Chimera Capital launches Shariah-compliant exchange traded fund (ETF) tracking Turkey-listed equities

Chimera Capital, an Abu-Dhabi-based investment management firm and subsidiary of Chimera Investment, announced today the launch of the Chimera S&P Turkey Shariah ETF (Bloomberg: CHTRSHIN). The fund is a physical, in-kind, liquid and fully fungible exchange-traded fund (ETF), and will track the performance of Turkey-listed, Shariah-compliant securities.

The Chimera S&P Turkey Shariah ETF, the sixth sub-fund under the SCA-registered Chimera Umbrella Fund, will track the performance of the S&P Turkey Shariah Liquid 35/20 Capped Index (Bloomberg: SPTSLCAP). The index is provided by S&P Dow Jones Indices and tracks the performance of the most liquid Shariah-complaint stocks listed on the Borsa Istanbul.

Syed Basar Shueb, Chairman of Chimera Capital, commented: “The launch of Chimera Capital’s ninth ETF further broadens the range and diversity of the company’s listed ETF products which give investors access to multiple stock markets, and contributes to the further deepening and expanding of the UAE capital markets.”   

Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of Abu Dhabi Securities Exchange said: “We are delighted to welcome another ETF listing by Chimera Capital on the exchange as we work towards enhancing market liquidity and making ADX a regional hub for a broad array of sector and geographically-focused ETFs. ADX continues to execute its strategy of introducing the widest array of products and services to provide investors with more flexibility and greater opportunities for hedging and diversification.” 

The Chimera S&P Turkey Shariah ETF is an Income Share Class B which will be listed on the Abu Dhabi Securities Exchange (ADX). Future dividends received by the fund will be distributed to investors, as available.

The latest ETF launch comes on the back of Chimera’s recent listing of two US Shariah-compliant ETFs in July, as well as two other ADX-listed ETF launches completed earlier this year, the Chimera S&P KSA Shariah ETF and Chimera S&P Kuwait Shariah ETF. 

Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital, added: “The Chimera S&P Turkey Shariah ETF will provide investors with easy and direct access to capitalize on Turkey’s large and highly diversified economy.  With the latest launch, there are now nine ETFs listed on UAE stock markets, giving investors access to five different stock exchanges.”

The 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 fund are International Securities, EFG-Hermes, Arqaam Securities 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 that Chimera Capital has selected and licensed the S&P Turkey Shariah Liquid 35/20 Capped Index as the reference benchmark for its new fund. S&P DJI is proud to offer independently calculated and transparent indices that represent and measure different parts of the global markets. This particular index provides asset managers such as Chimera and their end clients the ability to access, gain exposures to and insights on the performance of companies listed in the Borsa Istanbul.”

Anthony Habis, Global Head Client Coverage – Asset Servicing, BNY Mellon, added: “Today’s announcement reaffirms our commitment to our collaboration with Chimera Capital, as it focuses on providing investors with multiple strategies to meet their investment preferences. As the global custodian for all of Chimera Capital’s Shariah-compliant ETFs, we continue to offer UAE investors direct access to a variety of equity markets including the U.S. and now Turkey.”