Chimera Capital, the Abu Dhabi-based investment firm, has expanded its range of UCITS ETFs with the launch of a Pakistan equities strategy.
The Chimera S&P Pakistan UCITS ETF (CHPKIN) is listed on the Abu Dhabi Securities Exchange with a total expense ratio (TER) of 1%.
CHPKIN tracks the S&P Pakistan BMI Liquid 35/20 Capped index, measuring the performance of the 15 most liquid stocks on the Pakistan Stock Exchange.
The index applies the 35/20 rule for UCITS, meaning a fund’s top holding must remain below 35% of the portfolio while no other security can exceed 20%.
It is market cap FMC weighted and is subject to a 33/19 weight capping scheme.
Constituents must be locally listed on the Pakistan Stock Exchange, have no more than 10 non-trading days over the previous quarter and have a six-month average daily volume of at least $200,000.
According to the methodology, the 12 largest stocks are automatically selected, with the constituents ranked in the top 18 selected until the target count of 15 is reached.
It is the second ETF launched on its Irish Collective Asset Management Vehicle (ICAV), of which FundRock Management Company is the appointed manager.
The other strategy on its Irish platform, the Chimera S&P UAE UCITS ETF (CHAE) has a TER of 1% and $35m assets under management (AUM).
The group houses 10 other ETFs which are domiciled outside of Ireland.
Syed Basar Shueb, chairman of Chimera Investment, said: “The launch of Chimera’s second Asian market ETF and twelfth overall demonstrates our ability to leverage our extensive market experience to roll out investment options covering a diverse selection of developed, emerging and frontier markets, further contributing to the deepening and expanding of the UAE capital markets.”
BNY Mellon Fund Services has been appointed administrator, registrar and transfer agent for the ETF.
The only other ETF tracking Pakistan equities domiciled in Europe is the £6m Xtrackers MSCI Pakistan Swap UCITS ETF (XBAK) with a TER of 0.85%.