Abu Dhabi’s Lunate Capital launches Japanese ETF

Abu Dhabi investor Lunate Capital is set to introduce an exchange-traded fund (ETF) that tracks Japanese equities, as per the firm’s announcement on Thursday, according to Reuters.

The ETF, named Chimera S&P Japan UCITS ETF, marks their third ETF launch this year and will be listed on the Abu Dhabi Securities Exchange (ADX) on May 29th.

It will offer investors access to the top 30 most liquid Japanese stocks, including giants like Toyota and Sony, listed on the Tokyo Stock Exchange.

Managing $105 billion in assets, Lunate is affiliated with a business conglomerate led by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser of the United Arab Emirates (UAE) and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.

Their recent investments, such as acquiring a 40 per cent stake in the entity leasing ADNOC’s oil pipelines, demonstrate Abu Dhabi’s strategy of nurturing new national champions in alternative investments.

Earlier this year, Lunate launched an ETF tracking the performance of Shariah-compliant Indian equities listed in Mumbai, followed by a collaboration with JPMorgan to develop the UAE’s first ETF monitoring bond performance.

Abdulla Salem Alnuaimi, CEO of ADX, highlighted the significance of the ETF market in supporting Abu Dhabi’s economic diversification plan and attracting more investors to its financial hub, according to Thursday’s statement. Investors can subscribe to the ETF between May 16th and May 23rd, Lunate added.