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Abridged Results as at 31 December 2017 - CTOP50
CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES S&P SOUTH ADRICA TOP50
ABBREVIATED NAME: CORETOP50
SHARE CODE: CTOP50
ISIN CODE: ZAE000204327
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME
(“CORESHARES S&P SOUTH AFRICA TOP 50 EXCHANGE TRADED FUND”)
AS AT 31 DECEMBER 2017
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2017
31 December 30 September
2017 2016
R R
ASSETS
Listed investments held at fair value through 784 765 287 139 408 225
profit or loss
Distributions receivable 259 812 173 838
Securities sold receivable - 12 122 645
Contributions receivable - 15 492 365
Cash and cash equivalents 4 642 368 1 146 816
TOTAL ASSETS 789 667 467 168 343 889
LIABILITIES
Net assets attributable to investors 789 518 803 140 728 062
Trade and other payables 148 664 -
Securities purchased payable - 27 615 827
TOTAL LIABILITIES 789 667 467 168 343 889
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
15 months 12 months
31 December 30 September
2017 2016
R R
Distribution income 8 588 874 1 762 660
Interest income 166 708 98 960
Total Revenue 8 755 582 1 861 620
Management and administration expenses (691 945) (91 118)
Income before taxation 8 063 637 1 770 502
Taxation - -
Income before distributions 8 063 637 1 770 502
Distributions paid (7 204 444) (841 812)
Income after distributions 859 193 928 690
Realised gains/(losses) on financial instruments designated 2 874 204 (433 027)
at fair value through profit or loss
Unrealised gains on financial instruments designated at fair 50 091 258 170 228
value through profit or loss
Total fair value adjustments - gains/(losses) 52 965 462 (262 799)
Other comprehensive income - -
Increase in net assets attributable to investors 53 824 655 665 891
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
Accumulated
Capital Profit Total
R R R
Balance at 30 September 2015 11 429 224 928 690 12 357 914
Creation of 524 911 units on 01 February 10 308 404 10 308 404
2016
Creation of 520 000 units on 01 March 2016 10 345 501 10 345 501
Creation of 490 000 units on 01 April 2016 10 173 644 10 173 644
Creation of 250 000 units on 11 April 2016 5 137 284 5 137 284
Creation of 750 000 units on 04 May 2016 15 630 228 15 630 228
Creation of 715 000 units on 01 June 2016 15 294 381 15 294 381
Creation of 775 000 units on 27 June 2016 15 417 282 15 417 282
Creation of 725 000 units on 01 August 2016 15 354 979 15 354 979
Creation of 735 000 units on 01 September 15 349 824 15 349 824
2016
Creation of 740 000 units on 30 September 15 492 366 15 492 366
2016
Change in net assets attributable to investors (262 799) 928 690 665 891
Balance at 30 September 2016 139 670 317 1 057 745 140 728 062
Creation of 800 000 units on 01 November 16 140 256 16 140 256
2016
Creation of 850 000 units on 01 December 16 992 436 16 992 436
2016
Creation of 50 000 units on 13 December 1 011 246 1 011 246
2016
Creation of 770 000 units on 05 January 15 511 189 15 511 189
2017
Creation of 75 000 units on 27 January 2017 1 603 921 1 603 921
Creation of 510 000 units on 01 Februay 10 772 550 10 772 550
2017
Creation of 50 000 units on 09 February 1 039 972 1 039 972
2017
Creation of 50 000 units on 22 February 1 047 215 1 047 215
2017
Creation of 100 000 units on 27 February 2 045 304 2 045 304
2017
Creation of 100 000 units on 17 March 2017 2 058 070 2 058 070
Creation of 142 655 units on 25 April 2017 2 972 280 2 972 280
Creation of 50 000 units on 02 May 2017 1 055 139 1 055 139
Creation of 432 580 units on 08 May 2017 9 177 376 9 177 376
Creation of 100 000 units on 27 June 2017 2 038 423 2 038 423
Creation of 50 000 units on 07 August 2017 1 120 731 1 120 731
Creation of 100 000 units on 19 September 2 213 583 2 213 583
2017
Creation of 50 000 units on 12 October 2017 1 147 005 1 147 005
Creation of 21 641 300 units on 17 October 497 191 554 497 191 554
2017
Creation of 75 000 units on 27 November 1 776 427 1 776 427
2017
Creation of 100 000 units on 05 December 2 330 549 2 330 549
2017
Creation of 100 000 units on 12 December 2 293 241 2 293 241
2017
Creation of 100 000 units on 14 December 2 296 004 2 296 004
2017
Creation of 150 000 units on 19 December 3 532 644 3 532 644
2017
Liquidation of 118 500 units on 20 June 2017 (2 401 030) (2 401 030)
Change in net assets attributable to investors 52 965 462 859 193 53 824 655
Balance at 31 December 2017 787 601 865 1 916 938 789 518 803
STATEMENT OF CASH FLOWS
AS AT 31 DECEMBER 2017
15 months 12 months
31 December 30 September
2017 2016
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 8 126 327 1 619 649
Distributions paid (7 204 444) (841 812)
