Chimera Capital, an Abu-Dhabi-based asset management firm and a wholly owned subsidiary of Chimera Investment LLC, announces today that its Chimera S&P UAE Shariah Exchange Traded Fund (ETF) surpassed AED100 million (USD27.2 million) in assets under management (AUM) during July 2021.
The firm writes that this achievement, which came just before the ETF’s one year anniversary, demonstrates the growing interest from investors seeking to capitalise on the UAE economy’s strong prospects.
Syed Basar Shueb, Chairman of Chimera Capital, says: “The rapid growth is testament to the increasing investor appetite for innovative investment tools such as ETFs, and it is also a reflection of the product’s robust and highly regulated structure.”
Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, says: “Although the Gulf’s ETF landscape is at a nascent stage, we are highly optimistic about its growth potential in the region. At Chimera Capital we provide retail as well as institutional investors with simple, cost-effective and efficient investment tools and we are confident that the ETF market is poised for further growth.”
The Chimera S&P UAE Shariah ETF, which tracks the S&P UAE Domestic Shariah Liquid 35/20 Capped Index (Bloomberg: SPSHDAAN), had listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) back in July 2020 with AUM of AED 2 million. The fund, which recorded strong investor demand from the very start, had surpassed the AED 50 million AUM mark in just six months from its launch, and today stands as the MENA region’s third-largest equity ETF.
Investors have benefited from the ETF’s performance in its first year, with Net Asset Value (NAV) increasing by over 47.3 per cent as of the end of July 2021. This is in line with the index’s return of 49.3 per cent over the same time period (a tracking error of 1.0 per cent plus a total expense ratio 1.0 per cent). Moreover, the DFM-listed CHAESHIN distributed a dividend of AED 0.108 per share on June 23, implying a dividend yield of 2.0 per cent based on the pre-dividend price of AED 5.39 recorded on June 22, 2021. The fund intends to pay a dividend twice a year, in June and December, when available.
Today, ETFs globally hold over USD 9 trillion in AUM from more than 400 providers. On the other hand, there are 10 equity ETFs in the MENA region with approximately USD330 million in AUM. Having seen traction and AUM growth, Chimera Capital launched a new sub-fund, the Chimera S&P UAE UCITS ETF, in February 2021. Listed on both the ADX and DFM, Chimera Capital’s newest ETFs track the S&P UAE BMI Liquid 20/35 Capped Index (Bloomberg: SPUAECAN). Chimera now manages four out of 10 equity ETFs listed in the MENA region.
The Chimera ETFs are supported by S&P Dow Jones Indices, the index provider; BNY Mellon, which acts as global custodian; and International Securities, EFG-Hermes UAE, BH Mubasher and Arqaam Securities which are the funds’ authorised participants.
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