THE Zimbabwe Stock Exchange (ZSE) says it has terminated the listing of Old Mutual Top Ten Exchange Traded Fund from the bourse after getting permission by the regulator to delist the fund.
An annual general meeting held late last year approved the voluntary termination of the fund and distribution of all its assets to the current Unitholders of the OM ZSE TT ETF.
The termination has been necessitated by the migration of some key counters to the VFEX resulting in the fund not being able to meet some of its intended objectives, which basically was to bring convenience to the investing public by bundling together stocks that had strong fundamentals, high dividend yields and high liquidity.
In a statement on Tuesday, ZSE chief executive officer Justin Bgoni said the bourse had been granted permission by the Securities and Exchange Commission of Zimbabwe to delist the Old Mutual Top Ten Exchange Traded Fund from the ZSE official list.
“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.
“The unitholders of the Old Mutual Top Ten Exchange Traded Fund met on 12 December 2024 and resolved to voluntarily terminate the Exchange Traded Fund’s listing on the ZSE under Section 11 of the ZSE Listing Requirements.
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“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.”
In terms of section 15(1) (d) of the ZSE Listing Requirements, Bgoni said holders of the Old Mutual Top Ten Exchange Traded Fund units were advised that the units can no longer be traded on ZSE with effect from tomorrow.
“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 distributed to the Unitholders as detailed in the circular issued to the unitholders and per resolution of the unitholders passed at the fund’s extraordinary general meeting,” he said
Since the launch of the VFEX in 2020, a number of companies have delisted from ZSE as they seek to preserve value by virtue of VFEX trading in US dollars.
Several companies that have delisted from the ZSE and migrated to VFEX include Bindura Nickel Corporation, National Foods Limited, Simbisa Brands, African Sun, Axia Corporation, Caledonia Mining Corporation, Innscor Africa, National Foods Holdings, Nedbank Group Limited Zimbabwe Depository Receipts, Seed Co International, Zimplow and First Capital Bank.