HARARE – The Zimbabwe Stock Exchange (ZSE) has announced the delisting of the Old Mutual Top Ten Exchange Traded Fund (ETF) after obtaining approval from the Securities and Exchange Commission of Zimbabwe (SECZ).
The delisting, effective January 17, 2025, was initiated following a resolution passed at the fund’s annual general meeting held in December 2024. During the meeting, unitholders approved the voluntary termination of the fund and the subsequent distribution of its assets to the unitholders.
ZSE Chief Executive Officer Justin Bgoni confirmed the development in a statement issued on Tuesday.
“The Zimbabwe Stock Exchange Limited (ZSE) 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,” Bgoni said.
He explained that the decision was in line with Section 11 of the ZSE Listing Requirements, adding that unitholders resolved to terminate the listing during an extraordinary general meeting on December 12, 2024.
The termination was attributed to the fund’s inability to meet its intended objectives due to the migration of several key counters to the Victoria Falls Stock Exchange (VFEX). This migration has affected the fund’s original purpose of bundling stocks with strong fundamentals, high dividend yields, and high liquidity to offer convenience to investors.
Bgoni elaborated on the procedure for the delisting, stating, “The Old Mutual Top Ten Exchange Traded Fund applied for the voluntary termination of listing on the ZSE in terms of the provisions of Section 11 of the ZSE Listing Requirements. As explained in the circular to the unitholders, the Old Mutual Top Ten Exchange Traded Fund will be dissolved after its delisting from the ZSE, and the assets will be distributed to the unitholders as detailed in the circular issued to the unitholders.”
Since the launch of VFEX in 2020, several companies have delisted from the ZSE to migrate to the US dollar-based exchange. The VFEX is seen as a platform that offers value preservation, particularly in the face of Zimbabwe’s volatile economic conditions.
Prominent companies that have moved from ZSE to VFEX include Bindura Nickel Corporation, National Foods Limited, Simbisa Brands, African Sun, Axia Corporation, Innscor Africa, Seed Co International, Zimplow, and Caledonia Mining Corporation, among others.
The migration of these companies has left the ZSE grappling with reduced activity in some sectors, as VFEX increasingly becomes the preferred trading platform for firms looking for stability and access to foreign capital.
The delisting of the Old Mutual Top Ten Exchange Traded Fund underscores the shifting dynamics in Zimbabwe’s capital markets, with VFEX gaining traction as a destination for key counters. While the move reflects market forces at play, it also highlights the challenges facing the ZSE in retaining major players and fulfilling its role in fostering investment growth.
As the financial landscape continues to evolve, both exchanges will need to adapt to ensure that they meet the needs of investors and issuers alike in an increasingly competitive environment.
