Doha Bank Q P S C : With the Rise in Passive Investing – Let the ‘QETF’ be Your Qatar Investment Solution

With the Rise in Passive Investing - Let the 'QETF' be Your Qatar Investment Solution

As investor confidence returns and with the growing popularity of investor webinars, Doha Bank, as part of its webinar series, showcases the 'QETF', Qatar's first conventional exchange traded fund (ETF) and one of the GCC's largest ETFs. The bank has invited the Qatar Stock Exchange, Aventicum Capital Management Qatar (ACMQ) and Credit Suisse Asset Management Index Solutions to present to the investment community on passive investments, ETFs and the QETF. The webinar is scheduled to take place at 12:00pm on 24 September 2020 please refer to the bank and QETF websites to be able to register to participate in this investment webinar.

The QE Index ETF, or QETF, tracks the performance of the benchmark QE Price Index, which offers access to the 20 most highly capitalized and liquid companies in Qatar through a single listed product.

The QETF is a listed transparent, liquid and low-cost investment product that was launched in 2018 as part of the Qatar Exchange's initiative to provide local and international investors with an efficient way to gain exposure to the strongest and most liquid Qatari companies. 'The QETF was one of the largest single country ETFs in the Emerging Markets when it listed in 2018 and assets have continued to multiply on-exchange. The QETF now has the track record and the platform itself has reached maturity with liquidity measures continually evolving to ensure the tightest of pricing for the investor', stated Rashid Al Mansoori, Qatar Stock Exchange CEO.

'Clients are seeking more income, at a time of low rates and low returns with less risk as ETF assets under management just crossed $7trillion globally,' Doha Bank CEO Dr. R. Seetharaman said in a statement. The Index currently offers a dividend yield of almost 4%, which the Fund distributes annually. The QETF paid out dividends in each of its first two years of operations as well as this year, where the QETF paid out dividends in two installments. This was the first time any listed company or investment fund had multiple payouts since the inception of the Qatar Exchange.

Its expense ratio of 50 bps is amongst the lowest for similar ETFs in emerging markets. The current total assets under management sit at QR 392.3 million (USD 107.7 million) as on close 22 September 2020.

Performance	Fund Vs Index		Total Return2
	QETF	QE Index	QETF	QE Index
6 Months	10.43%	14.58%	15.44%	15.75%
YTD (22/09/2020)	-5.85%	-5.60%	-1.59%	-1.38%
2019	0.72%	1.23%	4.94%	5.72%
20181	13.41%	14.59%	18.70%	19.58%
Since Inception1	7.53%	9.50%	22.59%	24.68%

1. QETF and Index performance measured from 12/02/2018
2. Price appreciation and dividends

Risks

Returns: The value of an investment in the QETF may go down as well as up and an Investor may also lose all or a part of its investment. Past performance of Units is not a reliable indicator of future performance.

Tracking Error: is the divergence between the performance of the Index and the performance of the QETF. Tracking Error, may occur because of, among other things, differences between the securities (or the weights of the securities) held in the QETF's portfolio and those included in the Index, differences in prices paid for the securities in the Fund's portfolio and the prices of the securities in the Index, the QETF's holding cash and changes in the Index.

Passive Investment Risk: The QETF is managed with a passive investment strategy. As a result, the QETF is expected to hold the constituent securities of the Index regardless of the current or projected performance of a specific security or a particular industry or market sector in the Index.

About the fund manager

The QETF is managed by Aventicum Capital Management (Qatar) LLC, one of four independently run asset management businesses that forms Aventicum Capital Management, a global, multi-boutique asset management joint venture between Credit Suisse and Qatar Investment Authority (QIA). It combines entrepreneurial investment management with the institutional strength and governance of Credit Suisse and the long-term capital support of QIA. Aventicum Capital Management (Qatar) is authorised by the Qatar Financial Centre Regulatory Authority license number 00173.

For further information please visitwww.qetf.com.qa and www.dohabank.com