BNY Mellon has been appointed the global custodian by Abu Dhabi-based Chimera Capital and its newly launched exchange traded fund (ETF) tracking S&P Shariah-compliant index in the United Arab Emirates.
Under the UAE’s Securities and Commodities Authority’s (SCA) Fund Regime, the Chimera Umbrella Fund will launch its first sub-fund tracking a Shariah compliant index in conjunction with S&P Dow Jones indices.
In addition to BNY Mellon acting as the global custodian, HSBC has been appointed as the local sub-custodian for the fund.
“We appointed BNY Mellon as our ETF’s global custodian due to the quality of their ETF-specific technology, scale and expertise, as well as their commitment to the ETF market in the Middle East and other markets around the world,” said Chimera Capital’s chairman.
BNY Mellon opened a new representative office in the Abu Dhabi Global Market (ADGM) – the country’s international financial centre for local, regional and international institutions – in December last year in a bid to expand relationships with Middle Eastern institutional investors.
The global custodian has also poured significant investment into its ETF servicing capabilities over the past few years with new technologies and geographic expansion, in order to chip away at the majority market share its cross-town rival State Street holds.
“We are honoured that Chimera Capital LLC has appointed BNY Mellon as global custodian for this innovative new fund, which is not only the first SCA umbrella fund but the first SCA ETF,” said Anthony Habis, head of Middle East and Africa, BNY Mellon.