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Chimera Capital LLC launches Shariah-compliant ETF tracking the S&P Saudi Arabia Shariah Index

Chimera Capital LLC, an Abu-Dhabi-based investment management firm and subsidiary of Chimera Investment LLC, has launched the Chimera S&P KSA Shariah Compliant Exchange Traded Fund (Bloomberg: CHSASHIN), a physical, in-kind, liquid and fully fungible ETF.

The Chimera S&P KSA Shariah ETF is the second shariah compliant sub-fund of the Chimera Umbrella Fund to track a S&P Dow Jones Indices Shariah compliant index.

The ETF has been designed to replicate the S&P Saudi Arabia Shariah Liquid Top 30 – 35/20 Capped Index (Bloomberg: SPSALCAP). The index is provided by S&P Dow Jones Indices and tracks the performance of the top 30 most liquid Shariah-compliant equities listed on the Saudi Exchange.

 

The firm writes that this will not only provide investors with greater exposure to the highly demanded ETF asset class but will also enable local and regional investors to capitalise on Saudi Arabia’s attractive economic fundamentals.

Chimera S&P KSA Shariah ETF is a distributing Share Class B which will be listed on the Abu Dhabi Securities Exchange (ADX) and distribute collected dividends to investors, when available.

Basar Shueb, Chairman of Chimera Capital, says: “The launch of this latest ETF builds on the success of the current ETFs which have exceeded the AED 300 million mark in less than 18 months, and is further testament to our efforts to expand and contribute to the UAE’s capital markets landscape.”

Saeed Hamad AlDhaheri, Chief Executive Officer of ADX, says: “Exchange-traded funds provide investors with an efficient way to diversify their portfolios and we are pleased to host another listing by Chimera Capital on the Abu Dhabi Securities Exchange. Over the course of 2021, we introduced a range of new products and services to cater to our investors’ needs, which has helped boost market activity and encourage more listings. We look forward to seeing the continued success of Chimera Capital and welcome more listings on the exchange.”

Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, says: “We are pleased to have launched our fifth ETF and the first to track non-UAE-listed equities. The fund will cater to the growing appetite for diversified investments among UAE and regional investors and provide them with an innovative tool to capitalize on the economic prospects of Saudi Arabia.”

The Chimera S&P UAE Shariah 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. Meanwhile, BNY Mellon will act as the ETF’s global custodian. Authorised Participants for the fund are International Securities, EFG-Hermes, Daman Securities, BHM Capital, and Arqaam Securities.

Marius Baumann, Global Head of Custom Indices at S&P Dow Jones Indices, says: “S&P Dow Jones Indices is pleased to work with Chimera Capital LLC on the launch of their fund tracking the S&P Saudi Arabia Shariah Liquid Top 30 35/20 Capped Index. Through our innovative global indices, we are able to provide essential market insights to customers such as Chimera as they develop index-based solutions for their end clients.”

Anthony Habis, Head of Middle East and Africa at BNY Mellon, says: “We are delighted to be selected as global custodian for the innovative Chimera S&P KSA Shariah ETF, which allows BNY Mellon to increase support for the KSA’s growing and dynamic financial marketplace. With ETFs achieving record investor interest throughout the region, our ongoing collaboration with Chimera Capital Limited will bring its products to market through BNY Mellon’s robust ETF platform.”

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