trend following the release of the
rst quarter earnings reports. The 2013 year to date performance of the TSE has been its best performance since 2010. The average P/E of the market increased to 7 at the end of July. Following the recent share price gains, traders are now waiting to see if the current investment environment will continue its bullish trend in the coming months. Country Overview 6 Recent developments of the new government will be discussed in this section. Economy 8 Iran’s foreign trade outlook in the
rst four months of 1392, its steel output in the month of June and an overview of the country’s ination rate are covered in this section.

Market Overview 2 The month of June was an exceptionally good month for the Tehran Stock Exchange (TSE), with a 14% increase in the TSE’s main index. The 2013 year to date performance of the TSE stood at 35% and the market’s P/E increased to 6.6 at the end of June. During this month, some sectors that have been the laggards of the market over the past few years experienced sharp rises in their stock values. In addition, investors are expecting both the release of 3 month corporate reports and the announcement of Annual General Meetings (AGMs) by listed companies in the coming weeks. Country Overview 5 Events following Mr. Rowhani’s election and the new President’s agenda and outlook will be discussed in this section. Economy 6 An overview of foreign direct investment in Iran, the behavior of the currency market after the presidential election and Iran’s real estate market over the period covered by the last three Iranian administrations are covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) continued its upward trajectory in May. The market experienced some volatility due to the uncertainty over the Iranian Presidential Elections but managed to sustain its positive performance again this month. Overall, the TSE can be expected to act cautiously until the completion of the transition in the executive branch of the country. Country Overview 6 The outcome of the presidential elections and the election of Hassan Rowhani along with the approved state budget for 1392 are discussed. Economy 8 The decline in Iranian industrial production, the growth of liquidity and its causes, and Iran’s rising position as a top cement producer in the region are covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced its best monthly performance of the year so far over the course of April. The equity market outperformed all parallel investment classes such as gold, real estate and foreign exchange market. Also, many active players have been tempted to take advantage of the lag between the dollar value appreciation and stock market growth. In general, analysts believe that the TSE will continue its positive trend in the coming months, if the political environment within the country remains unchanged. Country Overview 5 Candidates for the 2013 presidential elections and recent earthquakes in Iran will be discussed in this section. Economy 7 Iran’s economy outlook in 1391 and its property boom during the same period will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) showed signs of a recovery during February. Analysts cited the main reason for this turnaround as the lifting of the trading suspension in the Isfahan Oil Re
nery stock by the Securities Exchange Organization (SEO) this month. Another factor that contributed to TSE’s performance was the release of next years’ corporate earnings forecasts. Most of companies took a conservative approach in reporting a forecast for next year. Country Overview 5 Dismissal of the labor minister by the parliament, Almaty negotiations and Iran and Pakistan agreement regarding a gas pipeline will be discussed in this section. Economy 7 Iran’s trade value hitting USD 86 billion, its ination rate rising by year end and increasing demand in the housing market will be covered in this section.

Market Overview 2 A downward trend in the Tehran Stock Exchange (TSE) began in January after unprecedented growth over the past six months. The main factors behind the market’s bearish sentiment are the rapid increase in stock prices, the steadiness in prices of goods on the Iran Mercantile Exchange (IME) and the controlling policies of the Security Exchange Organization (SEO). Also, investors were presented this past month with nine month corporate earnings reports. Country Overview 5 The President’s speech to the parliament, along with Iran’s space program and the launch and retrieval of a monkey to and from orbit, will be discussed in this section. Economy 7 The improvement of Iranian bank’s resource management in 2012, Iran changing its price base year for inaction, the continuation of its liquidity woes and its spot as the 19th largest auto manufacturer in 2012 will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) continued its upward trend with positive growth in December, making it the best performing month of the year. The injection of fresh liquidity into the stock market resulted in high trade volumes this month. The foreign exchange market experienced only minor volatility. In addition, the decreased level of political tensions relating to Iran’s nuclear program brought a period of calmness into the market. Country Overview 5 The suspension of the subsidies reform plan and the dismissal of the minister of health and medical education will be discussed in this section. Economy 7 Iran’s liquidity level hitting new highs, Iran’s producer price index in the first half of 1391 and CBI revising the 2011 growth outlook will be covered in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) continued its upward trend with positive growth in November. The main reason behind this bullish market sentiment is the recent political calmness in the country. Stocks of large companies in the petrochemical, mining and metals sectors were strongly favoured by investors this month. The re-election of president Obama was embraced by TSE investors. However, further price drops occurred on the Iran Mercantile Exchange (IME) due to appreciation of the Rial. Country Overview 5 Parliament’s planned questioning of President Ahmadinejad and the US elections and its outcome for Iran will be discussed in this section. Economy 7 Iran’s economic outlook according to the Economist Intelligence Unit (EIU), its foreign debt in spring 1391 and Iran cutting tariffs on imported products will be covered in this section.

Market Overview 2 This month, the Tehran Stock Exchange (TSE) continued its upward trend and the TSE All-Share Index reached its highest value ever in the Iranian stock market’s history. The stock market’s positive trend is mainly credited to the significant price hikes in companies that have benefited from the devalued Rial. The value of steel products rose significantly on the Iran Mercantile Exchange (IME). TSE investors were also presented with some rather upbeat six month corporate earnings announcements in October. Country Overview 5 Ahmadinejad’s letter to the judiciary and bilateral talks between Iran and the United States will be discussed in this section. Economy 7 Iran Central Bank’s foreign reserves and foreign debt, a volatile month for the Rial in the unofficial market, Iran’s economic outlook from International Monetary Fund (IMF) and a ban of exporting 50 items by the government will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of October.

Market Overview 2 This month, the Tehran Stock Exchange (TSE) had its best monthly performance in 2012 following a two month slump. Performance had up until this month been lacklustre against parallel investment classes in the market such as gold and foreign currency; however, the positive market movement attracted many investors. Investor behaviour this month shows that individual investors were heavily involved in stock purchases whereas institutional investors reduced their exposure to equities through stock sell-offs. The average P/E of the market increased to around 5.3 in September. Country Overview 5 President Ahmadinejad at the United Nations General Assembly session in New York and recent events regarding Hashemi Rafsanjani will be discussed in this section. Economy 7 The World Bank praised Iran’s Economic outlook, Iran being ranked as the world’s 23rd largest exporter in 2011 by the World Trade Organization (WTO) and the opening of the Chamber of Currency Exchange in Tehran will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of September.

Market Overview 2 The Tehran Stock Exchange (TSE) showed its first signs of recovery after its fall in July. However, this month had the TSE’s lowest monthly trade volumes in the past year as a result of a slow trading environment. The stock market’s current trend mainly stems from investor sentiment. The change in sentiment manifested in the foreign exchange market and the US Dollar gained 10% against the Rial. For the first time in Iran’s stock market history, equity put options were implemented and traded on the stock market. Country Overview 5 The 16th Non-Alignment Movement (NAM) summit in Tehran, a letter from former ministers to the Supreme Leader and the earthquake in East Azerbaijan province will be discussed in this section. Economy 8 The 2012 ranking of top Iranian banks by the Banker report, the effect of sanctions upon the Iranian oil industry, an overview of the currency market and the economic outlook following the first quarter of 1391 will be covered in this section. Turquoise Iran Equity Investments 11 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of August.

