Datvest ETF seeks to exploit market swings

Datvest says its Modified Consumer Staples Exchange Traded Fund (Datvest ETF), which is listed on the Zimbabwe Stock Exchange (ZSE), is well-positioned to take advantage of market swings in pursuit of increasing shareholder value.

This comes as the ETF recorded an inflation-adjusted loss after tax of $343 million for the year ended December 31, 2022, driven by fair value losses in inflation-adjusted terms on equity investments.

In its financials for the year, the ETF said following a bearish performance in 2022, the stock market was expected to recover 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 stabilize the value of the Datvest ETF,” it said.

The Datvest ETF was formed and listed on March 4, 2022, and operated for ten months in the year 2022.

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 fund manager of the Datvest Modified Consumer Staples Exchange Traded Fund.

The asset management company put initial seed capital in the form of scrip in the exact weights of the ZSE Modified Consumer Staples Index.

Additional investments from other investors are used to buy shares on the market and add to the portfolio.

ETFs are passively managed, fully funded (unleveraged) open-ended funds that track the performance of a specified security, which includes but is not limited to indices, commodities, currencies, or any other asset.

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.
-herald