Lunate to Launch Speciality ETFs on ADX

Lunate, an Abu Dhabi-based global investment management firm, has announced the launch of its Boreas range of thematic and speciality Exchange Traded Funds (ETF).

Commencing with the launch of the Boreas Solactive Quantum Computing UCITS ETF (Quantum Computing ETF), this new range will offer access to high-conviction long-term investment opportunities across economic and market cycles.

Lunate Capital Limited, an Abu Dhabi-based global investment management firm licensed by the ADGM Financial Services Regulatory Authority (FSRA), a subsidiary of Lunate Holding RSC Limited, will act as the Investment Manager.

The launch marks an important milestone in Lunate’s strategy to expand its offering with innovative investment solutions.

Through the Boreas range of ETFs, Lunate aims to capitalise on the opportunity presented by the rapid expansion of the thematic ETF market, with the global thematic fund market having almost doubled over the past five years to reach $562 billion globally.

The new range will target a growing audience of both individual investors, particularly emerging young savers accessing markets digitally, and institutional investors seeking dynamic additions to their portfolios.

In the development of this new thematic range, Lunate is investing in its ETF platform and has engaged a specialist team of ETF experts led by industry veteran Geir Espeskog.

The range enables investors to tap into the structural megatrends driving tomorrow’s innovation and growth. The ETFs uniquely combine active thematic research with a transparent index-based approach, identifying companies with the greatest exposure to a particular theme, ensuring constituents and returns align precisely with the theme.

The Boreas Solactive Quantum Computing UCITS ETF will become the first thematic ETF to be launched in the region and is scheduled to list on the Abu Dhabi Securities Exchange (ADX) on September 22. The ETF, which will track the Solactive Developed Quantum Computing Index, will offer exposure to companies actively involved in quantum computing technologies.

Quantum Computing leverages quantum mechanics to perform computations at unprecedented speeds, unlocking solutions to previously intractable problems and enabling breakthroughs in drug discovery, novel chemical and materials design, next-generation energy systems, climate modeling, financial risk analysis, and quantum-safe cybersecurity – creating significant economic value in the years ahead.

The ETF will feature a portfolio of 25 companies, including specialised pure-play companies such as IonQ and Rigetti, as well as leading mega-cap technology firms that are at the cutting edge of Quantum research and development, such as Microsoft, Nvidia and IBM.

Region’s First

Sherif Salem, Partner & Head of Public Markets at Lunate, said that Boreas thematic ETF is a regional first ETF that expands Lunate’s offerings for retail and institutional investors.

“The launch of a thematic ETF complements our 18 existing ETFs and will provide convenient exposure to global megatrends and themes. Together, Lunate’s 19 ETFs — spanning both traditional and thematic strategies — enable investors to construct comprehensive, diversified portfolios, underscoring Lunate’s role as an innovator in the rapidly expanding local ETF mark,” he added.

ADX Group CEO Abdulla Salem Alnuaimi the launch and upcoming listing of the 17th ETF on ADX, Boreas Solactive Quantum Computing UCITS, underscores ADX’s role in driving growth and unlocking investment access via world class financial products. 

“This single vehicle provides our investors with valuable exposure to global companies in quantum computing, including Alphabet, Amazon, Microsoft, and Nvidia. As Abu Dhabi strengthens its position as a strategic hub for cutting edge investment opportunities, ADX will continue to expand its innovative offerings and bolster its dynamic marketplace to satisfy the evolving needs of investors,” he added.