Chimera Capital, the Abu Dhabi-based asset manager, has launched what it claims is the first ETF in the UAE to track a shariah-compliant index.
The Chimera S&P UAE Shariah ETF is a sub-fund of the Chimera Umbrella Fund, which was launched under the UAE’s Securities and Commodities Authority’s Fund Regime.
The ETF has been designed to replicate the S&P UAE Domestic Shariah Liquid 35/20 Capped Index which tracks the performance of UAE-based shariah-compliant equities.
Class A shares will be listed on the Abu Dhabi Exchange with gains reinvested into the fund while class B shares will be listed on the Dubai Financial Market with dividends distributed to investors.
BNY Mellon has been given the global custody mandate for the fund while HSBC has been appointed as the local sub-custodian. The US bank opened an Abu Dhabi office in December 2019 in a bid to grow its presence in the Mena market.
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