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Abridged Audited Results For The Year Ended 31 December 2016 - DBXUS
The db X-trackers Collective Investment Scheme
db x-trackers MSCI USA Trust
JSE code: DBXUS
ISIN: ZAE000115192
A portfolio in the db x-trackers Collective Investment Scheme (db x-
trackers), registered as such in terms of the Collective Investment
Schemes Control Act, 45 of 2002 (CISCA)
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
2016 2015
R R
Revenue 515 484 958 76 444 652
Investment income 103 149 551 76 442 060
Foreign exchange gain on dividends - 2 592
Net fair value gain on investments at fair
value through profit or loss 412 335 407 -
Expenses (36 160 463) (52 250 091)
Management and administrative expenses (36 137 859) (26 704 732)
Foreign exchange loss on dividends (22 604) -
Net fair value loss on investments at fair
value through profit or loss - (25 519 431)
Finance costs - (25 928)
Operating profit before distribution 479 324 495 24 194 561
Comprising:
Income available for distribution before tax 66 989 088 49 713 992
Capital gain/(loss) retained 412 335 407 (25 519 431)
Distributions (48 295 669) (48 674 345)
Increase/(decrease) in net assets attributable
to holders of redeemable securities before tax 431 028 826 (24 479 784)
Withholding tax (15 783 525) (11 155 997)
Increase/(decrease) in net assets attributable
to holders of redeemable securities 415 245 301 (35 635 781)
2
STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
Assets
Listed investments held at fair value
through profit or loss 4 441 523 450 4 800 100 756
Trade and other receivables 4 877 639 5 403 497
Cash and cash equivalents 37 241 792 53 831 820
Total assets 4 483 642 881 4 859 336 073
Liabilities
Net assets attributable to holders of
redeemable securities 4 442 721 575 4 808 933 486
Trade and other payables 40 921 306 50 402 587
Total liabilities 4 483 642 881 4 859 336 073
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE
SECURITIES
for the year ended 31 December 2016
Total
R
Balance at 1 January 2015 2 715 129 369
Decrease in net assets attributable to holders of
redeemable securities (35 635 781)
Creations of redeemable securities 964 682 934
Foreign currency translation adjustments 1 164 756 964
attributable to redeemable securities
Balance at 31 December 2015 4 808 933 486
Creation of redeemable securities 263 465 187
Increase in net assets attributable to holders of
redeemable securities 415 245 301
Redemption of securities (441 121 057)
Foreign currency translation adjustments (603 801 342)
attributable to redeemable securities
4 442 721 575
Balance at 31 December 2016
3
STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Cash utilised by operations (16 547 637) (9 845 669)
Dividends received 103 241 649 72 094 808
Management fees paid (35 608 268) (17 387 630)
Interest received/(paid) 91 173 (25 928)
Net cash inflow from operating activities 51 176 917 44 835 581
Cash inflow/(outflow) from investing
activities 167 088 767 (947 441 737)
Sale/(purchase) of listed investments 167 088 767 (947 441 737)
Cash (outflow)/inflow from financing (234 855 712) 934 439 519
activities
Proceeds on creation of redeemable
securities 263 465 187 964 682 934
Redemption of securities (441 121 057) -
Distributions paid to investors (57 199 842) (30 243 415)
Net (decrease)/increase in cash and cash (16 590 028) 31 833 363
equivalents
Cash and cash equivalents at the beginning
of year 53 831 820 21 998 457
Cash and cash equivalents at the end of
year 37 241 792 53 831 820
2016 2015
Number Number
db x-Trackers MSCI USA redeemable
securities in issue 153 000 000 159 000 000
In terms of the Trust Deed and CISCA, the Trust is required to pay the net
asset value attributable to holders of redeemable securities on redemption
of the securities. Vested income beneficiaries include all holders of dbx-
trackers MSCI USA redeemable securities.
Creations and redemptions
There were 9 000 000 (2015: 39 000 000) Index Securities created during
the year for a value of R263 465 187 (2015: R964 682 934).
There were 15 000 000 (2015 : Nil) redemptions during the year amounting
to a value of R441 121 057(2015 : Nil).
Distributions
The Trust effects semi–annual distributions. All distributions are made
out of the income of the Trust. The rebates represent an investor’s
partial reduction of the 85.5 basis points management fee charged (2015:
85.5 basis points management fee charged). The rebate is calculated using
a sliding scale depending on the size of the investor’s investment.
During the year under review the following distributions were effected
per db x-trackers MSCI USA Redeemable Security –
4
2016 2015
R R
Declared distributions (44 872 088) (45 093 364)
0.14481 Rand per security
Declared June 2016 and paid July 2016 (23 893 861)
0.11022 Rand per security (15 210 964)
Declared June 2015 and paid July 2015
0.13541 Rand per security
Declared December 2016 and paid January
2017 (20 978 227)
0.18794 Rand per security
Declared December 2015 and paid January (29 882 400)
2016
Management fees refunded during the year as (3 423 581) (3 580 981)
a rebate distribution
Total distribution expense for the year (48 295 669) (48 674 345)
Total Expense Ratio (TER)
The TER represents the total expense to the Trust. The only expense of
the Trust is the management fee payable to the Manager which is calculated
at 0.855% of assets under management on a daily basis (2015: 0.855% of the
assets under management).
