TIDMQIF
RNS Number : 3838R
Qatar Investment Fund PLC
19 November 2012
19 November 2012
Qatar Investment Fund plc
("QIF" or the "Company")
Interim Management Statement and Q3 (Financial Q1) Investment
Report
Qatar Investment Fund plc (LSE: QIF) today issues the following
Interim Management Statement in accordance with the UK Listing
Authority's Disclosure Rules and Transparency Rules, for the period
1 July 2012 to 16 November 2012.
The Company has also issued its Q3 Investment Report (Financial
Q1) for the period 1 July 2012 to 30 September, a PDF copy of which
can be obtained from QIF's website at:
www.qatarinvestmentfund.com.
QIF was established to capitalize on the investment
opportunities in Qatar and the Gulf Cooperation Council ("GCC")
region, arising from the economic growth being experienced in the
area. The Company invests in quoted Qatari equities listed on the
Qatar Exchange ("QE") in addition to companies soon to be listed,
with a possible allocation of do 15% in other listed companies
elsewhere in the GCC region. The Investment Adviser invests using a
top-down screening process combined with fundamental industry and
company analysis.
OVERVIEW OF KEY HIGHLIGHTS
-- The Company's NAV increased by +5.38% during the period 28
June 2012 to 1 November 2012, marginally underperforming the QE
Index return of +5.92%.
-- For the period starting from 29 December 2011 up to 1
November 2012 the Company's NAV rose by +2.5%, comfortably beating
the benchmark's negative return of -2% over the same period.
-- Figures published by the Qatar Statistics Authority (QSA)
real GDP growth slowed slightly to +5% year-on-year in Q2,
following a recently upwardly revised +7.9% in Q1.
-- Economic growth, particularly in the non-hydrocarbon sector,
is expected to be well supported by over $150bn of infrastructure
spending up to the 2022 FIFA World Cup.
-- Population growth remains robust in Qatar, with the
population standing at 1.84m at the end of September 2012, an 8.4%
year-on-year increase.
-- The Qatari Banking and Financial sector showed profit growth
of 11.0% in H1 2012 compared to H1 2011. Qatari companies' Q2 net
profits showed an aggregate increase of 4.2% over the same
period.
-- Banks continue to represent the largest single sector
exposure within the portfolio, with a weighting of 49.3% of NAV as
at 1 November 2012, down from 57.5% at the end of June 2012.
-- Regional valuations remain compelling, with the Qatari equity
market representing particularly good value, with a 2012E price
earnings ratio of 10.9 times falling to 9.8 times for 2013 forecast
earnings; and a forecast dividend yield for 2012 of 4.4%.
-- Qatar remains the investment adviser's preferred regional
market due to a unique combination of strong growth, high earnings
visibility and domestic political stability.
PERFORMANCE AND PORTFOLIO STRUCTURE
On 1 November 2012 the QIF NAV reached US$1.0655, an increase of
5.38% from 28 June 2012.
At the end of October 2012 the QIF share price was trading at a
-13.6% discount to NAV.
Embedded image removed - please refer to the IMS on the
Company's website
http://www.qatarinvestmentfund.com/publications/quarterly-reports/
for a chart depicting the NAV compared to the share price.