Net cash inflow from operating activities 921 883 777 837
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (760 102 223) (121 950 736)
Proceeds from sale of investments 646 878 570 8 953 536
Net cash outflow from investing activities (113 223 653) (112 997 200)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 118 198 352 113 273 499
Contributions repaid for units liquidated (2 401 030) -
Net cash inflow from financing activities 115 797 322 113 273 499
NET INCREASE IN CASH AND CASH EQUIVALENTS 3 495 552 1 054 136
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE 1 146 816 92 680
PERIOD
CASH AND CASH EQUIVALENTS AT END OF THE 4 642 368 1 146 816
PERIOD
ACCOUNTING POLICIES
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
The financial statements have been prepared consistently based on the following principal accounting policies
which are consistent with those applied in the previous period:
1. Basis of Preparation
The financial statements are prepared on a historic cost basis, except for certain financial instruments, which are
accounted for at fair value.
The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS’’),
its interpretations adopted by the International Accounting Standards Board (“IASB”), the South African Institute
of Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings
Requirements, the requirements of the Coreshares Index Tracker Collective Investment Scheme Deed and the
Collective Investment Schemes Control Act, 45 of 2002 ("the Act").
At the date of approval of the annual financial statements, the following new standards and amendments that
apply to the Scheme were in issue but not yet effective:
New standards and amendments to standards and interpretations not yet adopted
IFRS 9 - Financial Instruments: Finalised version, incorporating requirements for classification and measurement,
impairment, general hedge accounting and derecognition - Applies to annual periods beginning on or after 1
January 2018.
IFRS 15 - Revenue from contracts with customers - Applies to annual periods beginning on or after 1 January
2018.
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
IFRS17 – Insurance contracts - Applicable to annual reporting periods beginning on or after 1 January 2021.
IFRIC 23 Uncertainty over Income Tax Treatments. Effective for annual periods beginning on or after 1 January
2019.
Prepayment Features with Negative Compensation (Amendments to IFRS 9). Effective for annual periods
beginning on or after 1 January 2019.
Annual Improvements to IFRS Standards 2015–2017 Cycle. Effective for annual periods beginning on or after 1
January 2019.
The entity plans to adopt these standards when they become effective.
The manager anticipates that the adoption of applicable standards and interpretations in future periods will have
the following impact on the financial statements of the Scheme.
IFRS 9 - Financial Instruments: - under the current business model investments are held at fair value through
profit or loss, receivables are measured at amortised cost and cash and cash equivalents are measured at fair
value. Financial liabilities are held at fair value through profit or loss. No change is anticipated for initial
recognition of either financial assets or financial liabilities.
IFRS 15 - Revenue from contracts with customers - due to the nature of the Scheme's revenue, being income
from investments, no change is anticipated for recognition and measurement of revenue.
IFRS16 – Leases - is not applicable to the Scheme as no items are leased.
IFRS17 – Insurance contracts - is not applicable to the manager and the Scheme.
The manager anticipates that the adoption of amendments to existing standards in future periods will have no
material impact on the financial statements of the Scheme.
Amendments to existing standards that became effective during the period
IAS 12 - Recognition of Deferred Tax Assets for Unrealised Losses. Effective for annual periods beginning on or
after 1 January 2017
IAS 7 - Disclosure Initiative. Effective for annual periods beginning on or after 1 January 2017
Annual Improvements to IFRS Standards 2014–2016 Cycle. The amendments to IFRS 1 and IAS 28 are
effective for annual periods beginning on or after 1 January 2018, the amendment to IFRS 12 for annual periods
beginning on or after 1 January 2017
The standards and amendments adopted in the current period have had no material impact on the financial
statements of the Scheme.
2. Functional and reporting currency
The financial statements are presented in South African Rands which is the functional currency of the Scheme.
3. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions
or estimates are significant.
