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Abridged audited results for the year ended 31 December 2013
SATRIX 40
JSE code: STX40
ISIN: ZAE000027108
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 2012
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2012
2012 2011
R R
Income
Dividend income 222 233 384 178 555 364
Fee income: Securities lending 2 268 454 3 163 537
Other income - 1 065 427
Interest income 3 261 688 1 148 111
Total income 227 763 526 183 932 439
Expenses
Management fee (34 725 565) (29 323 770)
Trustee and custodian fees (227 040) (332 756)
Transaction costs (1 211 994) (858 937)
Total operating expenses (36 164 599) (30 515 463)
Income attributable to investors before
distributions 191 598 927 153 416 976
Income distributions (193 854 325) (151 335 004)
Realised gains on financial instruments
designated at fair value through profit
and loss 267 280 340 447 420 089
Unrealised gains/(losses) on financial
instruments designated at fair value
through profit and loss 1 202 275 970 (469 538 990)
Total fair value adjustments 1 469 556 310 (22 118 901)
Increase/(decrease) in net assets
attributable to investors after
distributions 1 467 300 912 (20 036 929)
STATEMENT OF FINANCIAL POSITION
at 31 December 2012
2012 2011
R R
ASSETS
Listed equities designated held at fair
value through profit or loss 8 020 097 263 6 733 009 837
Interest receivable 89 722 113 857
Securities lending fee receivable 167 344 307 532
Other receivables 131 625 1 594 137
Underlying securities sold and not
settled 50 903 583 -
Cash and cash equivalents 29 474 969 29 742 705
Total assets 8 100 864 506 6 764 768 068
LIABILITIES
Distributions payable to investors 26 552 677 27 243 871
Other payables 4 344 073 3 784 999
Underlying securities purchased and not
settled 51 396 530 -
Total liabilities (excluding net assets
attributable to investors) 82 293 280 31 028 870
Net assets attributable to investors 8 018 571 226 6 733 739 198
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2012
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 1 January
2011 6 658 251 336 (1 352 610) 6 656 898 726
Creation of Satrix 40
Securities 821 226 143 - 821 226 143
Redemption of Satrix 40
Securities (724 348 742) - (724 348 742)
Increase/(decrease) in
net assets attributable
to investors after
distributions (22 118 901) 2 081 972 (20 036 929)
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December
2011 6 733 009 836 729 362 6 733 739 198
Creation of Satrix 40
securities 419 300 061 - 419 300 061
Redemption of Satrix 40
securities (601 768 945) - (601 768 945)
Increase/(decrease) in
net assets attributable
to investors after
distributions 1 469 556 310 (2 255 398) 1 467 300 912
Balance at 31 December
2012 8 020 097 262 (1 526 036) 8 018 571 226
STATEMENT OF CASH FLOWS
for the year ended 31 December 2012
2012 2011
R R
Net cash generated from operating
activities 194 277 783 152 331 519
Cash utilised by operations (33 650 066) (30 481 877)
Fee income: Securities lending 2 408 642 3 155 985
Interest received 3 285 823 1 102 047
Dividends received 222 233 384 178 555 364
Cash inflow/(outflow) from investing
activities 182 468 884 (96 877 402)
Purchase of underlying constituents (654 896 595) (1 260 094 506)
Sale of underlying constituents 837 365 479 1 163 217 104
Cash outflow from financing activities (377 014 403) (46 254 826)
Creation of Satrix 40 Securities 419 300 061 821 226 143
Redemption of Satrix 40 Securities (601 768 945) (724 348 742)
Cash distributed to security holders (194 545 519) (143 132 227)
Net movement in cash and cash
equivalents (267 736) 9 199 291
Cash and cash equivalents at the
beginning of the year 29 742 705 20 543 414
Cash and cash equivalents at the end of
the year 29 474 969 29 742 705
SATRIX 40 SECURITIES
During the year 14 000 000 (2011: 29 000 000) Satrix 40 securities were
created at a value of R419 300 061 (2011: R821 226 143) and 20 000 000
(2011: 25 000 000) Satrix 40 securities were redeemed at a value of R601 768
945 (2011: R724 348 742). All creations and liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions are made
out of income of the Satrix 40 Portfolio. The record dates are 30 March
2012, 29 June 2012, 28 September 2012 and 28 December 2012 respectively.
During the year under review the following distributions were effected
per Satrix 40 Security.
