Chimera Capital launches a Shariah-compliant ETF tracking the S&P Kuwait Shariah Index
Chimera Capital LLC, an Abu-Dhabi-based investment management firm and subsidiary of Chimera Investment LLC, has announced the launch of its Chimera S&P Kuwait Shariah Compliant ETF (Bloomberg: CHKWSHIN), a physical, in-kind, liquid and fully fungible ETF.
The Chimera S&P Kuwait Shariah ETF is the third Shariah-compliant sub-fund of the Chimera Umbrella Fund to track a S&P Dow Jones Indices Shariah-compliant index.
The fund will track the performance of the S&P Kuwait Shariah Liquid 35/20 Capped Index (Bloomberg: SPKSLCAP). The index is provided by S&P Dow Jones Indices and follows the performance of the top 15 most liquid Shariah-compliant equities listed on the Boursa Kuwait.
The ETF is designed to give investors a single access point to Kuwait’s equity markets, providing them with a unique tool to capitalise on the country’s attractive prospects. This is Chimera’s second fund to track non-UAE-listed equities and follows the launch of Chimera’s fifth ETF, the Chimera S&P KSA Shariah ETF, in January this year.
The Chimera S&P Kuwait Shariah ETF is an Income Share Class B which will be listed on the Abu Dhabi Securities Exchange (ADX). Any dividends collected by the fund will be distributed to investors, as available.
Basar Shueb, Chairman of Chimera Capital, says: “The launch of this ETF adds to Chimera’s suite of ETF products launched over the past 19 months, and illustrates the company’s asset management capabilities which have seen it continuously roll out innovative products and directly contribute to the growth of the UAE’s capital markets.”
Saeed Hamad Al Dhaheri, Managing Director and CEO of the Abu Dhabi Securities Exchange says: “The listing of the Chimera S&P Kuwait Shariah ETF reflects ADX’s efforts to promote cross-border investments and provide unique growth opportunities. As part of its growth strategy, ADX will continue to encourage and introduce diverse, liquid and cost-effective investment tools that help to mitigate risk and promote sustainable long-term growth.”
Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, adds: “This is the second fund launched in 2022 to track non-UAE-listed equities, and follows the successful launch and listing of the Chimera S&P KSA Shariah ETF on ADX in mid-January, which in its first week of trading already reached AED72 million in AUMs.”
The Chimera S&P Kuwait Shariah ETF will be managed by Chimera Capital’s onshore company, Chimera Capital LLC, which is licensed by the Securities and Commodities Authority (SCA) as an investment management company. BNY Mellon will act as the ETF’s global custodian. Meanwhile, Authorized Participants for the fund are International Securities, EFG-Hermes, Daman Securities, BHM Capital, and Arqaam Securities.
Marius Baumann, Global Head of Custom Indices at S&P Dow Jones Indices, says: “S&P Dow Jones Indices is pleased to continue working with Chimera Capital LLC on the launch of their new fund tracking the S&P Kuwait Shariah Liquid 35/20 Capped Index. Through our innovative index solutions, we are able to empower our customers such as Chimera as they continue developing index-based solutions for their end clients.”
Anthony Habis, Head of Middle East and Africa, BNY Mellon, adds: “We are delighted to further our collaboration with Chimera Capital as global custodian for the Chimera S&P Kuwait Shariah ETF, which will offer investors an access point to Kuwait’s dynamic market. Following the successful launch of the S&P KSA Shariah ETF in January 2022, for which BNY Mellon also serves as global custodian, we’re excited to continue to expand our footprint in the region, with Chimera Capital as a key ally.”