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Lunate Capital Limited, the Abu Dhabi-based asset management firm, has partnered with JPMorgan Chase & Co. to build the first exchange-traded fund (ETF), tracking the performance of bonds in the UAE.
The Chimera JPMorgan UAE Bond UCITS ETF will list on the Abu Dhabi Stock Exchange (ADX) on March 26, according to Bloomberg, which first reported the news. With a total expense ratio (TER) of 0.50%, it will follow the JP Morgan MECI UAE Investment Grade Custom Index, which tracks dollar-denominated debt instruments from the UAE.
According to Bloomberg, the index includes investment-grade bond issuances with at least $500 million in face amount outstanding.
Dividends received by the ETF will be distributed in June and December, when available, Bloomberg further added, with the indicative yield to maturity of the index at 5.4% as of March 7.
The initial offering period is from March 14 to 20, with an offering price set at 3.67 UAE dirhams ($1), the report added.
Abu Dhabi investment firm Chimera Investment, of which Lunate Capital is a subsidiary, first shared details on the ETF over its social media on March 10, calling it the first of its kind to be launched in the UAE and the GCC.
(Writing by Bindu Rai, editing by Daniel Luiz)
