Old Mutual Zimbabwe is set to list the Old Mutual Zimbabwe Stock Exchange Top Ten Index Exchange Traded Fund on January 4, 2021. The investment instrument, which is part of concerted efforts by the ZSE to increase its product offering will be listed by way of introduction.

ETFs are passively managed, fully funded (unleveraged) open ended funds which track the performance of a specified security. Old Mutual Investment Group Zimbabwe will establish an ETF that tracks the ZSE Top Ten Index. The ZSE Top Ten Index consists of the top 10 counters by market capitalization that are listed on the ZSE.

All the necessary approvals have been obtained. According to a statement from Old Mutual, the group (OMZL) will put initial seed capital on the day of listing. 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 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 authorized participant.”

Currently, the authorized participant is Old Mutual Investment Group Zimbabwe.

All assets of the fund will be held by CABS Custodial Services, who will act as the custodian for the fund, while Stanbic Bank Zimbabwe Limited is the Trustee. Settlement of trades in the units will be done in electronic format in accordance with the settlement modalities approved by the ZSE.

OMIGZ, ETF fund manager, will be responsible for periodically replicating the ZSE Top Ten index in line with the index ground rules as defined by the ZSE.

The reference Top Ten index will be reviewed once a quarter.