Market Overview 2 The downward movement of the Tehran Stock Exchange (TSE) continued at a slower pace in comparison to last month. After the widespread stock price declines of the past three months, which pushed the market average P/E to below 5, investors began to buy back some over-sold stocks. This helped the TSE market to stabilize to some extent. Two major IPO’s took place that absorbed over $375 million of liquidity from the market. Country Overview 5 Iran’s involvement in the Syrian conflict and Iran’s achievements at the 2012 Summer Olympics will be discussed in this section. Economy 8 Iran’s launch of its first self-constructed oil tanker, it becoming the world’s 15th largest steel producer, its imports and exports in the first three months of this Iranian calendar year, a 65 million euro loan to the Iranian mining sector, and an overview of Iranian banking sector will be covered in this section. Turquoise Iran Equity Investments 11 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of July.

Market Overview 2 In June, stock sell-offs across many sectors of the market continued, as investors reduced their exposure to the equity market. The Tehran Stock Exchange delivered its worst monthly performance in 2012. Concerns about the political tensions and economic pressure, following the unsuccessful nuclear negotiations between Iran and the 5+1 in Moscow, were the main reasons for the sell-offs. Country Overview 5 The impact of the latest rounds of sanctions on Iran’s economy will be examined in this section. Economy 7 Growth in Iran’s construction sector, growth in liquidity in the first quarter of 1391 and NIOC’s power deal with MAPNA will be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of June.

Market Overview 2 In May, the Tehran Stock Exchange ended its two-month long rally. The sudden change investor sentiment led to stock sell-offs and the TSE All-Share Index lost 0.8% of its value. The outcome of the talks between Iran and the 5+1 Group in Baghdad fell short of the investors’ expectations. Country Overview 5 The latest rounds of nuclear talks between Iran and the 5+1 Group will be discussed in this section. Economy 7 Introduction of Exchange Traded Funds, new natural gas reserves discoveries, Iran’s ranking in Global Competitiveness and its share of ECO trades and automotive sales in Iran in 1390 will be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of May.

Market Overview 2 After a lackluster performance in February, the Tehran Stock Exchange (TSE) enjoyed a strong run in March and April, with the TSE All-Share Index gaining 6.3% in value over the course of the two months. The removal by the Central Bank of a ban on unof
cial foreign exchange market transactions and a sense of optimism around Iran’s nuclear talks with the 5+1 were the main reasons for the strong performance. Country Overview 6 Iran’s state budget for the calendar year 1391 (2012-2013) and the plan for the second phase of energy subsidies removal will be examined in this section. Economy 8 Iran’s economy in 1390, currency and gold markets in the New Year, the Economist’s report on foreign investment in Iran and new gold reserves in north-western Iran will be discussed in this section. Turquoise Iran Equity Investments 11 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of April.

Market Overview 2 Following an exceptional performance in January, the Tehran Stock Exchange (TSE) had widespread price corrections in February. Two large IPOs, which absorbed over $250 million of liquidity from the market; and overly conservative budgets released by the exporters and commodity-related companies, were assessed as the main reasons for the price declines. Country Overview 5 Latest developments on Iran’s nuclear dispute and the outcome of the 9th parliamentary elections will be discussed in this section. Economy 7 The aftermath of the interest rate rise, Iran’s real estate sector in the calendar year 1390 and the ranking of Iran’s top 100 companies will be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of February.

Market Overview 2 This month’s market overview will examine the reasons behind the Tehran Stock Exchange (TSE) delivering its best monthly performance in the past nine months. A detailed analysis of the petrochemicals, banking and mining and base metals sectors is provided, along with coverage of two IPOs and bond issuance. Country Overview 5 The visit of an IAEA inspection group to Tehran and the assassination of another nuclear scientist will be discussed in this edition of Country Overview. Special Report 7 This report will examine the factional divisions ahead of the upcoming Iranian Parliamentary elections in March. Economy 11 The Central Bank of Iran’s decision to impose a single foreign exchange rate against the US dollar, the liberalisation of deposit interest rates, the EU’s decision to embargo Iranian oil and an analysis of the effects of this embargo on Chinese buyers of Iranian oil will all be covered in this section. Turquoise Iran Equity Investments 15 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of January.

Market Overview 2 This month, we take a close look at how the Tehran Stock Exchange (TSE)
nished 2011 and the early signs of a recovery now being seen in the market. The tiles and ceramics, petrochemicals and real estate construction sectors are analysed, along with the IPO of Maroon Petrochemicals, Butane Group’s bond issuance and the one-year anniversary of the Subsidy Reform Plan this month. Country Overview 5 Tensions in the Persian Gulf, including Iran’s threatened closure of the Strait of Hormuz and the US signing an additional sanctions bill, will be discussed in this edition of Country Overview. Economy 6 Iran signing an agreement to build homes in Venezuela, the Rial hitting a record low, Iran temporarily halting imports from the UAE and the Tehran Stock Exchange (TSE) ending 2011 on a high will all be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of December.

Market Overview 2 This month, we look at what has proven to be a difficult month for the TSE in Market Overview, following a series of challenging political events both at home and abroad. The automotive, sugar and telecommunications sectors are analyzed, along with the IPO of Kermanshah Petrochemicals and several key announcements from the Central Bank of Iran this month. Country Overview 5 The breakdown of diplomatic relations between Iran and the UK and the downing of an unmanned US surveillance drone by the Iranian military will be discussed in this edition of Country Overview. Economy 7 The UK Treasury’s announcement to sever ties with Iranian banks, the launch of Iran’s 3G mobile phone network, Iran-EU trade volumes and Huawei’s decision to scale back operations in Iran will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of November.

Market Overview 2 This month, TSE investors’ reaction to six-month earnings announcements and the fall in global commodity prices will be covered in Market Overview. The petrochemical, engineering services and mining and base metals sectors are analysed, along with a highly successful IPO on the Farabourse this month. Country Overview 6 Iran’s Economy Minister surviving an impeachment vote in Parliament following Iran’s banking scandal and the positioning of Iran’s political factions in the run-up to the country’s Parliamentary and Presidential elections will be discussed in this edition of Country Overview. Economy 8 The US’s withdrawal of its plans to sanction Iran’s Central Bank, India’s
nalisation of its plans to build an Iran-Afghanistan railway, Iran’s plans to use Qatari planes for domestic ights and the Iranian Central Bank’s efforts to control rising foreign exchange rates will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of October.

Market Overview 2 This month, the TSE continued its resilient upward trend in the face of adversity from the global economic downturn. In this edition, the banking and insurance, base metals and petrochemicals sectors are analyzed, along with two new entrants into the OTC market. Country Overview 5 The banking scandal and the sweeping reforms of the banking system in its aftermath along with the lifting of EU travel bans on several Iranian officials will be discussed in this edition of Country Overview. Economy 7 Iran’s landmark construction of the first heavy oil refinery in the Middle East, the IMF quarterly report’s forecast of a sharp drop in inflation next year, Iran becoming the top buyer of Brazilian beef and two major banks’ legal battles against EU sanctions will be covered in this section. Special Report: Bourse, Banking, Insurance and Privatization Expo 10 Key highlights from Iran’s bi-annual Bourse, Banking, Insurance and Privatization Expo held at Tehran’s International Exhibition Centre will be covered in this report. The event saw Turquoise Partners unveiling its brokerage arm of the business with live demonstrations of online trading to the investment community and public. Turquoise Iran Equity Investments 12 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of August.

