Lunate Capital Ltd, an Abu Dhabi-based global investment management firm, announced the launch of the Chimera S&P Japan UCITS ETF, a physical, in-kind, liquid, and fully fungible exchange-traded fund (ETF) that is scheduled to list on the Abu Dhabi Securities Exchange (ADX) on 29th May.

The Fund will track the performance of the S&P Japan BMI Liquid 35/20 Capped Index (AED) (Custom), which includes the top 30 most liquid Japanese stocks listed on the Tokyo Stock Exchange. Investors can subscribe through four Authorised Participants as well as through the ADX eIPO portal from 16th to 23rd May, 2024.

The Chimera S&P Japan UCITS ETF will provide investors with easy access to the world’s third-largest stock market and fourth-largest economy, enabling them to diversify their portfolios in the robust Tokyo Stock exchange. This diversified portfolio encompasses key players in Japan’s corporate landscape, including Toyota Motor, Sony, Mitsubishi, Honda, and Nintendo. It is designed to be accessible, particularly to retail investors who may otherwise face barriers to investing due to financial, infrastructure or regulatory constraints. It will be traded on the ADX in a mechanism similar to stocks, providing investors with the ability to buy and sell shares throughout the trading day at prevailing market prices.

Sherif Salem, Partner and Head of Public Markets at Lunate, commented, “We are pleased to announce the launch of Lunate’s third ETF this year, the 15th ETF on the UAE stock markets and the fourth to offer access to an Asian market. With just one account, investors can now create a diversified portfolio of equity and bond exposures across developed and emerging markets spanning nine countries representing the biggest and most liquid regional and global markets. This latest launch furthers our commitment to providing clients with customised solutions and products that can broaden their access to investment strategies and global markets.”

Abdulla Salem Alnuaimi, Chief Executive Officer at Abu Dhabi Securities Exchange, expressed his congratulations to Lunate Capital on the launch of the Chimera S&P Japan UCITS ETF as the 13th fund to be listed on ADX’s thriving ETF platform.

Alnuaimi added, “With 30 of the most liquid Japanese stocks included in this ETF, every investor will have the opportunity to gain invaluable exposure to one of the world’s largest stock markets and economies via ADX’s IPO platform and enjoy the benefits of a diversified investment option. This new fund is part of ADX’s ongoing efforts to offer investors access to key global markets and new opportunities to expand their investment portfolios.