New Listing

Lunate Capital to launch UAE bond UCITS ETF

Its third Irish-domiciled ETF

Theo Andrew

Bond ETFs

Abu Dhabi-based asset manager Lunate Capital is set to expand its range of ETFs with the launch of a United Arab Emirates fixed income ETF.

The Chimera JP Morgan UAE Bond UCITS ETF will list on the Abu Dhabi Securities Exchange on 26 March with a total expense ratio (TER) of 0.50%.

It tracks the JP Morgan MECI UAE Investment Grade Custom index comprised of US dollar-denominated bonds from the UAE.

The ETF will invest in investment grade sovereign, quasi-sovereign and corporate bonds with at least $500m outstanding.

According to the group, it is the first of its kind to be launched in the UAE and Gulf Cooperation Council (GCC) countries.

“The Chimera JP Morgan UAE Bond UCITS ETF provides global investors access to a diversified portfolio of UAE bonds with low investment requirements,” it said.

Lunate Capital is a subsidiary of Abu Dhabi investment firm Chimera Investment.

It is the third ETF to launch on its Irish Collective Asset Management Vehicle (ICAV) after the firm unveiled the Chimera S&P Pakistan UCITS ETF (CHPKIN) last August.

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 that are domiciled outside of Ireland.

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