Market Overview 2 In August, the strong performance of the Tehran Stock Exchange continued with most sectors making positive gains. This performance and the successful IPO of Iran’s Pasargad Bank will be discussed in this month’s Market Overview. Country Overview 5 The key appointment of Rostam Ghasemi as Oil Minister and President of OPEC along with several significant developments in Iran-Russia relations will be discussed in this edition of Country Overview. Economy 7 China’s huge investment in the Azadegan oilfield, Iran’s inauguration of its own carbon fibre production line, the background to Iran Air’s privatisation and the Tehran Stock Exchange topping the World Federation of Exchanges (WFE) rankings will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of August.

Market Overview 2 In July, the Tehran Stock Exchange (TSE) underwent a crucial month with listed companies holding their AGMs and making first quarter earnings announcements. The overall index made modest gains but was overshadowed by the meteoric success of the Farabourse, with 5 IPOs and one bond issuance all completed this month. Country Overview 6 The latest developments on Iran’s ongoing payment dispute with India and the Central Bank’s bold currency reform plans will be discussed in this edition of Country Overview. Economy 8 The approval of ECO Re-insurance’s articles of association, Iran-Turkey trade including the agreement between Iran, Turkey and Iraq to establish a joint bank, the proposed formation of a new free-trade zone in Makua and the United Nation’s report showing record levels of foreign direct investment in Iran will be covered in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of July.

Market Overview 2 In June, the Tehran Stock Exchange (TSE) experienced its second consecutive month of price declines. Movements in the currency market, the uncertainties surrounding the global
nancial markets and further domestic political tensions were assessed as the main reasons for the negative performance. Country Overview 5 Anti-Terrorism conference held in Iran and the launch of the Iranian-made Rasad satellite will be discussed in this section. Economy 7 Movements in the exchange rates, the inauguration of an $830 million shopping mall, new policies for the housing market, the latest gas developments, and the recent ination and unemployment
gures will be discussed in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of June.

Market Overview 2 The Tehran Stock Exchange (TSE) had a volatile performance in May. Following its strong performance over the past few months, the TSE began the month on a downward trajectory. The International Atomic Energy Agency’s report on the Iranian nuclear programme and domestic political tensions were assessed as the main drivers of market behaviour. Country Overview 5 Political tensions over the resignation of the Intelligence Minister and a series of ministerial mergers will be discussed in this section. Economy 7 An overview of Iran’s agriculture, EIU’s analysis of Iran’s subsidies reform plan, discovery of a new oil
eld, and Iran’s second place as the growth pole in the region will be discussed in this section. Special Report: Turquoise Investor Conference 10 A summary of the foreign investment conference that was hosted in May by Turquoise Partners in Tehran will be provided in this section. Turquoise Iran Equity Investments 12 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of May.

Market Overview 2 Over the course of March and April, the Tehran Stock Exchange (TSE) had a strong performance. Unlike its traditional decline at the end of the Iranian year due to sell-offs by many investors, the TSE had a positive performance and the trade volumes were considerably higher than their historical levels. Country Overview 5 Iran’s state budget for the new Iranian Calendar year and Rafsanjani’s replacement as the Chairman of the Assembly of Experts will be discussed in this section. Economy 7 Iran’s economy in 1389, monetary policy for the new Iranian calendar year, the introduction of the all-Iranian car Dena, Iran and China’s agreement to build the world’s tallest dam, and Iran’s $1.8 billion energy consumption savings will be discussed in this section. Turquoise Iran Equity Investments 10 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of April.

Market Overview 2 The Tehran Stock Exchange (TSE) bucked its historical trend in February. As opposed to its usual decline at the end of the Iranian year, the TSE had a positive performance despite significant sales by some of the institutional investors. Also, a large number of companies announced their earnings forecast for the coming year. Country Overview 5 The Turkish President’s visit to Iran, the merger of the Ministry of Housing and Urban Development with that of Roads and Transportation will be discussed in this edition of Country Overview. Economy 7 The completion of Iraq’s Iranian-constructed power plant, the announcement of the top Iranian companies by sales, a privately-owned power plant, and the latest oil and gas developments will be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of February.

Market Overview 2 In January, the Tehran Stock Exchange (TSE) continued its strong performance. This made January 2011 the best-performing January for the TSE since it was established. The continuous inow of capital coupled with global rallies in commodities prices were assessed as the main reasons for this. The upcoming earnings forecasts for the next Iranian year will be very inuential in determining whether this upward trend will continue. Country Overview 5 The latest developments on Iran’s nuclear program and the recent dispute between Iran and India over oil payments will be discussed in this edition of Country Overview. Economy 7 The Iran and Pakistan trade cooperation agreement, the 2011 sustainable transport award, the electricity bourse, and the discovery of a new natural gas held will be covered in this section. Turquoise Iran Equity Investments 9 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of January.

Market Overview 2 December was an important month for the Tehran Stock Exchange as the subsidies reform plan commenced. Surprisingly, the market reacted positively to this development. The positive sentiment in the market was further helped by stability in the global prices of commodities. Turquoise Iran Equity Investments 5 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of December. Special Report: Subsidies Reform Plan 6 A review of the subsidies reform plan and its implications for the Iranian economy will be provided in this section. Country Overview 10 The dismissal of Iran’s Foreign Minister and the debate over the Central Bank’s governance will be discussed in this section. Economy 12 New investments in Iran’s railways, the liberalisation of insurance premiums, the inauguration of Kish Stock Exchange and Iran’s first micro hybrid car will be covered in this section.

Market Overview 2 Following a month of price declines, the Tehran Stock Exchange (TSE) stabilised in November. Investor sentiment remained cautious due to the approaching implementation of the plan for the removal of subsidies. The
xed income market had an exceptionally active month. Privatisation & IPO’s 4 In November, shares of Post Bank of Iran, Tabriz Re
nery and Parsian Insurance were listed on the TSE. Turquoise Iran Equity Investments 5 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of November. Country Overview 6 The
fth socio-economic development plan and the latest developments in Iran’s nuclear programme will be discussed in this section. Economy 8 Iran’s pharmaceutical industry, a new galvanised sheet plant, the Iran – Turkmenistan gas pipeline, and the ination and unemployment rates will be covered in this section.

Market Overview 2 After nine consecutive months of positive performance, the Tehran Stock Exchange turned negative in October. Pro
t taking and uncertainties surrounding the subsidies removal plan were assessed as the main reasons for this. Trade volumes also fell signi
cantly. The Iranian OTC had one of its most active months. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of October. Country Overview 5 The latest developments in Iran’s strategic relations in the Middle East will be discussed in this section. Economy 7 The latest developments in Iran’s oil and gas industry, Iran’s largest international acquisition, an Iran – Armenia trade agreement and Iran’s position among emerging economies will be covered in this section.

