NBAD, Global Fund ink MoU to launch ETF
Abu Dhabi, April 13, 2010
The National Bank of Abu Dhabi (NBAD) and The Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund) have signed a MoU to launch an exchange-traded fund (ETF) and list it on the Abu Dhabi Securities Exchange (ADX).
This agreement comes a few weeks after NBAD launched the first ETF in the GCC region, the NBAD OneShare Dow Jones UAE 25 ETF, which was listed on ADX on March 25.
The document signed follows an MoU between the Global Fund and Dow Jones Indexes last month to explore the creation of a series of indexes that could be licensed as the basis for investible products. It is envisioned that the flagship of this index series would be a blue-chip index to be called the Dow Jones Global Fund 50 Index.
The Global Fund will receive a portion of the licence and management fees generated by the ETF for financing programs to fight AIDS, Tuberculosis and Malaria.
“We will be launching this ETF to support an organisation with an outstanding track record in financing the fight against the world’s most menacing diseases,” said Michael Tomalin, group chief executive of NBAD.
“We are confident that this ETF will meet the asset allocation criteria of institutional investors and will therefore become a top-tier investment vehicle giving the GCC access to a global diversified portfolio of stocks and at the same time the opportunity to do some social good,” added Robert Filipp, head of Innovative Finance at the Global Fund.-TradeArabia News Service