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Nqobile Bhebhe, nqobile.bhebhe@chronicle.co.zw
THE Old Mutual Top Ten Exchange-Traded Fund (ETF), the first of its kind in Zimbabwe, is set to voluntarily delist from the Zimbabwe Stock Exchange (ZSE) this Friday.
The move follows a resolution made by unit holders during a meeting held on December 12 last year.
ETFs are financial instruments that pool a collection of investments such as stocks, bonds, and commodities into a single entity. Investors can purchase shares of this entity, which are then traded on stock exchanges.
Launched in January 2021, Old Mutual’s ETF was based on the ZSE Top 10 Index and marked the country’s pioneering step into the world of exchange-traded funds.
ZSE chief executive officer Mr Justin Bgoni announced that the Securities and Exchange Commission of Zimbabwe had approved the delisting request in line with Section 11 of the ZSE Listing Requirements and Section 64 of the Securities and Exchange Act (Chapter 24:25).
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public of the voluntary termination of the listing of the Old Mutual Top Ten Exchange Traded Fund, effective January 17, 2025,” said Mr Bgoni.
He explained that unit holders had unanimously agreed to terminate the ETF’s listing during an extraordinary general meeting.
Following the delisting, the fund will be dissolved, and its assets distributed to unit holders, as outlined in the circular issued to stakeholders.
Under Section 15(1)(d) of the ZSE Listing Requirements, unit holders have been advised that trading of the ETF on the ZSE will cease on January 17, 2025. The ETF will then proceed with the asset distribution process.
The Old Mutual Top Ten ETF allowed investors to gain exposure to the top 10 companies listed on the ZSE through a single investment. It represented an innovative investment opportunity for Zimbabweans, adding a new dimension to the country’s capital markets.
While the delisting marks the end of the ETF’s tenure on the ZSE, its introduction in 2021 was a significant milestone in the development of the country’s financial sector.
By providing a diversified investment option, the Old Mutual Top Ten ETF contributed to enhancing the market’s appeal and accessibility to investors.
The dissolution of the ETF will close this chapter, with the hope that other innovative financial instruments will emerge to build on its legacy.
The ZSE Top 10 Exchange Traded Fund had brought a new dimension to the country’s limited capital markets.
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