The potential of frontier market growth, together with an attractive yield for a reasonable price, might sound like a tall order, as these markets - which are even less developed than emerging markets - are not associated with dividends. However, Qatar is an exception, certainly when accessed via the Qatar Investment Fund.
IC TIP:
Buy
at
$0.9
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
- Good performance
- Attractive yield
- Growth prospects
- Discount to NAV
Bear points
- High ongoing charge
This investment trust's net asset value (NAV) returns have outperformed its benchmark, the Qatar Exchange Index, over one, three and five years, and it yields 3 per cent, but still trades at a discount to NAV of more than 14 per cent. The trust introduced a progressive dividend policy in 2010 and a dividend of $0.03 has been declared, an 11 per cent increase over the previous year.