(Bloomberg) -- Investors in the Gulf are about to get their first exchange-traded fund tracking the German market which has been trading near record highs.
Lunate Capital Limited is launching the Chimera S&P Germany UCITS ETF that will focus on the top 30 most liquid stocks listed in the country. It will replicate the S&P Germany BMI Liquid 35/20 Capped Index which includes equities like Siemens AG and Mercedes-Benz Group AG. The index climbed 14% this year.
Scheduled to list on the Abu Dhabi Securities Exchange on Sept. 26, the ETF will allow Middle Eastern investors to gain exposure to Europe’s largest economy. German stocks are defying pessimism over the country’s economy, which shrunk last quarter amid geopolitical headwinds involving decreased demand from China, one of its biggest trading partners.
Lunate Capital’s parent company, Lunate Holding RSC Ltd., manages $105 billion through its subsidiaries. The Abu Dhabi-based company is part of 2PointZero, a unit of International Holding Co. which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of its president. The alternative investment manager counts the emirate’s sovereign wealth fund ADQ as one of its largest clients.
International Securities, Arqaam Securities, BHM Capital, and EFG-Hermes are the fund’s authorized participants. Germany’s benchmark DAX Index slipped 0.4% on Monday.
(Updates with performance of German stocks. An earlier version corrected firm name in second paragraph.)
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