- Chimera JP Morgan UAE Bond UCITS ETF listed on the ADX gives investors access to more than 100 bonds of UAE companies
Abu Dhabi Securities Exchange (ADX), one of the fastest-growing exchanges in the world, announces the listing of the Chimera JP Morgan UAE Bond UCITS ETF, a groundbreaking achievement as the GCC's first bond UCITS ETF. This strategic addition to ADX's platform signifies the exchange's commitment to advancing the ETF market, offering retail and institutional investors unparalleled access to a diversified portfolio of over 100 UAE bonds across important and diverse sectors of the economy through a single investment vehicle.
A collaboration between the Abu Dhabi-based Lunate’s Chimera Capital Limited and the New York-based JP Morgan Chase & Co., the ETF tracks the J.P. Morgan MECI UAE Investment Grade Custom Index, which consists of liquid, USD-denominated bonds with a minimum of $500 million in outstanding face value, including investment-grade sovereign, semi-sovereign, and corporate securities, all while complying with UCITS standards for portfolio diversification.
This listing represents the 12th ETF on ADX, further expanding the exchange's ETF offerings and cementing its position as the most active and liquid ETF market in the MENA region.
In 2023, ADX experienced significant growth, with ETF trading volumes reaching 1 billion units, marking a 205% year-over-year increase. Additionally, the trading value in ADX 2023 surpassed AED 5.2 billion, reflecting a 160% year-over-year increase.
The subscription process for the ETF was facilitated through ADX's robust e-IPO investor portal, underscoring the Exchange’s dedication to streamlining the IPO subscription process.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said: "The listing of Lunate’s Chimera UAE Bond ETF marks a new milestone for bond trading in the GCC and globally. This ETF presents retail investors with a unique opportunity to access the fixed-income market, providing a diverse and valuable portfolio that helps mitigate risk and ensures returns.
The UAE bond ETF not only enhances investors’ access to new markets, it also expands their range of investment products.
As a leading market facilitator and global investment platform, ADX is always exploring innovative investment opportunities to meet the diverse needs of its investors, while enabling easy access and creating new opportunities for market connectivity.
Congratulations to Lunate Capital and JP Morgan for introducing this exciting investment vehicle to the market."
Sherif Salem, Partner & Head of Public Markets at Lunate, said: “We are delighted to have listed the Chimera JP Morgan UAE Bond UCITS ETF on ADX today, the first-ever UAE bond ETF in the UAE and GCC. This ETF will offer both local and global investors with cost-effective access to a portfolio of the UAE’s highly-rated sovereign and corporate bonds. The bond ETF is Lunate’s 14th equity ETF to be listed on UAE stock markets, reflecting our confidence in the UAE economy and the strength of its financial markets.”
Earlier in the year, ADX welcomed the listing of the Chimera S&P India Shariah ETF — the first of its kind in the region — offering investors direct access to one of the world's fastest-growing economies.
By expanding its offerings and broadening its market reach, ADX continues to evolve as a dynamic and inclusive exchange, fostering growth and providing investors with a range of options to build diversified, cost-effective portfolios.
