Another ETF lists on ZSE

LIVINGSTONE MARUFU

Zimbabwe’s largest financial services group, CBZ Holdings, will  today list its Datvest Modified Consumer Staples Exchange Traded Fund (ETF) as investors get more options on the Zimbabwe Stock Exchange (ZSE), Business Times can report.

This will bring the number of ETFs listed on the local bourse to three following  the listing of Morgan &Co Multi-sector this year in January and Old Mutual ZSE Top 10 ETFs last year.

ETFs, which can be passive (tracking an index) or actively managed, are traded like equities. However,  they track  a number of counters on the ZSE, meaning their price varies depending on the price of underlying assets .

ETF  is now available through an online trading platform and allows individual investors to buy shares remotely.

Datvest ETF which was incorporated on January 4 2022,  confirmed the fund will make its debut today

“CBZ Asset Management (Private) Limited is putting initial seed capital in the form of scrip in the exact weights of the ZSE Modified Consumer Staples Index.

“The fund will then be listed on the ZSE by way of introduction. Additional investments from other investors will be used to buy shares on the market and add to the portfolio. Investors who wish to invest in the fund can do so through two ways, by buying units in the ETF through any registered Stockbroker or alternatively investing in kind by delivering a basket of stocks in the exact weights of the fund through an authorised participant,” the fund said.

Delta Corporation, National Foods Holdings, Innscor Africa, Hippo Valley Estates, Simbisa Brands, OK Zimbabwe, Meikles, TSL, Afdis and Dairibord are the constituents of the Datvest ETF which was valued ZWL$70.53m as at February 22.

All assets of the fund will be held by CBZ Custodial Services who will act as custodian for the fund, while Stanbic Bank Zimbabwe is the trustee.

Settlement of trades in the units will be done in electronic format in accordance with the settlement modalities approved by the Zimbabwe Stock Exchange.

The investment offers investors an opportunity to own the underlying stocks on the ZSE Modified Consumer Staples Index through one investment in the Datvest MCS ETF.

Therefore, the investor does not have any additional tasks or costs over and above those associated with dealing in any other publicly traded security.

The fund manager will be responsible for periodically replicating the ZSE Modified Consumer Staples index in line with the index Ground Rules.

The ZSE Modified Consumer Staples index is reviewed once a quarter in line with all the other indices.