Market Update: Lunite Capital Launches New Fund
Lunite Capital, the Abu Dhabi Global Investment Management Company, has inaugurated its headquarters, coinciding with the launch of the “Shimira Ibox Fund for US Treasury Bonds.” This traded index fund, affiliated with Lunite Holding Reset Limited, is set to be included in the Abu Dhabi Securities Market on February 20.
The fund aims to track the performance of the “IBoxx USD Treasury Bills Mid Price Index,” which is specifically designed to reflect the value of US Treasury bonds denominated in US dollars.
US government securities, particularly short-term debt instruments, are widely regarded as among the safest investment options due to their backing by the US government.
Through this fund, investors in the UAE will have the opportunity to gain exposure to the world’s largest economy via a diversified portfolio of US Treasury bonds, without the necessity of purchasing individual securities. Investors can expect to receive quarterly profits from their investments.
Subscriptions for the fund can be made through investment accounts held with licensed brokers.
Sherif Salem, partner and director of financial markets management at Lunite, emphasized the significance of the launch by stating, “The introduction of the Shimira Ibox Fund for US Treasury Bonds represents a valuable addition to our product lineup and enhances our suite of investment solutions. The fund is engineered to empower investors with avenues to engage with global markets and a variety of asset classes.”
“With access to ten advanced and emerging markets and three fixed-income circulating funds, our goal remains to deliver innovative strategies that facilitate investors in achieving their financial objectives,” added Salem. He further highlighted that this fund leverages the strength of the US economy, enabling UAE investors to allocate capital to one of the world’s most secure asset categories.
Following this launch, Lunite Capital now offers a total of 18 traded funds listed on UAE financial markets, providing investors with enhanced flexibility and the potential for higher returns.
Abdullah Salem Al-Nuaimi, CEO of the Abu Dhabi Securities Market Group, remarked, “Diversifying investment options for our clients is critical in reinforcing our standing as a leading market for funds in the region. At the Abu Dhabi Stock Exchange, we are committed to deepening market liquidity and developing innovative financial products that cater to the aspirations of both local and international investors, thereby solidifying Abu Dhabi’s position as a premier global financial hub.”
Hani Qablawi, Chairman of the BN Wi-International Board of Directors, expressed enthusiasm for the collaboration with Lunite Capital, stating, “We are pleased to support this fund as the global custodian.”
Jennifer Shenabeel, head of S&P Dow Jones Indices, commented on the index’s utility: “The index serves as a crucial tool for measuring the performance of US Treasury bonds and significantly contributes to innovative investment solutions that facilitate access to global markets.”
The Shimira Ibox Fund will be managed by Lunite Capital LLC, which is licensed by the Securities and Commodities Authority for asset management, while BN Wi Bank will serve as the global custodian.
The fund’s list of accredited custodians includes International Securities, Hermes Financial Group, Sequiitees Numbers, Abu Dhabi I Securities, Securities Guarantee, and BHM Capital. The “Ibox” comprises a collection of fixed-income indices developed and managed by S&P Dow Jones Indices.
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