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Mel Jenner
16 October 2017 · 2 min read

Qatar Investment Fund proposes broader investment remit and change of name

Proposed greater flexibility to invest across the Gulf Cooperation Council (GCC) countries rather than largely in Qatar

Qatar Investment Fund (QIF) has announced a proposed change in its investment policy to remove the current 15% limit on investment in GCC countries outside of Qatar. It has also put forward other proposals including: a tender offer for up to 10% of issued share capital; cancellation of the 2018 continuation vote, to be replaced by a 2021 vote and every three years thereafter; a tender offer in 2020 for up to 100% of issued share capital, subject to shareholder approval; and changing the company name to Gulf Investment Fund. All these proposals, with the exception of the 2020 tender offer, will be put forward at an upcoming extraordinary general meeting (EGM).

Within the broader remit, there is a proposal to invest in companies listed outside the GCC, which derive a significant percentage of their revenues from GCC countries. Existing investment restrictions will continue: no single investment in an S&P GCC Composite Index constituent company may exceed the greater of 15% of QIF’s NAV or 125% of the company’s index capitalisation; no single investment in a non-S&P GCC Composite company will exceed 15% of QIF’s NAV; and no holding may exceed 5% of the shares outstanding in any one company.

The proposed changes to the investment policy are intended to reduce the risk from having a principally single-country focus, while accessing the growth potential of other GCC countries. Investment performance will be referenced against the S&P GCC Composite index, although QIF will not adopt a formal benchmark. Qatar Insurance Company will continue to be the investment adviser and Jubin Jose will retain the role of portfolio manager; the annual investment management fee will be unchanged at 0.90% of NAV.

To read our latest research note on QIF, please click here.

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