Old Mutual suspends equity and balanced funds transactions
HARARE, Old Mutual Zimbabwe has with immediate effect suspended transacting (deposits and withdraws) in the OMUT equity and balanced funds
following the suspension of trading on the Zimbabwe Stock Exchange (ZSE).
ZSE on Monday said it had suspended trading “until further notice” in compliance with a government directive after the bourse was listed among platforms allegedly being used to sabotage the economy.
Government last Friday singled out mobile money platforms and the ZSE as vehicles that were being used to undermine the economy through
tinkering with the exchange rate by promoting illegal exchange rates and currency trades.
In a notice OM said the suspension will be reviewed when ZSE resumes trading. Transacting (deposits and withdrawals) in the OMUT equity and balanced funds has been suspended with immediate effect.
“This is in response to the Zimbabwe Stock Exchange notice to stakeholders issued on June 20 2020, suspending trading on the ZSE until further notice. This position will be reviewed when the ZSE resumes trading,” said OM.
An equity fund is an open or closed-end fund that invests primarily in stocks, allowing investors to buy into the fund and thus buy a basket of stocks more easily than they could purchase the individual securities while balanced funds invest about 60-80% of their assets into equities and rest in debt.