UAE - Mubasher: Abu Dhabi-based Chimera Capital, an asset management firm and a subsidiary of Chimera Investments, has launched Chimera S&P UAE Shariah Exchange Traded Fund (ETF).
To be under the UAE's Securities and Commodities Authority’s (SCA) Fund Regime, the fund is the UAE's first exchange-traded fund tracking a Shariah-compliant index in conjunction with S&P Dow Jones indices, according to a press release on Tuesday.
The ETF will replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index, provided by S&P Dow Jones Indices to track the performance of UAE-based Shariah-compliant liquid equities.
The fund has two share classes, including an accumulating Class A, which will be listed on the Abu Dhabi Securities Exchange (ADX) and aims to reinvest income back into the fund at no additional expense.
To be listed on the Dubai Financial Market (DFM), the fund's Class B will pay out any collected dividends to investors.
The ETF will be run by Chimera’s company in the UAE, while HSBC Middle East and BNY Mellon’s London branch will act as local custodian and global custodian, respectively.
The Chairman of Chimera Capital commented: "The ETF will open up a new wholesale investment opportunity to a unique investor profile."
"The Chimera S&P UAE Shariah ETF allows investors to capitalize on the prospects of the UAE’s economy while staying true to the principles of Shariah," the chairman added.
