Abu Dhabi Securities Exchange (ADX) today resumed its ongoing Exchange Traded Funds (ETFs) awareness campaign through hosting a presentation for the registered brokers at its headquarters in Abu Dhabi in coordination with the National Bank of Abu Dhabi (NBAD) and Thomson Reuters.
“What distinguishes the ETFs trading platform at ADX is the high degree of transparency, thanks to the listing requirements that stipulate listing only the UCITS compliant ETFs, and such application of European standards in Abu Dhabi supports our efforts to attract more foreign and institutional investors to our capital markets,” commented Rashed Al Baloushi, ADX’s Deputy Chief Executive and Director of Operations.
“Targeting brokers at this phase of the awareness campaign achieves several goals, such as ensuring the delivery to investors; whereas all investors need to go through a broker for investing at ADX, in addition to training brokers as regards to ETFs trading mechanisms and the players involved,” he added.
The presentation was delivered by Saeed Khouri, Head of Communications, Marketing and Research at ADX, Raed Abu Nahleh Head of Business Development at NBAD’s Asset Management Group, and Talal Touqan, the Asset Management Specialist at Thomson Reuters, Gulf.
The presentation included a thorough coverage of all the aspects related to ETFs trading including ADX’s platform, trading mechanisms and other technical issues exposing the many benefits for investing in ETFs such as risk mitigation and diversification and cost rationalizing through illustrating NBAD’s OneShare Dow Jones UAE 25 ETF.
“NBAD’s ETF allows investors to track the economic growth rates for the UAE through investing in 25 blue-chips representing the most active economic sectors, while keeping track of the i-NAV of the fund at any given time, even during the trading session, to the contrary of traditional funds, where the net asset value is only calculated according to the close prices,” commented Raed Abu Nahleh.
Al Baloushi emphasized the continuation of the ETFs awareness campaign through more presentations targeting brokers and investors, ensuring delivery to the largest audience possible, and hence providing for new investment horizons in tandem with the objectives of the leadership’s prudent planning and Abu Dhabi Economic Vision 2030.
ADX launched the ETFs platform on March 25, 2010 through listing NBAD’s OneShare Dow Jones UAE 25 ETF to become the first exchange in the Arabian Gulf region to host this new investment vehicle.