Home Alternative Investments Chimera Capital launches two US Shariah-compliant exchange traded funds

Chimera Capital launches two US Shariah-compliant exchange traded funds


  • Chimera’s new funds will offer investors direct access to the US stock markets

Abu Dhabi: Chimera Capital, an Abu-Dhabi-based investment management firm and subsidiary of Chimera Investment, announced today the launch of 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 two funds are physical, in-kind, liquid and fully fungible exchange-traded funds (ETF).

Basar Shueb, Chairman of Chimera Capital, commented: “The launch of the two US Shariah-compliant ETFs adds to Chimera Capital’s suite of now eight ETFs that have exceeded AED 420 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: “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 U.S. 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 thirty 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, added: “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, Authorized 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, commented: “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, added: “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.”

– Ends –

About Chimera Capital LLC

Chimera Capital LLC, an Abu Dhabi-based investment firm, offers its clients unique access to a vast roster of innovative investment instruments with a primary focus on the alternative asset management space. Chimera Capital LLC leverages its parent company’s extensive experience in private investments, an unrivalled regional access to best-in-class service providers and financial intermediaries, and a vast network of high-net-worth individuals, family offices and private investment companies to consistently deliver above-market returns. Chimera Capital LLC, owned by Chimera Investment LLC, is duly licensed and regulated by the UAE’s Securities & Commodities Authority (SCA), and fully adheres to international standards of corporate governance.

For further information, please contact:
Chimera Capital LLC
Marie Peguilhan
E: chimeracapital@kekstcnc.com

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.

For more information, please contact:
Abdulrahman Saleh ALKhateeb
Manager of Corporate Communication & Digital Marketing
Marketing & Corporate Communication Department
Email: ALKhateebA@adx.ae

About S&P Dow Jones Indices

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit https://www.spglobal.com/spdji/en/.

About BNY Mellon

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of March 31, 2022, BNY Mellon had $45.5 trillion in assets under custody and/or administration, and $2.3 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Rebecca Karabus
BNY Mellon
Senior Specialist | Marketing & Communications

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