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Abridged audited results for the year ended 31 December 2013 - DBXJP
db x-trackers MSCI Japan Trust
JSE code: DBXJP
ISIN: ZAE000115176
A portfolio in the db x-trackers Collective Investment Scheme ("db x-
trackers"), 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 2013
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2013
2013 2012
R R
Revenue 127 936 667 44 806 168
Investment income 5 969 779 5 965 735
Net fair value gain on investments at fair
value through profit or loss 121 966 888 38 840 433
Expenses (2 641 242) (2 238 684)
Management and administrative expenses (2 641 156) (2 238 407)
Foreign exchange loss on dividends (86) (277)
Operating profit before distribution 125 295 425 42 567 484
Comprising:
Income available for distribution 3 328 537 3 727 051
Capital profit retained 121 966 888 38 840 433
Distributions (2 974 554) (2 983 466)
Change in net assets attributable to
investors before tax 122 320 871 39 584 018
Withholding tax (427 898) (389 269)
Change in net assets attributable to 121 892 973 39 194 749
investors
STATEMENT OF FINANCIAL POSITION
as at 31 December 2013
2013 2012
R R
Assets
Listed investments held at fair value
through profit or loss 362 562 986 234 402 306
Trade and other receivables 314 900 268 771
Cash and cash equivalents 2 889 679 2 306 708
Total assets 365 767 565 236 977 785
Liabilities
Net assets attributable to investors 362 975 461 234 655 482
Trade and other payables 2 792 104 2 322 303
Total liabilities 365 767 565 236 977 785
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2013
Total
R
Balance at 1 January 2012 209 811 931
Increase in net assets attributable to investors 39 194 749
Effect of foreign currency translation (14 351 198)
Balance at 31 December 2012 234 655 482
Increase in net assets attributable to investors 121 892 973
Effect of foreign currency translation 6 427 006
Balance at 31 December 2013 362 975 461
STATEMENT OF CASH FLOWS
for the year ended 31 December 2013
2013 2012
R R
Cash (utilised)/ generated by operations (397 943) 28 212
Dividends received 5 923 345 5 527 670
Management fees paid (2 376 886) (2 420 206)
Interest received 305 29 147
Net cash inflow from operating activities 3 148 821 3 164 823
Cash inflow/(outflow) from investing
activities 233 214 (479 006)
Proceeds on sale/(purchase) of listed
investments 233 214 (479 006)
Net cash outflow from financing activities (2 799 064) (2 922 404)
Distributions paid to investors (2 799 064) (2 922 404)
Net increase/(decrease) in cash and cash
equivalents 582 971 (236 587)
Cash and cash equivalents at the beginning
of year 2 306 708 2 543 295
Cash and cash equivalents at the end of year 2 889 679 2 306 708
2013 2012
Number Number
db x-trackers MSCI Japan securities in
issue 45 000 000 45 000 000
In terms of the Trust Deed and CISCA, the Trust would be required to pay
the net asset value attributable to investors on redemption of securities.
Vested income beneficiaries include all holders of db x-trackers MSCI Japan
securities.
db x-trackers MSCI Japan securities creations and redemptions
There were no Index Securities created during the current and prior year.
There were no redemptions during the current and prior year.
