Chimera Capital, an Abu-Dhabi-based investment management firm and subsidiary of Chimera Investment, has launched the Chimera S&P US Shariah Value Exchange Traded Fund (Bloomberg: CHUSSHINV) and the Chimera S&P US Shariah Growth Exchange Traded Fund (Bloomberg: CHUSSHG).
The firm writes that the two funds are physical, in-kind, liquid and fully fungible ETFs.
Basar Shueb, Chairman of Chimera Capital, says: “The launch of the two US Shariah-compliant ETFs adds to Chimera Capital’s suite of now eight ETFs that have exceeded AED420 million in AUM within two years. The latest two launches now provide investors with direct access to the biggest and most active stock market in the world, underlining Chimera’s commitment to playing an active role in deepening and expanding the UAE’s capital markets landscape.”
Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of Abu Dhabi Securities Exchange says: “The listing of Chimera Capital’s Shariah-compliant S&P US ETFs will provide investors on the ADX with new opportunities to diversify their holdings in an efficient and low-cost manner and has made our exchange home to the largest number of ETFs in the region. As part of our strategy to enhance market liquidity and attract more international investments, we will continue to encourage new listings and roll out products and services that meet the needs of market participants.”
The Chimera S&P US Shariah Value ETF is the fourth Shariah-compliant sub-fund under the SCA-registered Chimera Umbrella Fund. The ETF will track the performance of the S&P High Yield Dividend Aristocrats US Shariah Top 30 35/20 Capped Index (Custom) (Bloomberg: SPHYSCAP).
The index, which is provided by S&P Dow Jones Indices, is designed to measure the performance of thirty of the biggest and most liquid Shariah-compliant companies within the S&P Composite 1500 that have followed a managed-dividend policy of consistently increasing dividends every year for at least 20 years. The index includes blue chip stocks such as Johnson & Johnson, Procter & Gamble, and Exxon Mobil.
The Chimera S&P US Shariah Value ETF is an Income Share Class B which will be listed on the Abu Dhabi Securities Exchange (ADX). Any dividends collected by the fund will be distributed to investors, as available.
Meanwhile, the Chimera S&P US Shariah Growth ETF, the fifth sub-fund under the SCA-registered Chimera Umbrella Fund, will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index (Custom) (Bloomberg: SPSHXCAN). The index, which is also provided by S&P Dow Jones Indices, tracks the performance of 30 of the biggest and most liquid Shariah-compliant constituents of the S&P 500, the leading benchmark for the US equity market, including companies such as Apple, Tesla, and Amazon.
The Chimera S&P US Shariah Growth ETF is an Accumulating Share Class A listed on the ADX and will reinvest income back into the fund at no additional expenses to the unit holders.
The new Shariah-compliant ETFs will offer UAE investors direct access to US equity markets, further expanding Chimera’s product offering. The latest launches come on the back of two other ADX-listed, ETF listings earlier this year, the Chimera S&P KSA Shariah and Chimera S&P Kuwait Shariah ETFs.
Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, says: “We are pleased to be able to offer investors on the ADX direct access to the US market for the first time. The two US Shariah-compliant ETFs provide exposure to some of the biggest and most exciting US-based companies. Moreover, the ETFs offer investors two strategies to meet their investment preferences – the Growth ETF will include high growth companies and be dominated by the tech sector while the Value ETF will contain more mature companies that pay regular dividends.”
Both the Chimera S&P US Shariah Value ETF and the Chimera S&P US Shariah Growth 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, Authorised Participants for the funds are International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital.
Marius Baumann, Global Head of Custom Indices at S&P Dow Jones Indices, says: “S&P Dow Jones Indices is pleased to continue working with Chimera Capital LLC on the launch of their two new funds tracking the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index (Custom) and the S&P 500 U.S. Shariah Top 30 35/20 Capped Index (Custom). Through our innovative index solutions, we are able to empower our customers such as Chimera as they continue developing index-based solutions for their end clients.”
Anthony Habis, Head of Middle East and Africa, BNY Mellon, says: “With a 238-year legacy as America’s oldest bank, we look forward to expanding our collaboration with Chimera Capital by offering UAE investors direct access to U.S. equity markets via two new ETFs. As the global custodian for all of Chimera Capital’s Shariah-compliant ETFs, we continue to help deliver new and innovative products to investors in the Middle East’s dynamic marketplace and beyond.”