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Preliminary results for coreshares index tracker collective investment scheme CoreTop50 as at 31 December 2018
CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES S&P SOUTH ADRICA TOP50
ABBREVIATED NAME: CORETOP50
SHARE CODE: CTOP50
ISIN CODE: ZAE000204327
PRELIMINARY RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
(“CORESHARES S&P SOUTH AFRICA TOP 50 EXCHANGE TRADED FUND”)
AS AT 31 DECEMBER 2018
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
R R
ASSETS
Listed investments held at fair value 1 068 242 823 784 765 287
through profit or loss
Distributions receivable 458 937 259 812
Cash and cash equivalents 5 580 273 4 642 368
TOTAL ASSETS 1 074 282 033 789 667 467
LIABILITIES
Net assets attributable to investors 1 074 043 820 789 518 803
Trade and other payables 238 213 148 664
TOTAL LIABILITIES 1 074 282 033 789 667 467
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
Represented
12 months 15 months
2018 2017
R R
Distribution income 32 823 151 8 588 874
Interest income 375 199 166 708
Total revenue 33 198 350 8 755 582
Management and administration expenses (2 342 109) (691 945)
Income before taxation 30 856 241 8 063 637
Taxation - -
Income before distributions 30 856 241 8 063 637
Distributions paid (32 396 937) (7 204 444)
(Loss)/income after distributions (1 540 696) 859 193
Net fair value (losses)/gains on financial (72 164 742) 52 965 462
instruments at fair value through profit or loss
(Loss)/income after net fair value (losses)/gains (73 705 438) 53 824 655
Other comprehensive income - -
(Decrease)/increase in net assets attributable to (73 705 438) 53 824 655
investors
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
Accumulated
Capital Profit Total
R R R
Balance at 30 September 2016 139 670 317 1 057 745 140 728 062
Creation of 800 000 units on 01 16 140 256 16 140 256
November 2016
Creation of 850 000 units on 01 16 992 436 16 992 436
December 2016
Creation of 50 000 units on 13 1 011 246 1 011 246
December 2016
Creation of 770 000 units on 05 15 511 189 15 511 189
January 2017
Creation of 75 000 units on 27 January 1 603 921 1 603 921
2017
Creation of 510 000 units on 01 10 772 550 10 772 550
Februay 2017
Creation of 50 000 units on 09 1 039 972 1 039 972
February 2017
Creation of 50 000 units on 22 1 047 215 1 047 215
February 2017
Creation of 100 000 units on 27 2 045 304 2 045 304
February 2017
Creation of 100 000 units on 17 March 2 058 070 2 058 070
2017
Creation of 142 655 units on 25 April 2 972 280 2 972 280
2017
Creation of 50 000 units on 02 May 1 055 139 1 055 139
2017
Creation of 432 580 units on 08 May 9 177 376 9 177 376
2017
Creation of 100 000 units on 27 June 2 038 423 2 038 423
2017
Creation of 50 000 units on 07 August 1 120 731 1 120 731
2017
Creation of 100 000 units on 19 2 213 583 2 213 583
September 2017
Creation of 50 000 units on 12 October 1 147 005 1 147 005
2017
Creation of 21 641 300 units on 17 497 191 554 497 191 554
October 2017
Creation of 75 000 units on 27 1 776 427 1 776 427
November 2017
Creation of 100 000 units on 05 2 330 549 2 330 549
December 2017
Creation of 100 000 units on 12 2 293 241 2 293 241
December 2017
Creation of 100 000 units on 14 2 296 004 2 296 004
December 2017
Creation of 150 000 units on 19 3 532 644 3 532 644
December 2017
Liquidation of 118 500 units on 20 (2 401 030) (2 401 030)
June 2017
Change in net assets attributable to 52 965 462 859 53 824 655
investors 193
Balance at 31 December 2017 787 601 865 1 916 938 789 518 803
Creation of 100 000 units on 17 2 443 487 2 443 487
January 2018
Creation of 100 000 units on 31 2 404 693 2 404 693
January 2018
Creation of 100 000 units on 06 2 252 601 2 252 601
February 2018
Creation of 75 000 units on 12 1 714 389 1 714 389
February 2018
Creation of 300 000 units on 13 6 959 393 6 959 393
February 2018
Creation of 150 000 units on 13 3 479 783 3 479 783
February 2018
Creation of 100 000 units on 19 2 388 293 2 388 293
February 2018
Creation of 250 000 units on 20 5 888 317 5 888 317
February 2018
Creation of 100 000 units on 28 2 369 292 2 369 292
February 2018
Creation of 100 000 units on 12 March 2 395 892 2 395 892
2018
