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Abridged Audited Results for the Year Ended 31 December 2014 - STXRAF
SATRIX RAFI 40
JSE code: STXRAF
ISIN: ZAE000126033
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”) (the “portfolio”)
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 31 038 424 25 291 209
REIT income 609 728 -
Interest income 161 858 517 437
Total income 31 810 010 25 808 646
Expenses
Management fee (5 115 328) (4 350 962)
Transaction costs (605 634) (237 862)
Trustee and custodian fees (95 267) (77 503)
Total operating expenses (5 816 229) (4 666 327)
Income attributable to investors
before distributions 25 993 781 21 142 319
Income distributions (26 051 927) (18 132 169)
Income attributable to investors
after distributions (58 146) 3 010 150
Realised gains on financial
instruments designated at fair
value through profit or loss 46 979 617 69 267 415
Unrealised (losses)/gains on
financial instruments designated at
fair value through profit or loss (13 683 627) 42 960 473
Total fair value adjustment 33 295 990 112 227 888
Increase in net assets attributable
to investors after distributions 33 237 844 115 238 038
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated held at
fair value through profit or loss 971 608 663 937 340 958
Interest receivable 8 000 553
Cash and cash equivalents 1 766 785 1 804 269
Total assets 973 383 448 939 145 780
LIABILITIES
Other payables 421 830 393 721
Total liabilities (excluding net
assets attributable to investors) 421 830 393 721
Net assets attributable to
investors 972 961 618 938 752 059
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 777 669 598 2 908 988 780 578 586
Creation of Satrix RAFI
40 Securities 27 719 222 - 27 719 222
Increase in net assets
attributable to investors
after distributions 112 227 888 21 142 319 133 370 207
Dividends reinvested 15 216 213 - 15 216 213
Distributions to investors - (18 132 169) (18 132 169)
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December 2013 932 832 921 5 919 138 938 752 059
Redemption of Satrix
RAFI 40 Securities (21 334 917) - (21 334 917)
Increase in net assets
attributable to investors
after distributions 33 295 990 25 993 781 59 289 771
Dividends reinvested 22 306 632 - 22 306 632
Dividends previously
reinvested 4 508 037 (4 508 037) -
Distributions to investors - (26 051 927) (26 051 927)
Balance at 31 December 2014 971 608 663 1 352 955 972 961 618
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating
activities 26 014 443 18 282 376
Cash utilised by operations (5 788 120) (4 614 070)
Interest received 154 411 521 193
Dividends received 31 038 424 22 375 253
REIT income received 609 728 -
Cash outflow from investing
activities (4 717 010) (45 851 391)
Purchase of underlying constituents (153 317 083) (191 839 610)
Sale of underlying constituents 148 600 073 145 988 219
Cash (outflow)/inflow from financing
activities (21 334 917) 27 719 222
Creation of Satrix RAFI
40 Securities 27 719 222
Redemption of Satrix RAFI
40 Securities (21 334 917) -
Net movement in cash and cash
equivalents (37 484) 150 207
Cash and cash equivalents at the
beginning of the year 1 804 269 1 654 062
Cash and cash equivalents at the end
of the year 1 766 785 1 804 269
SATRIX RAFI 40 SECURITIES
During the year, nil (2013: 3 000 000) Satrix Rafi 40 securities were
created at a value of Rnil (2013: R27 719 222) and 2 000 000 (2013: nil)
Satrix Rafi 40 securities were redeemed at a value of R21 334 917 (2013:
Rnil). All creations and liquidations were in specie.
Distributions
The Portfolio announces dividends monthly. All distributions that were made
out of income of the Satrix RAFI 40 Portfolio were reinvested back into the
Portfolio net of withholding tax. During the year under review the following
distributions were effected per Satrix RAFI 40 Security.
2014 2013
R R
1.29 cents per security
Announced 28 March 2014 and re-invested
11 April 2014 1 107 817
1.35 cents per security
Announced 28 March 2013 and re-invested
12 April 2013 797 846
11.66 cents per security
Announced 25 April 2014 and re-invested
16 May 2014 10 013 290
6.87 cents per security
Announced 26 April 2013 and re-invested
9 May 2013 5 831 068
1.83 cents per security
Announced 30 May 2014 and re-invested
10 June 2014 1 571 554
2.62 cents per security
Announced 31 May 2013 and re-invested
12 June 2013 2 302 384
1.29 cents per security
Announced 29 August 2014 and re-
invested 11 September 2014 1 107 817
1.11 cents per security
Announced 30 August 2013 and re-
invested 12 September 2013 975 438
8.95 cents per security
Announced 26 September 2014 and re-
invested 16 October 2014 7 686 016
7.81 cents per security
Announced 27 September 2013 and re-
invested 9 October 2013 6 863 215
3.69 cents per security
Announced 31 October 2014 and re-
invested 14 November 2014 3 168 871
3.69 cents per security
Announced 25 October 2013 and 3 242 671
re-invested 04 November 2013
0.61 cents per security
Announced 28 November 2014 and re-
invested 3 December 2014 523 851
0.0 cents per security
Announced 29 November 2013 -
0.89 cents per security
Announced 24 December 2014 and re-
invested 16 January 2015 764 308
1.05 cents per security
Announced 27 December 2013 and re-
invested 16 January 2014 922 711
Accrued income portion of NAV received
on creation of securities (50 000)
Total distribution 25 893 524 20 935 333
Operating Segments
The Satrix RAFI 40 Portfolio offers only one product, being the specific
exchange traded fund, tracking the specific identified index.
Information regarding the results of the reportable segments is disclosed in
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 fair
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 971 608 663 – –
Net assets attributable to
investors – 972 961 618 –
Total 971 608 663 972 961 618 –
Level 1 Level 2 Level 3
31 December 2013 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 937 340 958 – –
Net assets attributable to
investors – 938 752 059 –
Total 937 340 958 938 752 059 –
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:
The assets and liabilities included in the below table are carried at
amortised cost; their carrying values are a reasonable approximation of
fair value.
Level 1 Level 2 Level 3
31 December 2014 R R R
Assets
Interest receivable – 8 000 –
Cash and cash equivalents – 1 766 785 –
Total – 1 774 785 –
Liabilities
Other payables – – 421 830
Total – – 421 830
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 533 –
Cash and cash equivalents – 1 804 269 –
Total – 1 804 802 -
Liabilities
Other payables – – 393 721
Total – – 393 721
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 5 087 222 3 807 115
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary
Limited 421 833 393 728
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 RAFI 40 Portfolio had a TER of 52.7 (2013: 52.8) basis points
(annualised) 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 the 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 have been
considered. None of these are expected to have a significant effect on the
recognition and measurement of the amounts recognised in the financial
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 2016
in joint operations
IAS 16 and IAS 38 Clarification of Annual periods beginning
amendment acceptable methods of on or after 1 January 2016
depreciation and
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
statements of the Portfolio.
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 RAFI 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) (Pty) 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 01:04:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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