Historic Performance of the QIF NAV against the QE Index
QIF NAV 13.90% -36.40% 10.40% 29.90% 1.30% 1.38%
---------- ------- -------- ------- ------- ------ -------
QE Index 27.00% -28.80% 1.10% 24.80% 1.10% -2.00%
---------- ------- -------- ------- ------- ------ -------
Source: Bloomberg, Qatar Insurance Company
* Up to 1 November 2012
Historic Performance of the QIF Share Price against Local and
International Indices
QIF 23.0% -1.5% 2.5%
-------------------- ------ ------- ------
QE Index 24.8% 1.1% -2.0%
-------------------- ------ ------- ------
Abu Dhabi -0.9% -11.7% 11.3%
-------------------- ------ ------- ------
Bahrain -1.8% -20.1% -8.1%
-------------------- ------ ------- ------
Dubai -9.6% -17.0% 19.9%
-------------------- ------ ------- ------
Kuwait -0.7% -16.4% -2.7%
-------------------- ------ ------- ------
Oman 6.1% -15.7% -0.1%
-------------------- ------ ------- ------
Saudi Arabia 8.2% -3.1% 5.8%
-------------------- ------ ------- ------
Bloomberg GCC200 13.0% -9.3% 3.6%
-------------------- ------ ------- ------
MSCI World 9.6% -7.6% 11.0%
-------------------- ------ ------- ------
S&P 500 12.8% 0.0% 13.5%
-------------------- ------ ------- ------
FTSE All-Share
USD 10.9% -6.7% 7.2%
-------------------- ------ ------- ------
Eurostoxx 600
USD 1.6% -14.2% 11.5%
-------------------- ------ ------- ------
*Up to 1 November
2012
Source: Bloomberg
PORTFOLIO STRUCTURE
Top 10 Holdings
As of 1 November 2012, top five investments of the Company
constituted 53.8% of NAV (excluding cash, which is 10.7%), compared
to 58.9% of NAV at the end of 30 June 2012. The top 10 holdings
(including cash) represents 84.4% of the company's NAV.
Qatar National Bank Banks & Fin. Ser. 17.4%
------------------------------ ------------------- ------
Industries Qatar Industry 14.7%
------------------------------ ------------------- ------
Cash Cash 10.7%
------------------------------ ------------------- ------
Commercial Bank of Qatar Banks & Fin. Ser. 7.5%
------------------------------ ------------------- ------
Masraf Al Rayan Banks & Fin. Ser. 7.4%
------------------------------ ------------------- ------
Doha Bank Banks & Fin. Ser. 6.7%
------------------------------ ------------------- ------
Qatar Islamic Bank Banks & Fin. Ser. 5.9%
------------------------------ ------------------- ------
Barwa Real Estate Real Estate 5.8%
------------------------------ ------------------- ------
Qatar Electricity & Water Co Industry 4.3%
------------------------------ ------------------- ------
Qatar Navigation Transportation 3.9%
------------------------------ ------------------- ------
Source: Bloomberg, Qatar Insurance Company (1 November 2012)
As at 1 November 2012, twenty positions were held in Qatar and
two in Oman (twenty one positions in Qatar and one position in Oman
at the end of Q2 2012), while the cash position increased to 10.7%
of NAV from 2.7% at the end of June 2012.
Country Allocation
Qatar continues to be the Investment Adviser's favourite market
within the GCC due to a combination of relatively low political
risk and high growth prospects. In addition, and as illustrated in
the Valuations section, the Investment Adviser believes that the
Qatari market is trading at an attractive level both relative to
its earnings growth potential and its regional peer group.
Embedded image removed - please refer to the IMS on the
Company's website
http://www.qatarinvestmentfund.com/publications/quarterly-reports/
for a chart depicting the overall portfolio allocation by country
as at 1 November 2012.
Sector Allocation
Embedded image removed - please refer to the IMS on the
Company's website
http://www.qatarinvestmentfund.com/publications/quarterly-reports/
for a chart depicting the overall portfolio allocation by sector as
at 1 November 2012.
The Investment Adviser maintains a positive outlook on the
Qatari banking sector, and remains overweight compared to the QE
Index, with an aggregate sector weighting of 49.3% (down from 57.5%
at the end of June 2012) in the portfolio vs. 47.12% for the QE
Index.
According to research recently published by the QNB Group, and
in contrast to challenges being faced by the sector globally,
Qatar's banks continue to see strong growth momentum across a range
of performance indicators e.g. the latest Qatar Central Bank (QCB)
data published at the end of August 2012 shows that overall banking
sector assets in Qatar grew by 10.7% to QAR772.6 billion (US$212.2
billion) compared to the end of 2011, mainly driven by loan growth
of 18.5%.
