The Fund aims to achieve long term capital appreciation, through investments in publicly traded Qatar and GCC equity securities, with a focus on Qatari equities. The Fund’s investment strategy combines proprietary bottom-up fundamental analysis of individual stocks, top down portfolio construction and risk management. The Fund’s underlying investment style is long-term value investing
|Founder||Ahli Bank Q.S.C.|
Talal Samhouri, CFA
|Administrator and Custodian||HSBC Bank Middle East Ltd|
|Inception Date||16 September 2005|
|Management Fee||1.5% p.a.|
|Performance Fee||15% Over 10% Hurdle Rate|
|Custody and Administration Fee||0.30% p.a.|
The Saudi market continued to be the worst performing stock market in the region, and this month it was followed by the Qatari Market, both declining during the month by 7.5% and 5%, respectively. Declining oil prices, negative news flow from the Saudi construction sector and harsh austerity measures in Saudi Arabia had a negative impact on the path of GCC markets. But by end of the month a positive surprise occurred in Algeria about OPEC’s promise to cut production for the first time since 2008.
For Al Hayer Fund, we have continued increasing the cash allocation to about 13% as markets continued its decline. We have also reduced exposure to the Financials sector to about 39% from about 47%, since the sector, especially in Saudi Arabia, will be the hardest hit in the event of increased defaults in the system. While at the same time, we have diversified into consumer staples, chemicals and telecom, taking a defensive stance in anticipation of a dismal 3Q results.
Despite the heavy losses the Saudi market has exhibited this year, we believe that over the next few months it will recoup 2016 losses, as clarity increases on government measures and stability of oil prices in the range of $45-55 per barrel.
Qatar Gate Fund, Qatar’s 1st and longest running fund (10 years track record) which continues to be the leading product in the market with cumulative outperformance of 74% over the benchmark since 2010.
Amwal’s Qatar Gate Fund is the only Qatar equity fund to have outperformed the index every calendar year since inception (10 years).