BY TATIRA ZWINOIRA
FINANCIAL services firm, Morgan & Co has increased the number of units of the Morgan and Co Multi Sector Exchange Traded Fund (ETF), significantly raising its net asset value (NAV).
Upon first listing on the Zimbabwe Stock Exchange (ZSE) on January 3, the ETF’s total units were 125 927 968, with a price of $10, giving an NAV of about $1,2 billion.
However, following an increase in units, the net asset value of ETF moved to $1, 4 billion since the unit price rose to $11,18.
“The Zimbabwe Stock Exchange Limited wishes to inform the investing public that Morgan & Co has increased the number of units of the Morgan and Co Multi Sector Exchange Traded Fund by 2 745 099 to bring the total units issued and listed on the ZSE to 128 673 068 with effect from January 18, 2022,” ZSE said in a statement.
“The NAV per unit of the ETF as of January 19, 2022 was $11,18,” the statement added.
The ETF is meant to seek capital appreciation on ZSE by way of purchasing units on the security which will invest primarily in banks, and real estate-related firms, insurance and reinsurance companies, industrial and non-industrial companies and financial holding companies.
According to the ETF’s prospectus, 80% of the fund’s investable asset base will go to financial services and real estate companies while 20% may be invested in industrial and non-industrial companies.
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The manager of the fund, TN Asset Management, primarily allocates the fund’s portfolio investments using a proprietary model developed by Morgan & Co which focuses on firms that are fundamentally sound and well-managed.
The model will also focus on firms that are reasonably expected to deliver future earnings per share growth in excess of Zimbabwe’s consumer price inflation.
At the time of listing, ETF was expected to consist of Old Mutual Zimbabwe Limited, NMBZ Bank Limited, First Mutual Holdings Limited, First Capital Bank Limited, and Zimra Holdings Limited.
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