Abu Dhabi Securities Exchange (ADX)has broadened its offering of products and services further with the listing of Chimera S&P UAE UCITS ETF under the trading symbol (CHAEIN), a liquid, fully fungible, fully tradeable, and transparent exchange-traded fund (ETF), a sub-fund of the recently launchedChimera UCITS ICAV. The latest exchange-traded-fund(ETF) from Chimera Capital complements the Shariah- tracker version of the ETFlisted on ADX in July.
The latest ETF to be listed on ADXis a liquid, fully fungible, fully tradeable and transparent investment vehicle designed to track the performance of the S&P UAE BMI Liquid 20/35 Capped Index (Bloomberg: SPUAECAP), an index which measures the performance of liquid UAE listed stocks. The index includes the largest stocks by capitalization in the United Arab Emirates, providing broad exposure to the UAE economy.
The ETF’s launch follows the introduction back in July 2020 of Chimera’s first ETF, the Chimera S&P UAE Shariah ETF, which has now surpassed AED50 million in AUM to become the third-largest ETF listed in MENA markets.
H.E. Mohamed Ali Al Shorafa Al Hammadi, Chairman of Abu Dhabi Securities Exchange, said: “This listing further proves that ADX is one of the most competitive exchanges in the region, providing an exciting value proposition for issuers and some of the highest dividend yields in emerging markets for investors. Our strategy will deepen our market strength and draw in new sources of liquidity. Over the coming years, ADX will continue to leverage Abu Dhabi’s unique regulatory environment, infrastructure and stability to stimulate long-term growth across the Emirate and more than double the market capitalization over the next three years.”
Commenting on the listing of the new ETF, Mr. Saeed Hamad Al Dhaheri, Chief Executive of Abu Dhabi Securities Exchange said: “We are pleased to introduce the Chimera S&P UAE UCITS ETF to further diversify the breadth and depth of investment products offered on the exchange. Chimera’s second ETF on ADX comes amid our efforts to enhance market liquidity. Over the past year, we have broadened our products and services, allowing investors to hedge and execute complex trading strategies. We have also attracted several listings, both on our main market and the Second Market, a testament to the attractiveness of ADX as a listing destination. The ETF follows the gold standard of regulatory frameworks for funds and asset managers and will allow investors to tap Abu Dhabi’s high growth opportunities.”
On this occasion, Mr. Syed Basar Shueb, the Chairman of Chimera Capital Limited commented: “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.”
Seif Fikry, Chief Executive Officer (CEO) of Chimera Capital Limited added: “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.”
The Chimera S&P UAE UCITS ETF will be listing a distributing Class D on the ADX, which will distribute any collected dividends to investors. 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 S.A. as its appointed manager. Both the sub-fund and ICAV are authorized and regulated by the Central Bank of Ireland.
The Chimera S&P UAE UCITS ETF will be managed by Chimera Capital Limited, an ADGM 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.