Market Overview 2 The Tehran Stock Exchange had a positive yet volatile month. Prost taking after the strong rallies of the past few months, uncertainties surrounding the subsidies removal plan and actuations in the global prices of commodities were assessed as the main reasons for the market volatility. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of September. Country Overview 5 The unveiling of the Cyrus Charter of Human Rights and Ahmadinejad’s speech at the UN General Assembly will be discussed in this section. Economy 6 Iran’s cement industry, Pasargad Bank’s inclusion on the Banker’s list and Iran’s foreign exchange market will be covered in this section.

Market Overview 2 The strong performance of the Tehran Stock Exchange over the past few months gained further momentum in August. The TSE main index had its strongest monthly performance for the past 6 years. However, analysts believe that stocks in a number of sectors are now trading above their fair value and price corrections are expected. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of Turquoise Iran Equity Investments Class A for the month of August. Country Overview 5 Inauguration of the Bushehr nuclear power plant and Mashaei’s controversial speech during the congress of Iranian expatriates will be discussed in this section. Economy 7 Iran – Iraq trade, the petrochemical agreement between Iran and Venezuela, the development of financial markets in Iran, and foreign investment in Iran’s power generation sector will be covered in this section.

Market Overview 2 The Tehran Stock Exchange had an extraordinary performance in July and registered its best monthly performance so far this year. Strong earnings results and investor excitement about high dividend payouts drove the prices up. In July, Iran’s
nancial Futures market commenced operations. Special Report 4 In July, Turquoise launched its
rst domestic fund, called Firouzeh Mutual Investment Fund. Country Overview 5 An energy agreement and relations between Iran and Russia will be discussed in this section. Economy 6 Iran’s zinc and lead industry, the ination and unemployment rates, new petrochemical plants, and a real estate agreement between Iran and Turkey will be covered in this section.

Market Overview 2 Following a slow month in May, the Tehran Stock Exchange once again performed strongly in June. A rebound in the global prices of crude oil and commodities was assessed as the main reason for this. The main index reached all time high levels in June. The market was dominated by block sales by the government in the automotive sector. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of June. Country Overview 6 Tensions over the control of the Islamic Azad University of Iran will be discussed in this section. Economy 7 New contracts in the South Pars field, new oil and gas discoveries, new steel plants and the Iran – ASEAN joint trade centre in Malaysia will be covered in this section.

Market Overview 2 In May, the Tehran Stock Exchange experienced a slow month with low price volatility. In line with falls in global prices of crude oil and metals, investors became cautious and trading activity decreased. However, the resilience of the market against any significant price falls was notable. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of May. Special Report 6 A summary of the foreign investment conference that was hosted in May by Turquoise Partners in Tehran will be provided in this section. Country Overview 8 Iran’s nuclear agreement with Brazil and Turkey will be discussed in this section. Economy 9 Iran’s petrochemical industry, Iran’s contract to build a dam in Afghanistan, real estate and construction permits in Tehran, and Iran’s power plant contract in Syria will be covered in this section.

Market Overview 2 Over the course of March and April, the Tehran Stock Exchange (TSE) performed strongly and hit a 3-year record high in trade volumes, due to further gains in global prices of commodities and crude oil in March. However, towards the end of April, and in line with a downturn in global commodities market, the TSE showed signals of a trend reversal. Turquoise Iran Equity Investments 5 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of April. Country Overview 7 Iran’s state budget for the new Iranian Calendar year and the government’s plans to reduce Tehran’s population will be discussed in this section. Economy 9 Iran’s Economy in 1388, the new foreign investment law, Tejarat Bank’s credit rating and the South Pars field Euro bonds will be covered in this section.

Market Overview 2 In February, the Tehran Stock Exchange’s positive performance continued on from the previous month. The main reason was viewed as gains in the global prices of metals and crude oil, following the weakening of the US Dollar. Trade volumes also jumped by 60% this month. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of February. Country Overview 6 The capture of Abdolmalek Rigi by the Iranian intelligence service and the Mehr housing scheme will be discussed in this section. Economy 8 Iran’s copper industry, the Central Bank’s monetary policy for the coming year, Iran’s free trade agreements and the latest D8 summit will be covered in this section.

Market Overview 2 In January, there were price rallies in the Tehran Stock Exchange (TSE) and a signi
cant increase in trading activity. A rebound in commodity prices and the relative domestic political stability were assessed as the main reasons. In this month, the majority of listed companies released their third quarter earnings results. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of January. Country Overview 6 An assessment of Iran’s fourth development plan will be provided in this section. Economy 8 Iran’s power generation industry, the Salman gas production platform and the inauguration of the Tohid Tunnel will be covered in this section.

Market Overview 2 In December, the Tehran Stock Exchange (TSE) experienced widespread price declines and a sharp fall in trade volumes, as there was increased selling pressure. In this month, a 10% stake in Asia Insurance was offered on the market as part of the privatisation programme. Turquoise Iran Equity Investments 4 This section provides data and charts on the performance of all portfolios of Turquoise Iran Equity Investments for the month of December. Country Overview 6 A review of the latest events on the Iranian nuclear programme and the domestic political developments of Iran will be discussed in this section. Economy 8 Iran’s anti-money laudering law, the in
ation rate and Islamic banking in Iran will be covered in this section.

Market Overview 2 In November, the Tehran Stock Exchange (TSE) experienced a downturn and there was increased price volatility. Pro
t taking, price bubbles in a number of sectors and political developments were the main reasons. Investors also became more cautious over the past month. Turquoise Iran Equity Investments 4 The Turquoise Iran Equity Investments portfolios experienced a slight decline in value in November. Portfolio One NAV lost 0.4% in value and Portfolio Two NAV lost 1.4%. This section provides data and charts on the performance of the portfolios. Country Overview 6 A review of the Iranian privatization programmed and the tensions over the Tehran Metro will be discussed in this section Economy 8 Iran’s real estate sector, the gold market and the
rst Sukuk in Iran will be covered in this section.

Market Overview 2 In October, the Tehran Stock Exchange (TSE) experienced another month of price rallies and high trade volumes. This was principally driven by the commodity, engineering and automotive sectors. In this month, Alborz and Day insurance companies were listed on the TSE and the Iranian OTC respectively. Turquoise Iran Equity Investments 4 The Turquoise Iran Equity Investments portfolios had another positive month in October. Portfolio One NAV gained 6.5% in value and Portfolio Two NAV gained 4.3%. This section provides data and charts on the performance of the portfolios. Country Overview 6 The latest developments on the economic reform plan will be discussed in this section. Economy 8 Iran’s insurance industry, foreign currency reserves and the Iranian Petroleum Exchange will be covered in this section.