2012 2011
R R
13.86 cents per security
Declared 30 March 2012 and paid
11 April 2012 32 084 790
9.54 cents per security
Declared 25 March 2011 and paid
21 April 2011 22 179 735
24.80 cents per security
Declared 29 June 2012 and paid
10 July 2012 59 394 014
16.98 cents per security
Declared 24 June 2011 and paid
18 July 2011 38 628 140
33.08 cents per security
Declared 28 September 2012 and paid
12 October 2012 76 577 551
26.82 cents per security
Declared 23 September 2011 and paid
18 October 2011 63 427 152
11.52 cents per security
Declared 28 December 2012 and paid
17 January 2013 26 552 677
11.52 cents per security
Declared 30 December 2011 and paid
17 January 2012 27 243 877
Accrued income portion of NAV paid on
redemption of securities (754 707) (143 900)
Total distribution 193 854 325 151 335 004
Related parties
Related parties include Satrix
Managers (Proprietary) Limited in its
capacity as the management company of
the Portfolio. The following related
party balances and transactions
occurred during the year.
2012 2011
R R
Management fee paid
Satrix Managers (Proprietary) Limited 30 948 094 26 150 854
Management fee payable at
31 December 2012
Satrix Managers (Proprietary) Limited 3 056 229 2 631 664
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 40
Portfolio had a TER of 45.60 (2011: 45.60) basis points (annualised) for
the period 1 January to 31 December 2012. 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.
Actual Expense Ratio ('AER')
The Satrix 40 Portfolio had an AER of 44.76 (2011: 43.32) basis points
(annualised) for 2012, as determined by the Management Company. The AER
is calculated using total management expenses of the Portfolio, including
management fees, audit fees, bank charges, custodian fees, brokerage,
securities lending costs and taxes less the income derived from
securities lending activities. The Portfolio engages in securities
lending with the sole aim of reducing the net expenses of managing the
Satrix 40 Portfolio and in this way the income from securities lending
proves beneficial to all holders of Satrix 40 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 Committee 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 2012 for the first time, was assessed to have no impact to
the financial position or performance of the Portfolio.
Forthcoming requirements
New 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 2012, and have not been applied
in preparing these financial statements. All standards and interpretations
issued but not effective for the year ended 31 December 2012 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 1 amendment Presentation of Annual periods
Financial Statements: beginning on or
Presentation of Items of after 1 July
Other Comprehensive 2012
Income
IAS 19 Employee Benefits: Annual periods
amendment Defined benefit plans beginning on or
after 1 January
2013
IAS 27 Separate Financial Annual periods
Statements (2011) beginning on or
after 1 January
2013
IAS 28 Investments in Annual periods
Associates and Joint beginning on or
Ventures (2011) after 1 January
2013
IFRS 10 Consolidated Financial Annual periods
Statements beginning on or
after 1 January
2013
IFRS 11 Joint Arrangements Annual periods
beginning on or
after 1 January
2013
IFRS 12 Disclosure of Interests Annual periods
in Other Entities beginning on or
after 1 January
2013
IFRS 13 Fair Value Measurement Annual periods
beginning on or
after 1 January
2013
IFRS 9 (2009) Financial Instruments Annual periods
beginning on or
after 1 January
2015
IFRS 9 (2010) Financial Instruments Annual periods
beginning on or
after 1 January
2015
IFRS 7 Disclosures-offsetting Annual periods
financial assets and beginning on or
financial liabilities after 1 January
2013
IFRS 7 Mandatory effective date Annual periods
and transition beginning on or
disclosures after 1 January
2015
IFRS 1 First-time adoption of Annual periods
International Financial beginning on or
Reporting Standards after 1 January
2013
IAS 32 Offsetting financial Annual periods
assets and financial beginning on or
liabilities after 1 January
2014
IFRS 9 Mandatory effective date Annual periods
and transition beginning on or
disclosures after 1 January
2015
Audit report
Ernst & Young Inc, the entity's independent auditors, has audited the annual
financial statements of the Satrix 40 Portfolio from which the abridged
results contained in this announcement have been derived, and has expressed
an unmodified audit opinion on the annual financial statements. Their audit
report is available for inspection at the registered office of Satrix
Managers (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.
27 March 2013
Sponsor
Vunani Corporate Finance
Trustee
ABSA Bank Limited
Manager
Satrix Managers (Proprietary) Limited
Date: 27/03/2013 04:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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