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FNBT40 - Abridged Audited Results for the Year Ended 30 June 2022
FNB TOP 40 EXCHANGE TRADED FUND
(formerly “Ashburton Top 40 Exchange Traded Fund”)
A portfolio in the FNB Funds Collective Investment Scheme in Securities Exchange Traded Funds registered in
terms of the Collective Investment Schemes Control Act, 45 of 2002
(Incorporated in the Republic of South Africa)
Share Code: FNBT40
ISIN: ZAE000303129
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2022
The FNB Funds Collective Investment Scheme (the “Scheme”) was established in accordance with the provisions
of the Collective Investment Schemes Control Act 45 of 2002 (“CISCA”) with effect from 12 April 2008. The FNB
Top 40 Exchange Traded Fund (the “Portfolio”) was established as a portfolio of the Scheme in accordance with
paragraph A of the deed of the Scheme on 12 April 2008.
The Portfolio is a passive investment fund with the aim of providing returns linked to the price and performance of
the FTSE/JSE Top 40 Companies Index (the “index”) on the JSE Limited.
The Ashburton Collective Investment Scheme in Securities Exchange Traded Funds (the “Previous Scheme”)
appointed a new management company, FNB CIS Manco (RF) Proprietary Limited (the “Company”). As a result,
all of the Exchange Traded Funds (“ETFs”) under Ashburton Management Company (RF) Proprietary Limited
moved to the Company on 9 February 2022.
This move has resulted in a name change of the scheme that the funds operate under to the FNB Funds Collective
Investment Scheme in Securities Exchange Traded Funds. It also results in a name change of the Portfolio from
Ashburton Top 40 Exchange Traded Fund to the FNB Top 40 Exchange Traded Fund.
The Portfolio was initially listed on the JSE Limited (“JSE”) on 16 October 2008.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
Rand 2022 2021
ASSETS
Investments designated at fair value through profit or loss 1 760 570 788 1 637 960 795
Financial assets at fair value through profit and loss – securities lent 317 375 994 206 835 407
Trade and other receivables 25 534 519 141 939
Cash and cash equivalents 19 770 744 11 359 908
Total assets 2 123 252 045 1 856 298 049
LIABILITIES
Net assets attributable to participatory interest holders 2 097 946 072 1 855 712 790
Trade and other payables 25 305 973 585 259
Total equity and liabilities 2 123 252 045 1 856 298 049
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2022
Rand 2022 2021
Interest income 361 246 155 859
Fair value gains / (loss) 92 573 475 306 571 889
Investment income/(loss) 92 934 721 306 727 748
Operating expenses 520 478 500 665
Other income (2 674 497) (2 023 732)
Profit/(loss) before tax 90 780 702 305 204 681
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders 90 780 702 305 204 681
Decrease/ (Increase) in net assets attributable to participatory interest holders (90 780 702) (305 204 681)
Total comprehensive income for the year - -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022
Rand 2022 2021
Cash flows from operating activities
Cash utilised by operations (1 358 242) (1 358 242)
Dividends received 42 410 909 42 410 909
Interest received 157 258 157 258
Sales of investments designated at fair value through profit or loss 231 931 616 231 931 616
Purchase of investments designated at fair value through profit or loss (540 317 566) (540 317 566)
Net cash inflow/(outflow) from operating activities (267 176 025) (267 176 025)
Cash flows from financing activities
Redemption of portfolio participatory interests (41 069 789) (41 069 789)
Creation of portfolio participatory interests 3650 413 229 3650 413 229
Distributions paid to participatory interest holders (42 600 399) (42 600 399)
Net cash (outflow)/inflow from financing activities 266 743 041 266 743 041
Net increase/(decrease) in cash and cash equivalents (432 984) (432 984)
Cash and cash equivalents at the beginning of the year 11 792 892 11 792 892
Cash and cash equivalents at the end of the year 11 359 908 11 359 908
SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2022
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 and the provisions of CISCA, the JSE Listings Requirements and the Companies Act.
Standards, interpretations and amendments effective 1 July 2021
There were no new or amended IFRS standards which became effective for the year ended 30 June 2022 that
impacted the Portfolio’s reported earnings, financial position or reserves, or the 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.
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 2022
Net assets attributable to participatory interest holders
Rand 2022 2021
Balance at the beginning of the year 1 855 712 790 1 283 765 069
Participatory interests created during the year 423 916 675 350 413 228
Participatory interests redeemed during the year (184 425 053) (41 069 789)
Increase/(decrease) in net assets attributable to participatory interest holders 90 780 702 305 204 681
Distributions paid (88 039 042) (42 600 399)
Balance at the end of the year 2 097 946 072 1 855 712 790
Distributions
Number of Distribution Number of Distribution
participatory participatory
interests interests
Rand 2022 2022 2021 2021
Declared 30 September 2021 and paid 1 October 2021
(Declared 30 September 2020 and paid 1 October 2020)
Class A: 133.22 cents per participatory interest
(2021: 46.68 cents per participatory interest) 25 638 332 11 966 717 25 638 332 11 966 717
Declared 31 December 2021 and paid 2 January 2022
(Declared 31 December 2020 and paid 2 January 2021)
Class A: 18.63 cents per participatory interest
(2021: 9.58 cents per participatory interest) 26 738 332 2 561 874 26 738 332 2 561 874
Declared 31 March 2022 and paid 1 April 2022
(Declared 31 March 2021 and paid 1 April 2021)
Class A: 73.00 cents per participatory interest
(2021: 56.62 cents per participatory interest) 29 638 332 16 782 426 29 638 332 16 782 426
No distribution declared
(Declared 30 June 2021 and paid 1 July 2021)
Class A: nil cents per participatory interest
(2021: 34.11 cents per participatory interest) 30 651 693 10 454 751 30 651 693 10 454 751
41 765 768 41 765 768
Included in the liability to participatory interest holders is the distribution payable as at 30 June 2022.
These summarised annual financial statements have not been audited by the independent auditors, 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 office.
A full copy of the audited annual financial statements is available on the FNB website:
https://www.fnb.co.za/share-investing/exchange-traded-funds.html through the route “ETFs available to
you from FNB - Available ETFs – FNB Top40 ETF – ETF documents – Annual Financial Statements”.
31 October 2022
Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
Trustee
Standard Chartered Bank, Johannesburg Branch
Manager
FNB CIS Manco (RF) Proprietary Limited
Auditors
PricewaterhouseCoopers Incorporated
Date: 31-10-2022 05:40:00
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