4. Financial Instruments
Measurement
Financial instruments are recognised when the Scheme becomes a party to the contractual provisions of that
particular instrument. Financial instruments are initially measured at fair value, which except for financial
instruments at fair value through profit or loss, includes direct attributable transaction costs. Subsequent to initial
recognition, these instruments are measured as set out below.
Investments
Listed investments are designated as held at fair value through profit or loss. Fair value is determined with
reference to quoted market prices at the reporting date, as published in the financial press at the reporting date.
Receivables
Receivables comprise of contributions receivable and distributions receivable, and are measured at amortised
cost using the effective interest rate method.
Cash and cash equivalents
Cash and cash equivalents comprises of bank balances and are measured at fair value.
Financial liabilities
Financial liabilities, trade payable, distributions payable and securities purchases payable are initially measured
at fair value through profit or loss and are subsequently measured at amortised cost using the effective interest
rate method. Financial liabilities arising from the securities issued by the Scheme are carried at fair value
representing the investor’s right to a residual interest in the Scheme’s net assets, i.e. the net asset value of the
Scheme. Changes in the fair value are included in profit or loss in the period in which the change arises.
Derecognition of financial instruments
The Scheme derecognises financial assets when:
- The contractual rights to the cash flows arising from the financial assets have expired or have been
forfeited by the Scheme; or
- It transfers the financial assets including substantially all the risks and rewards of ownership of the
assets; or
- It transfers the financial assets, neither retaining nor transferring substantially all the risks and rewards
of the ownership of the asset, but no longer retains control of the asset.
The difference between the carrying value of financial assets derecognised at the date of derecognition and
proceeds, is recorded as a realised gain or loss in profit or loss.
A financial liability is derecognised when the liability is extinguished. This is, when the obligation specified in the
contract is discharged, cancelled or has expired. The difference between the carrying amount of a financial
liability (or part thereof) extinguished or transferred to another party and consideration paid, including any non-
cash assets transferred or liabilities assumed, is recognised in profit or loss.
5. Revenue
Revenue comprises distribution income and interest income.
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.
Distribution income
Distribution income in the form of cash is recognised when the right to receive payment is established.
6. Income tax
Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income if
distributed within twelve months and exempt from paying tax on capital gains. Both income and capital gains are
taxed in the hands of investors.
7. Expenses
Expenses are recognised in profit or loss on the accrual basis.
8. Distributions
Distributions payable on redeemable securities are recognised in profit or loss as distributions.
In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed, the Scheme distributes
its distributable income and any other amounts determined by the Manager, to security investors in cash. The
distributions are payable shortly after the end of each quarter and recognised in profit or loss as distributions.
9. Creations and redemptions
Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the
current market price of the securities plus a brokerage fee that is negotiable with the broker and any additional
transaction costs applicable to such a trade.
Investors can also acquire the Scheme's securities by subscribing for them directly from the Scheme. The cash
subscription price and number of the Scheme's securities to be issued to an investor for cash will be determined
by the amount which the investor invests (net of transaction costs) and will be a function of the pro rata cost to
the portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE, at the current market price quoted on the JSE. Investors may
also redeem securities directly with the Scheme.
Securities prices are determined by reference to the net assets of the Scheme divided by the number of
securities in issue. For unit pricing purposes, net assets are determined using the last reported trade price for
securities. These prices may differ from the market price quoted on the JSE.
10. Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require redemption for cash or
in specie at the value proportionate to the investors’ share. Such instruments give rise to a financial liability for
the net asset value of the redemption amount in the Scheme’s net assets at redemption date. In accordance
with the CoreShares Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is contractually
obliged to redeem securities at the net asset value. A redemption fee, depending on the size of the recall, would
be payable by the investor making the redemption.
Net assets attributable to security
11. holders
Securities are redeemable at the security investor’s option and are therefore classified as financial liabilities. The
securities may be sold back to the Scheme at anytime. The fair value of redeemable securities is measured at
the redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and
vested interest in the assets as a whole, subject to liabilities, as defined by the CoreShares Index Tracker
Collective Investment Scheme Deed) at the reporting date if security investors exercise their right to put the
securities back to the Scheme.
12. Increase/decrease in net assets attributable to security investors
Income not distributed is included in net assets attributable to security investors.
The financial information set out in this announcement is based on the financial statements which have been
audited by the auditors Deloitte & Touche. Their unmodified audit report is available for inspection at the
Manager’s registered address.
The directors take full responsibility for the preparation of the abridged financial information which have been
extracted correctly from the underlying audited annual financial statements.
The full financial statements are available on www.coreshares.co.za
03 April 2018
Date: 03/04/2018 03:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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