Not about oil
Qatar Investment Fund (QIF) offers exposure to growth in Qatar’s diversifying economy, which is benefiting from prudently reinvested oil “super profits.” Qatar is seeing above average GDP growth and its stock market has shown low correlation with the oil price. The fund seeks to capture the benefits of infrastructure investment, national development and diversification underpinned by wealth accumulated from hydrocarbon reserves. Prudence at national and fund level and the implicit government backing enjoyed by many of QIF’s portfolio companies may make this an interesting fund for investors seeking capital growth and a yield of c 3%.
Investment strategy: Top down and fundamental
There are 43 stocks listed on the Qatar Exchange (QE), of which 20 make up the QE benchmark index. The manager of QIF identifies long-term trends and selects holdings to benefit from those following detailed bottom-up analysis. Opportunities to capture value in the shorter term are also taken where the manager believes a stock is mispriced. Up to 15% of the portfolio may be allocated to stocks listed on exchanges of Gulf Cooperation Council (GCC) states other than Qatar, allowing alpha to be captured where it arises in the region.
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