FAB Securities named by Lunate Capital LLC as a new authorised participant for nine of its ETFs

Abu Dhabi, 27 May 2024: FAB Securities has been named as the latest authorised participant (AP) for the Chimera Umbrella Fund by Lunate Capital LLC, an Abu Dhabi-based investment management firm and subsidiary of Lunate Holding RSC Limited, to provide expertise and support in simplifying access to regional and global stock markets.

As a leading brokerage firm in the UAE’s stock markets, FAB Securities will act as an AP for nine Lunate ETFs registered and regulated by the Securities and Commodities Authority (SCA) and managed by Lunate Capital LLC. FAB Securities becomes Lunate’s sixth AP, which can receive orders to create and redeem Lunate ETF units.

The nine Lunate ETFs provide investors with access to various bourses, including in the U.S., China, Saudi Arabia, Kuwait, Turkey, and Pakistan. The ETFs include conventional, Shariah-compliant, and dividend-distributing share classes that can be bought and sold like stocks.

Made up of multiple stocks, these ETFs offer investors a way to diversify their portfolios regionally and globally by simply trading a single security. The issuer of the ETF approves an AP to play the key role of creating and redeeming shares of the ETF to ensure the market price remains in line with the underlying value of the securities of the ETF.

Osama Mahmoud, Chief Executive Officer at FAB Securities, said: “The appointment of FAB Securities as an AP furthers our strategy of expanding our diverse investment products, which provide innovative solutions to our clients. We are pleased to be part of the Lunate ETF ecosystem and look forward to contributing to its success.”

Sherif Salem, Partner and Head of Public Markets at Lunate, commented: “We are pleased to have FAB Securities as our latest authorised participant for nine of Lunate’s 15 ETFs. With their expertise and strong infrastructure, FAB Securities will further ensure the smooth and accurate trading of ETFs in the primary and secondary markets. The involvement of FAB Securities signals the growing significance and evolution of the ETF market as more financial institutions recognise the opportunities and benefits presented by this dynamic investment landscape.”