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Abridged Audited Results for the Year Ended 31 December 2015 - DBXJP
The db X-trackers Collective Investment Scheme
db x-trackers MSCI Japan Trust
JSE code: DBXJP
ISIN: ZAE000115176
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 2015
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2015
2015 2014
R R
Revenue 30 770 615 35 444 385
Investment income 12 413 809 7 292 884
Net fair value gain on investments at fair
value through profit or loss 18 356 806 28 151 501
Expenses (4 569 786) (2 809 073)
Management and administrative expenses (4 569 772) (2 809 073)
Foreign exchange loss on dividends (14) -
Operating profit before distribution 26 200 829 32 635 312
Comprising:
Income available for distribution before tax 7 844 023 4 483 811
Capital gain retained 18 356 806 28 151 501
Distributions (6 119 364) (3 215 395)
Increase in net assets attributable to
holders of redeemable securities before tax 20 081 465 29 419 917
Withholding tax (1 740 064) (1 145 180)
Increase in net assets attributable to
holders of redeemable securities 18 341 401 28 274 737
STATEMENT OF FINANCIAL POSITION
at 31 December 2015
2015 2014
R R
Assets
Listed investments held at fair value
through profit or loss 871 324 964 376 404 888
Trade and other receivables 980 461 395 277
Cash and cash equivalents 6 741 460 2 790 063
Total assets 879 046 885 379 590 228
Liabilities
Net assets attributable to holders of
redeemable securities 872 267 934 376 814 573
Trade and other payables 6 778 951 2 775 655
Total liabilities 879 046 885 379 590 228
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE
SECURITIES
for the year ended 31 December 2015
Total
R
Balance at 1 January 2014 362 975 461
Increase in net assets attributable to holders of
28 274 737
redeemable securities
Foreign currency translation adjustments
(14 435 625)
attributable to redeemable securities
Balance at 31 December 2014 376 814 573
Increase in net assets attributable to holders of
18 341 401
redeemable securities
Creation of redeemable securities 269 356 090
Foreign currency translation adjustments
attributable to redeemable securities 207 755 870
Balance at 31 December 2015 872 267 934
STATEMENT OF CASH FLOWS
for the year ended 31 December 2015
2015 2014
R R
Cash utilised by operations (344 861) (1 177 996)
Dividends received 10 770 658 7 212 207
Management fees paid (2 550 358) (2 704 893)
Interest received 517 300
Net cash inflow from operating activities 7 875 956 3 329 618
Cash outflow from investing activities (268 807 401) (126 026)
Purchase of listed investments (268 807 401) (126 026)
Cash inflow/(outflow)from financing
activities 264 882 842 (3 303 208)
Proceeds on creation of redeemable
securities 269 356 090 -
Distributions paid to investors (4 473 248) (3 303 208)
Net increase/(decrease) in cash and cash
equivalents 3 951 397 (99 616)
Cash and cash equivalents at the beginning
of year 2 790 063 2 889 679
Cash and cash equivalents at the end of year 6 741 460 2 790 063
2015 2014
Number Number
db x-trackers MSCI Japan redeemable
securities in issue 72 000 000 45 000 000
In terms of the Trust Deed and CISCA, the Trust is required to pay the net
asset value attributable to investors on redemption of securities.
Vested income beneficiaries include all holders of db x-trackers MSCI
Japan redeemable securities.
Creations and redemptions
There were 27 000 000 (2014: Nil) creations during the year amounting to a
value of R269 356 090 (2014: Nil). There were no redemptions during the
current or prior year.
Distributions
The Trust effects semi–annual distributions. All distributions are made
out of the income of the MSCI Japan Trust. The rebates represent an
investor’s partial reduction of the 85.5 basis point management fee
charged (2014: 85.5 basis point 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 Japan Redeemable Security:
2015 2014
R R
Declared distributions (5 399 761) (2 963 464)
0.03896 Rand per security
Declared June 2015 and paid July 2015 (2 571 340)
0.03933 Rand per security
Declared June 2014 and paid July 2014 (1 769 677)
0.42520 Rand per security
Declared December 2015 and paid January
2016 (2 828 421)
0.02653 Rand per security
Declared December 2014 and paid January
2015 (1 193 787)
Management fees refunded during the year
as a rebate distribution (719 603) (251 931)
Total distribution expense for the year (6 119 364) (3 215 395)
Total Expense Ratio (TER)
The TER represents the total expense to the Trust. The only
expense to the Trust is the management fee payable to the Manager
which is calculated at 0.855% of the assets under management on a
daily basis (2014: 0.855% of assets under management).
The Trust had a TER of 85.5 basis points (2014:85.5 basis points).
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 23 March 2016.
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 2015:
IAS 1: Disclosure Initiative - The amendments provide additional guidance
on the application of materiality and aggregation when preparing
financial statements. IAS 1 is effective for reporting periods beginning
on or after 1 January 2016 and the impact of this standard will be
assessed once the standard becomes effective. The Trust will only apply
the standard once the standard becomes effective.
IFRS 9: Financial Instruments - IFRS 9 deals with classification and
measurement of financial assets and financial liabilities. IFRS 9 is
effective for reporting periods beginning on or after 1 January 2018 and
the impact of this standard will be assessed once the standard becomes
effective. The Trust will only apply the standard once the standard
becomes effective.
IFRS 15: Revenue from Contracts with Customers - IFRS 15 contains a
single model that applies to contracts with customers and two approaches
to recognising revenue: at a point in time or over time. IFRS 15 is
effective for reporting periods beginning on or after 1 January 2018 and
the impact of this standard will be assessed once the standard becomes
effective. The Trust will only apply the standard once the standard
becomes effective.
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 2015 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 confirm that 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
31 March 2016
Date: 31/03/2016 12:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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