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Enacy Mapakame

Datvest Modified Consumer Staples Exchange Traded Fund (Datvest ETF) swung back to profitability during the year to December 31, 2023 from a loss position recorded in the prior year period.

Its financial statements for the period reveal that the ETF recorded an inflation-adjusted profit after tax of $255,2 million against the prior year’s inflation-adjusted loss of $1,6 billion. 

The Datvest ETF attributed this to fair value gains in inflation-adjusted terms on equity investments. In historical terms, after-tax profit reached $1,1 billion compared to $93,5 million in the prior year.

During the year under review, earnings per unit came in at $1,87 from a loss of $7,28 per unit. Fair value gains on equity instruments of $198 million were achieved during the year under review compared to a $1,6 billion loss position.

Foreign exchange gains surged by 1 456 percent to $70 million compared to $4 million achieved in the prior year.

An operating income of $272 million was achieved compared to an operating loss of $1,6 billion in 2022. 

Operating expenditure for the period worsened to $64 million from $18 million in the comparable prior year period, on the back of inflationary pressures experienced during the period under review.

Despite the challenging environment, the fund remains upbeat of good performance going forward supported by Government policy interventions. 

For instance, the promulgation of Statutory Instrument 218 of 2023 extended the multicurrency regime to 2030 and fostered market confidence in pursuing US dollar medium-term transactions and investments, albeit limited due to general macroeconomic policy instability.

“In this regard, the fund expects this to translate to increased investor confidence and improve stock market performance. The shares on the Victoria Falls Exchange are expected to preserve value for unit holders,” said Datvest ETF.

The Datvest ETF provides a unique solution to various clients in helping them invest in various counters on the ZSE and VFEX through the Datvest ETF basket. 

The ETF tracks counters comprising consumer staples such as Delta, Innscor, National Foods, Meikles, Simbisa Brands, OK Zimbabwe, TSL, Dairibord, Hippo Valley and African Distillers.

For the year under review, Datvest ETF fund manager declared a final dividend of 58,20 cents per unit on March 28, 2024 .

“In light of the current macroeconomic environment, this dividend will be paid in US dollars as US 0,0095 cents per unit. A separate detailed notice to shareholders will be issued in this regard,” said Datvest ETF.