ETFs are transparent. The Fund Manager publishes a daily Portfolio Composition File that includes the listed shares and cash amount owned by each ETF unit
It is an open-end investment fund regulated by Qatar Financial Markets Authority and Qatar Central Bank and listed on the Qatar Stock Exchange
The Fund seeks to replicate the investment outcome of Qatar Stock Exchange price index through investment in index components according to weights that track the ones existing on the index
The investor will benefit from an annual dividend distribution that the fund will make gained from its investment portfolio components after deducting fees.
The Fund annually distributes the dividends gained from its investment portfolio components after deducting any expenses
Trading costs the same as any other listed share
The Investor’s ownership in the QETF will be held under the unique investor number or NIN. Safe keeping of assets will be handled by Standard Chartered as Administrator and Custodian the QETF is a registered security with Qatar Central Securities and Depository
NAV published daily after the close of trading and iNAV updated live during trading hours available through the QSE market data feed.
Annual dividends to be earned and paid in-line (net of fees) with the dividends distributed by the underlying investments
The QETF will incur a 0.50% total expense ratio (versus the industry standard of 0.75-1.25%, the expenses are calculated and accrued on a daily basis and reflected in the NAV and iNAV the only other charges to an Investor are those of their own Broker or Custodian as with any other listed security on the Qatar Stock Exchange.
The successful launch of QETF was made possible by the forward looking work of the Qatar Stock Exchange, related government entities and other participants
The QE Index is a capitalisation weighted index of the 20 most highly capitalized and liquid companies traded on the Qatar Exchange.
Financials, Real Estate and Industrials together make up more than 80.0% of the Index.
The maximum weightage of a constituent stock in the index cannot exceed 15%
As of : 01 March 2018
An easy way to diversify, add index exposure or balance part or all of an existing investment portfolio
Performance tied to the index, so Investors do not need to worry about picking the right stocks or relying on a Fund Manager to do so
Ability to enter or exit the market quickly and easily through one security, the QETF
The only, ‘Access Product’ for Institutional and Foreign Investors to obtain an allocation or weighting to the widely-followed DSM price return index
Ability, through the Authorised Participants, to Create and Redeem units in-kind, putting the QETF in-line with best international practices,
and making it the first GCC listed ETF to do so
Designated Liquidity Provider and Authorised Participants to ensure proper pricing, liquidity and trading of the QETF on the Qatar Exchange
Protection of Investor rights in terms of Dividend entitlement through the implementation of a Dividend Equivalent Payment as part of any Creation/Redemption applications during the Dividend period of the underlying companies
*An Authorized Participant is an Individual or Institution approved by the Fund Manager, with the ability and desire to Create Units in the QETF in minimum blocks of 25,000 shares.
Dividend Announcement for QE INDEX ETF ‘QETF’
Amwal as the Fund Manager established in 1998, they are Qatar's first and only independent asset management firm regulated by the QFCRA and QFMA. Amwal offers asset management services in public and private equities, fixed income and real estate. They have won numerous awards as best asset manager in Qatar and MENA through the years.
Doha Bank as the Founder is one of the largest commercial banks in the State of Qatar and has been consistently registering a strong growth during the last decade with participative leadership philosophy. Inaugurated in 1979, Doha Bank provides domestic and international banking services for individuals, commercial, corporate and institutional clients. The bank has established overseas branches as well as representative offices in some of the world’s most high profiled financial centers.
Standard Chartered Bank (Qatar branch) as the Custodian: established in 1853, through internal and external growth, it became an international banking group operating in Asia, Africa and Middle East, offering products and services in the personal, consumer, corporate, institutional and treasury area; also, oldest bank in Qatar.
The Group as the Liquidity Provider and Authorized Participant: is a brokerage firm, licensed by the QFMA to provide brokerage services and act as a liquidity provider as well as offer margin trading services for the local exchange trading activity. The Group was the first company to operate in the financial brokerage market in Qatar; with several offices throughout Qatar. The Group has the largest market share in the Qatari Market.
KPMG is the External Auditor of the Fund. KPMG has had a presence in Qatar for nearly 40 years. Opened for business in Qatar in 1977 and are now one of the largest and most prestigious professional services firms in the country. KPMG provides Audit, Tax and Advisory services locally, drawing on the latest thinking and best practice from around the world.
Rashid Ali Al Mansoori, CEO of the Qatar Stock Exchange (right) Sheikha Hanadi Nasser bin Khaled Al Thani (centre), Chairperson of Amwal; Dr R Seetharaman (second right), Group CEO, Doha Bank along with other officials during the listing of ETF at Qatar Stock Exchange, yesterday. Pic: Anwar Sadath
Investors looking for exposure to Qatari market, but wanted to avoid selecting stocks themselves, now have the additional choice. The Fund will track the QE Index that measures the price performance of the top 20 largest and most liquid companies on Qatar Stock Exchange.
Investors can now buy a QSE replica in one single decision. QETF can be bought and sold like any other stocks on the exchange through brokers. As QETF tracks the QSE benchmark index, it allows investors to obtain exposure to a diversified portfolio with one single decision.
The listing of the QETF was formally announced in a ceremonial bell-ringing held at Qatar Stock Exchange. Established by Doha Bank and managed by Amwal, the QETF is arguably the largest ETF in the GCC. The Group Securities, as the QETF’s Liquidity Provider will support trading by making competitive “two-way” pricing, allowing investors to trade QETF with ease. The Group will maintain the supply of ETF units and ensure the ETF’s price is in line with the value of its underlying index portfolio. Standard Chartered Bank will act as custodian and fund administrator. After launching the Fund, Rashid Ali Al Mansoori, CEO of the Qatar Stock Exchange said: “Great thought and effort has gone into the development of an ETF market at QSE and a listing based on our main index was always going to be a proud moment. There’s no denying the popularity of ETFs globally and we’re excited at the new trading opportunities the ETF provides to our investors.” Speaking on the sidelines of the event, Dr R Seetharaman, Group CEO, Doha Bank said:” It’s a milestone for Qatari economy. The Fund is a very unique in value proposition for local investors, international investors individuals as well as institutional investors…. The initial size of the fund is QR150m. It is subjected to change as the market fluctuates. We are targeting $2bn during the first year.”
““Through our collaboration with Amwal and The Group Securities, we believe the QETF holds immense promise and opens a gateway to the Qatari market for global investors. We expect this to be the first of many future products focused on Qatar,” Dr Seetharaman said.
Sheikha Hanadi Nasser bin Khaled Al Thani, Chairperson of Amwal commented: “Amwal is proud to have the QETF as part of its product portfolio. Passive investment strategies are playing a bigger role for institutional investors looking for emerging market exposure as part of their global asset allocation.”