Qatari banks are also eyeing regional expansion. QNB is leading
the way with plans to purchase the Egyptian assets of Société
Générale and raise its stake in Iraq's Mansour Bank to 51% from
23%. It has also announced the acquisition of a 49% stake in
Libya's Bank of Commerce and Development. The second largest
portfolio allocation, at 19.6%, is the Industrial sector, in
particular Industries Qatar. The weighting of the Transportation
sector declined slightly to 4.5% as at 1 November 2012 as compared
to 5.0% of NAV at the end of the second quarter. The weighting of
the Real Estate sector decreased to 7.5% as at 1 November 2012 from
8.2% at the end of the second quarter. The allocation to the
Insurance sector stood at 2.9%, slightly down from the last
quarter, while our position in the Telecom sector stood at 4.2% of
NAV as at 1 November 2012 as compared to 4.3% at the end of the
second quarter.
REGIONAL EQUITY MARKET OVERVIEW
GCC Quarterly Equity Market Performance
Qatar (DSM) 0.39% 4.59% 0.13% -7.60% 5.21%
----------------- -------- ------- ------- -------- ---------
Saudi (TASI) -7.05% 5.00% 22.09% -15.95% 3.27%*
----------------- -------- ------- ------- -------- ---------
Dubai (DFMGI) -5.62% -5.47% 21.83% -11.95% 11.55%
----------------- -------- ------- ------- -------- ---------
Abu Dhabi (ADI) -6.32% -5.18% 6.27% -4.13% 9.18%
----------------- -------- ------- ------- -------- ---------
Kuwait (KWSE) -6.09% -0.32% 6.03% -6.10% -0.38%
----------------- -------- ------- ------- -------- ---------
Oman (MSI) -5.31% 1.66% -0.09% 0.00% -0.02%**
----------------- -------- ------- ------- -------- ---------
Bahrain (BAX) -11.67% -1.89% 0.77% -2.23% -6.11%
----------------- -------- ------- ------- -------- ---------
* As at 3 November 2012 and ** As at 1 November 2012
Source: Bloomberg
The performance of most GCC markets improved during the 1 July -
31 October 2012 period, with the exceptions of Kuwait, Oman and
Bahrain, following a muted performance in the previous quarter. The
Qatar market was up 5.2% from June 2012 levels, while the Dubai
market reported the highest increase of 11.6% from June 2012
levels. In the past 12 months, the Dubai market has provided the
highest returns at 15.0%, followed by the Saudi market at 9.3%.
While GCC markets in general are not immune to global economic
events, a rise in oil prices supported the advance of the regional
equity markets. Additionally, the announcement of the European
Central Bank's bond-buying programme and the launching of the
Federal Reserve's third round of quantitative easing, further
supported the market rise.
During the 1 July - 31 October 2012 period, the QE index was up
5.2% from June 2012 levels, following positive performance across
all the sectors. The Consumer Goods and Services sector was the top
performer during the period with a gain of 15.3%, followed by the
Industrial sector, which gained 10.0%. The Transportation and
Telecommunication sectors advanced at a slower pace and posted a
gain of 2.8% and 1.9%, respectively.
Recent data published on the banking sector in Saudi shows
encouraging signs, with strong growth in loans and deposits.
Additionally, the real estate market in Dubai is on the path of
recovery driven by rising rental prices. However, the outlook for
the petrochemicals sector looks subdued, as demand from China is
subsiding amid economic slowdown.
The Investment Adviser believes that Qatar remains the most
attractive market in the GCC region. The long term growth story of
the Qatar market is intact, with the Qatar government investing
heavily in upgrading infrastructure, education, health and
transport facilities in the country.
H1 2012 Corporate Profitability
The corporate profitability of Qatari companies remained strong
during the first half of 2012. Of the 42 companies listed on the
Qatar Exchange, 40 registered profits while 2 reported losses.
During H1 2012, Qatari companies reported a combined net profit of
QAR18.4 billion (US$5.0 billion), representing a rise of 2.7%
year-on-year, while the Q2 year-on-year increase was 4.2%.
During H1 2012, while 27 companies reported earnings growth on a
year-on-year basis, 13 companies reported a decline in profits and
the remaining two companies incurred losses. The banking and
financial sector reported the strongest growth amongst all sectors.