Market Overview 2 In September, the Tehran Stock Exchange (TSE) had a volatile month. Stocks of most commodity companies and the Telecommunications Company of Iran (TCI) lost value, while pharmaceutical and financial stocks rallied. The Iranian OTC market was officially opened in this month. Turquoise Iran Equity Investments 4 The Turquoise Iran Equity Investments portfolios did not change very much in September. Portfolio One NAV lost 0.2% in value while Portfolio Two NAV gained 1.9%. This section provides data and charts on the performance of the portfolios. Country Overview 6 The latest developments on Iran’s nuclear dossier will be discussed in this section. Economy 7 Iran’s natural gas industry, the latest inflation data and Iran joining TRACECA will be covered in this section.

Market Overview 2 In August, the Tehran Stock Exchange (TSE) main index had one of its best monthly performances. Gains in the stocks of metals and mining companies and the Telecommunications Company of Iran (TCI), and also the injection of new funds into the equity market, were the main reasons for its outstanding performance. Turquoise Iran Equity Investments 4 The Turquoise Iran Equity Investments portfolios had a positive month, with the Portfolio One NAV gaining 10.8% in value and Portfolio Two gaining 4.4%. This section provides data and charts on the performance of the portfolios. Country Overview 6 Iran’s latest post-election developments and the opening of the first international retail supermarket in Iran will be discussed in this section. Economy 7 Iran’s steel industry, the ECO train line and Iran’s imports and exports will be covered in this section.

Market Overview 2 In July, the Tehran Stock Exchange continued its positive momentum of the previous month. A sharp rise in the global price of crude oil and other commodities was assessed as the main reason. A 6% stake in Haffari Shomal was offered to the market this past month. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Investments 4 The Turquoise Iran Equity Investments portfolios had a positive month, with the Portfolio One NAV gaining 1.7% in value and Portfolio Two gaining 1.4%. This section provides data and charts on the performance of the portfolios. Country Overview 6 The Nabucco gas pipeline deal and Iran’s two airplane accidents in July will be the topics of discussion in this section. Economy 7 Iran’s automotive industry, a new private bank and oil and gas exploration in Iran will be covered in this section.

Market Overview 2 In June, the Tehran Stock Exchange experienced a positive but volatile month. The presidential election on 12th June was the factor with the greatest influence on market movements. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Investments 4 On 1st June 2009, Turquoise Partners officially launched its second investment product, Turquoise Iran Equity Investments Portfolio Two. In June, Portfolio One NAV gained 0.5% in value, whereas Portfolio Two NAV lost 0.8% of its value. Privatization & IPOs 6 In June, a 6% stake in Saderat Bank and two 5% blocks in Mellat Bank were offered to the market. Country Overview 7 The post-election events of Iran’s 10th Presidential election on 12th June will be discussed in this section. Economy 8 The Iranian real estate sector, the new financial instruments and institutions bill, the inflation rate, and a new petrochemical unit in Iran will be covered in this section.

Market Overview 2 In May, the Tehran Stock Exchange continued the previous month’s trend by carrying on moving upwards. Trade volumes also rose substantially from last month. This month, a 7% stake in Tejarat Bank was offered to the market. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund performed well in May, with its NAV gaining 4.7% in value. This section provides data and charts on the performance of the Fund. Country Overview 6 Iran’s 10th Presidential election which took place on 12th June will be discussed in this section. Economy 8 The high speed train contract between Iran and a German company, domestic fuel consumption in Iran, oil and gas
eld developments in Iran and the issuance of €1 billion of government bonds, will be covered in this section.

Market Overview 2 After the negative trend of the winter months, the Tehran Stock Exchange began the Iranian New Year (21st March) positively and with a substantial increase in trading volumes. Gains in global commodity prices along with strong earnings results in several sectors were the main drivers for the market rally in April. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund declined in March, with its NAV losing 5.4% in value. However, the Fund performed very well in April, gaining 8.1%. This section provides data and charts on the performance of the Fund. Country Overview 6 Iran’s state budget for the Iranian calendar year 1388 and President Obama’s New Year message to the Iranian nation are the topics of discussion in this section. Economy 7 Iran’s economy in the Iranian calendar year 1387, Iran’s 7th privately-owned bank and the Central Bank’s monetary policy will be discussed in this section.

Market Overview 2 In February, the TSE had a slow month. With the Iranian New Year approaching, companies are releasing earnings forecasts for the coming year. While the forecasts of commodity producing companies are significantly lower than this year, commodity consuming companies are posting strong results. This month, a 5% stake in Bank Mellat was offered to the market. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund experienced a slight decline in February, with its NAV losing 0.8% in value. This section provides data and charts on the performance of the Fund. Country Overview 6 Gerhard Schroeder’s visit to Iran and the launch of Iran’s first satellite into Earth’s orbit will be the focus of this section. Economy 7 An Iranian company’s housing contract in Basra, new financial institutions in Iran, Iran’s Human Development Index and the Central Bank’s proposed monetary policy will be discussed in this section.

Market Overview 2 In January, the Tehran Stock Exchange (TSE) reversed its downwards trend. There was a notable recovery in most commodity-focused stocks. Nevertheless, investors remain cautious as they await the outcome of parliamentary decisions on next year’s budget and a bill to amend subsidies. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund’s NAV declined in January, losing 2.4% in value. This section provides data and charts on the Fund’s performance. Country Overview 6 The effect of the global economic crisis on the Iranian economy will be the focus of discussion in this section. Economy 8 The third mobile phone operator license, the oil field development contract between Iran and China, the expansion of mining in Iran and Iran’s economic freedom rating will be discussed in this section.

Market Overview 2 In December, the Tehran Stock Exchange (TSE) continued on its negative trend of the previous month. However, the market began to demonstrate signs of stability and trade volumes increased significantly, as investors gradually returned to the equity market. This month, a new trading software system on the TSE became operational. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund’s NAV declined in December, losing 7.5% in value. This section provides data and charts on the Fund’s performance. Country Overview 6 Potential candidates for the Iranian presidential election in June 2009 will be discussed in this section. Economy 8 The inflation rate in Iran, the formation of a Gas Exporting Countries Forum, Ministry of Energy participation bonds and a new Iranian car will be covered in this section.

Market Overview 2 In November, the TSE continued its negative trend from the previous month and the market P/E fell to 4.5. Trade volumes also declined significantly as investors moved into fixed income products. Despite price falls over the past few months, the TSE remains the world’s best performing exchange among the member exchanges of the World Federation of Exchanges. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund experienced a decline in November with its NAV losing 6.6% in value. This section provides various data and charts on the performance of the Fund. Country Overview 6 Iran’s diplomatic relations with Latin America, and the latest report on the global outlook by the National Intelligence Council will be discussed in this section. Economy 7 Progess in the privatisation programme, the first Iranian vehicle engine, the Tehran Metro, and the inauguration of Orumieh Flyover Bridge will be covered in this section.

Market Overview 2 In October, the Tehran Stock Exchange experienced the impact of the meltdown in global prices of oil and other commodities. While commodity-based stocks experienced significant price declines, consumers of commodities saw price rallies. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The decline in share prices of most listed companies had a negative impact on the performance of the Fund during October. While the drop in the NAV of the Fund was moderate in comparison to other markets around the globe, Turquoise Fund experienced its sharpest monthly fall during last month. Country Overview 6 The completion of the development of three phases of the South Pars gas field development project and the significance of Iran-related policies in the US presidential race will be discussed in this section. Economy 7 The Milad communications tower, the independence of the Central Bank, the expansion of Anzali port and foreign deposits in Iranian banks, are the topics of discussion here.

