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Abridged Audited Results For The Year Ended 31 December 2016 - DBXEU
The db X-trackers Collective Investment Scheme
db x-trackers DJ Eurostoxx 50 Trust
JSE code: DBXEU
ISIN: ZAE000115937
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 82 891 689 88 858 263
Investment income 82 891 689 67 408 757
Net fair value gain on investments at fair
value through profit or loss - 21 449 506
Expenses (52 483 536) (15 122 550)
Management and administrative expenses (16 338 547) (15 102 050)
Finance costs (46 539) (20 500)
Net fair value loss on investments at fair
value through profit or loss (36 098 450) -
Operating profit before distribution 30 408 153 73 735 713
Comprising:
Income available for distribution before
tax 66 506 603 52 286 207
Capital (loss)/gain retained (36 098 450) 21 449 506
Distributions (45 859 801) (33 685 012)
(Decrease)/increase in net assets
attributable to holders of redeemable
securities before tax (15 451 648) 40 050 701
Withholding tax (20 679 730) (16 777 275)
(Decrease)/increase in net assets
attributable to holders of redeemable (36 131 378) 23 273 426
securities
2
STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
Assets
Listed investments held at fair
value through profit or loss 1 720 206 729 2 449 970 705
Trade and other receivables 835 720 1 143 035
Cash and cash equivalents 12 333 134 13 789 408
Total assets 1 733 375 583 2 464 903 148
Liabilities
Net assets attributable to holders
of redeemable securities 1 722 335 876 2 451 620 038
Trade and other payables 11 039 707 13 283 110
Total liabilities 1 733 375 583 2 464 903 148
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 1 508 778 685
Increase in net assets attributable to holders
23 273 426
of redeemable securities
Creation of redeemable securities 492 014 894
Foreign currency translation adjustments
427 553 033
attributable to redeemable securities
Balance at 31 December 2015 2 451 620 038
Decrease in net assets attributable to holders
(36 131 378)
of redeemable securities
Redemption of securities (366 473 481)
Foreign currency translation adjustments
(326 679 303)
attributable to redeemable securities
Balance at 31 December 2016 1 722 335 876
3
STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Cash utilised by operations (21 401 529) (13 745 022)
Dividends received 83 199 004 63 403 898
Management fees paid (19 026 132) (11 066 554)
Interest paid (46 539) (20 500)
Net cash inflow from operating activities 42 724 804 38 571 822
Cash inflow/(outflow) from investing
activities 366 986 224 (495 073 662)
Sale/(purchase) of listed investments 366 986 224 (495 073 662)
Cash (outflow)/inflow from financing
activities (411 167 301) 457 495 056
(Redemption)/creation of securities (366 473 481) 492 014 893
Distributions paid to investors (44 693 820) (34 519 837)
Net (decrease)/increase in cash and cash
equivalents (1 456 274) 993 216
Cash and cash equivalents at the
beginning of year 13 789 408 12 796 192
Cash and cash equivalents at the end of 12 333 134 13 789 408
year
2016 2015
Number Number
db x-trackers DJ EuroStoxx 50
redeemable securities in issue 36 000 000 44 000 000
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 db x-trackers DJ Eurostoxx 50 redeemable securities.
Creations and redemptions
There were no (2015 : 10 000 000) creations during the year amounting to
a nil value (2015 : R492 014 893). There were 8 000 000 (2015 : Nil)
redemptions during the year amounting to R366 473 481 (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 DJ Eurostoxx 50 Redeemable Security:
4
2016 2015
R R
Declared distributions (44 789 118) (32 256 272)
0.94083 Rand per security
Declared June 2016 and paid July 2016 (41 396 652)
0.71500 Rand per security
Declared June 2015 and paid July 2015 (30 029 796)
0.09368 Rand per security
Declared December 2016 and paid January
2017 (3 392 466)
0.05060 Rand per security
Declared December 2015 and paid January
2016 (2 226 476)
Management fees refunded during the
year as a rebate distribution (1 070 683) (1 428 740)
Total distribution expense for the year (45 859 801) (33 685 012)
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.
5
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.
6
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 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
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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