Datvest ETF seeks to utilise market swings

Leafias Mazviro

Datvest has said its Modified Consumer Staples Exchange Traded Fund (Datvest ETF), which can be bought and sold on the Zimbabwe Stock Exchange (ZSE), is in a good position to benefit from changes in the market and make shareholders’ investments grow.

The ETF lost $343 million after considering inflation and taxes for the year ending on December 31, 2022. This loss was mainly due to the decrease in the value of their investments in stocks.

According to the ETF’s financial report for the year, the stock market did not do well in 2022, but is predicted to improve in
2023.

“The fund is expected to benefit from the recovery of the market through appreciation in the value of the counters in the consumer staples basket, while the move by some counters to the Victoria Falls Exchange (“VFEX”) is expected to stabilise the value of the Datvest ETF,” reads the report.

The ETF said the negative performance for the period was on the back of stock market gains trailing the inflation rate.

“Despite recording the inflation-adjusted loss, the fund recorded a profit after tax of $93 million in historical terms,” reads the financials.

CBZ Asset Management Private Limited is the company in charge of managing the Datvest Modified Consumer Staples Exchange Traded Fund.

The company that manages assets invested some money at the beginning in the form of scrip. They invested in different amounts based on the ZSE
Modified Consumer Staples Index.

More money put in by other investors is used to buy more shares from the market and increase the collection of investments.

Currently, other listed ETFs are the Old Mutual ZSE Top Ten ETF, Morgan and Co Multi-Sector ETF Trust, Morgan and Co Made in Zimbabwe ETF, and the Cass Saddle Agric ETF

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