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Abridged audited results for the year ended 31 December 2014 - BBET40
BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment
Scheme
A portfolio in the BettaBeta Equally Weighted Top40 Exchange Traded Fund
Collective Investment Scheme (BBET40) registered as such in terms of the
Collective Investment Schemes Control Act, 45 of 2002 (the “Act”) (the
“portfolio”)
JSE code:BBET40
ISIN: ZAE000144507
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2014
2014 2013
R R
Income
Dividend income 6 523 408 3 722 238
Interest income 50 069 18 327
Total income 6 573 477 3 740 565
Fair value adjustment
Realised net gains on financial
instruments designated at fair
value through profit or loss
676 839 1 879 137
Unrealised net gains on financial
instruments designated at fair
value through profit or loss
6 123 177 8 071 272
Total fair value adjustment 6 800 016 9 950 409
Management fee written off - -
Expenses
Management fee (157 842) (35 405)
Other (7 539) (7 366)
Trustee and custodian fees (88 943) (70 470)
Investment fee (384 058) (160 044)
Total operating expenses (638 382) (273 285)
Increase in net assets attributable
to investors before distributions 12 735 111 13 417 689
Income distributions (4 671 272) (2 920 775)
Increase in net assets attributable
to investors after distributions 8 063 839 10 496 914
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated at fair
value through profit or loss 298 682 164 139 447 722
Cash and cash equivalents 2 347 492 620 613
Trade and other receivables - 955 757
Total assets 301 029 656 140 024 092
LIABILITIES
Other payables 386 594 923 916
Total liabilities (excluding net
assets attributable to investors)
386 594 923 916
Net assets attributable to
investors 300 643 062 140 100 176
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2014
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 1 January 2013 60 052 768 (364 875) 59 687 893
Creation of BBET40
Securities 69 915 369 - (69 915 369)
Increase/(decrease) in
net assets attributable
10 414 501 82 413 10 496 914
to investors
Balance at 31 December 2013 140 382 638 (282 462) 140 100 176
Creation of BBET40
Securities 152 479 047 - 152 479 047
Increase in net assets
attributable to investors
6 800 016 1 263 823 8 063 839
Balance at 31 December 2014 299 661 701 981 361 300 643 062
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Cash flow from operating activities
Cash utilised by operations (219 947) (606 881)
Dividends received 6 523 408 3 722 238
Interest incurred on creation of
units (24) (16 516)
Interest received 50 069 18 327
Investment in listed investments (59 659 285) (76 525 766)
Disposal of listed investments 59 498 631 30 067 516
Cash (outflow)/inflow from operating
activities 6 192 852 (43 341 082)
Cash flow from financing activities
Creation of fund
Securities 205 299 46 599 087
Distributions paid to
fund security holders (4 671 272) (2 920 775)
Net cash generated from financing
activities (4 465 973) 43 678 312
Net movement in cash and cash
equivalents 1 726 879 337 230
Cash and cash equivalents at the
beginning of the year 620 613 283 383
Cash and cash equivalents at the end
of the year 2 347 492 620 613
During the year, 3 000 000 BBET40 securities were created at a value of
R152 479 047 (2013: 1 614 491 at a value of R69 915 369). Zero BBET40
securities were redeemed during the period (2013: Zero)
Distributions
The Portfolio declares dividends quarterly. Distributions are made from the
income of the BBET40 Portfolio.
2014 2013
R R
Distributions declared during the
period were as follows:
21.92505 cents per share declared on
4 December 2013 and paid on the
27 January 2014 (2013: 23.33585
cents per share)
612 439 275 092
Botswana: 21.92505 cents per share
declared on 4 December 2013 and paid
on 27 January 2014 (2013: 23.33585
cents per share)
45 302 48 216
30.05061 cents per share declared on
8 March 2014 and paid on
22 May 2014 (2013: 30.17122 cents
per share)
839 412 672 468
Botswana: 30.05061 cents per share
declared on 8 March 2014 and paid on
22 May 2014 (2013: 30.17122 cents
per share)
62 106 62 081
44.44826 cents per share declared on
11 June 2014 and paid on 5 August
2014 (2013: 23.97465 cents per
share)
1 185 720 534 356
Botswana: 42.44826 cents per share
declared on 11 June 2014 and paid on
5 August 2014 (2013: 23.97465 cents
per share)
87 728 49 549
30.64258 cents per share declared on
4 September 2014 and paid on
27 October 2014 (2013: 42.63404
cents per share)
781 386 1 190 909
Botswana: 30.64258 cents per share
declared on 4 September 2014 and
paid on 27 October 2014 (2013:
42.63404 cents per share) 1 057 169 88 104
Total Expense Ratio ('TER') 29.89bps 29.84bps
The TER is a standard measure used by the Collective Investment Scheme
(‘CIS’) industry to illustrate costs of portfolios on a comparable basis.
The TER includes the management fee, audit fees bank charges, custodian
fees, costs related to securities lending and taxes.
The BBET40 Portfolio had a TER of 29.89bps (2013 29.84bps) basis points
(annualised) for the period 1 January 2014 to 31 December 2014. The ratio
is calculated based on the Association for Savings and Investments South
Africa (‘ASISA’) standard and does not include the cost of acquiring
assets.
Increased consumer demand for greater transparency in financial services
and the recognition thereof by the collective investment industry requires
managers to calculate and publish a total expense ratio for each Portfolio
under their management. This is a requirement in terms of the ASISA
standard on the calculation and publication of total expense ratios.
Statement of compliance
The financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS), the SAICA Financial Reporting
Pronouncements as issued by Financial Reporting Standards Council and in
the manner required by the Collective Investment Schemes Control Act and
the Principal Deed.
Functional and presentation currency
Items included in the financial statements are measured using the currency
of the primary economic environment in which the entity operates (the
functional currency). The financial statements are presented in South
African Rand, which is the Scheme’s functional and presentation currency.
Accounting policies
The accounting policies applied in the preparation of the financial
statements are consistent with those adopted in the previous financial year
and are in accordance with IFRS.
The trust adopted the following new standards and amendments to standards,
including any consequential amendments to other standards, with a date of
initial application of 1 January 2014.
a) IFRS 10: Consolidated Financial Statements
b) IFRS 12: Disclosure of Interest in Other Entities
c) IAS27: Separate Financial Statements
Forthcoming requirements
The following standards, amendments to standards, and interpretations,
effective for the first time in the future accounting period, and which are
relevant to the Portfolio, have not been adopted for the year ended 31
December 2014:
IFRS 9: Financial Instruments - IFRS 9 deals with classification and
measurement of financial assets and financial liabilities. The effective
date of IFRS 9 is yet to be decided.
The impact of the above standards will be assessed once the standards become
effective, and applied only at that stage.
Audit report
KPMG Inc, the entity’s independent auditors, has audited the annual financial
statements of the BBET40 Portfolio from which the abridged results contained
in this announcement have been derived, and has expressed an unmodified audit
opinion on the annual financial statements. Their audit report is available
for inspection at the registered office of Nedbank Limited.
A full copy of these financial statements is available on the BettaBeta
website www.bettabeta.co.za.
31 March 2015
Sponsor
Nedbank Capital
Trustee
FirstRand Bank Limited
Manager
Nedgroup Beta Solutions(Proprietary) Limited
Date: 31/03/2015 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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