Wrap Text
Abridged Audited Results for the Year Ended 31 December 2014 - STX40
SATRIX 40
JSE code: STX40
ISIN: ZAE000027108
A portfolio in the Satrix Collective Investment Scheme (“Satrix”),
registered as such in terms of the Collective Investment Schemes Control
Act, 45 of 2002 (the “Act”)
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 235 519 002 229 254 714
Fee income: Securities lending 1 839 653 1 698 183
REIT income 4 735 748 -
Interest income 1 439 287 5 683 010
Total income 243 533 690 236 635 907
Expenses
Management fee (37 111 796) (36 713 373)
Trustee and custodian fees (354 020) (306 881)
Transaction costs (2 927 338) (3 741 268)
Total operating expenses (40 393 154) (40 761 522)
Income attributable to investors
before distributions 203 140 536 195 874 385
Income distributions (203 452 247) (196 083 993)
Income attributable to investors (311 711) (209 608)
after distributions
Realised gains on financial
instruments designated at fair value
through profit and loss 1 219 592 224 705 805 637
Unrealised gains /(losses) on
financial instruments designated at
fair value through profit and loss (745 310 212) 713 298 013
Total fair value adjustments 474 282 012 1 419 103 650
Increase in net assets attributable
to investors after distributions 473 970 301 1 418 894 042
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated as held at
fair value through profit or loss 7 804 308 063 8 856 199 379
Interest receivable 157 539 11 304
Securities lending fee receivable 126 023 106 558
Other receivables 264 711 107 327
Cash and cash equivalents 38 985 424 30 228 892
Total assets 7 843 841 760 8 886 653 460
LIABILITIES
Distributions payable to investors 37 646 051 27 967 451
Other payables 3 935 002 4 222 275
Total liabilities (excluding net
assets attributable to investors) 41 581 053 32 189 726
Net assets attributable to investors 7 802 260 707 8 854 463 734
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 8 020 097 263 (1 526 037) 8 018 571 226
Creation of Satrix 40
Securities 227 918 368 - 227 918 368
Redemption of Satrix 40
Securities (810 919 902) - (810 919 902)
Increase in net assets
attributable to
investors after
distributions 1 419 103 650 (209 608) 1 418 894 042
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December
2013 8 856 199 379 (1 735 645) 8 854 463 734
Creation of Satrix 40
securities 488 193 458 - 488 193 458
Redemption of Satrix 40
securities (2 014 366 786) - (2 014 366 786)
Increase in net assets
attributable to
investors after
distributions 474 282 012 (311 711) 473 970 301
Balance at 31 December
2014 7 804 308 063 (2 047 356) 7 802 260 707
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating
activities 202 530 179 195 423 142
Cash utilised by operations (40 837 811) (41 351 969)
Fee income: Securities lending 1 820 188 1 758 969
Interest received 1 293 052 5 761 428
Dividends received 235 519 002 229 254 714
REIT income received 4 735 748 -
Cash inflow from investing activities 1 526 173 328 583 001 534
Purchase of underlying constituents (899 625 971) (1 337 634 446)
Sale of underlying constituents 2 425 799 299 1 920 635 980
Cash outflow from financing activities (1 719 946 975) (777 670 753)
Creation of Satrix 40 Securities 488 193 458 227 918 368
Redemption of Satrix 40 Securities (2 014 366 786) (810 919 902)
Cash distributed to security holders (193 773 647) (194 669 219)
Net movement in cash and cash
equivalents 8 756 532 753 923
Cash and cash equivalents at the
beginning of the year 30 228 892 29 474 969
Cash and cash equivalents at the end
of the year 38 985 424 30 228 892
SATRIX 40 SECURITIES
During the year 11 000 000 (2013: 6 000 000) Satrix 40 securities were
created at a value of R488 193 458 (2013: R227 918 368) and 47 000 000
(2013: 23 000 000) Satrix 40 securities were redeemed at a value of
R2 014 366 786 (2013: R810 919 902). All creations and liquidations were
in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix 40 Portfolio. The record dates were 28 March
2014, 27 June 2014, 26 September 2014 and 24 December 2014 respectively.
During the year under review the following distributions were effected per
Satrix 40 Security.
2014 2013
R R
20.84 cents per security
Announced 28 March 2014 and paid 10
April 2014 41 157 331
15.55 cents per security
Announced 28 March 2013 and paid 19
April 2013 35 375 005
27.94 cents per security
Announced 27 June 2014 and paid 18
July 2014 50 429 462
21.28 cents per security
Announced 28 June 2013 and paid 12
July 2013 46 707 896
38.68 cents per security
Announced 26 September 2014 and paid
16 October 2014 69 427 502
40.70 cents per security
Announced 27 September 2013 and paid
16 October 2013 84 744 841
21.21 cents per security
Announced 24 December 2014 and paid 23
January 2015 37 646 051
13.10 cents per security
Announced 27 December 2013 and paid 24
January 2014 27 967 451
Accrued income portion of NAV paid on
redemption of securities 4 791 900 1 288 800
Total distribution 203 452 247 196 083 993
Operating Segments
Satrix 40 Portfolio offers only one product, being the specific exchange
traded fund, tracking the specific identified index.