Market Overview 2 In September, the TSE experienced a fall in trading volumes due to the Islamic holy month of Ramadan; and also a slight decline in stock prices. Sharp falls in the prices of oil and other commodities were the key drivers behind this decline. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund experienced a modest increase in September, with its NAV gaining 0.4% in value. This section provides various data and charts on the performance of the Fund. Country Overview 6 The fourth round of sanctions by the UN Security Council and President Ahmadinejad’s visit to New York will be the topics of discussion in this section. Economy 7 The monetary policy of the Central Bank of Iran, the first listing of a retail chain, Iran’s inflation rate, and the power station for Damavand Petrochemical will be discussed here.

Market Overview 2 In August, the TSE experienced a slow down in trading and falls in stock prices. Declines in prices of commodities were the key driver behind this fall. This month, the IPO of Telecommunication Company of Iran took place. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 Turquoise Fund experienced a decline in August with its NAV losing 6.3% in value. This section provides various data and charts on the performance of the Fund. Country Overview 6 The potential opening of a US interests section in Tehran, and Iran’s launch of a satellite carrier rocket into space will be the focus of this section. Economy 7 National Development Fund, IMF Country Report on Iran, Third Generation mobile phone and Iran and Germany gas deal are the topics of discussion in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) saw a continuation in July of its outstanding performance in June, although growth stagnated towards the end of the month. The IPO of the Telecommunications Company of Iran was authorized in July by the exchange regulators. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund performed well in July, with its NAV gaining 8.5% in value. This section provides various information and charts on the Fund’s performance. Country Overview 6 This section covers the government’s economic reform plan, which was announced by President Ahmadinejad in July. Economy 7 The annual monetary policy of the Central Bank of Iran, the TSE’s status as the most profitable exchange in the world this year, Gazprom in Iran and Iran’s non-oil exports are the topics of discussion in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced an outstanding month in June. Enhanced investor confidence, news of several price liberalisations and the ongoing privatisation programme resulted in a rally in the equity market. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 Turquoise Fund experienced a sharp growth in June with its NAV gaining 7.3% in value. This section provides various data and charts on the performance of the Fund. Privatization & IPOs 6 This section briefly discusses the IPO of Isfahan Oil Refinery Company, the first oil refinery to be privatised; and block offerings of Khouzestan Steel and Khorasan Steel companies. Country Overview 7 This section covers the new incentives package offered to Iran by the 5+1 group and the new sanctions imposed on Bank Melli by the European Union. Economy 8 Foreign investment in Iran, rate of inflation and preparation of Iran Air for privatisation will be the topics of discussion in this section.

Market Overview 2 The Tehran Stock Exchange (TSE) experienced sharp growth in trade volumes and stock prices in a number of key sectors in this month. Positive political developments and the widening of the daily fluctuation cap in stock prices moved the market upwards. This section provides an analysis of the market and some of the main sectors. Turquoise Iran Equity Fund 4 Turquoise Fund experienced a positive month in May with its NAV gaining over 5% during this period. This section provides various data and charts on the performance of the Fund. Country Overview 6 This section covers the election of Dr. Ali Larijani as the Chairman of the new parliament, and the latest progress report by the International Atomic Energy Agency (IAEA) on Iran’s nuclear programme. Economy 8 The first foreign bank in Iran, interest rates, surplus liquidity and a new mobile phone operator license in Iran will be the topics of discussion in this section.

Due to the Iranian New Year holidays, the April and May editions of Iran Investment Monthly are published jointly in this copy of the newsletter. Market Overview 2 The Tehran Stock Exchange (TSE) experienced low trading volumes in March and April, due to the New Year holiday period and investor perception of a lack of clarity regarding the government’s economic policies. The prospects for various industries will depend on government’s policies around the pricing of commodities, as well as the interest rate for the new Iranian calendar year. Turquoise Iran Equity Fund 4 The NAV of the Fund grew steadily over the past two months. The Turquoise Fund outperformed its benchmark, the TSE Price and Dividend Index, in March, growing by 2.2%. It experienced little change during April, as the whole market slowed down a little. Country Overview 6 This section focused upon the results of the parliamentary elections in Iran (which favored Conservative factions), and the third round of sanctions imposed by the UN Security Council due to the Iranian nuclear program. Economy 8 This section covers various statistics on the Iranian economy for the recently-ended Iranian year of 1386 (2007-2008). It also reports on the gas deal signed between Iran and Switzerland, bank deposit statistics in Iran, and domestic and foreign investment laws.

Market Overview 2 The Tehran Stock Exchange (TSE) performed very well during the month of January amid bearish global markets. This followed a strong performance in December. The TSE’s main indices witnessed record growth during this month. This section provides a brief examination of the market along with an analysis of some of the main sectors. Turquoise Iran Equity Fund 4 The Turquoise Fund also experienced a positive month during January with new investments being made to the Fund and the Net Asset Value growing by nearly 4%. Some private and institutional investors from Europe and Asia entered the Fund this month. Country Overview 6 The main topics of discussion in this section are the elections for the eighth Majlis (Parliament) in Iran which are scheduled for 14 March 2008, as well as the visit of the IAEA Chief, Mohamed ElBaradei, to Iran to finalise a working plan to resolve the outstanding issues between the two parties. Economy 8 The topics discussed in this edition of the Economy page include the finalization of an Oil and Gas exploration deal with Italy, the Sino-Iranian banking relationship and the gas deal between Iran and the United Arab Emirates.

Market Overview 2 The TSE started slowly but picked up during the latter part of the month of December as investors digested the positive news that the US intelligence report had declared that Iran has not been pursuing a nuclear weapons program for over four years. The delisting of some companies from the main market board due to irregularities and analysis of some of the main market sectors are also covered in this section. Turquoise Iran Equity Fund 4 The Turquoise Fund outperformed both market indices during this month with continuing pace of positive performance. Charts and tables demonstrating the performance of the Fund are also included in this section. Country Overview 6 Delivery of the Russian nuclear fuel for the Bushehr nuclear power plant and other international developments following the release of the US intelligence report are discussed in this section. Economy 7 Recently signed contracts for the development of oil and gas fields in Iran with China and Malaysia as well as some macroeconomic data are covered in this edition of the Economy section.

Market Overview 2 Following a few months of strong performance, the market closed in negative territory in November mainly due to some unsuccessful share offerings by the government as well as a price correction of some of the sectors which witnessed consistent growth over the last few months. The market price index, TEPIX, fell below the psychologically significant level of 10,000. Turquoise Iran Equity Fund 4 The Turquoise Fund outperformed both market indices once again although it did not maintain its positive performance. Institutional investors from Germany and Switzerland acquired units in the Fund amongst a number of other new private investors during the month. Country Overview 6 The United States National Intelligence Estimate reported on the non-existence of a nuclear weapons program in Iran since 2003 which diminished the possibility of military conflict over the issue and sparked new hopes for an earlier resolution to the nuclear stand-off. Iranian President Ahmadinejad’s visit to Qatar, to attend the GCC summit, is another development that is covered in this section. Economy 8 Iran’s positioning as a natural gas supplier as well as potential gas export deals are covered in this section. Other news includes the selection of a private Iranian bank as the winner of The Banker award and inward capital flows by the Iranian diaspora over the past several years.

