Sharenet Sites 
Sharenet Sites
Abridged audited results for the year ended 31 December 2013 - STXRES
SATRIX RESI
JSE Code: STXRES
ISIN: ZAE000078622
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 2013
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2013
2013 2012
R R
Income
Dividend income 15 182 069 8 315 389
Fee income: Securities lending 89 211 84 975
Interest income 72 760 63 783
Other income - 93 952
Total income 15 344 040 8 558 099
Expenses
Management fee
(2 127 573) (1 488 431)
Transaction costs
(125 026) (56 195)
Trustee and custodian fees
(62 478) (64 767)
Total operating expenses (2 315 077) (1 609 393)
Income attributable to investors before distributions 13 028 963 6 948 706
Income distributions (13 025 852) (7 064 311)
Realised gains on financial instruments designated at fair
value through profit or loss
23 245 109 1 866 682
Unrealised (losses)/gains on financial instruments designated
at fair value through profit or loss
(28 340 657) 30 387
Total fair value adjustment (5 095 548) 1 897 069
(Decrease)/Increase in net assets attributable to investors after
distributions (5 092 437) 1 781 464
STATEMENT OF FINANCIAL POSITION
at 31 December 2013
2013 2012
R R
ASSETS
Listed equities designated as held at fair value through profit or
loss 483 963 723 486 542 580
Interest receivable 1 243 8 699
Securities lending fee receivable 7 374 6 148
Other receivables - 7 615
Underlying securities sold and not settled - 50 274
Cash and cash equivalents 2 569 883 2 560 923
Total assets 486 542 223 489 176 239
LIABILITIES
Distributions payable to investors 2 021 546 2 006 707
Other payables 175 467 195 299
Underlying securities purchased and not settled - 53 277
Total liabilities (excluding net assets attributable to investors) 2 197 013 2 255 283
Net assets attributable to investors 484 345 210 486 920 956
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2013
Capital attributable to Income attributable to Net assets attributable to
investors investors investors
R R R
Balance at 1 January 2012
281 441 388 493 981 281 935 369
Creation of Satrix RESI Securities
203 204 123 - 203 204 123
Increase in net assets attributable to investors
after distributions
1 897 069 (115 605) 1 781 464
Capital attributable Income attributable Net assets attributable
to investors to investors to investors
Balance at 31 December 2012
486 542 580 378 376 486 920 956
Creation of Satrix RESI Securities 87 114 381 - 87 114 381
Redemption of Satrix RESI Securities
(84 597 690) - (84 597 690)
Increase in net assets attributable to investors
after distributions
(5 095 548) 3 111 (5 092 437)
Balance at 31 December 2013
483 963 723 381 487 484 345 210
STATEMENT OF CASH FLOWS
for the year ended 31 December 2013
2013 2012
R R
Net cash generated from operating activities
13 019 973 7 029 123
Cash utilised by operations
(2 330 297) (1 440 409)
Fee income: Securities lending 87 985 94 573
Interest received
80 216 59 570
Dividend received 15 182 069 8 315 389
Cash (outflow)from investing activities (2 516 691) (203 204 123)
Purchase of underlying constituents (142 290 043) (214 830 284)
Sale of underlying constituents 139 773 352 11 626 161
Cash (outflow)/ inflow from financing activities
(10 494 322) 197 090 426
Creation of Satrix RESI
Securities 87 114 381 203 204 123
Redemptions of Satrix RESI Securities
(84 597 690) -
Cash distributed to security holders
(13 011 013) (6 113 697)
Net movement in cash and cash equivalents
8 960 915 426
Cash and cash equivalents at the beginning of the year
2 560 923 1 645 497
Cash and cash equivalents at the end of the year 2 569 883 2 560 923
Satrix RESI SECURITIES
During the year, 2 000 000 (2012: 4 000 000) Satrix Resi securities were created at a value of R87 114 381 (2012: R203 204 123)
and 2 000 000 (2012: Rnil) Satrix Resi securities were redeemed at a value of R84 597 690 (2012: Rnil). All creations and
redemptions were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix RESI Portfolio. The record dates were
28 March 2013, 28 June 2013, 27 September 2013 and 27 December 2013 respectively. During the year under review the following
distributions were effected per Satrix RESI Index Security.
