QNB’s commodity fund seeks to provide an innovative blend of enhanced opportunities for long-term growth with a satisfactory level of risk diversification.
QNB has launched a “Commodity Fund” as part of broad-basing its investment universe and offering growth potential to investors.
The fund, regulated by the Qatar Central Bank, will invest in a wide range of commodities, including precious metals, industrial metals, agricultural products and energy-related resources such as oil and gas.
Qatari and non-Qatari individuals, as well as corporate investors, could invest in this open-ended domestic currency-denominated mutual fund with monthly subscription and redemptions. The minimum investment is QR20,000.
The commodity fund seeks to provide an innovative blend of enhanced opportunities for long-term growth with a satisfactory level of risk diversification, a bank spokesman said. “Commodities offer an appealing and well-diversified form of alternative investment, in that they tend to respond differently to changing market conditions, when compared with more mainstream equity and fixed income markets,” the spokesman said, adding this fund-based investment offers the potential for capital appreciation, in alignment with similar potential growth in the value of individual commodity.
In general, commodity markets tend to benefit from the favourable supply/demand dynamics associated with population expansion, while production constraints as well as the impact of finite resources can hinder supply, further promoting capital appreciation, he added.