Creation of 100 000 units on 20 March 2 359 756 2 359 756
2018
Creation of 2 343 100 units on 28 52 182 520 52 182 520
March 2018
Creation of 75 000 units on 10 April 1 742 535 1 742 535
2018
Creation of 100 000 units on 16 April 2 331 612 2 331 612
2018
Creation of 100 000 units on 08 May 2 372 924 2 372 924
2018
Creation of 100 000 units on 18 May 2 384 120 2 384 120
2018
Creation of 500 000 units on 30 May 11 349 198 11 349 198
2018
Creation of 100 000 units on 21 June 2 312 430 2 312 430
2018
Creation of 75 000 units on 04 July 1 755 050 1 755 050
2018
Creation of 100 000 units on 13 July 2 279 516 2 279 516
2018
Creation of 100 000 units on 18 July 2 282 365 2 282 365
2018
Creation of 100 000 units on 10 August 2 357 162 2 357 162
2018
Creation of 100 000 units on 20 August 2 348 559 2 348 559
2018
Creation of 100 000 units on 21 August 2 349 353 2 349 353
2018
Creation of 150 000 units on 05 3 569 224 3 569 224
September 2018
Creation of 100 000 units on 07 2 351 097 2 351 097
September 2018
Creation of 100 000 units on 14 2 325 813 2 325 813
September 2018
Creation of 1 865 640 units on 09 41 673 071 41 673 071
October 2018
Creation of 150 000 units on 10 3 261 726 3 261 726
October 2018
Creation of 100 000 units on 12 2 156 908 2 156 908
October 2018
Creation of 811 173 units on 16 17 533 602 17 533 602
October 2018
Creation of 150 000 units on 17 3 164 872 3 164 872
October 2018
Creation of 1 324 433 units on 22 28 262 404 28 262 404
October 2018
Creation of 405 190 units on 24 8 471 408 8 471 408
October 2018
Creation of 408 202 units on 25 8 463 309 8 463 309
October 2018
Creation of 802 973 units on 30 16 968 939 16 968 939
October 2018
Creation of 100 000 units on 05 2 248 590 2 248 590
November 2018
Creation of 75 000 units on 08 1 697 750 1 697 750
November 2018
Creation of 3 064 163 units on 09 66 772 171 66 772 171
November 2018
Creation of 1 074 304 units on 14 22 898 630 22 898 630
November 2018
Creation of 872 833 units on 06 17 906 760 17 906 760
December 2018
Creation of 100 000 units on 21 2 115 151 2 115 151
December 2018
Liquidation of 200 000 units on 14 (4 752 557) (4 752 557)
June 2018
Liquidation of 350 000 units on 17 (8 026 577) (8 026 577)
September 2018
Liquidation of 153 051 units on 20 (3 535 078) (3 535 078)
September 2018
Change in net assets attributable to (72 164 742) (1 540 696) (73 705 438)
investors
Balance at 31 December 2018 1 073 667 578 376 242 1 074 043 820
STATEMENT OF CASH FLOWS
AS AT 31 DECEMBER 2018
12 months 15 months
2018 2017
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 30 746 665 8 126 327
Distributions paid (32 396 937) (7 204 444)
Net cash (outflow)/inflow from operating activities (1 650 272) 921 883
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (622 589 142) (760 102 223)
Proceeds from sale of investments 264 972 251 646 878 570
Net cash outflow from investing activities (357 616 891) (113 223 653)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 376 674 900 118 198 352
Contributions repaid for units liquidated (16 469 832) (2 401 030)
Net cash inflow from financing activities 360 205 068 115 797 322
NET INCREASE IN CASH AND CASH 937 905 3 495 552
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING 4 642 368 1 146 816
OF THE YEAR
CASH AND CASH EQUIVALENTS AT END OF THE 5 580 273 4 642 368
YEAR
ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
The financial statements have been prepared consistently based on the following principal accounting policies
which are consistent with those applied in the previous period, except for IFRS 9:
Basis of Preparation
The financial statements are prepared on a historic cost basis, except for certain financial instruments, which are
accounted for at fair value.
The financial statements are prepared in accordance with and contain the information required by International
Financial Reporting Standards (“IFRS’’), its interpretations adopted by the International Accounting Standards
Board (“IASB”), the South African Institute of Chartered Accountants Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, the requirements of the Coreshares Index Tracker Collective
Investment Scheme Deed and the Collective Investment Schemes Control Act, 45 of 2002 ("the Act").
