Abu Dhabi Securities Exchange (ADX), has welcomed the listing of the Chimera JP Morgan UAE Bond UCITS (Undertakings for Collective Investments in Transferable Securities) ETF (Exchange-Traded Fund) as the GCC's first bond UCITS ETF. This strategic addition to ADX's platform signifies the exchange's commitment to advancing the ETF market, offering retail and institutional investors access to a diversified portfolio of more than 100 UAE bonds across important and diverse sectors of the economy through a single investment vehicle.
A collaboration between the Abu Dhabi-based Lunate’s Chimera Capital Limited and the New York-based JP Morgan Chase & Co, the ETF tracks the JP Morgan MECI UAE Investment Grade Custom Index, which consists of liquid, USD-denominated bonds with a minimum of $500 million (AED1.8 billion) in in outstanding face value, including investment-grade sovereign, semi-sovereign, and corporate securities, all while complying with UCITS standards for portfolio diversification.
The listing represents the 12th ETF on ADX, further expanding the exchange's ETF offerings and highlighting it as the most active and liquid ETF market in the MENA region.
In 2023, ADX experienced significant growth, with ETF trading volumes reaching 1 billion units, marking a 205 per cent year-on-year (YOY) increase. Additionally, the trading value in ADX 2023 surpassed AED5.2 billion, reflecting a 160 per cent year-on-year increase.
The subscription process for the ETF was facilitated through ADX's robust e-IPO investor portal, underscoring the Exchange’s dedication to streamlining the IPO subscription process.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said: "The listing of Lunate’s Chimera UAE Bond ETF marks a new milestone for bond trading in the GCC and globally. This ETF presents retail investors with a unique opportunity to access the fixed-income market, providing a diverse and valuable portfolio that helps mitigate risk and ensures returns.
"As a leading market enabler and global investment platform, ADX is constantly exploring new innovative investment opportunities to cater to the evolving needs of its investors, while facilitating the ease of access, and unlocking new horizons for greater market connectivity.
"The UAE bond ETF not only expands the investors’ access to new markets, it also adds to their range of investment products.
"Congratulations again to Lunate Capital and JP Morgan for introducing this exciting investment vehicle to the market."
Sherif Salem, Partner and Head of Public Markets at Lunate, said: "We are delighted to have listed the Chimera JP Morgan UAE Bond UCITS ETF on ADX, the first-ever UAE bond ETF in the UAE and GCC. This ETF will offer both local and global investors with cost-effective access to a portfolio of the UAE’s highly-rated sovereign and corporate bonds. The bond ETF is Lunate’s 14th equity ETF to be listed on UAE stock markets, reflecting our confidence in the UAE economy and the strength of its financial markets."
Earlier in the year, ADX welcomed the listing of the Chimera S&P India Shariah ETF – the first of its kind in the region – offering investors direct access to one of the world's fastest-growing economies.
By expanding its offerings and broadening its market reach, ADX continues to evolve as a dynamic and inclusive exchange, fostering growth and providing investors with a range of options to build diversified, cost-effective portfolios.
