Lunate Capital Limited, an Abu Dhabi-based investment management firm, has announced today the launch of the UAE and GCC’s first-ever UAE bond Exchange Traded Fund (ETF) in partnership with JPMorgan.
The Chimera JP Morgan UAE Bond UCITS ETF will list on the Abu Dhabi Securities Exchange (ADX) on March 26, the companies revealed in a press release.
The ETF will track the performance of the J.P. Morgan MECI UAE Investment Grade Custom Index, which includes liquid, USD-denominated bonds from the UAE. It will hold “investment-grade sovereign, quasi-sovereign and corporate bond issues with at least US$500 million in face amount outstanding, providing investors with a unique opportunity to invest in the UAE’s robust bond markets”, according to the release.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, stressed how the ETF launch “marks a significant milestone for ADX, as well as reinforces Abu Dhabi’s role as a leading international financial hub”.
“The new ETF will enable retail investors the platform to become more actively engaged in the UAE’s continuous growth and its flourishing economy,” he added.
“The Chimera JP Morgan UAE Bond UCITS ETF will bring accessibility and liquidity to investors, while maintaining our strong conviction in the growth and diversification of the UAE economy,” said Sherif Salem, Partner and Head of Public Markets at Lunate.
“The bond ETF will complement our suite of 13 equity ETFs currently listed on the UAE stock markets – offering investors access to some of the most liquid sovereign and corporate bonds of the country’s leading issuers.”
Lunate Capital is a subsidiary of Lunate Holding RSC Limited, licenced by the ADGM Financial Services Regulatory Authority (FSRA).