At the date of approval of the annual financial statements, the following new standards and amendments that
apply to the Scheme were in issue but not yet effective:
New standards and amendments to standards and interpretations not yet adopted
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
IFRS17 – Insurance contracts - Applicable to annual reporting periods beginning on or after 1 January 2021.
IFRIC 23 Uncertainty over Income Tax Treatments. Effective for annual periods beginning on or after 1 January
2019.
Prepayment Features with Negative Compensation (Amendments to IFRS 9). Effective for annual periods
beginning on or after 1 January 2019.
Annual Improvements to IFRS Standards 2015–2017 Cycle. Effective for annual periods beginning on or after 1
January 2019.
Amendments to References to the Conceptual Framework in IFRS Standards - Annual periods beginning on or
after 1 January 2020.
Definition of Material (Amendments to IAS 1 and IAS 8) - Annual reporting periods beginning on or after 1
January 2020.
The entity plans to adopt these standards when they become effective.
The Manager anticipates that the adoption of applicable standards and interpretations in future periods will have
the following impact on the financial statements of the Scheme.
IFRS16 – Leases - is not applicable to the Scheme as no items are leased.
IFRS17 – Insurance contracts - is not applicable to the Manager and the Scheme as there are no insurance
contracts.
IFRIC 23 - Uncertainty over Income Tax Treatments - is not applicable as the Scheme is not taxed.
The Manager anticipates that the adoption of amendments to existing standards in future periods will have no
material impact on the financial statements of the Scheme.
Amendments to existing standards that became effective during the period
Annual Improvements to IFRS Standards 2014–2016 Cycle. The amendments to IFRS 1 and IAS 28 are effective
for annual periods beginning on or after 1 January 2018.
The Manager has concluded that the standards and amendments adopted in the current period have had no
material impact on the financial statements of the Scheme.
The following new standards were adopted by the Scheme for the 2018 financial year:
IFRS 9 Financial Instruments (refer to 1.1 below)
IFRS 15 Revenue from Contracts with Customers (refer to 1.2 below)
Basis of Preparation (continued)
IFRS 9 Financial Instruments
"IFRS 9 replaces IAS 39 – ‘Financial Instruments’ (“IAS 39”) and introduces new requirements for recognition,
classification, measurement and derecognition of financial assets and financial liabilities, and the impairment of
financial assets.
The Scheme elected not to early adopt any of the provisions of IFRS 9 in previous financial reporting periods.
The classification and measurement requirements of IFRS 9 have been adopted prospectively as at the date of
initial application on 1 January 2018. The following table shows the original measurement categories in
accordance with IAS 39 and the new categories in accordance with IFRS 9:"
IAS 39 IFRS 9 Measurement
classification classification changes
Financial Assets
Receivables Financial asset Financial asset None
at amortised at amortised
cost cost
Investments Designated at FVTPL None
FVTPL
Cash and cash equivalents Financial asset Financial asset None
at amortised at amortised
cost cost
Financial Liabilities
Payables Financial Financial liability None
liability at at amortised
amortised cost cost
Net assets attributable to investors FVTPL FVTPL None
Revenue from Contracts with Customers
The Scheme has adopted IFRS 15: ‘Revenue from Contracts with Customers’ (“IFRS 15”) from 1 January 2018.
The adoption of the new standard did not result in any changes to accounting policies relating to revenue
recognition.
Functional and reporting currency
The annual financial statements are presented in South African Rands which is the functional currency of the
Scheme.
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions
or estimates are significant.
Financial Instruments
Financial assets and financial liabilities are recognised in the Scheme’s balance sheet when the Scheme
becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are
measured at fair value on initial recognition.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through profit and loss (“FVTPL”)) are added to or
deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are
recognised immediately in profit or loss.
Financial assets
All financial assets are recognised on the trade date, and are initially measured at fair value, plus transaction
costs, except for those financial assets classified as at FVTPL.
Financial assets at amortised cost
"Financial assets are classified and measured at amortised cost if:
• these assets are held to collect contractual cash flows; and
• the asset’s contractual cash flows represent solely payments of principal and interest (""SPPI”).
Financial assets included within this category are initially recognized at fair value and are subsequently measured
at amortised cost using the effective interest method."
Financial assets at FVTPL
"Financial assets classified and measured at FVTPL are:
• assets with contractual cash flows that are not SPPI; or
• assets that are held in a business model other than to collect contractual cash flows or to collect and sell.