Banking and financial sector net profits grew 11.0% year-on-year to
QAR8.3 billion (US$2.3 billion). The transportation sector reported
a modest 3.9% year-on-year increase in net profit to QAR0.9 billion
(US$0.2 billion).
Financial Performance of Market Sectors in H1 2012 (Net
Profit/Loss in (thousands) of US$)
Banking & Financial 2,061,650 2,288,165 11.0% 1,076,814 1,176,681 9.3%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Insurance 149,928 138,858 -7.4% 61,171 55,512 -9.3%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Industrial 1,529,042 1,524,575 -0.3% 784,625 804,452 2.5%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Services & Consumer
Goods 222,844 216,074 -3.0% 115,894 111,985 -3.4%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Real Estate 332,277 301,301 -9.3% 132,570 140,633 6.1%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Telecoms 387,416 338,833 -12.5% 164,770 143,458 -12.9%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Transportation 227,872 236,739 3.9% 100,606 105,303 4.7%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Total 4,911,029 5,044,546 2.7% 2,436,448 2,538,025 4.2%
--------------------- ---------- ---------- ------- ---------- ---------- -------
Source: Qatar Exchange, QIC
Banking and Financial Sector
The performance of Qatari banks remained strong during the first
half of the year, largely driven by public sector loan growth for
the country's planned capital investments in infrastructure
projects. The listed universe of eight banks reported a growth of
10.8% on year-on-year basis, reaching QAR8.2 billion (US$2.29
billion) during H1 2012, compared to QAR7.4 billion (US$2.06
billion) reported during same period a year ago. The banking sector
accounted for 44.5% of the total profit of the market during the
first half of the year. The largest bank, Qatar National Bank
(QIF's largest holding), reported a 17.1% growth (on a year-on-year
basis) in net earnings to QAR4.1 billion (US$1.1 billion), during
H1 2012. Commercial Bank of Qatar's net income grew 6.4% on a
year-on-year basis to QAR1.0 billion (US$0.3 billion) during the
same period.
Industrial Sector
The industrial sector recorded a marginal decline in net profit
from QAR5.57 billion (US$1.53 billion) in H1 2011 to QAR5.55
billion (US$1.52 billion) in H1 2012. However, on a year-on-year
basis, the industrial sector reported a rise in net profit during
Q2 2012. The sector accounted for 30.2% of the total profit of the
market during the first half of the year, the second largest
following the banking and financial sector.
The marginal fall in net profit of the sector during H1 2012 can
be largely attributed to dismal performance by sector heavy
weights, such as Industries Qatar and Qatar Electricity and Water
Co. (QEW). During H1 2012, Industries Qatar (IQ), one of the
largest chemical producers in the GCC region, reported a 3.2% fall
in net profit, on a year-on-year basis, to QAR4.0 billion (US$1.1
billion), largely due to weak performance at the petrochemical and
steel divisions. QEW net earnings declined 4.5% on a year-on-year
basis to QAR0.6 billion (US$0.2 billion), largely due to extended
maintenance-related shutdowns at their RGPC and RLPC plants during
Q2 2012.
Insurance Sector
During H1 2012, net earnings of the insurance sector declined by
7.4% year-on-year to QAR0.51 billion (US$0.14 billion),
representing 2.8% of the market aggregate.
Of the five listed companies in the sector, two saw net earnings
decline, while the remaining three reported growth. The largest
insurance company by net profit in the sector, Qatar Insurance
Company (QIC), reported an 11.4% fall in net profit on a
year-on-year basis to QAR0.30 billion (US$0.08 billion). QIC
accounted for 59.9% of the insurance sector total profits.
Services and Consumer Goods Sector
During H1 2012, the services and consumer goods sector, which
accounted for 4.3% of the total market profits, reported an
aggregate 3.0% year-on-year decline in net profit to QAR0.79
billion (US$0.22 billion). Of the eight listed companies which
comprise the sector, two reported lower net earnings; five reported
a higher figure, while losses at Qatar German Co for Medical
Devices increased by contrast with last year.
