- The ETF, which will be listed on the Abu Dhabi Securities Exchange (ADX), will distribute dividends received twice a year, when available
Abu Dhabi: Chimera Capital LLC, an Abu-Dhabi-based investment management firm, announced the launch of the Chimera S&P China HK Shariah Exchange Traded Fund (Bloomberg: CHHKSHIN). The fund is a physical, in-kind, liquid, and fully fungible exchange-traded fund (ETF) that will track the performance of Shariah-compliant Chinese equities listed on the Hong Kong Stock Exchange (HKEX). The initial offering period will commence on 29 May 2023 and end on 2 June 2023.
The Chimera S&P China HK Shariah ETF, the eighth sub-fund under the SCA-registered Chimera Umbrella Fund, will replicate the performance of the S&P China Hong Kong-Listed Shariah Liquid 35/20 Capped Index (AED) (Custom) (Bloomberg: SPCHSCAP). The index is provided by S&P Dow Jones Indices and the objective is to target 30 Shariah-compliant constituents listed on the Hong Kong Stock Exchange (HKEX).
Syed Basar Shueb, Chairman of Chimera Investment, commented: “The launch of Chimera’s eleventh ETF provides investors on ADX access to one of the world’s biggest and Asia’s fastest growing markets. The suite of ETFs listed in the UAE now provides investors with access to six countries around the world, underlining Chimera’s continued commitment to playing a frontline role in deepening and expanding the UAE’s capital markets landscape.”
Abdulla Salem Al Nuaimi, Chief Executive Officer of Abu Dhabi Securities Exchange said: “The introduction of the Chimera S&P China HK Shariah Exchange Traded Fund strengthens the Exchange’s position as a leading hub for ETFs in the region. The rapid growth of ADX’s ETF platform reinforces our commitment to keep providing all ADX investors, particularly retail, with more products aiming to diversify their portfolio and hedge their investment, while also deliver enhanced market liquidity and world-class trading and investment strategies across a diversified set of investment vehicles.”
The Chimera S&P China HK Shariah ETF is an Income Share Class B which is planned for listing on the Abu Dhabi Securities Exchange (ADX) on 5 June 2023. Future dividends received by the fund will be distributed to investors twice a year, when available.
Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, added: “The Chimera S&P China HK Shariah ETF is our first launch in 2023, the eighth Shariah-compliant ETF in our portfolio, and the first to give investors on the ADX access to one of the most vibrant Asian stock markets. The fund’s holdings include industry leaders such as Alibaba Group Holding, one of the world's largest e-commerce companies, BYD Company, one of the largest electric car manufacturers, and Tencent Holdings, one of the world’s largest video gaming companies.”
The ETF will be managed by Chimera Capital’s onshore company, Chimera Capital LLC, which is licensed by the Securities and Commodities Authority (SCA) as an investment management company. BNY Mellon will act as the ETFs’ global custodian. Meanwhile, Authorized Participants (AP) for the fund are International Securities, EFG-Hermes, Arqaam Securities, Daman Securities, and BHM Capital.
Marius Baumann, Global Head of Custom Indices at S&P Dow Jones Indices, commented: “S&P Dow Jones Indices is pleased to continue working with Chimera Capital LLC on the launch of their new fund tracking the S&P China Hong Kong-Listed Shariah Liquid 35/20 Capped Index (AED) (Custom). The index offers the opportunity to access, gain exposure and insights on the performance of Shariah-compliant Chinese companies listed on the Hong Kong Stock Exchange.”
Hani Kablawi, Chair of International, BNY Mellon, added: “This latest ETF offering provides further opportunity for investors to access this fast-growing market. As the global custodian for all of Chimera Capital’s ETFs, we continue to support Chimera’s funds with our open architecture platform, ETF expertise and scale.”
About Chimera Capital LLC
Chimera Capital LLC, an Abu Dhabi-based asset management firm, offers its clients access to a unique portfolio of Exchange Traded Funds (ETFs) covering a wide range of fast-growing regional and international markets. Chimera Capital’s established track record and curated investment strategy, along with its team’s extensive experience in financial markets enable the Company to effectively manage its portfolio and deliver sustainable returns to investors. Chimera Capital LLC is duly licensed and regulated by the UAE’s Securities & Commodities Authority (SCA).
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Chimera Capital LLC
About Abu Dhabi Securities Exchange (ADX)
Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions. On 17th March 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company PJSC” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA).
ADX is the second largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of incomes is aligned with the guiding principles of the UAE “Towards the next 50” agenda. The national plan charts out the UAE’s strategic development scheme which aims to build a sustainable, diversified and high-value added economy that positively contributes to transition to a new global sustainable development paradigm.
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Abdulrahman Saleh ALKhateeb
Manager of Corporate Communication & Digital Marketing
Marketing & Corporate Communication Department
About BNY Mellon
Established in 1784, BNY Mellon is America's oldest bank and the first company listed on the New York Stock Exchange (NYSE: BK). Today, BNY Mellon powers capital markets around the world through comprehensive solutions that help clients manage and service their financial assets throughout the investment life cycle. BNY Mellon had $46.6 trillion in assets under custody and/or administration and $1.9 trillion in assets under management as of March 31, 2023. BNY Mellon has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available on www.bnymellon.com. Follow us on LinkedIn or visit our Newsroom for the latest company news.
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Head of External Communications, EMEA
S&P China Hong Kong-Listed Shariah Liquid 35/20 Capped Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Chimera Capital LLC. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Chimera Capital LLC. The Chimera S&P China HK Shariah Exchange Traded Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P China Hong Kong-Listed Shariah Liquid 35/20 Capped Index.