The financial assets have been classified into the following categories:"
Investments
"Listed investments are held at FVTPL. Fair value is determined with reference to quoted market prices at the
reporting date, as published in the financial press at the reporting date. The investments are measured at fair
value, with any gains/losses arising on subsequent measurement recognised in profit or loss.
Distribution income earned on these instruments are recorded separately in the statement of profit or loss and
other comprehensive income."
Receivables
Receivables comprise of contributions receivable and distributions receivable. The receivable balance recognised
represents the fair value at initial recognition. The objective of the Scheme is to “hold to collect” contractual cash
flows, and these receivables are subsequently measured at amortised cost using the effective interest method.
Cash and cash equivalents
The objective of the Scheme is to “hold to collect” contractual cash flows. The principal amount represents the
fair value of the cash balance at initial recognition. Cash and cash equivalents are subsequently measured at
amortised cost, using the effective interest method.
Impairment of financial assets
"The Scheme holds short term receivables with no financing component, which have maturities of less than 3
months at amortised cost. The Scheme has adopted a simplified approach for expected credit losses (ECL)
under IFRS 9.
The Scheme uses the provision matrix as a practical expedient to measuring ECLs on receivables, based on
days past due for receivables with similar loss patterns. The provision matrix is based on historical observed loss
rates over the expected life of the receivables and is adjusted for forward-looking estimates."
Financial liabilities are classified as either financial liabilities ‘at FVTPL’ or ‘other financial liabilities’.
Financial liabilities at FVTPL
"Financial liabilities are classified as at FVTPL when the financial liability is designated as such at initial
recognition.
Financial liabilities arising from securities issued by the Scheme are carried at fair value, representing the
investor’s right to a residual interest in the Scheme’s net assets, i.e. the net asset value of the Scheme. Changes
in the fair value are included in profit or loss in the period in which the change arises. "
Other financial liabilities
Other financial liabilities, including trade payables, distributions payable and securities purchases payable by the
Scheme, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently
measured at amortised cost using the effective interest method.
Revenue
Revenue comprises distribution income and interest income.
Distribution income
Distribution income in the form of cash is recognised when the right to receive payment is established.
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.
Income tax
Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income if
distributed within twelve months and exempt from paying tax on capital gains. Both income and capital gains are
taxed in the hands of investors.
Management and administration expenses
Expenses are recognised in profit or loss on the accrual basis.
Distributions
"Distributions payable on redeemable securities are recognised in profit or loss as distributions.
In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed, the Scheme distributes
its distributable income and any other amounts determined by the Manager, to security investors in cash. The
distributions are payable shortly after the end of each quarter and recognised in profit or loss as distributions."
Creations and redemptions
"Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the
current market price of the securities plus a brokerage fee that is negotiable with the broker and any additional
transaction costs applicable to such a trade.
Investors can also acquire the Scheme's securities by subscribing for them directly from the Scheme. The cash
subscription price and number of the Scheme's securities to be issued to an investor for cash will be determined
by the amount which the investor invests (net of transaction costs) and will be a function of the pro rata cost to
the portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE, at the current market price quoted on the JSE. Investors may
also redeem securities directly with the Scheme.
Securities prices are determined by reference to the net assets of the Scheme divided by the number of
securities in issue. For unit pricing purposes, net assets are determined using the last reported trade price for
securities. These prices may differ from the market price quoted on the JSE."
Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require redemption for cash or
in specie at the value proportionate to the investors’ share. Such instruments give rise to a financial liability for
the net asset value of the redemption amount in the Scheme’s net assets at redemption date. In accordance with
the CoreShares Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is contractually
obliged to redeem securities at the net asset value. A redemption fee, depending on the size of the recall, would
be payable by the investor making the redemption.
Net assets attributable to security investors
Securities are redeemable at the security investor’s option and are therefore classified as financial liabilities. The
securities may be sold back to the Scheme at anytime. The fair value of redeemable securities is measured at
the redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and
vested interest in the assets as a whole, subject to liabilities, as defined by the CoreShares Index Tracker
Collective Investment Scheme Deed) at the reporting date if security investors exercise their right to put the
securities back to the Scheme.
Increase/decrease in net assets attributable to security investors
Income not distributed is included in net assets attributable to security investors.
This preliminary report is extracted from audited information, but is not itself audited.
The Directors take full responsibility for the preparation of the preliminary report and that the financial information
has been correctly extracted from the underlying annual financial statements.
29 March 2019
Sponsor: Grindrod Bank Limited
Date: 29/03/2019 04:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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