Distributions
The Trust effects semi–annual distributions. All distributions are made
out of the income of the db x-trackers MSCI Japan Trust. The rebates
represent an investor's partial reduction of the 114 basis points
management fee charged for the period 01 January 2013 to 30 June 2013 and
the 85.5 basis points management fee charged for the period 01 July 2013
to 31 December 2013. The rebate is calculated using a sliding scale
depending on the size of the investor's investment. During the period
under review the following distributions were effected per db x-trackers
MSCI Japan Index Security:
2013 2012
R R
Declared distributions (2 576 652) (2 727 566)
0.02809 Rand per security
Declared June 2013 and paid July 2013 (1 263 911) (1 622 842)
0.03606 Rand per security
Declared June 2012 and paid July 2012
0.02917 Rand per security
Declared December 2013 and paid January
2014 (1 312 741) (1 104 724)
0.02455 Rand per security
Declared December 2012 and paid January
2013
Management fees refunded during the year
as a rebate distribution (397 902) (255 900)
Total distribution expense for the year (2 974 554) (2 983 466)
Total Expense Ratio ("TER")
The TER represents the total expense to the Trust. The only expense to
the Trust is the management fee payable to db x-trackers (Pty) Ltd which
is calculated at 1.14% of the assets under management on a daily basis
for the period 01 January 2013 to 30 June 2013 and 0.855% of assets
under management on a daily basis for the period 01 July 2013 to 31
December 2013.
The db x-trackers MSCI Japan had a TER of 114 basis points for the
period 01 January 2013 to 30 June 2013 and a TER of 85.5 basis points
for the period 01 July 2013 to 31 December 2013(2012:114 bps).
Increased consumer demand for greater transparency in financial services
and the recognition thereof by the collective investment industry
requires Collective Investment Scheme (‘CIS') managers to calculate and
publish a total expense ratio for each Portfolio under their management.
This is a requirement in terms of the Association for Savings and
Investments SA ("ASISA") standard on the calculation and publication of
total expense ratios.
Statement of compliance
The financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS"), and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee
and the Financial Reporting Pronouncements as issued by Financial
Reporting Standards Council, and the requirements of the Collective
Investment Schemes Control Act No 45 of 2002 ("CISCA"), in order to meet
the requirements of the Trust Deed approved by the Financial Services
Board. These financial statements were authorised for issue by the board
of directors of the Manager on 24 March 2014.
Accounting policies
The accounting policies applied in the preparation of the financial
statements are consistent with those adopted in the previous financial
year and are in accordance with IFRS.
The trust adopted the following new standards and amendments to standards,
including any consequential amendments to other standards, with a date of
initial application of 1 January 2013.
a) IFRS 13: Fair Value Measurement
b) IFRS 7: Amendment Disclosures – Offsetting Financial Assets and
Financial Liabilities
Forthcoming requirements
The following standards, amendments to standards, and interpretations,
effective for the first time in the future accounting period, and which
are relevant to the Portfolio, have not been adopted for the year ended
31 December 2013.
IFRS 9: Financial Instruments - IFRS 9 deals with classification and
measurement of financial assets and financial liabilities. The effective
date of IFRS 9 is yet to be decided.
IAS 32: Financial Instruments: Presentation: Offsetting Financial Assets
and Financial Liabilities. The amendments clarify when an entity can
offset financial assets and financial liabilities. This amendment is
effective in the 2014 financial year.
The impact of the above standards will be assessed once the standards
become effective, and applied only at that stage.
Investment income
Investment income comprises:
- interest income earned on cash and cash equivalents;
- cash equalisation component on creations; and
- dividends from listed equities designated as held at fair value
through profit or loss.
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.
Dividend income
Dividend income is recognised when the right to receive the expected
payment is established. This is usually the ex-dividend date for quoted
equities.
Audit report
KPMG Inc, the entity's independent auditors, has audited the financial
statements of the db x-trackers MSCI Japan Trust from which the abridged
results contained in this announcement have been derived, and has
expressed an unmodified audit opinion on the financial statements. Their
audit report is available for inspection at the CIS's registered office.
A full copy of these financial statements is available on the db x-
trackers website www.dbxtrackers.co.za.
Directors' responsibility
This abridged report is extracted from the audited information, but is
not itself audited. The directors take full responsibility for the
preparation of the abridged report and certify that the financial
information has been correctly extracted from the underlying financial
statements.
Sponsor
Vunani Corporate Finance
Trustee
Standard Bank of SA Limited
Manager
db x-trackers Proprietary Limited
31 March 2014
Date: 31/03/2014 08:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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