Doha: Amwal's Qatar Gate Fund (QGF) posted returns for the year-to-date period ending April 30, 2011 that beat competing funds and the Qatar Exchange index. QGF's Q share class (open to Qatari investors) posted 7.6 percent year-to-date. QGF's N share class (open to non-Qatari investors) generated 6.7 percent year-to-date. Meanwhile, the benchmark lost -1.5 percent for the same period.
After a successful 2008 and 2009, QGF remained the top performer in Qatar in 2010 with a total net return of 37.1 percent and 34.5 percent for the N and Q share classes, respectively. QGF outperformed the Qatar Exchange Index and all peer funds as tracked by Zawya's Funds Monitor, the Middle East's leading financial information site. Currently, six fund managers run nine Qatar-dedicated equity funds.
Samer Solh, Managing Director of Asset Management at Amwal, explained that despite the current volatility seen by investors in global markets, Qatar still represents a more stable destination for capital and provides relative safety. Discerning international investors have taken note.
For equity investors looking for growth, Qatar continues to be a long term attractive opportunity given its economy, its status as the world's largest producer and exporter of liquefied natural gas and its intensive domestic infrastructure investment program estimated at $150bn over the next ten years.
The potential inclusion of Qatar in the widely followed MSCI Emerging Markets equity index is another catalyst that can potentially improve global investor perception and spur interest in the local market. With a decision slated for June, Amwal expects that any inclusion would also benefit select Qatari stocks in terms of eventual fund flows although an announcement could be met with strong initial buyer enthusiasm.
Investors appreciate Qatar's political stability, fiscal surpluses and manageable debt ratios. Qatar's sovereign credit default swap (CDS) spreads increased by 20 basis points (0.20 percent) in the midst of the North African political crisis earlier this year.
© The Peninsula 2011
