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Abu Dhabi-based asset manager Lunate launched the region’s first thematic exchange traded fund (ETF), due to hit the ADX on Monday, 22 September under the ticker QUANTM, according to a press release. The fund is the first in a planned suite of thematic and specialty ETFs, and brings the total number of Lunate’s funds to 19 — and the total number of ETFs on the ADX to 17.
The ETF is also the first thematic ETF ever to list on the ADX, as the Abu Dhabi exchange continues to push to expand its product suite.
What we know: The Boreas Solactive Quantum Computing UCITS ETF — for which Lunate will act as investment manager — will track the Solactive Developed Quantum Computing index, offering exposure to 25 global quantum computing firms including pure-plays such as IonQ, Rigetti, and tech giants Microsoft, Nvidia, IBM, Alphabet and Amazon. The portfolio targets companies expected to deliver breakthroughs in areas ranging from drug discovery and materials science to climate modeling, next-gen energy systems, and quantum-safe cybersecurity.
Why quantum computing? The emerging technology is still in its nascent stages and offers investors a chance for early exposure to what could be the “next computing revolution,” Sherif Salem, partner & head of public markets at Lunate, told EnterpriseAM UAE. Experts at McKinsey estimate it could create as much as USD 2 tn in value by 2035, with breakthroughs expected in areas like medicine, clean energy, climate solutions, finance, new materials, and cybersecurity.
The portfolio mix is designed to be “all-weather in nature” so it can be held even in periods of volatility, with bellwethers like Microsoft and Nvidia offering stability and the more specialized firms offering plenty of upside, Salem said.
The fund is open to both retail and institutional investors, with subscriptions set to open between 10-16 September through six authorized participants as well as the ADX eIPO portal. The ETF will carry a total expense ratio of 49 bps, making it cost-competitive with global peers. Salem expects the fund to attract inflows from both regional and global investors.
Lunate has also been busy on the alternative investments side, committing USD 2 bn to seed a new ADGM-based investment platform with global hedge fund manager Brevan Howard, and marking its first foray into hedge funds. The platform, announced just last week, will offer exclusive funds built around Brevan Howard’s macro trading and digital asset strategies.
