QNB launches capital-protected investment scheme ‘Note 2’

“QNB Note 2 is an ideal medium term investment product for investors seeking an enhanced return, with 100% capital protection and broad risk diversification”QNB has launched Note 2 (Qatar Opportunities), a capital-protected fund as the country encourages long-term savings and investments.QNB Note 2 is a 100% capital-protected instrument with investment returns linked to the performance of a basket of eight international (European and the US) company stocks, which are listed on the equity markets of their respective countries of origin.Available to investors through all QNB branches in Qatar, the subscription for Note 2 commenced yesterday and will run until March 5, 2014.It is a closed three-year investment fund, which is available both to Qatari and non-Qatari investors, living in Qatar or overseas.QNB Note 2 is an ideal medium-term investment product for investors seeking an enhanced return, with 100% capital protection and broad risk diversification, a QNB spokesman said.The eight international companies which form the investment basket have been selected on the basis of their existing close ties to Qatar, either due to their existing local presence or due to substantial business interests in the country. A further aim is to provide satisfactory geographical diversification.The eight international companies selected are Total (France-Energy), Vinci (France-Industrials), Siemens (Germany-Industrials), ArcelorMittal (Netherlands-Materials), Iberdrola (Spain-Utilities), Royal Dutch Shell (UK-Energy), ConocoPhillips (US-Energy) and Halliburton (US-Energy).Performance will be measured on an annual basis and will be paid in the form of annual coupons, linked to the average performance of the basket of stocks. The annual performance of each individual stock is capped at 7%.As per the geographic distribution, fund would invest 25% of its corpus in the US and France each; while it would be 12.5% each in the case of Germany, Netherlands, Spain and the UK.The timing of the product’s launch as well as QNB’s selection of the underlying stocks provides an attractive and innovative opportunity to gain exposure to Qatar’s high rate of economic growth in the coming three years, the spokesman said.