Bringing you live news and features since 2006 

Hedge fund index

National Bank of Abu Dhabi names Northern Trust as administrator for ETF

RELATED TOPICS​

Northern Trust has acted as administrator and custodian for National Bank of Abu Dhabi as it made a series of enhancements to the region’s first exchange-traded fund, including moving from swap based replication to physical replication.



The ETF, which also shifted from index provider Dow Jones UAE 25 Total Return Index (Local) to the MSCI UAE IMI 10/40, is now named NBAD OneShare MSCI UAE ETF and is the first physically replicated fund in the Emirate.

“We have enhanced our ETF following consultations with a number of international authorised participants and in response to a strong demand for physical replication,” says Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group. “We believe physical replication will increase scalability and remove restrictive collateral requirements and are pleased to work with Northern Trust who, through their depth of expertise and experience in ETF administration could support our sophisticated administrative requirements, enabling us to continue to provide the best in class investment product to our investors.”

ETFs mimic the returns of a benchmark index. Physical replication occurs when the ETF manager purchases the underlying assets of the index. It differs from synthetic or swap based replication where the ETF manager enters a swap contract with a third party that agrees to pay the index return in exchange for a small fee and any returns on collateral held in the ETF portfolio.

“The dynamics of ETFs are different from other fund types,” says Liam Butler, head of ETF fund administration, Europe Middle East and Africa at Northern Trust. “We can offer a variety of ETF administration solutions to support our client’s unique requirements for transparency and reporting, and are delighted to continue to work with National Bank of Abu Dhabi supporting the enhancements to this landmark ETF.”

Northern Trust has been working with National Bank of Abu Dhabi since the launch of its ETF, the NBAD One Share Dow Jones UAE 25 ETF (1UAE), in 2010.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by