Abu Dhabi, 16 May, 2024 – Lunate Capital Ltd, an Abu Dhabi-based global investment management firm announced the launch of the Chimera S&P Japan UCITS ETF (Bloomberg: JPANI), a physical, in-kind, liquid, and fully fungible exchange traded fund (“ETF” or the “Fund”) that is scheduled to list on the Abu Dhabi Securities Exchange (“ADX”) on 29 May.

The Fund will track the performance of the S&P Japan BMI Liquid 35/20 Capped Index (AED) (Custom), which includes the top 30 most liquid Japanese stocks listed on the Tokyo Stock Exchange. Investors can subscribe through four Authorized Participants as well as through the ADX eIPO portal from 16 to 23 May, 2024. 

The Chimera S&P Japan UCITS ETF will provide investors with easy access to the world’s third largest stock market and fourth largest economy, enabling them to diversify their portfolios in the robust Tokyo Stock exchange. This diversified portfolio encompasses key players in Japan's corporate landscape, including Toyota Motor, Sony, Mitsubishi,  Honda, and Nintendo. It is designed to be accessible, particularly to retail investors who may otherwise face barriers to investing due to financial, infrastructure or regulatory constraints. It will be traded on the ADX in a mechanism similar to stocks, providing investors with the ability to buy and sell shares throughout the trading day at prevailing market prices.

Sherif Salem, Partner & Head of Public Markets at Lunate, commented: “We are pleased to announce the launch of Lunate’s third ETF this year, the 15^th ETF on the UAE stock markets and the fourth to offer access to an Asian market. With just one account, investors can now create a diversified portfolio of equity and bond exposures across developed and emerging markets spanning nine countries representing the biggest and most liquid regional and global markets. This latest launch furthers our commitment to providing clients with customized solutions and products that can broaden their access to investment strategies and global markets.”

Abdulla Salem Alnuaimi, Chief Executive Officer at Abu Dhabi Securities Exchange, expressed his congratulations to Lunate Capital on the launch of the Chimera S&P Japan UCITS ETF as the 13th fund to be listed on ADX’s thriving ETF platform.

Mr Alnuaimi added, “with 30 of the most liquid Japanese stocks included in this ETF, every investor will have the opportunity to gain invaluable exposure to one of the world's largest stock markets and economies via ADX’s IPO platform and enjoy the benefits of a diversified investment option.  This new fund is part of ADX’s ongoing efforts to offer investors access to key global markets and new opportunities to expand their investment portfolios.

The ETF market aligns with ADX's commitment in providing a dynamic and sustainable trading environment that supports the growth and development of Abu Dhabi’s capital market, while bolstering Abu Dhabi's plan to diversify its economy and attract more investors to its financial centre.”

Michael Mell, Global Head of Custom Indices at S&P Dow Jones Indices, said: “S&P Dow Jones Indices is pleased to have created this custom index solution and offer the S&P Japan BMI Liquid 35/20 Capped Index to Lunate Capital as the underlying benchmark for their new fund. The Japanese equities market has proven to be resilient, seeing a rally early this year and reinvigorated interest especially among international market participants who are seeking diversified exposures through indexing. S&P DJI is proud to offer independent benchmarks and tools that enable customers such as Lunate Capital and their own clients to reliably track market performance, generate insights and make informed decisions.”

Hani Kablawi, Head of International, BNY Mellon, said: “In collaboration with Lunate Capital, we are delighted to support the UAE and GCC’s fourth ETF to offer access to an Asian market as Administrator, Registrar, Transfer Agent, and Depositary. We are proud of our association with Lunate Capital, which has been visionary in launching innovative first-to-market products and in paving the way for Abu Dhabi to become a buyside hub in the region.”

The ETF is a sub-fund of the Chimera UCITS ICAV, an open-ended Irish Collective Asset-management Vehicle (ICAV) umbrella fund with FundRock Management Company S.A. as its appointed manager. Both the sub-fund and ICAV are authorized and regulated by the Central Bank of Ireland. The Investment Manager of the Chimera UAE Japan UCITS ETF will be Lunate Capital Limited, a company based in the Abu Dhabi Global Market (ADGM) and regulated by the ADGM Financial Services Regulatory Authority (FSRA). Bank of New York Mellon Fund Services (Ireland) Designated Activity Company has been appointed as the Administrator, Registrar and Transfer Agent of the ICAV, with the Bank of New York Mellon SA/NV Dublin branch acting as the Depositary to the ICAV. Authorized Participants (APs) for the ETF include EFG-Hermes, Arqaam Securities, International Securities, and BHM Capital.