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FNBMID - Abridged Audited Results for the Year Ended 30 June 2022
FNB MIDCAP EXCHANGE TRADED FUND
(formerly “Ashburton MidCap 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 (“CISCA”)
(Incorporated in the Republic of South Africa)
Share Code: FNBMID
ISIN: ZAE000303111
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 with effect from 12 April 2008. The FNB MidCap
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 26 June 2012.
The Portfolio is a passive investment fund with the aim of providing returns linked to the performance of the
FTSE/JSE Mid Cap Index (the “index”) in terms of both price and performance.
The Ashburton Collective Investment Scheme in Securities Exchange Traded Funds (the “Scheme”) has 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 MidCap Exchange Traded Fund to the FNB MidCap Exchange Traded Fund.
The Portfolio was initially listed on the JSE Limited (“JSE”) on 15 August 2012.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022
Rand 2022 2021
ASSETS
Investments designated at fair value through profit or loss 492 690 618 461 124 847
Financial assets at fair value through profit and loss – securities lent 75 858 524 82 083 710
Trade and other receivables 5 587 881 369 906
Cash and cash equivalents 6 483 225 5 430 339
Total assets 580 620 248 549 017 802
LIABILITIES
Net assets attributable to participatory interest holders 575 326 079 548 244 359
Trade and other payables 5 294 169 773 443
Total equity and liabilities 580 620 248 549 017 802
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2022
Rand 2022 2021
Interest income 106 847 47 475
Fair value gains / (loss) 21 930 723 117 117 019
Investment income/(loss) 22 037 570 117 164 494
Other income 180 843 109 139
Operating expenses (3 419 293) (2 575 933)
Profit/(loss) before tax 18 799 120 114 697 700
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders 18 799 120 114 697 700
Decrease/(Increase) in net assets attributable to participatory interest holders (18 799 120) (114 697 700)
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 (3 180 384) (2 183 456)
Dividends received 25 587 552 12 715 602
Interest received 99 171 42 439
Sales of investments designated at fair value through profit or loss 206 418 996 137 414 344
Purchase of investments designated at fair value through profit or loss (236 164 049) (251 248 405)
Net cash inflow/(outflow) from operating activities (7 238 714) (103 259 476)
Cash flows from financing activities
Redemption of portfolio participatory interests (79 310 871) (10 512 255)
Creation of portfolio participatory interests 107 255 045 124 010 528
Distributions paid to participatory interest holders (19 661 574) (7 151 237)
Net cash inflow/(outflow) from financing activities 8 282 600 106 347 036
Net increase/(decrease) in cash and cash equivalents 1 043 886 3 087 560
Cash and cash equivalents at the beginning of the year 5 439 339 2 351 779
Cash and cash equivalents at the end of the year 6 483 225 5 439 339
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 Portfolio issues one class of participatory interests which is redeemable at the holder’s option. Participatory
interests can be put back to the Portfolio at any dealing date for cash equal to a proportionate share of the
Portfolio’s net asset value attributable to the participatory interest class.
The participatory interests are measured at the redemption amount that is payable at the reporting date if the
holder exercises the right to put the participatory interests back to the Portfolio.
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 the 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. The portfolio does not
have an unconditional right to avoid delivering cash or another financial asset to settle the contractual obligation
should a holder exercise the right to put the participatory interests back to the portfolio. 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 548 244 359 327 199 623
Participatory interests created during the year 107 255 045 124 010 528
Participatory interests redeemed during the year (79 310 871) (10 512 255)
Increase/(decrease) in net assets attributable to participatory interest holders 18 799 120 114 697 700
Distributions paid (19 661 574) (7 151 237)
Balance at the end of the year 575 326 079 548 244 359
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: 10.22 cents per participatory interest
(2021: 2.67 cents per participatory interest) 78 252 103 7 999 858 58 500 000 1 564 495
Declared 31 December 2021 and paid 2 January 2022
(Declared 31 December 2020 and paid 2 January 2021)
Class A: 5.34 cents per participatory interest (2021:
2.86 cents per participatory interest) 70 152 103 3 849 971 61 300 000 1 750 504
Declared 31 March 2022 and paid 1 April 2022
(Declared 31 March 2021 and paid 1 April 2021)
Class A: 4.52 cents per participatory interest (2021:
2.8 cents per participatory interest) 73 652 103 3 326 589 70 600 000 1 979 386
No distribution declared (2021: Declared 30
June 2021 and paid 1 July 2021)
Class A: nil cents per participatory interest (2021: 6
cents per participatory interest) 78 452 103 - 74 752 103 4 485 156
9 779 541
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 Midcap 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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