• Morgan & Co Made In Zimbabwe ETF posted a solid 21% total return in 2025, comfortably beating 15% inflation with unit price rising from ZWG 5.00 to ZWG 6.05
• Real NAV grew from ZWG 18.38 million to ZWG 21.66 million, swinging to a ZWG 552,781 profit
• The ETF’s tightly focused domestic industrial portfolio, weighted toward Tigere, Caledonia Mining, Simbisa, Padenga and BAT Zimbabwe  captured 4.2% manufacturing output growth
• With tight cost control, an unqualified audit, ZWG 2.69 million cash buffer and a modest premium to NAV, the fund enters the new year with proven resilience

Harare- The Morgan & Co Made In Zimbabwe Exchange Traded Fund has posted a solid 21% total return for the year ended 31 December 2025, generating a meaningful positive real return after comfortably beating year-end inflation of 15%.

The unit price appreciated from ZWG 5.00 to ZWG 6.05, while real net asset value (NAV) rose from ZWG 18.38 million to ZWG 21.66 million. The fund swung to a profit of ZWG 552,781 from a prior-year loss of ZWG 2.04 million.

The performance reflects the ETF’s tightly focused mandate, exposure to Zimbabwean manufacturing companies whose revenues are primarily derived from domestic production processes. The portfolio, which may hold up to 20% in non-manufacturing names, remained heavily weighted toward resilient industrial counters such as Morgan & Co Made In Zimbabwe itself, Tigere, Caledonia Mining, Simbisa, Padenga and British American Tobacco Zimbabwe.

Manufacturing sector output accelerated to an estimated 4.2% growth in 2025 from 1.6% the previous year, providing a supportive backdrop even as the broader ZSE All Share Index returned 27.7%. The modest underperformance versus the index was driven by liquidity constraints and money-supply dynamics rather than any fundamental weakness in the core holdings.

Operationally the fund maintained tight cost control, with operating expenses of ZWG 557,468 (inflation-adjusted) and a clean unqualified audit opinion from Kreston Zimbabwe. Cash and cash equivalents closed at ZWG 2.69 million, supporting liquidity despite net operating cash outflows associated with portfolio rebalancing.

The asset manager, Zimnat Asset Management, highlighted the domestic manufacturing sector’s resilience amid recapitalisation efforts, informal-market expansion and favourable La Niña agricultural conditions that should support downstream demand. Liquidity constraints and uncertain price discovery remain the primary risks, but the manager expressed cautious optimism for 2026 and confirmed continued active management aimed at risk-adjusted returns.

For investors, the 2025 results show the ETF’s role as a pure-play vehicle for Zimbabwe’s manufacturing recovery. The 21% nominal return and positive real NAV growth in a stabilising macro environment demonstrate that a focused, domestically oriented equity strategy can deliver inflation-beating performance even when broader market sentiment is driven by non-fundamental factors.

With the portfolio now valued at ZWG 18.96 million in quoted equities and the fund trading at a modest premium to NAV, Morgan & Co Made In Zimbabwe ETF enters 2026 with strengthened real capital, proven resilience and a clear mandate to capture further upside from industrial and agro-processing recovery.

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