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Abridged Audited Results For The Year Ended 31 December 2016-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 2016
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
2016 2015
R R
Revenue 14 360 388 30 770 615
Investment income 14 360 388 12 413 809
Net fair value gain on investments at fair
value through profit or loss - 18 356 806
Expenses (59 412 294) (4 569 786)
Management and administrative expenses (5 389 731) (4 569 772)
Net fair value loss on investments at fair
value through profit or loss (54 022 563) -
Foreign exchange loss on dividends - (14)
Operating (loss)/profit before distribution (45 051 906) 26 200 829
Comprising:
Income available for distribution before tax 8 970 657 7 844 023
Capital (loss)/gain retained (54 022 563) 18 356 806
Distributions (6 683 908) (6 119 364)
(Decrease)/increase in net assets
attributable to holders of redeemable
securities before tax (51 735 814) 20 081 465
Withholding tax (2 195 618) (1 740 064)
(Decrease)/increase in net assets
attributable to holders of redeemable (53 931 432) 18 341 401
securities
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STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
Assets
Listed investments held at fair value
through profit or loss 490 941 725 871 324 964
Trade and other receivables 609 637 980 461
Cash and cash equivalents 4 580 174 6 741 460
Total assets 496 131 536 879 046 885
Liabilities
Net assets attributable to holders of
redeemable securities 491 646 174 872 267 934
Trade and other payables 4 485 362 6 778 951
Total liabilities 496 131 536 879 046 885
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 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
207 755 870
attributable to redeemable securities
Balance at 31 December 2015 872 267 934
Decrease in net assets attributable to holders of
(53 931 432)
redeemable securities
Redemption of securities (290 735 910)
Foreign currency translation adjustments
attributable to redeemable securities (35 954 418)
Balance at 31 December 2016 491 646 174
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STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Cash utilised by operations (2 812 420) (344 861)
Dividends received 14 712 396 10 770 658
Management fees paid (6 282 316) (2 550 358)
Interest received 18 816 517
Net cash inflow from operating activities 5 636 476 7 875 956
Cash inflow/(outflow) from investing
activities 290 406 258 (268 807 401)
Sale/(purchase) of listed investments 290 406 258 (268 807 401)
Cash (outflow)/inflow from financing
activities (298 204 020) 264 882 842
(Redemption)/creation of securities (290 735 910) 269 356 090
Distributions paid to investors (7 468 110) (4 473 248)
Net (decrease)/increase in cash and cash
equivalents (2 161 286) 3 951 397
Cash and cash equivalents at the beginning
of year 6 741 460 2 790 063
Cash and cash equivalents at the end of year 4 580 174 6 741 460
2016 2015
Number Number
db x-trackers MSCI Japan redeemable
securities in issue 46 000 000 72 000 000
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 no (2015: 27 000 000) creations during the year amounting to a
value of nil (2015: R269 356 090). There were 26 000 000 (2015: Nil)
redemptions during the current year amounting to a value of
R290 735 910 (2015: Nil).
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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 (2015: 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:
2016 2015
R R
Declared distributions (5 950 430) (5 399 761)
0.06300 Rand per security
Declared June 2016 and paid July 2016 (3 906 210)
0.03896 Rand per security
Declared June 2015 and paid July 2015 (2 571 340)
0.04460 Rand per security
Declared December 2016 and paid January
2017 (2 044 220)
0.42520 Rand per security
Declared December 2015 and paid January
2016 (2 828 421)
Management fees refunded during the year
as a rebate distribution (733 478) (719 603)
Total distribution expense for the year (6 683 908) (6 119 364)
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 (2015: 0.855% of assets under management).
The Trust had a TER of 85.5 basis points (2015:85.5 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.
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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.
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.
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- 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.
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
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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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