The largest player by net profit in the sector, Qatar Fuel
Company, reported a 6.4% drop in net profit on a year-on-year basis
to QAR0.56 billion (US$0.15 billion), during H1 2012. Qatar Fuel
Company accounted for 71.3% of the sector's net profit, lower than
the 73.9% recorded in H1 2011.
Real Estate Sector
Net profit of the real estate sector plunged 9.3% on a
year-on-year basis to QAR1.10 billion (US$0.30 billion) during H1
2012. It contributed 6.0% of the total market net profits during H1
2012, lower than 6.8% contributed during H1 2011. The largest
contributor in the sector by net profit, Barwa Real Estate Co,
reported a 21.1% fall in net profit on year-on-year basis to
QAR0.59 billion (US$0.16 billion). Of the four listed companies in
the sector, three companies reported fall in net profit, while
Ezdan Real Estate Co reported a robust 91.0% increase in net profit
to QAR0.20 billion (US$0.05 billion) during H1 2012.
Telecom Sector
The telecom sector is made up of only two companies i.e.
Vodafone Qatar and Qatar Telecom. The telecom sector contributed
6.7% of the total net profit of the Qatar exchange listed companies
during H1 2012 but reported a 12.5% decline in year-on-year net
profit during the period to QAR1.23 billion (US$0.34 billion).
Qatar Telecom reported an 11.8% drop in net profit on
year-on-year basis to QAR1.4 billion (US$0.4 billion), largely due
to adverse foreign exchange movement in Indonesia and Algeria.
Vodafone Qatar's losses declined marginally during the period.
Transportation Sector
During H1 2012, the transportation sector reported a 3.9% growth
in net profit on year-on-year basis to QAR0.86 billion (US$0.24
billion), from QAR0.83 billion (US$0.23 billion) reported during
the same period last year. Of the three companies present in the
sector, two companies reported higher net profit, while one
reported a marginal decline in its earnings.
Qatar Navigation, the sector heavyweight, reported a 5.5% rise
in net profit on year-on-year basis to QAR0.44 billion (US$0.12
billion), during H1 2012. During the same period, Gulf Warehousing
Co's net profit increased 32.5% year-on-year to QAR40.5 million
(US$11.1 million). Qatar Gas Transport Co (Nakilat) reported a
marginal decline in net profit to QAR0.38 billion (US$0.10 billion)
during H1 2012.
MACROECONOMIC UPDATE
GDP grew 11.9% year-on-year to QAR173.4 billion in Q2 2012
According to the Qatar Statistics Authority (QSA), Qatar's
nominal GDP is estimated to have grown 11.9% year-on-year to
QAR173.4 billion in Q2 2012. In real terms, GDP is estimated to
have risen 5.0% year-on-year in Q2 2012 to QAR84.9 billion,
slightly lower than the (recently revised upwards) 7.9%
year-on-year growth in Q1 2012.
Real growth in the hydrocarbon sector declined to 0.8%
year-on-year in Q2 2012, from 4.6% year-on-year in Q1 2012. The
non-hydrocarbon sector growth has moderated to 8.5% on a
year-on-year basis in Q2 2012, from 10.8% in Q1 2012. Growth in the
government services sector sharply decelerated from 13.9%
year-on-year in Q1 2012, to a mere 1.6% year-on-year in Q2 2012.
Manufacturing sector growth deteriorated to 8.0% year-on-year in Q2
2012, from 14.6% year-on-year growth reported in the previous
quarter. However, sluggish growth in manufacturing and the
government services sector was partially offset by continuing
recovery in the construction sector. The building and construction
sector registered a growth of 10.0% year-on-year in Q2 (6.1% in
Q1), largely due to government spending plans to upgrade
infrastructure. This has also provided an impetus to the growth in
the transport and utility sectors, which grew 18.0% and 10.3%
year-on-year, respectively.
Going forward, the IMF expects Qatar's real GDP growth to slow
to 6.0% in 2012 and further to 4.6% in 2013. The growth outlook in
the near and long term is largely dependent on the government's
spending plans to boost non-hydrocarbon sector growth.