Market Overview 2 Following three months of strong performance, the Tehran Stock Exchange cooled off a little during October. There was excessive supply of some stocks as some institutional investors were cashing out some of their holdings to participate in the consortium that purchased 20% of the market’s largest listed company in its public offering. Turquoise Iran Equity Fund 4 The Turquoise Fund outperformed both market indices during October with the Fund unit index reaching 146.8 by the end of the month. A selection of data and charts regarding the performance of the Fund is provided in this section. Country Overview 6 The two major events during October which are covered in this section are the historic visit of Russian President Putin to Tehran and the unilateral sanctions announced by the government of the United States on two Iranian banks and organizations related to the Revolutionary Guards Economy 8 In this edition of the Economy section, the focus is on the problem of rising inflation, the reasons behind this rise, and the trendlines of inflation rates over the past months and years.

Market Overview 2 The Tehran Stock Exchange continued its strong growth during September scoring another month with a return of over 6%. The market also witnessed the largest deal ever recorded in the Bourse’s 40 year history when 20% of National Iranian Copper Industries Company was sold to a domestic consortium. More details on this deal as well as sector by sector analysis of the market are provided in this section. Turquoise Iran Equity Fund 4 September was also the Turquoise Fund’s best performing month in 2007 with the NAV of the Fund rising by around 5.9 %. The Fund’s unit index at the end of September stood at 143.7. A selection of data and charts regarding the performance of the Fund is provided in this section. Country Overview 6 A shift in the US government’s position towards the Iran- IAEA agreement on expanding cooperation for addressing outstanding issues in the Iranian nuclear program as well as continued talks and negotiations on the fate of the Iran- Pakistan-India gas pipeline are the main stories covered in this section. Economy 7 In this edition of the Economy section, several topics such as privatization of the oil sector, the efficiency of Iranian banks, and an assessment of the gasoline rationing program are discussed.

Market Overview 2 The Tehran Stock Exchange continued its growing pace during August. The market experienced its best-performing month in 2007 and almost all market indicators improved during this period. The reasons behind this growth as well as analysis of some of the main sectors are provided in this section of the newsletter. Turquoise Iran Equity Fund 4 August was also the Turquoise Fund’s best performing month in 2007 with NAV of the Fund rising by around 4.6%. The Fund’s unit index at the end of August stood at 135.5. A selection of data and charts regarding the performance of the Fund is provided in this section. Country Overview 6 At the mid-point of his presidency, Mahmoud Ahmadinejad’s cabinet went through a reshuffling. He dismissed two of the most crucial members of his cabinet, the ministers of Mines and Industries as well as Petroleum. The impact and the reasons behind these changes are discussed in this section of the newsletter. Economy 7 In this edition of the Economy page several topics such as the inflation rate, foreign investment, the currency change, and the establishment of an interest-free bank are briefly analyzed.

Market Overview 2 July has been an extraordinary month for the Tehran Stock Exchange since the beginning of the year. All market indicators improved as there was a significant rise in trade volume and the indices closed in positive territory. The reasons for this upsurge as well as sector by sector analysis are provided in this section of the newsletter. Turquoise Iran Equity Fund 4 The Turquoise Fund also had a good month with its NAV rising by around 2.9%. The Fund’s unit index at the beginning of August stood at 129.9. New investments were made in the Fund during the month of July, notably from international investors with significant asset management experience in Asian markets. Country Overview 6 Two separate sets of negotiations were conducted in July between Iranian officials and IAEA representatives to discuss Iran’s nuclear program. A further meeting also took place between Iranian and American ambassadors to Iraq to jointly explore potential solutions for the country’s security problems. The latest MENA report from the World Bank which includes interesting statistics on Iran is also discussed in this section. Economy 7 Iran’s path to secure full membership at the World Trade Organization and the potential impact that it can have on Iranian industries are discussed in this edition of the Economy section.

Market Overview 2 The market in June showed some signs of recovery with investor confidence improving evidenced by sell-off queues being replaced by balanced supply and demand. The market witnessed the IPO of an aluminum producing company during this month while the best and the worst performing sectors were metals and petrochemicals respectively. Turquoise Iran Equity Fund 4 Turquoise outperformed the market indices in June with the Fund’s NAV rising by approximately 2%. The Investment Committee met regularly in Tehran and new holdings were added to the Fund’s portfolio. Privatization & IPOs 6 IRALCO had a successful IPO with its share price rising following the offering. In contrast in mid-July the IPO of a cement company was met with some resistance. A steel manufacturing company is expected to be offered in the near future. Country Overview 7 Positive signals are emerging from the first one-to-one meeting between Iran and the US as well as the continuing Iran-EU negotiations. In addition, the impact of gasoline rationing through the end of June is briefly discussed in this section. Economy 8 In this edition of the Economy section, several topics such as the production of hybrid cars, Iran’s increasing gas consumption and energy subsidies as well as the privatization schemes for petrochemical companies are briefly covered.

Market Overview 2 The market in May was slow with a decline in trade volumes and unexpected fluctuations in most sectors. Real estate and construction was the most stable sector in the TSE during May given the market perception of low commercial risk and the clear trend of increasing property prices in Iran. Turquoise Iran Equity Fund 4 The declining mode of the market also affected the Turquoise Fund’s performance with the Net Asset Value experiencing a 2.7% fall. The price corrections however opened up some new investment opportunities and new positions were added to the Turquoise portfolio following the Investment Committee’s decisions. Country Overview 6 In this section, a summary of the recently held Ravanad conference, which was partly sponsored by Turquoise, is provided. The conference, dubbed the Davos of Iran, attracted distinguished guests and panelists from around the globe. The topic of the conference was “Iran: Its Role, Security & Economic Partnership” and the panels included sessions on security, regional geopolitics, energy, the economy, and the environment. Economy 7 In this edition of the Economy section, Iran’s non-oil exports which have been on a significant rising trend over the past few years are analyzed in detail. The growth rate over the years, its current status, composition of the underlying commodities and the top export destinations are topics that are covered in this section.

Due to the New Year’s holiday in Iran, the April and May editions of the Iran Investment Monthly are published jointly in this copy of the newsletter. Market Overview 2 The market in March and April could best be described as unipolar with sell offs and limited trading in most stocks and vibrant and hyper trading in the newly IPOd stocks. Generally the performance of the market over the two months was negative and trade volume declined which was unusual for this time of year based on historical data. Turquoise Iran Equity Fund 4 The slow mood of the market also affected the Turquoise Fund’s performance with the unit index witnessing little change over the past two months. The Fund attracted new investment in March from a European investment group. Country Overview 6 In this section, recent developments and relevant news from the past two months are discussed and analyzed. This year’s IMF report on Iran, developments in the Iranian nuclear stand-off, and significant macroeconomic decisions taken by the parliament and the government are the main focus. Economy 7 This section covers the most significant issues and challenges faced by the Iranian economy in the recently ended Iranian year of 1385. The main topics are liquidity growth, interest rates, investment and privatization as well as a brief analysis of critical industrial sectors.

