Chimera Capital launches ETF tracking performance of liquid UAE listed stocks on ADX
Chimera Capital Limited, a limited liability company incorporated and licensed in the Abu Dhabi Global Market (ADGM), the International Financial Centre in the UAE capital, and regulated by the ADGM Financial Services Regulatory Authority, has launched the Chimera S&P UAE UCITS ETF, a liquid, fully fungible, fully tradable, and transparent exchange-traded fund (ETF).
The fund has been designed to track the performance of the S&P UAE BMI Liquid 20/35 Capped Index (Bloomberg: SPUAECAP), an index provided by S&P Dow Jones Indices which seeks to measure the performance of liquid UAE listed stocks. The index includes the largest stocks by capitalisation in the United Arab Emirates, providing exposure to the UAE economy.
The Chimera S&P UAE UCITS ETF is listing a distributing Class D on Abu Dhabi Securities Exchange (ADX), which will distribute to investors twice a year any collected dividends.
The ETF is a sub-fund of the Chimera UCITS ICAV, an open-ended Irish Collective Asset-management Vehicle (ICAV) umbrella fund with FundRock Management Company as its appointed manager. Both the sub-fund and ICAV are authorised and regulated by the Central Bank of Ireland.
The Investment Manager of the Chimera S&P UAE UCITS ETF will be Chimera Capital Limited, an ADGM-based company duly regulated by the FSRA, whose principal activities include managing collective investment funds and assets as well as advising on investments or credit. Bank of New York Mellon Fund Services (Ireland) Designated Activity Company has been appointed as the Administrator, Registrar and Transfer Agent of the ICAV. Meanwhile, the Bank of New York Mellon SA/NV Dublin branch will act as the depositary to the ICAV. Authorised Participants for the fund include International Securities LLC, EFG Hermes UAE LLC, BH Mubasher Financial Services PSC and Arqaam Securities LLC.
On this occasion, Syed Basar Shueb, the Chairman of Chimera Capital Limited says: “We are excited to bring this new UCITS-regulated product to market, which will give investors further access to the increasingly appealing UAE economy. This second Chimera ETF launch once again demonstrates our ability to leverage our multiple licenses under different fund regimes to roll out various investment options, in turn continuing to play an active role in deepening and developing the country’s asset management space.”
Saeed Hamad Al Dhaheri, Chief Executive of the ADX, says: “ADX is broadening its suite of products and services to provide global investors with high-quality access to the full breadth of opportunity in Abu Dhabi’s high-growth economy. The Chimera UCITS is the second ETF backed by Chimera Capital to be listed on the ADX and follows the gold standard of regulatory frameworks for funds and asset managers.”
Juma Al Hameli, Senior Executive Director, Strategy and Business Development at ADGM, says: “We congratulate Chimera Capital on the launch of the Chimera S&P UAE UCITS ETF. As an International Financial Centre, ADGM provides companies like Chimera Capital with an efficient, business-friendly operational platform complemented by a robust and progressive regulatory framework, to scale their businesses and become regional and global champions. The launch of innovative financial products falls directly in line with ADGM’s strategy to promote growth and diversification across Abu Dhabi’s financial sector and the wider economy, and helps to facilitate investor access to the UAE market.”
Seif Fikry, Chief Executive Officer (CEO) of Chimera Capital Limited, adds: “The ETF’s launch follows the introduction of our first ETF, the Chimera S&P UAE Shariah ETF, back in July, and which has surpassed AED50 million in AUM as of December 2020, to become the third largest equity ETF listed in MENA markets. As with Chimera’s first ETF, the new ETF provides investors with the added flexibility that comes from being able to choose between distributing and accumulating share classes, a feature which will make the fund attractive to different investor types.”
Anthony Habis, Head of Middle East and Africa at BNY Mellon, says: “It is an exciting time for the asset class, with the growth of the ETF industry at an all-time high in the region. We are honored that Chimera has chosen BNY Mellon to support its new Chimera S&P UAE UCITS ETF fund with our open architecture platform, ETF expertise and scale.”
Marius Baumann, Global Head of Custom Indices at S&P Dow Jones Indices, says: “We are pleased to support Chimera Capital Limited in the launch of the ETF tracking performance of liquid UAE listed stocks. Through S&P Dow Jones Indices’ innovative solutions, our clients are able to capture investment opportunities.”