Datvest expands scope after ETF launch

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DATVEST

BY TAURAI MANGUDHLA
CBZ Holdings’ asset management unit, Datvest, is working on establishing a real estate investment trust (REITs) to be listed on one of the country’s stock markets, the firm said yesterday, after launching the Datvest modified consumer staples exchange traded fund (DMCSETF).

Datvest chairperson Never Mhlanga said more products would be unveiled soon.

“For now we have done the ETF which is a very exciting product as you would know,” Mhlanga told NewsDay Business.

“Beyond this we are looking at real estate (to see) to what extent we can deepen the markets. (We are) looking at what they are doing in other markets. We will launch a real estate investment trust (REIT), which will be listed on a stock exchange.

“Instead of you going to buy a bit of equity in Karigamombe House or Livingstone House (some of Harare’s biggest properties) or any commercial and residential property, you can do all that and cover all that, but purchasing a REIT … becomes a hedging instrument. Obviously, out of our innovativeness, we are always looking to enhance our impact and relationship with customers.”

The launch was attended by Finance ministry secretary George Guvamatanga and Zimbabwe Stock Exchange (ZSE) chief executive officer Justin Bgoni.

The DMCSEFT becomes the third ETF in the country after Old Mutual unveiled an almost similar product in January last
year.

Morgan & Co listed its multi-sector fund two months ago.

CBZ group on Tuesday announced the injection of $70,5 million into Datvest’s DMCSETF.

Datvest said it would track the ZSE’s modified consumer staples index (MCSI).

ZSE last September introduced MCSI as part of a string of innovations that have broadened products on the multi-decade-old bourse.

“CBZ Asset Management (Private) Limited is putting initial seed capital in the form of scrip in the exact weights of the ZSE modified consumer staples index,” Datvest said on Tuesday.

“The fund will then be listed on the ZSE by way of introduction. Additional investments from other investors will be used to buy shares on the market and add to the portfolio.

“Investors who wish to invest in the fund can do so through two ways, by buying units in the ETF through any registered stockbroker or alternatively investing in kind by delivering a basket of stocks in the exact weights of the fund through an authorised participant.”

Datvest’s launch, which comes as one of the country’s largest financial services firms, was said to be awaiting regulatory approvals ahead of launching of a similar fund.

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