As an asset manager, Griffon invests both local and foreign capital into a locally licensed and regulated entity, Griffon Iran (Homa), which is fully owned by the Group. Griffon Iran (Homa), was in turn, the first foreign backed entity to be awarded an Asset Management and advisory licences by the Securities and Exchange Organization (SEO) of Iran.
The GIF Fund launched in February 2016, aims to unlock value from Iran’s public equity market and provide a well-regulated and transparent institutional-grade platform with top tier service providers, through which foreign capital can seamlessly and intelligently be invested.
The Fund, which is Cayman domiciled and managed by Griffon Asset Management, is an open-ended vehicle investing predominantly in the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB).
The Opportunity Set
- 8% Market Capitalization/GDP PPP, one of the lowest globally
- Market Capitalization > $100bn
- Diversified with > 15 sectors and >300 listed & actively traded cos.
- IPO and Privatization pipeline
- Future MSCI Index addition
- Properly Regulated financial markets: SEO est. 2006 as supervisory authority
- Developed Infrastructure: CSDI est. 2005 as sole registrar, central custodian & clearing house.
- Four Exchanges (TSE, IFB, IME and IEE) and multi assets & instruments
- Value: 5.5x P/E, DY: 12.5% versus MSCI Frontier Ave. 10.4x P/E, DY 4.3%
- Growth: GDP, corporate topline, margin and multiple expansion, catalysts coupled with themes and de-correlated returns
Why Griffon Asset Management?
We employ a fundamental, bottom up approach to investing that is based on proprietary research and a strong focus on risk management.
The seniority of Griffon’s team and its experience working at the highest levels of Iran’s asset management industry provides the Group with an unmatched and comprehensive 360° view of the capital market. This includes in-depth understanding of key sectors and the policies/factors shaping them. It also provides for access to companies and their management teams and first-hand knowledge of their businesses, strategies and operating and financial results.
The investment process is driven by a well structured platform that has an Investment Committee as its cornerstone comprised of the Griffon team and a number of local and international industry veterans, including frontier market experts, with experience of managing many billions of dollars.
Every investment decision utilises fundamental research on the industry, company financials, business and strategy and management capabilities.
- Experience, insight and access of in-house research to develop primary and proprietary research to think independently
- 40 years of domestic investment management experience and having managed $15bn AUM (>10% of TSE mkt cap.)
- Extensive (EMEA) international pedigree having managed >$1bn in broader EM & FM markets
World class Structure
- Institutional investor ready platform- scalable with top tier service providers, transparent and regulated structure
- Comprehensive sanctions compliant framework devised by top International law firm
- Meets international standards of governance and processes
- Investment Process with a disciplined long term focus
- Understanding our circle of competence and compounding our sustainable edge
- Rigorous proprietary bottom up fundamental approach, sector agnostic and relatively concentrated
- Emphasis on capital preservation and margin of safety