- Old Mutual’s Top Ten Exchange Traded Fund (OM TT ETF) will be delisted from the Zimbabwe Stock Exchange (ZSE) on January 17, 2025
- All available assets will be distributed to current unit holders
- The termination of the Old Mutual Top Ten Exchange Traded Fund was influenced by key stocks moving to the Victoria Falls Stock Exchange
Harare-Old Mutual’s Top Ten Exchange Traded Funds (OM TT ETF) will be delisted from the Zimbabwe Stock Exchange (ZSE) effective 17 January 2025 after unit holders applied for a voluntary termination due to the inability to meet its objectives.
All available assets are going to be distributed to current unit holders.
In November 2024,an annual general meeting approved the voluntary termination of the fund and the distribution of its assets to current unitholders of the OM ZSE TT ETF.
An exchange-traded fund (ETF) is an investment fund that holds multiple underlying assets and can be bought and sold on an exchange, much like an individual stock.
On 12 dec unitholders met and resolved to terminate the ETF's listing in accordance with Section 11 of the ZSE Listing Requirements.
According to Section 15(1)(d) of the ZSE Listing Requirements, units of OM ZSE TT ETF can no longer be traded on the ZSE.
This decision was prompted by the migration of key stocks to the Victoria Falls Stock Exchange (VFEX), which hindered the fund's ability to achieve its original objectives of providing convenience to investors through a mix of stocks with strong fundamentals and high dividend yields.
The top 10 Exchange Traded Fund (ETF) for Old mutual are British American Tobacco Zimbabwe Limited , Cassava SmarTech Zimbabwe Limited ,CBZ Holdings Limited ,Delta Corporation Limited Econet Wireless Zimbabwe, Limited Hippo Valley Estates Limited ,Innscor Africa Limited ,Meikles Limited, National Foods Holdings Limited ,Simbisa Brands Limited.
Of top 10 which migrated are National foods, Innscor and Simbisa limited.
In a statement on Tuesday 14 January, ZSE CEO Justin Bgoni confirmed that the Securities and Exchange Commission of Zimbabwe has granted permission to delist the fund.
“The Zimbabwe Stock Exchange Limited (ZSE) hereby notifies the investing public of the voluntary termination of the Old Mutual Top Ten Exchange Traded Fund, effective January 17, 2025,” Bgoni stated.
Since the emerge of the Victoria Falls Stock Exchange in 2020,a number of companies have delisted on the ZSE bourse incuding Padenga Holdings ,a leading supplier of crocodile skins and meat that are used for high end luxury fashion brands.
One of the main reasons why companies delist from ZSE to VFEX is the desire to trade in a stable currency.
Zimbabwe has been grappling with an acute shortage of foreign currency for many years, and this has affected the country’s economic growth.
VFEX provides a platform for companies to attract foreign investors who are interested in investing in Zimbabwe but are hesitant to do so through the traditional channels.
The VFEX has been designed to operate as an offshore financial services centre, and this allows companies to raise funds in foreign currency.
This is a major advantage for Zimbabwean companies, which have been struggling to access foreign currency due to the country’s challenging economic environment.
Companies that list on VFEX can raise capital in currencies such as the US dollar, British pound, and Euro.
This reflects the continued erosion of confidence in the local currency, which now accounts for a smaller portion of trade in the economy.
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