Chimera Capital unveils ETF focused on Kuwait’s equity markets

The Sharia-compliant fund will be listed on the ADX and track the top 15 listed equities on Boursa Kuwait

The Sharia-compliant exchange-traded fund will track the performance of the S&P Kuwait Sharia Liquid 35/20 Capped Index. EPA

Chimera Capital, an Abu Dhabi asset management company and subsidiary of Chimera Investments, is introducing a Sharia-compliant exchange-traded fund that will give investors access to Kuwait’s equity markets.

The Chimera S&P Kuwait Sharia ETF will be listed on the Abu Dhabi Securities Exchange under the Income Share Class B category and will track the performance of the top 15 most liquid Sharia-compliant equities on the Boursa Kuwait, the company said on Monday.

“The listing of the Chimera S&P Kuwait Sharia ETF reflects ADX’s efforts to promote cross-border investments and provide unique growth opportunities,” said ADX managing director and chief executive Saeed Al Dhaheri.

“As part of its growth strategy, ADX will continue to encourage and introduce diverse, liquid and cost-effective investment tools that help to mitigate risk and promote sustainable long-term growth.”

Bourses in the GCC region are accelerating efforts to diversify their product offerings to attract more foreign direct investment and boost trading activity as their economies recover from coronavirus-induced headwinds.

Globally, massive inflows and stimulus-fuelled stock markets lifted the total invested in listed ETFs to $9.46 trillion, data provider ETFGI said in August last year. That is more than double the amount at the end of 2018 and more than triple the $3tn total hit in May 2015.

ETFs are a basket of securities consisting of stocks, bonds, commodities or other financial assets that track global markets. They are popular with retail investors because of their low-cost fees and easy access to a range of diverse assets.

The Chimera S&P Kuwait Sharia ETF will track the performance of the S&P Kuwait Sharia Liquid 35/20 Capped Index. The index is provided by S&P Dow Jones Indices.

“The launch of this ETF adds to Chimera’s suite of ETF products launched over the past 19 months and illustrates the company’s asset management capabilities, which have seen it continuously roll out innovative products and directly contribute to the growth of the UAE’s capital markets,” said Chimera Capital chairman Basar Shueb.

In August 2020, Chimera Capital launched the first ETF tracking a Sharia-compliant index through the UAE’s two main stock exchanges. The Chimera S&P UAE Sharia ETF has two different share classes that track a Sharia-compliant index compiled from stocks listed in Abu Dhabi and Dubai.

The company listed its Chimera S&P UAE Sharia ETF — Share Class A in Abu Dhabi and did a separate listing for the Share Class B category on the DFM. Last month, the company also listed the Chimera S&P KSA Sharia ETF on the ADX.

“This is the second fund launched in 2022 to track non-UAE-listed equities, and follows the successful launch and listing of the Chimera S&P KSA Sharia ETF on [the] ADX in mid-January, which in its first week of trading already reached Dh72 million in AUMs [assets under management].”

Chimera Capital is regulated by the Abu Dhabi Global Market and is a wholly owned subsidiary of Chimera Investment, an Abu Dhabi-based private investment company managing a diversified international portfolio of listed and private equities. It primarily focuses on the alternative asset management space.

Set up in 2007, Chimera is part of Abu Dhabi’s Royal Group, which is active in a number of sectors including property, construction, food and beverages, hospitality, aviation and health care. The group has more than 60 companies under its umbrella and employs 120,000 people.