Abu Dhabi’s Chimera Capital launches its 9th Shariah-compliant ETF on ADX

By Arya M Nair, Official Reporter
  • Follow author on
Representational Image

Chimera Capital, an Abu Dhabi-based investment management firm and a subsidiary of Chimera Investment, has launched the Chimera S&P Turkey Shariah ETF, a physical, in-kind, liquid and fully fungible exchange-traded fund (ETF), which will track the performance of Türkiye-listed, Shariah-compliant securities.

The Chimera S&P Turkey Shariah ETF, the sixth sub-fund under the SCA-registered Chimera Umbrella Fund, will track the performance of the S&P Turkey Shariah Liquid 35/20 Capped Index. The index is provided by S&P Dow Jones Indices and tracks the performance of the most liquid Shariah-complaint stocks listed on the Borsa Istanbul.

Mr. Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of ADX said that “We are delighted to welcome another ETF listing by Chimera Capital on the exchange as we work towards enhancing market liquidity and making ADX a regional hub for a broad array of the sector and geographically-focused ETFs. ADX continues to execute its strategy of introducing the widest array of products and services to provide investors with more flexibility and greater opportunities for hedging and diversification.”

Syed Basar Shueb
Syed Basar Shueb
Chimera Capital

“The launch of Chimera Capital’s ninth ETF further broadens the range and diversity of the company’s listed ETF products which give investors access to multiple stock markets, and contributes to the further deepening and expanding of the UAE capital markets.”

The Chimera S&P Turkey Shariah ETF is an Income Share Class B which will be listed on the Abu Dhabi Securities Exchange (ADX). Future dividends received by the fund will be distributed to investors, as available.

The latest ETF launch comes on the back of Chimera’s recent listing of two US Shariah-compliant ETFs in July, as well as two other ADX-listed ETF launches completed earlier this year, the Chimera S&P KSA Shariah ETF and Chimera S&P Kuwait Shariah ETF.

The 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 ETFs’ global custodian. Meanwhile, Authorized Participants for the fund are International Securities, EFG-Hermes, Arqaam Securities Daman Securities, and BHM Capital.

Related: Abu Dhabi’s ADX records its highest rise in market value in Q2 2022; AMF