Abu Dhabi-based alternatives asset manager Lunate Capital has launched a fixed income ETF in the UAE.
The Chimera JP Morgan UAE Bond UCITS ETF will be listed on the Abu Dhabi Securities Exchange (ADX).
Lunate Capital, a subsidiary of Chimera Investment and backed by the sovereign wealth fund ADQ, has teamed up with JP Morgan for what will be its first ETF to be listed in the UAE.
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The ETF will track the JP Morgan MECI UAE Investment Grade Custom index which is made up of US dollar-denominated bonds from the UAE.
It will invest in investment grade sovereign, quasi-sovereign and corporate bond issues with at least US$500 million outstanding.
According to Sherif Salem, partner and head of pubic markets at Lunate, the ETF is the first UAE-focused fixed income product of its kind and will “bring accessibility and liquidity to investors, while maintaining our strong conviction in the growth and diversification of the UAE economy”.