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ASHWGB - Abridged Audited Results for the year ended 30 June 2021
Ashburton World Government Bond Exchange Traded Fund
A portfolio in the Ashburton Collective Investment Scheme in Securities Exchange Traded Funds
registered in terms of the Collective Investment Schemes Control Act, 45 of 2002 (“CISCA”)
(Incorporated in the Republic of South Africa)
Share Code: ASHWGB
ISIN: ZAE000254413
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2021
The Ashburton Collective Investment Scheme (the “Scheme”) was established in accordance with the provisions
of the CISCA with effect from 12 April 2008. The Ashburton World Government Bond Exchange Traded Fund
(“portfolio”) was established as a portfolio of the Scheme in accordance with paragraph A of the Deed of the
Scheme on 13 December 2017.
The Portfolio is a passively managed investment fund with the aim of providing portfolio compounded annual
returns which tracks the economic performance of the Citi World Government Bond Index (the “Index”). The
Portfolio is the first global bond ETF listed on the JSE that tracks an international bond exposure index and offers
access to a diversified pool of issuers with highly rated credit quality. The Index provides exposure to global bond
markets with investment graded bonds that ensure lower default risk. The Portfolio pays an annual management
fee of 0.39% for Class A participatory interest to the Manager.
The Portfolio was initially listed on the JSE on 13 March 2018.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
Rand 2021 2020
ASSETS
Investments designated at fair value through profit or loss 124 042 119 142 734 281
Trade and other receivables 132 261
Cash and cash equivalents 933 138 2 626 480
Total assets 124 975 389 145 361 022
LIABILITIES
Net assets attributable to participatory interest holders 124 854 034 145 216 333
Trade and other payables 121 355 144 689
Total equity and liabilities 124 975 389 145 361 022
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2021
Rand 2021 2020
Interest income 3 996 13 586
Fair value gains (25 677 402) 32 596 917
Investment income (25 673 406) 32 610 503
Operating expenses (603 764) (609 802)
Interest expense - (875)
Profit before tax (26 277 170) 31 999 826
Taxation - -
Profit before amounts attributable to participatory interest holders (26 277 170) 31 999 826
Increase in net assets attributable to participatory interest holders 26 277 170 (31 999 826)
Total comprehensive income for the year - -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
Rand 2021 2020
Cash flows from operating activities
Cash utilised by operations (627 098) (576 843)
Dividends received 1 587 791
Interest received 2 772 041 2 478 773
Interest paid - (875)
Sale of investments at fair value through profit or loss 16 527 513 16 002 500
Purchase of investments at fair value through profit or loss (26 282 256) (15 388 665)
Net cash outflow from operating activities (7 608 213) 2 515 681
Cash flows from financing activities
Creation of portfolio participatory interests 7 987 842 -
Distributions paid to participatory interest holders (2 072 971) (2 048 711)
Net cash inflow from financing activities 5 914 871 (2 048 711)
Net increase in cash and cash equivalents (1 693 342) 466 970
Cash and cash equivalents at the beginning of the year 2 626 480 2 159 510
Cash and cash equivalents at the end of the year 933 138 2 626 480
SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2021
Basis of presentation
The annual financial statements have been prepared in accordance with IFRS issued by the International
Accounting Standards Board (the “IASB”), including interpretations issued by the IFRS Interpretations Committee,
the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the South
African Institute of Chartered Accountants (“SAICA”) Financial Reporting Guides as issued by the Accounting
Practices Committee, the provisions of CISCA and JSE listing requirements.
Standards, interpretations and amendments effective 1 July 2020
A number of new and revised standards and interpretations became effective from 1 July 2020, but they had no
material impact on the Portfolio’s reported earnings, financial position, reserves or accounting policies.
Financial instruments: Classification
The Portfolio has classified all its investments as financial assets or financial liabilities at amortised cost or at fair
value through profit or loss (“FVPL”).
Financial assets at amortised cost include other receivables, dividends and interest receivable and cash and cash
equivalents.
Financial assets at FVPL
All financial assets not measured at amortised cost are subsequently measured at FVPL, except for investments
in equities and rights which are mandatorily held at FVPL.
Financial liabilities at amortised cost
Financial liabilities that are not held-for-trading or designated as at FVPL are measured at amortised cost. This
category includes fees payable and other payables.
Financial instruments: Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of
changes in value. All balances, except for physical cash which is held at call, included in cash and cash
equivalents have a maturity date of less than three months from the acquisition date and are measured at
amortised cost.
Participatory interest
The participatory interests are issued and redeemed at the holder’s option at prices based on the Portfolio’s net
asset value per participatory interest at the time of issue or redemption. The Portfolio’s net asset value per
participatory interest is calculated by dividing the net assets attributable to the holders of the participatory interest
by the total number of outstanding participatory interests, in accordance with the provisions of the Portfolio’s
supplemental trust deed.
Net assets attributable to participatory interest holders, evidence a residual interest in the assets of a portfolio after
deducting all of its liabilities.
