The Securities and Exchange Organization (SEO) of Iran and the Iraqi Securities Commission (ISC) signed a memorandum of understanding to create a joint investment fund.
The fund will be based on a master-feeder fund model, according to the SEO News Agency.
The MoU was signed in Tehran on Monday in a meeting attended by the SEO board members, ISC Chairman Alaa Abdulhussein Al-Saeidi, and Iraq’s Ambassador to Iran Saad Jawad Qandeel.
A master-feeder structure is a device to pool capital raised from investors into a master fund. Investors put capital into their respective feeder funds, which ultimately invest assets into a centralized master fund. It is the master fund that actually invests in the market.