UEA ETF custody mandate for BNY Mellon 27 June 2016Abu Dhabi Reporter: Stephanie Palmer
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BNY Mellon has been appointed as global custodian and fund administrator to the first liquid, tradable and transparent exchange-traded fund (ETF) listed in the Middle East under the United Arab Emirates’ (UAE’s) new regulations.
The fund, Afkar S&P UAE UCITS ETF, was launched by Abu Dhabi-based asset manager Afkar Capital Limited. It is reportedly designed to emulate the S&P UAE BMI Liquid 20/35 Capped Index, which includes the largest stocks in the UAE, by capitalisation.
As well as being fund administrator and global custodian to the new fund, BNY Mellon will act as the Irish trustee and provide transfer agency services.
Seif Fikry, CEO and founding partner of Afkar Capital, put the mandate down to BNY Mellon’s global reach and experience in helping to create ETFs.
Tarek Sherlala, BNY Mellon’s head of asset servicing for the Middle East and Africa, said: “Our advanced technology and highly regarded services are supporting Afkar’s launch of this exciting initiative.”
The new fund will list on the Dubai Financial Market on 29 June under the symbol UAETF. It will be regulated under the EU’s UCITS regulatory framework, and will be governed by authorities in the UAE and Ireland. Authorised participants include EFG Hermes, Mubasher Financial services and NBAD Securities.
BNY Mellon supports 605 separate portfolios across 35 issuers, and a total of $286 billion in net assets, as of the end of March.
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