Lunate Capital, a prominent global alternative investment manager based in Abu Dhabi, has successfully listed its 16th exchange-traded fund (ETF) on the Abu Dhabi Securities Exchange (ADX). This milestone not only expands the firm’s portfolio but also marks the introduction of the UAE’s first bond-focused ETF, setting a new precedent in the region’s financial markets.
The newly launched ETF, Chimera JP Morgan UAE Bond UCITS, offers global investors a diversified portfolio of investment-grade, USD-denominated bonds from the UAE. It includes sovereign, quasi-sovereign, and corporate bonds, each with a minimum of $500 million in face amount outstanding. This ETF is designed to make the UAE bond market more accessible to a wider range of investors, enhancing liquidity and investment opportunities (Lunate) (Trade Arabia).
Sherif Salem, Partner and Head of Public Markets at Lunate, emphasized the strategic significance of this launch. “Our focus at Lunate is to provide our clients with customized solutions and products that can broaden their access to financial strategies and markets. 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 Salem (Lunate) (Trade Arabia).
Abdulla Salem Alnuaimi, Chief Executive Officer at ADX, highlighted the ETF’s role in reinforcing Abu Dhabi’s status as a leading international financial hub. “This new addition marks a significant milestone for ADX and underscores Abu Dhabi’s role in facilitating new investment opportunities. Lunate’s Chimera UAE Bond ETF provides investors with an exceptional opportunity to enter the fixed-income market, granting exposure to a diversified portfolio,” stated Alnuaimi (Lunate) (Trade Arabia).
The introduction of the Chimera JP Morgan UAE Bond UCITS ETF aligns with Abu Dhabi’s broader economic diversification strategy. By offering more accessible and diversified investment options, this initiative aims to attract international investors and foster a dynamic trading environment. The ETF is fully compliant with UCITS regulations, ensuring robust risk management and making it a cost-effective investment option with a total expense ratio of 0.5% plus brokerage fees (Finance World) (Trade Arabia).
As Lunate Capital continues to innovate and expand its suite of investment products, the launch of the Chimera JP Morgan UAE Bond UCITS ETF is poised to significantly impact the investment landscape in the UAE and the broader GCC region. This development not only enhances market liquidity but also supports the ongoing efforts to make the UAE a more attractive destination for international investors (Lunate) (Trade Arabia).
