Abu Dhabi’s Lunate becomes first ME firm to offer ETF on European Exchange

Lunate, the Abu Dhabi-based global investment management firm, became the first provider from the region to offer a suite of Exchange Traded Funds (ETFs) on a European exchange.

Lunate launched its Boreas range of UCITS thematic Exchange Traded Funds (ETFs) on Deutsche Börse Xetra (Xetra).

The launch highlights the strong financial link between the Middle East and European capital markets and enables global investors to gain access to a new suite of innovative thematic and specialty ETFs.

The range consists of ETFs with a variety of risk and return profiles, designed to capture the unique themes set to drive future economic value and build better portfolios.

The Boreas S&P AI Data, Power & Infrastructure UCITS ETF began trading on Xetra on Thursday under tickers POWR (EUR)/ POWA (USD), followed by the concurrent listing of the Boreas S&P Absolute Luxury UCITS ETF on the Abu Dhabi Securities Exchange (ADX) and Xetra on 27 January.

Alphabet (6.69 per cent), Iberdrola (5.48 per cent), Siemens (5.24 per cent) and Siemens (5.22 per cent) are the major shares making up the Boreas S&P AI Data, Power & Infrastructure UCITS ETF portfolio.

Sherif Salem, Partner & Head of Public Markets at Lunate, said: “The launch of our Boreas range of thematic ETFs in Europe marks a historic milestone as Lunate becomes the first provider from the region to list its ETFs on a European exchange.

“Our European launch enables global investor access to our differentiated public markets offering, with actively designed thematic and specialty ETFs capturing compelling investment opportunities across themes with the potential for accelerated growth.

“Our upcoming Absolute Luxury ETF capitalises on the significant growth in global wealth, which is creating a new wave of demand for luxury.”

Absolute Luxury ETF Targets Investors

Lunate’s European lineup will continue to expand with the Boreas Solactive Quantum Computing UCITS ETF and other innovative ETFs expected to launch later this year.

The listing of the Absolute Luxury ETF will provide global investors with targeted exposure to Europe’s prestigious luxury industry. Investing exclusively in Europe’s luxury industry, which benefits from substantial moats underpinned by centuries of heritage, craftsmanship, and global brand recognition, the Absolute Luxury ETF unlocks access to a compelling investment opportunity, capturing the significant growth in global wealth.

The Absolute Luxury ETF, which tracks the S&P Europe Luxury 35/20 Capped Index, will hold 32 companies, including Hermes, Ferrari, Burberry, LVMH, and Richemont. The total expense ratio for the ETF will be 49 basis points.

UAE investors can subscribe through the ADX eIPO portal from 15-21 January, or through six Authorized Participants.

The Boreas range is managed by Lunate, with product development and research support from Northwind, which acts as an exclusive consultant to Lunate on ETF Strategy.

The European ETF share classes will be issued and settled through Euroclear Bank as the international central securities depository (ICSD).