Additionally, the Investment Adviser believes that growth prospects
in the near and long term are well supported by the Qatar's
expansionary budget of FY2012-13.
Population grew 8.4% year-on-year at the end of September
2012
Qatar's population continues to grow at a healthy pace, rising
by an 8.4% year-on-year to 1.84 million at the end of September
2012. As compared to the previous quarter, Qatar's population
expanded 7.1%. The rise in population is driving the consumption
growth in the country, which is likely to benefit the domestic
companies' profitability going forward.
Strong infrastructure pipeline
According to the Minister of Economy and Finance, Qatar's
spending on infrastructure is expected to reach US$150 billion
ahead of the 2022 FIFA World Cup, in line with the country's 2030
Vision. A slew of infrastructure projects are in the pipeline,
including a transport corridor project in Doha, investment in
roads, railways, new airport, stadiums, a deep-water seaport, tens
of thousands of hotel rooms, and even a new city.
Recently, Qatar Railways signed contracts worth US$407.2m with
several engineering companies as part of the initial stages of the
US$36bn rail system project. Three contracts, totalling around
US$313.1m were won by American firms Jacobs Engineering, Louis
Berger and Hill International and France's Egis Rail, while the
fourth contract valued at US$79.1m for preparation work was awarded
to a division of Qatar's HBK Contracting Co. A further US$15m
contract was awarded to Britain's Lloyd's Register for safety
assessment.
Qatar Railways noted that a tender for a logistics coordinator
has been issued, while contracts for tunnelling work for 49 km of
twin tunnels are to be awarded in Q1 2013. The new rail system is
expected to be operational by the end of 2019.
Longer term prospects in Qatar continue to remain positive, and
the Investment Adviser believes that preparations for the FIFA
World Cup 2022, and upgrading of related infrastructure, will lead
to sustained construction spending in Qatar for many years to
come.
Changes to QE Index Constituents and Weightings
Following the recent semi-annual review of QE Index
constituents, the Qatar Exchange announced that from 1 October
2012, Al Meera and Qatar Insurance will not be a part of the QE
Index and they will be replaced by The Investors and Mazaya. Also,
after the scheduled review of the QE All Share Index, Al Ahli Bank
has been added.
The Qatar Exchange caps the maximum weight a single stock can
hold at 15% in the QE Index. Based on 16 September 2012 closing
prices, Qatar National Bank (20.5% weight) and Industries Qatar
(16.8% weight) each had higher than 15% individual weight in the QE
Index. During the semi-annual review, their weights have been
capped at 15% and excess weights have been distributed
proportionately among the remaining QE Index constituents.
Valuations
During the past 12 months, the performance of the Qatar market
(-0.6%) has been subdued relative to peers such as Saudi (+9.3%)
and Dubai (+15.0%). However, the Investment Adviser believes that
the underperformance during the past 12 months has resulted in
attractive valuations for the Qatar market, underpinned by sound
fundamentals of the Qatar economy, combined with domestic political
stability, a robust fiscal position and relatively little exposure
to troubled European economies.
Qatar 10.9 9.8 9.2 2.1 6.9 30.3 4.4 4.0 11.8
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Saudi
Arabia 12.9 10.9 10.8 2.2 8.4 18.2 4.1 10.2 17.2
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
UAE 12.8 13.0 10.8 1.2 5.1 11.1 3.3 10.3 23.4
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Kuwait 13.5 11.1 10.1 1.9 5.0 15.1 4.3 13.0 17.9
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Abu Dhabi 9.5 8.7 8.0 1.4 2.9 16.5 4.7 2.6 9.0
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Dubai 16.1 17.4 13.6 1.0 7.4 5.8 1.9 18.1 37.9
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Oman 8.5 9.1 8.5 1.5 2.6 23.7 5.7 4.3 -3.3
----------- ----- ----- ----- ---- ---- ----- ---- ----- -----
Source: HSBC (as at close of 21 September 2012)
OUTLOOK
The outlook for the Qatari stock market remains positive,
underpinned by the government's intentions to spend US$150 billion
on infrastructure investments in the coming years, including a new
metro, airport, seaport and roads, as the country gears up for the
FIFA World Cup in 2022. This can be seen as an important catalyst
for investing in Qatar Exchange listed companies. The Investment
Adviser believes that the Qatar market has been overlooked by
investors in recent months, due to global economic and regional
political concerns. However, new financial reforms and attractive
valuations should underpin positive future performance.
