Caution advised for investors in Old Mutual Zimbabwe Stock Exchange Top Ten ETF

Nyashadzashe Ndoro

ZIM NOW REPORTER

Investors in the Old Mutual Zimbabwe Stock Exchange Top Ten Exchange Traded Fund are being urged to exercise caution due to potential changes that could significantly impact the fund's future.

The Trustee (Stanbic Bank Zimbabwe Limited) and the Fund Manager (Old Mutual Investment Group Zimbabwe (Private) Limited) issued a cautionary statement on April 20, 2024, following changes in the composition of the index the ETF tracks.

These changes have prompted considerations that could have a material effect on the fund's future performance.

The cautionary statement assures investors that they will be kept informed about any developments related to the matter. Updates will be provided in accordance with the Zimbabwe Stock Exchange Listing Rules.

“Further to the cautionary statement issued on 20 March 2024; the Trustee (Stanbic Bank Zimbabwe Limited) and the Fund Manager (Old Mutual Investment Group Zimbabwe (Private) Limited) of the Old Mutual Zimbabwe Stock Exchange Top Ten Exchange Traded Fund (‘The Fund’) wish to advise the Fund’s unitholders and members of the public that; as a result of changes in the composition of the Index, there are considerations underway that could have a material effect on the future of the Fund.

“Unitholders and members of the public are therefore being advised to exercise caution. and to consult their professional advisors when dealing in the units of the ETF. The unitholders and members of the public will be updated on the matter in accordance with the Zimbabwe Stock Exchange Listing Rules,” read the statement signed by the Fund Manager, Marjorie Mayida.

The fund offers exposure to the top ten listed companies on the Zimbabwe Stock Exchange, and changes to the underlying index are likely to significantly alter the fund’s risk profile and potential returns.