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Abu Dhabi’s Lunate Capital is introducing an exchange traded fund (ETF) tracking global sukuk as demand for stable investments soar, Lunate said in a press release. The Chimera JP Morgan Global Sukuk ETF is set to debut on the ADX on 8 July.
Details: The fund will track the performance of the JP Morgan Global Investment Grade Sukuk Index, which monitors around 70 liquid, USD-denominated sukuk instruments across several global markets. The ETF will include top-tier sovereign, quasi-sovereign, and corporate sukuk issuers.
SOUND SMART- Top tier sovereign debt issuers are highly rated sovereign issuers, while quasi-sovereign debt issuers are corporate entities guaranteed by the government, but not fully owned by the state, for example, state-owned enterprises, government agencies, and sovereign wealth funds.
Subscription period: Investors looking to subscribe to the fund can do so via six authorized participants or through the ADX eIPO investor portal starting June 24. The fund’s authorized participants include International Securities, EFG Hermes, Arqaam Securities, FAB Securities, Daman Securities, and BHM Capital.
This is Lunate’s second ETF of the year and the 16th to hit stock markets in the UAE, according to the statement. Lunate and JP Morgan Chase launched the UAE’s first bond ETF in March covering investment-grade bonds worth USD 500 mn or more, it includes issuances from the likes of Mubadala Investment, the Abu Dhabi government, and First Abu Dhabi Bank.
What they said: “This ETF offers direct access to local, regional, and global fixed income markets, meeting increasing investor demand for stable investment opportunities. Its addition strengthens Abu Dhabi’s position as a hub for finance and investment and reflects the growing interest in ETFs as versatile investment tools,” ADX CEO Abdulla Salem Alnuaimi said.