Information regarding the results of the reportable segment is disclosed in
the financial statements as currently set out, thus no further IFRS 8
disclosure is required.
Fair value estimation
The fair value of financial assets and liabilities traded in active markets
(such as publicly traded derivatives and trading securities) are based on
quoted market prices at the close of trading at the year-end date.
The following tables analyse, within the fair value hierarchy, the
Portfolio’s financial assets and liabilities (by class) measured at fari
value at 31 December:
Level 1 Level 2 Level 3
31 December 2014 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 7 804 308 063 – –
Net assets attributable to
investors – 7 802 260 707 –
Total 7 804 308 063 7 802 260 707 –
31 December 2013
Financial instruments
designated at fair value
through profit or loss:
Listed equities 8 856 199 379 – –
Net assets attributable to
investors – 8 854 463 734 –
Total 8 856 199 379 8 854 463 734 –
The following table analyses, within the fair value hierarchy, the
Portfolio’s assets and liabilities (by class) not measured at fair value at
31 December 2014 but for which fair value is disclosed:
Level 1 Level 2 Level 3
31 December 2014 R R R
Assets
Interest receivable – 157 539 –
Securities lending fee
receivable – – 126 023
Other receivables - – 264 711
Cash and cash equivalents – 38 985 424 –
Total - 39 142 963 390 734
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
investors – – 37 646 051
Other payables – – 3 935 002
Total – – 41 581 053
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 11 304 –
Securities lending fee
receivable – – 106 558
Other receivables – – 107 327
Cash and cash equivalents – 30 228 892 –
Total – 30 240 196 213 885
Liabilities
Distributions payable to
investors – – 27 967 451
Other payables – – 4 222 275
Total – – 32 189 726
Related parties
Related parties include Satrix
Managers (RF) Proprietary Limited in
its capacity as the management company
of the Portfolio. The following
related party balances and
transactions occurred during the year.
2014 2013
R R
Management fee paid
Satrix Managers (RF) Proprietary
Limited 37 795 426 32 387 624
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary
Limited 2 962 942 3 246 089
All related party transactions are
conducted at arm’s length on normal
commercial terms and conditions.
Outstanding balances will be settled
in the ordinary course of business.
Total Expense Ratio ('TER')
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 Satrix 40 Portfolio had a
TER of 45.6 (2013: 45.6) basis point for the period 1 January 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’) issued by the International Accounting
Standards Board (‘IASB’) and SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee, the Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council and in accordance with
the requirements of the Collective Investment Schemes Control Act of South
Africa(‘CISCA’), in order to meet the requirements of the Trust Deed approved
by the Financial Services Board.
The abridged financial results have been prepared in accordance with the
framework concepts and the recognition and measurement requirements of
International Financial Reporting Standards (IFRS) and the SAICA Financial
Reporting Guides as issued by the Accounting Practices Board. The disclosures
comply with International Accounting Standards (IAS) 34.
Functional and presentation currency
These financial statements are presented in South African Rand, which is the
Portfolio’s functional currency.
Accounting policies
The financial statements incorporate the principal accounting policies that
are consistent with those adopted in the previous financial year. The new
pronouncements applicable for the financial year ending 31 December 2014 for
the first time, was assessed and did not have a significant impact to the
financial position or performance of the Portfolio
Forthcoming requirements
New standards, amendments to standards and interpretations not yet adopted
A number of standards, amendments to standards and interpretations are not
effective for the year ended 31 December 2014, and have not been applied in
preparing these financial statements.
All standards and interpretations issued but not effective for the year
ended 31 December 2014 has been considered. None of these are expected to
have a significant effect on the recognition and measurement of the amounts
recognised in the financial statements of the Portfolio.
Standard/Interpretation Effective date
IFRS 9 Financial Instruments Annual periods beginning
on or after 1 January
2018
IFRS 14 Regulatory deferral Annual periods beginning
accounts on or after 1 January
2016
IFRS 15 Revenue from contracts Annual periods beginning
with customers on or after 1 January
2017
IFRS 11 amendment Accounting for Annual periods beginning
acquisition of interest on or after 1 January
in joint operations 2016
IAS 16 and IAS 38 Clarification of Annual periods beginning
amendment acceptable methods of on or after 1 January
depreciation and 2016
amortisation
IAS 16 and IAS 41 Agricultural: Bearer Annual periods beginning
amendment plants on or after 1 January
2016
IAS 19 Defined benefit plans: Annual periods beginning
Employee contributions on or after 1 July 2014
Preparer of Abridged annual financial statements for the year ended 31
December 2014
These Abridged annual financial statements have been prepared by R D Martin
CA(SA), the Company Secretary.
Audit report
Ernst & Young Inc, the entity’s independent auditors, has audited the
abridged results of the Satrix 40 Portfolio for the year ended 31 December
2014 and has expressed an unmodified audit opinion thereon. The auditor
also expressed an unmodified opinion on the annual financial statements
from which these abridged results were derived. Their audit report and the
abridged results is available for inspection at the registered office of
Satrix Managers (RF) Proprietary Limited, 4th Floor, Building 2, 11 Alice
Lane, Sandton.
A full copy of these financial statements is available on the Satrix
website www.satrix.co.za.
26 March 2015
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) Proprietary Limited
Date: 26/03/2015 01:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