The medium to long-term growth story of Qatar remains intact as
the large proportion of planned spending in the coming years is
expected to be utilised for infrastructure and public projects. The
Investment Adviser believes that with the massive infrastructure
building programme gathering pace in the near term, banks and
consumer driven companies will be the key beneficiaries.
OTHER
Share Options
On 1 August 2012, the Company announced that the 1,713,550
US$1.00 share options granted to professional advisors at the time
of the Company's admission to AIM expired unexercised on 31 July
2012.
Dividend
On 26 September 2012, QIF announced a final dividend of 3.0
cents per ordinary share in respect of the year ended 30 June 2012,
payable after the proposed tender offer. Shareholder approval was
obtained at the Company's annual general meeting on 14 November
2012, and the dividend will be paid on 30 January 2013 to ordinary
shareholders on the register as at 14 December 2012. The
corresponding ex-dividend date will be 12 December 2012.
Annual General Meeting
In accordance with the Company's Articles of Association, the
Board of Directors put a discontinuation vote to shareholders at
the Company's annual general meeting on 14 November 2012, proposing
that the Company cease to continue in existence. The resolution was
not passed and as such the discontinuation proposal was
rejected.
All other resolutions were approved by shareholders.
Extraordinary General Meeting
On 17 October 2012, the Company announced the terms of a tender
offer to purchase up to 20% of the Company's issued share capital,
together with subsequent tender offers in the fourth quarters of
2013 and 2014 (subject to shareholder approval) for up to 10 per
cent. of the Company's issued share capital at those times
(excluding treasury shares) in the event that the average discount
to net asset value per share for the subsequent twelve month period
has been greater than 10 per cent.
In addition, the Board sought authority for a revised investment
policy to allow investment in Saudi Arabian listed companies by way
of swaps and p-notes. The Board also sought authority to issue
shares from treasury on a non-pre-emptive basis at a price which
may represent a discount to the prevailing Net Asset Value per
Share.
The Board also entered into a revised investment management
agreement for a fixed one year period from1 November 2012 with the
Company's investment manager, with the same fee arrangement as the
existing investment management agreement.
At the Company's extraordinary general meeting on 14 November
2012, the resolutions to approve the tender offer and the revised
investment policy were passed, and the special resolution to
approve the reissue of shares out of treasury did not achieve a 75
per cent. majority and was therefore not passed.
Result of Tender Offer
A total of 41,552,272 shares were validly tendered under the
tender offer all of which will be repurchased by the Company and
cancelled; this equates to 18.7% of the Company's shares in issue
as at 17 October 2012 (excluding treasury shares), and 93.54 per
cent. of the shares available under the Tender Offer. Details of
the tender price are expected to be announced on 7 December
2012.
Warrants
Notice was sent to warrant holders of the final subscription
date falling on 16 November 2012. This is the final date for
exercise of subscription rights attached to the warrants. Following
16 November 2012, all rights attaching to the warrants shall
lapse.
Directorate Change
On 12 November 2012, the Directors announced the sudden death on
11 November 2012 of David von Simson, non-executive Chairman of the
Company. On 13 November 2012, the Board appointed Nick Wilson, the
senior independent director, as non-executive Chairman with
immediate effect. Mr Wilson has been a director of the Company
since its inception in July 2007.
For further information, please contact:
Nick Wilson
Qatar Investment Fund plc +44 (0) 1624 622 851
Ian Dungate/Suzanne Jones +44 (0) 1624 692600
Galileo Fund Services Limited
Andrew Potts +44 (0) 20 7886 2500
Panmure Gordon
Joe Winkley/Neil Winward +44 (0) 20 7710 7600
Oriel Securities
William Clutterbuck/ Robbie Hynes +44 (0) 20 7379 5151
Maitland
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