Market Overview 2 February started with the impact of the successful privatization of the National Iranian Copper Industries Company which raised investors’ hope. Many of the listed companies temporarily suspended trading for fresh announcements of their forecasted earnings given that their fiscal year is coming to an end. Some of the hotly debated sectors of the Exchange are analyzed in this edition. Turquoise Iran Equity Fund 3 Turquoise Fund experienced little volatility in February amid the negative performance of most market indices. The Turquoise Investment Committee drew up the Fund’s strategy for the coming Iranian year. Privatization & IPOs 5 The second IPO under the new privatization program and the largest offering in the history of the Tehran Stock Exchange is planned for March 2007. Shares of the Mobarakeh Steel Complex (MSC) will be offered on the Exchange for the first time. Historic performance of the MSC and its future forecasts are discussed in this section. Country Overview 6 The meeting between representatives of the US and Iran in Iraq has raised hopes that a breakthrough in bilateral relations could be in the pipeline. In February, an election to choose members of the Iran Chamber of Commerce was held in which reformists and pragmatists were able to secure a significant victory. It was the first time that reformist candidates were allowed to run. Historically, the traditional right-wing bazari faction had always controlled the Chamber of Commerce. Economy 7 News and views on the country’s macro economy with special attention given to interest rate policies, the production of cellular phones, development plans for the public transportation system as well as trade statistics.

Market Overview 2 The market experienced an unstable month in January, mainly due to the news of the UN Sanctions Resolution and worries regarding its impact on the market. The trade volume fell significantly and there was a surge in sell orders both by private and institutional investors. However, the regulations imposed by the Exchange prevented a drastic decline of the market indices. Turquoise Iran Equity Fund 3 Turquoise had a steady month in January with a positive monthly performance which is a notable result considering the market climate. The Turquoise Investment Committee made decisions during the month to reduce portfolio risk while trying to maximize future growth potential. Privatization & IPOs 5 The end of January saw one of the largest IPOs of Iranian state-owned companies under the newly approved privatization scheme. The shares of National Iranian Copper Industries Company (NICIC) were offered on the Tehran Stock Exchange and met reasonably strong demand considering the negative mood of the market in January. This section will analyze the inauguration of the privatization program, some information on NICIC as well as future IPO opportunities for investors. Country Overview 6 Domestic political debates have heated up regarding the strategy Iran should adopt to safeguard its national interests and nuclear objectives without provoking the Western powers further. International lobbying by Iran has increased in recent weeks to gather support for the country’s standoff with the US over the nuclear issue. Economy 7 News and views on the country’s macro economy with special attention given to new projects in the oil refining industry, Iran’s untapped export potential, petrochemical production and more.

Market Overview 2 Almost all the TSE indices closed in positive territory during December 2006. Most notably, the banking, petrochemical and mining sectors showed strong performances during the month. The outlook for the banking and the petrochemical sector remains positive while the mining sector is believed to be over-valued. The future outlook of the pharmaceutical sector is also viewed positively by the market. Turquoise Iran Equity Fund 3 Turquoise had a remarkable month in December with a monthly performance of over 15%. This was mainly due to announcement of positive adjustment to earnings from two of its largest holdings which resulted in a significant share price increase. Turquoise Investment Committee took necessary measures during December to reduce portfolio risk while maximizing future growth potentials. Private Equity 5 The construction of two high-rises in one of the most rapidly growing areas of Tehran is the private equity opportunity introduced in this edition. The project has strong potential returns and is well placed alongside other development projects that are being carried out in that area of the city. Country Overview 6 This looks at the United Nations Security Council’s resolution 1737 which imposes limited sanctions on Iran’s nuclear and missile industry. It considers the impact on the Iranian market as well as the Iranian government’s decision to switch its business activities from the US dollar to the Euro. Economy 7 News and views on the country’s macro economy with special attention given to the recent UN Security Council resolution, investment in the oil industry and bilateral trade agreements.

Market Overview 2 Most of the Tehran Stock Exchange (TSE) indices experienced gains in November mainly due to the significant rise in the prices of Mining and Metals stocks. A total of 43 companies re-opened for trade over this month after temporary closure. Positive adjustments to the expected earnings which are usually announced in the second half of the Iranian year are also a factor contributing to the growth in the TSE indices. Turquoise Iran Equity Fund 3 Re-opening of some of the closed stocks resulted in the minor fluctuations observed in the performance of the Fund during November. Turquoise has shifted some of its holdings from the Auto and Parts Manufacturing sector to more attractive sectors such as Mining and Metals and Pharmaceuticals. Private Equity 4 Introducing two different types of private equity opportunities. First one is a greenfield project that involves setting up portable plants for the production of copper anode, and the second is an operational plant for the production of asbes tos cement whose 100% shareholding is offered to new investors through tender. Country Overview 6 Covering presidential trips to impoverished provinces of the country as well as discussing the decision made by the parliament for import of another $2.5 billion worth of gasoline and the crisis Iran is facing in terms of rising gasoline consumption, subsidies and smuggling. In addition, reporting on the latest news from the nuclear stand-off and likely scenarios for the near future. Economy 7 News and views on the country’s economy with special attention given to Iran’s non-oil exports, family income and expenditure figures, foreign direct investment and unemployment.

Market Overview 2 In-depth analysis of the Tehran Stock Exchange (TSE) including the latest news and rumors as well as a look at the market’s overall performance. Cancellation of the Parsian Bank deal and news regarding the structural collapse in one of the country’s major zinc mines top the TSE headlines.

Turquoise Iran Equity Fund 3 A brief report on the performance of the fund during the month of October as well as future outlook. The report includes the historical performance of the fund against the Tehran Stock Exchange index.

Private Equity 4 Introducing two mid-size private equity opportunities in Iran. The first project involves setting up a recycling plant for production of polymer grains and the second is a mine exploration project for possible extraction of base metals from a potential copper mine in central Iran.

Country Overview 6 Provides a brief look at the latest developments in Iran. Main topics discussed in this section are: President Ahmadinejad’s report on his cabinet’s first year performance and also the reference of Iran’s nuclear dossier back to the UN Security Council.

Economy 7 Statistics and updates on some of the macroeconomic indicators of Iran. Brief reports on the country’s foreign debt, auto production, tax income, foreign direct investment, gasoline consumption and more.

INTRODUCTION Goals and vision of Iran Investment Monthly COVER STORY Iran’s economic revolution sparked by the recent privatization decree issued by the Supreme Leader ECONOMY News on privatization plan, foreign investment projects, rise in non-oil export, and recent macroeconomic data. TEHRAN STOCK EXCHANGE Update on the exchange performance and reasons behind its recent growth as well as report on hot sectors which are petrochemicals, mining and pharmaceuticals. TURQUOISE IRAN EQUITY FUND Vision, investment strategy and performance of Iran’s first world-class mutual fund INVESTMENT OPPORTUNITIES Proposing two lucrative private equity investment opportunities in downstream petrochemical and real estate sectors