The Abu Dhabi-based international investment management firm Lunate has launched its Boreas line of UCITS thematic exchange-traded funds (ETFs) on Deutsche Börse Xetra, the first Middle Eastern provider to launch a suite of ETFs on a European exchange from the Middle East.
The action underscores the increasing financial connections between the Middle Eastern capital market and the European capital markets and offers global investment access to a new range of innovative thematic and specialty ETFs, the company said, where products are meant to reflect themes of future economic worth and complement diversified portfolios.
The initial fund within the portfolio, Boreas S&P AI Data, Power and Infrastructure UCITS ETF, took over trading on Xetra with the tickers POWR in euros and POWA in the US dollar.
The Boreas S&P Absolute Luxury UCITS ETF will be concurrently listed on the Xetra and the Abu Dhabi Securities Exchange (ADX) on January 27. Lunate added that other products, such as the Boreas Solactive Quantum Computing UCITS ETF, will come later this year.
The Absolute Luxury ETF is a fund that is designed to offer specific exposure to the luxury business in Europe by tracking the S&P Europe Luxury 35/20 Capped Index, wherein it holds investments in companies like Hermès, Ferrari, Burberry, LVMH, and Richemont.
The overall expense of the fund is going to be 49 basis points, and the UAE investors will be able to subscribe to the fund in six authorized participants or through the ADX eIPO portal between January 15 and 21.
The Boreas thematic ETFs are also aimed at both traditional institutional investors and a new generation of savers and investors utilizing digital platforms, providing transparent, liquid, and cost-effective exposures to specific growth themes.
The firm reported that the Lunate controls the range, and Northwind provides product development and research assistance, and serves as the sole consultant on ETF strategy.
Lunate added that Jane Street will be the exclusive dealer in the European-traded ETFs, AHP Capital/NTree Deutschland will serve as distributor, and Euroclear Bank will become the international central securities depository.
Partner and Head of Public Markets at Lunate, Sherif Salem, stated that the launch would be a “historic milestone,” as the company becomes the first in the region to list its ETFs on a European exchange and allow international investors to access differentiated thematic and specialist strategies.
CEO of Northwind, Geir Espeskog, indicated that the world is becoming more innovative in terms of technology, energy, and security, which is driving creative prospects of thematic investing.
The firm further added that the thematic ETFs launched by Latulute in Europe and the UAE interconnect Middle Eastern capital with the specialization of exposures like data infrastructure, luxury brands, and emerging technologies.
