16 Banks Under One Symbol
The banking sector fund, under the symbol 'ValueBank', will soon open subscription on the capital market. This exchange-traded fund (ETF) will allocate most of its assets to shares of banks and credit institutions.
Line Value Investment Consulting Company manages assets amounting to 15 thousand billion Tomans (AUM). This collection also has a history of implementing more than 10 thousand billion tomantamines through the issuance of bonds and valuation of more than 20 Bursira companies. The symbol of the credibility of this collection in the market is the "Orchid" fixed income fund; A product that, in addition to the participation and attraction of more than 40 thousand investors, was able to win the title of the most profitable fixed income fund in the capital market with a return of 37.1% in 1404 and increase the net value of its assets to more than 13 thousand billion tomans. Now, relying on this success and the trust created among the market players, the value line has introduced its second fund named "Valiobank" in the banking industry.
The banking industry has a key position in Iran's economy, having about 9% of the total value of the stock market. The most important advantages of this industry are:
Immunity from energy outages and operational risks: unlike manufacturing industries, banks are not faced with the stoppage of production lines or the challenge of supplying raw materials and have a stable income stream.
High potential for growth in international openings: any positive diplomatic developments and the expansion of foreign brokerage relations will directly lead to the growth of foreign exchange earnings and bank fees.
Performance beyond the index: Since the beginning of 1403, the bank industry index has recorded a performance higher than the growth of the overall index (264%) with a 277% return.
income stability; The trump card of the banking industry
Unlike manufacturing industries, which are always exposed to seasonal gas and electricity imbalances or product supply challenges, the activity of banks is unstoppable and their fee and facility income generation is completely continuous. This operational stability, along with historical returns higher than the overall index, has made the bank industry one of the most attractive options in the market.
the necessity of active management; A sharp difference in the performance of banking symbols
Although the outlook of the banking industry is evaluated positively, the examination of the performance of the companies in this group reveals an important point: not all banks have the same performance. In 1404, while the symbol of Saman Bank recorded a return of over 600%, some other symbols of the industry came with a negative return of 12%. This huge performance difference shows that just being in the bank industry does not guarantee profitability and choosing the right stocks, determining the weight of each symbol and continuously reviewing the portfolio has a decisive role.
Value line investment strategy in Valiobank
"Valiobank" fund solves the concern of stock selection for shareholders. The portfolio management of this fund is done in an active way and the asset management team of the value line examines the status of banking symbols from various aspects by using the most up-to-date analytical methods.
1. Capital Adequacy: financial wealth and covering balance sheet risks 2. Asset Quality: the status of claims and granted facilities 3. Management quality: operational efficiency and controlling the cost of money 4. Quality of profitability (Earnings): profit margin of facilities and stable fee income 5. Liquidity status: management of resources and expenses and liquidity 6. Sensitivity to market risk (Sensitivity): effectiveness of exchange rate and interest rate fluctuations
With this method, the weight of the banks' shares will be revised according to the market conditions, and the goal of the fund will be to achieve returns beyond the bank industry index.
How to participate in Veliobank underwriting
Due to the limitation of the number of Valiobank fund units in subscription, the supply of units with a base price of 1,000 Tomans, as well as the successful performance of the value line, it is expected that the capacity of the fund will be completed in the early hours; Therefore, the speed of action in purchasing units will be decisive. The subscription date of the value line fund with the symbol "Valiobank" will be announced soon.