2013 2012
R R
53.39 cents per security
Declared 28 March 2013 and paid 19 April 2013 5 065 630
38.33 cents per security
Declared 30 March 2012 and paid 11 April 2012 2 103 541
6.69 cents per security
Declared 28 June 2013 and paid 12 July 2012 768 546
23.18 cents per security
Declared 29 June 2012 and paid 10 July 2012 1 272 113
56.64 cents per security
Declared 27 September 2013 and paid 16 October 2013 5 373 989
47.82 cents per security
Declared 28 September 2012 and paid 12 October 2012 2 624 350
21.31 cents per security
Declared 27 December 2013 and paid 24 January 2014 2 021 887
21.15 cents per security
Declared 28 December 2012 and paid 17 January 2013 2 006 707
Accrued income portion of NAV (paid)/received on
redemption/(creation) of securities (204 200) (942 400)
Total distributions 13 025 852 7 064 311
Fair value estimation
IFRS 13 became effective in the current year. We have assessed the impact of the new requirements and have found that no changes
with regard to fair value measurement are necessary. 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 2013
R R R
Financial instruments designated at fair
value through profit or loss:
Listed equities 483 963 723 – –
Net assets attributable to investors – 484 345 210 –
Total 483 963 723 484 345 210 –
31 December 2012
Financial instruments designated at fair
value through profit or loss:
Listed equities 486 542 580 – –
Net assets attributable to investors – 486 920 956 –
Total 486 542 580 486 920 956 –
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 2013 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 2013 R R R
Assets
Interest receivable – 1 243 –
Securities lending fee receivable – – 7 374
Other receivables – – -
Underlying securities sold and not settled – – –
Cash and cash equivalents – 2 569 883 –
Total – 2 571 126 7 374
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to investors – – 2 021 546
Other payables – – 175 467
Total – – 2 197 013
Level 1 Level 2 Level 3
31 December 2012 R R R
Assets
Interest receivable – 8 699 –
Securities lending fee receivable – – 6 148
Other receivables – – 7 615
Underlying securities sold and not settled – – 50 274
Cash and cash equivalents – 2 560 923 –
Total – 2 569 622 64 037
Liabilities
Distributions payable to investors – – 2 006 707
Other payables – – 195 299
Underlying securities purchased and not
settled – – 53 277
Total – – 2 255 283
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.
2013 2012
R R
Management fee paid
Satrix Managers (RF) (Proprietary) Limited 1 872 360 1 304 689
Management fee payable at
31 December 2013
Satrix Managers (RF) (Proprietary) Limited 175 016 185 130
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 RESI Portfolio had a TER of 45.58(2012: 45.60) basis points (annualised) for the period 1 January to 31 December 2013.
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.
The Portfolio engages in securities lending with the sole aim of reducing the net expenses of managing the Satrix RESI Portfolio and in
this way the income from securities lending proves beneficial to all holders of Satrix RESI Portfolio.
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, 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 2013 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 2013, and
have not been applied in preparing these financial statements. All standards and interpretations issued but not effective for the year
ended 31 December 2013 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 statements of the Portfolio.
Standard/Interpretation Effective date
IAS 32 amendment Offsetting financial assets and financial Annual periods beginning on or after 1 January
liabilities 2014
IAS 27 amendment Investments in Associates and Joint Annual periods beginning on or after 1 January
Ventures 2014
IFRS 10 amendment Consolidated Financial Statements Annual periods beginning on or after 1 January
2014
IFRS 12 amendment Disclosure of Interests in Other Entities Annual periods beginning on or after 1 January
2014
IAS 36 amendment Impairment of assets Annual periods beginning on or after 1 January
2014
IAS 39 amendment Financial instruments: Recognition and Annual periods beginning on or after 1 January
measurement 2014
IFRIC 21 Levies Annual periods beginning on or after 1 January
2014
IAS 24 - Amendment Management entity Annual periods beginning on or after 1 July
2014
IFRS 2 - Amendment Vesting conditions Annual periods beginning on or after 1 July
2014
IFRS 3 - Amendment Contingent consideration Annual periods beginning on or after 1 July
2014
IFRS 9 - Amendment Financial Instruments Annual periods beginning on or after 1 January
2015
Preparer of Abridged annual financial statements for the year ended 31 December 2013
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 RESI Portfolio
for the year ended 31 December 2013 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,
First Floor, Three Exchange Square, 87 Maude Street, Sandown.
A full copy of these financial statements is available on the Satrix website www.satrix.co.za.
26 March 2014
Sponsor
Vunani Corporate Finance
Trustee
ABSA Bank Limited
Manager
Satrix Managers (RF) (Proprietary) Limited
Date: 26/03/2014 05:26:00 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.