The value of the net assets attributable to participatory interest holders will vary with the changes in the
underlying value of the investments, net of receivables and payables. The total movement in the statement of
comprehensive income is transferred to the net assets attributable to participatory interest holders.
Creations and redemptions are recorded on trade date using the previous day’s closing price.
In accordance with the Portfolio’s supplemental trust deed, the Portfolio distributes its distributable income and any
other amounts determined by the Manager of the Portfolio to participatory interest holders. For this reason, the
participatory interest does not meet the requirements to be classified as equity in terms of IAS 32 and is thus
classified as a liability. Distributions are automatically reinvested in additional participatory interests, other than
distributions that are paid in cash.
Net income adjustment on creation and redemption of units
An adjustment to income arises on the creation and cancellation of units since the price of a unit includes
accrued income and expenses. The income adjustment on creation or cancellation of units is recognised as part
of the creation or redemption of unitholder interests and disclosed within the note of net assets attributable to
participatory interest holders, when units on which it arises are either purchased or sold as these form part of the
cash flow on unit transactions.
Investment income
Fair value gains and losses
Gains and losses arising from a change in the fair value of investments, interest income on interest-bearing
investments and dividend income, are included in the statement of comprehensive income under fair value gains
/ losses in the year in which the changes arise.
Dividend income
Dividend income in respect of investments is recognised when the right to receive payment is established. This is
on the “last-day-to-trade” for listed investments and on the “date-of-declaration” for unlisted investments. Dividend
income is recognised in the statement of comprehensive income as part of fair value gains and losses.
Interest income
Interest income on cash and cash equivalents is recognised in the statement of comprehensive income as part of
interest income on the effective interest method.
Taxation
The Portfolio has no current or deferred tax liability as all realised gains and losses are considered to be of a capital
nature and disregarded in the tax calculation of this Collective Investment Scheme portfolio in accordance with
paragraph 61 of the Eighth schedule to the Income Tax Act No 58 of 1962. All investment income is distributed
within the time frames specified by section 25BA of the Income Tax Act and is therefore taxed in the hands of the
participatory interest holders.
Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions.
Monetary items are translated using the closing exchange rates prevailing at the reporting date. The realised and
unrealized differences on translation are recognised in the statement of comprehensive income in the period in
which they arise.
Critical accounting estimates and judgements in applying accounting policies
No significant accounting estimates and judgements have been applied in the annual financial statements of the
Portfolio.
All investments at FVPL are measured at fair value based on quoted prices in active markets and do not require
the use of judgement or estimates.
SUMMARISED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2020
Net assets attributable to participatory interest holders
Rand 2021 2020
Balance at the beginning of the year 145 216 333 115 265 218
Participatory interests created during the year 7 987 842 -
Participatory interests redeemed during the year - -
Increase/(decrease) in net assets attributable to participatory interest holders (26 277 170) 31 999 826
Distributions paid (2 072 971) (2 048 711)
Balance at the end of the year 124 854 034 145 216 333
Distributions
Number of Distribution Number of Distribution
participatory participatory
interests interests
Rand 2021 2021 2020 2020
Declared 21 August 2020 and paid 26 August 2020
(Declared 21 August 2019 and paid 26 August 2019)
Class A: 2.98 cents per participatory interest (2020: 2.77
cents per participatory interest) 16 134 683 480 765 16 134 683 447 626
Declared 20 November 2019 and paid 25 November 2019
(Declared 20 November 2019 and paid 25 November
2019)
Class A: 4.05 cents per participatory interest (2020: 3.45
cents per participatory interest) 16 134 683 653 280 16 134 683 557 431
Declared 19 February 2020 and paid 24 February 2020
(Declared 19 February 2020 and paid 24 February 2020)
Class A: 2.49 cents per participatory interest (2020: 2.35
cents per participatory interest) 17 134 683 427 133 16 134 683 378 474
Declared 13 May 2020 and paid 18 May 2020
(Declared 13 May 2020 and paid 18 May 2020)
Class A: 2.99 cents per participatory interest (2020: 4.12
cents per participatory interest) 17 134 683 511 793 16 134 683 665 180
2 072 971 2 048 711
Included in the liability to participatory interest holders is the distribution payable as at 30 June.
These summarised financial statements have been not been audited but the full sets, available at the website
mentioned below, have been audited by the independent auditors, PricewaterhouseCoopers Incorporated, and
their unqualified audit opinion is available for inspection at the company’s registered head office.
A full copy of the audited annual financial statements is available on the Ashburton website:
https://www.ashburtoninvestments.com/za/fund/ashburton-world-government-bond-etf/zae000254413
29 October 2021
Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
Trustee
Standard Chartered Bank, Johannesburg Branch
Manager
Ashburton Management Company (RF) Proprietary Limited
Auditors
PricewaterhouseCoopers Incorporated
Date: 29-10-2021 03:30:00
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