The Trust had a TER of 85.5 basis points (2015: 85.5 basis).
Increased consumer demand for greater transparency in financial services
and the recognition thereof by the collective investment industry
requires Collective Investment Scheme (CIS) managers to calculate and
publish a total expense ratio for each Portfolio under their management.
This is a requirement in terms of the Association for Savings and
Investments South Africa (ASISA) standard on the calculation and
publication of total expense ratios.
Statement of compliance
The information in the summarised report has been extracted from the
audited annual financial statements which have been prepared in accordance
with the requirements of the JSE Listing Requirements for abridged
reports, and the requirements of CISCA in order to meet the requirements
of the Trust Deed approved by the Financial Services Board.
The listing requirements require abridged reports to be prepared in
accordance with the framework concepts and the measurement and recognition
of International Financial Reporting Standards (IFRS) and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee
and the Financial Reporting Pronouncements as issued by Financial
Reporting Standards Council and to also, as a minimum contain the
information required by IAS 34 Interim Financial Reporting. This
announcement does not include the information required pursuant to
paragraph 16A(j) of IAS 34. The full report is available on the issuer’s
website, at the issuer’s registered offices and upon request.
These financial statements were authorised for issue by the board of
directors of the Manager on 27 March 2017.
4
Accounting policies
The accounting policies applied in the preparation of the financial
statements from which the summary financial statements were derived are in
terms of International Financial Reporting Standards and are consistent
with those accounting policies applied in the preparation of the previous
annual financial statements.
New standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations
effective for the first time in future accounting periods and which are
relevant to the Trust have not been adopted for the reporting periods
beginning on or after 1 January 2016:
IFRS 9 Financial Instruments – IFRS 9 will be effective for the Trust’s
annual reporting period starting 1 January 2018. IFRS 9 will replace the
current classification, recognition and measurement requirements of IAS 39
Financial Instruments: Recognition and Measurement. Management expects
that the impact of the application of IFRS 9 in the financial statements
would be minimal, due to the following reasons:
- The Trust’s largest financial instruments are listed equity
instruments. These instruments are currently measured at fair value
through profit or loss. IFRS 9 requires that all equity instruments
be measured at fair value with changes in profit or loss, except for
those equity instruments not held for trading and the entity has
elected to present the changes in fair value in other comprehensive
income. The Trust is not making this alternative accounting election.
- Trade and other receivables comprise of short term receivables with
established rights and low risk of default. These instruments would
continue to be measured at amortised cost in accordance with IFRS 9.
It is expected that any associated expected credit losses on these
receivables will be minimal.
- The financial liabilities comprise mostly of redeemable securities
which is designated at fair value through profit or loss. The Trust
will continue to designate the liabilities at fair value through
profit or loss in accordance with IFRS 9. This is because the
liabilities are managed and the performance evaluated on a fair value
basis.
- Trade and other payables that are financial instruments would continue
to be measured at amortised cost. These payables comprise of short
term payables.
- Fair value changes, dividend income and equalisation on investment
appropriations would be recognised in accordance with IFRS 9. The
recognition and measurement of these items will remain consistent
with the current accounting policy.
IFRS 15 Revenue from Contracts with Customers - IFRS 15 will be effective
for the Trust’s annual reporting period starting 1 January 2018. IFRS 15
replaces the current effective standards on recognition and measurement of
revenues, including IAS 18 Revenue. Management expects that there will be
no impact on the application of IFRS 15 due to the following:
- IFRS 15 excludes those contractual rights and obligations within the
scope of IFRS 9. As noted above, all investment returns will be
accounted for in accordance with IFRS 9.
5
Investment income
Investment income comprises:
- interest income earned on cash and cash equivalents;
- cash equalisation component on creations (at the time of creation it
represents the income portion attributable to the net asset value at
the time that is payable by the creating party)
- dividends from listed equities at fair value through profit or loss.
Interest income
Interest income is recognised in profit or loss, using the effective
interest method taking into account the expected timing and amount of cash
flows.
Dividend income
Dividend income is recognised when the right to receive the payment is
established. This is usually the ex-dividend date for quoted equities.
Audit report
This summarised report is itself not reviewed or audited but is extracted
from the underlying audited information. The audited annual financial
statements for the year ended 31 December 2016 from which the summarised
report has been extracted were audited by KPMG Inc, who expressed an
unmodified opinion thereon. A copy of the auditor’s report on the audited
annual financial statements is available for inspection at the company’s
registered office together with the annual financial statements identified
in the respective auditor’s reports.
A full copy of these financial statements is available on the db x-
trackers website www.dbxtrackers.co.za.
Directors’ responsibility
The directors take full responsibility for the preparation of the abridged
report and the financial information has been correctly extracted from the
underlying annual financial statements.
Sponsor
Vunani Corporate Finance
Trustee
Standard Bank of SA Limited
Manager
db x-trackers Proprietary Limited
30 March 2017
Date: 30/03/2017 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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