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PTXTEN - PROPTRAX TEN - Annual financial statements for the year ended 30 June
2011
PROPTRAX TEN
Share code: PTXTEN ISIN: ZAE000155362
("PropTrax Ten")
A portfolio in the Property Index Tracker Collective Investment Scheme
registered as such in terms of the Collective Investment Schemes Control Act, 45
of 2002, managed by Property Index Tracker Managers (Proprietary) Limited ("the
manager")
ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011
STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2011
2011
R
Revenue
Distribution income 256 186
Interest income 512
Investment income 256 698
Other income 64 188
Total income 320 886
Management and administration expenses (17 187)
Income available for distribution 303 699
Change in net assets attributable to investors 303 699
STATEMENT OF FINANCIAL POSITION
as at 30 June 2011
2011
R
ASSETS
Listed investments held at fair value 21 984 611
Trade and other receivables 158 786
Cash and cash equivalents 156 944
Total assets 22 300 341
EQUITY AND LIABILITIES
Liabilities
Net assets attributable to investors 22 287 283
Trade and other payables 13 058
Total equity and liabilities 22 300 341
STATEMENT OF CHANGES IN NET ASSET VALUE ATTRIBUTABLE TO INVESTORS
for the period ended 30 June 2011
Capital Income Total
attributable attributable
to investors to investors
R R R
1 400 000 units created on 24 May 15 338 356 15 338 356
2011
563 307 units created on 20 May 6 191 631 6 191 631
2011
Change in net assets attributable 453 597 303 699 757 296
to investors
Balance at 30 June 2011 21 983 584 303 699 22 287 283
STATEMENT OF CASH FLOWS
for the period ended 30 June 2011
2011
R
Cash flows from operating activities
Cash utilised by operations 60 059
Distribution income 97 400
Interest income 512
Cash inflow from operating activities 157 971
Cash flows from investing activities
Purchase of equities (21 920 213)
Proceeds from sale of equities 389 199
Cash outflow from investing activities (21 531 014)
Cash flows from financing activities
Creation of securities 21 529 987
Cash inflow from financing activities 21 529 987
Net increase in cash and cash equivalents 156 944
Cash and cash equivalents at beginning of year -
Cash and cash equivalents at end of year 156 944
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the period ended 30 June 2011
1. ACCOUNTING POLICIES AND AUDIT OPINION
Deloitte & Touche has audited the financial information set out in the
report. Their unmodified audit report is available for inspection at the
Manager`s registered address.
1.1 Reporting entity
Property Index Tracker Collective Investment Scheme Ten ("PropTrax Ten
Fund") is a collective investment scheme in securities established in South
Africa in terms of the Collective Investment Schemes Control Act 45 of
2002.
1.2 Basis of preparation
Basis of measurements
The financial statements are prepared on a historic cost basis, except for
financial instruments, which are accounted for as set out in note 1.5.
Statement of compliance
The financial statements are prepared in accordance with International
Financial Reporting Standards ("IFRS"), its interpretations adopted by the
International Accounting Standards Board ("IASB"), the AC 500 standards as
issued by the Accounting Practices Board, the JSE Listings Requirements,
the requirements of the Trust Deed and the Collective Investment Schemes
Control Act, 45 of 2002.
1.3 Functional and reporting currency
The financial statements are presented in Rands which is the functional
currency of the Scheme.
1.4 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires
the use of certain critical accounting estimates, judgements and
assumptions that affect the reported amounts. It also requires management
to exercise its judgement in the company`s process of applying the
accounting policies. Actual results may vary from these estimates. There
are no areas involving a higher degree of judgement of complexities or
areas where assumptions or estimates are significant.
The principal accounting policies applied in the preparation of these
financial statements are set out below.
1.5 Financial instruments
Measurement
Financial instruments are recognised when, and only when, the PropTrax Ten
Fund becomes a party to the contractual provisions of that particular
instrument. Financial instruments are initially measured at fair value,
which except for financial instruments not at fair value through profit and
loss, include direct attributable transaction costs. Subsequent to initial
recognition these instruments are measured as set out below.
Investments
Listed investments are measured at fair value. Fair value is determined
with reference to quoted market prices at the reporting date, as published
in the financial press at the reporting date.
Trade and other receivables
Trade and other receivables originated by the PropTrax Ten Fund are
measured at amortised cost using the effective interest method, less
impairment losses. Trade and other receivables are short term in nature.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit
or loss, are measured at amortised costs using the effective interest rate
method. Financial liabilities arising from the securities issued by the
PropTrax Ten Fund are carried at the fair value representing the investor`s
right to a residual interest in the PropTrax Ten Fund`s net assets, i.e.
the net asset value of the Scheme.
Fair value gains and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of
financial instruments are included in net assets attributable to investors
in the year in which the change arises.
Offset
Financial assets and financial liabilities are offset and the net amount
reported in the statement of financial position when the PropTrax Ten Fund
has a legally enforceable right to set off the recognised amounts, and
intends to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Derecognition of financial instruments
The PropTrax Ten Fund derecognises financial assets when and only when:
- The contractual rights to the cash flows arising from the financial
assets have expired or have been forfeited by the Proptrax Ten Fund;
or
- It transfers the financial assets including substantially all the
risks and rewards of ownership of the assets; or
- It transfers the financial assets, neither retaining nor transferring
substantially all the risks and rewards of the ownership of the asset,
but no longer retains control of the asset.
A financial liability is derecognised when and only when the liability is
extinguished, this is, when the obligation specified in the contract is
discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability (or
part thereof) extinguished or transferred to another party and
consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
1.6 Revenue
Revenue comprises income from securities lending activities and investment
income.
Securities lending fee income
The fees earned for the administration of securities lending activities are
accounted for on an accrual basis in the year in which the service is
rendered. Assets subject to securities lending are not derecognised.
Investment income
Interest income is recognised in the statement of comprehensive income,
using the effective rate method taking into account the expected timing and
amount of cash flows.
Distribution income in the form of cash and manufactured dividends are
recognised when the right to receive payment is established. Manufactured
dividends received are recognised as income in profit or loss.
1.7 Income tax
Under the current system of taxation in South Africa, the PropTrax Ten Fund
is exempt from paying tax on income or capital gains. Both income and
capital gains are taxed in the hands of investors.
1.8 Expenses
Expenses are recognised on the accrual basis.
1.9 Impairment
Financial assets that are stated at amortised cost are reviewed at each
reporting date to determine whether there is objective evidence of
impairment. If any such indication exists, an impairment loss is recognised
in profit or loss as the difference between the asset`s carrying amount and
the present value of estimated future cash flows discounted at the
financial asset`s original effective interest rate. If in a subsequent
period the amount of an impairment loss recognised on a financial asset
carried at amortised cost decreases and the decrease can be linked
objectively to an event occurring after the write-down the impairment loss
is reversed through profit or loss.
1.10 Securities lending
The portfolio engages in securities lending activities up to 50% of the
assets under management. Collateral is held by the relevant lending desks.
1. 11 Distributions
Distributions payable on redeemable units are recognised in profit or loss
as distributions.
In accordance with the PropTrax Ten Deed, the Portfolio distributes its
distributable income and any other amounts determined by the PropTrax
Managers, to security holders in cash. The distributions are payable
shortly after the end of each quarter and are recognised in the statement
of comprehensive income as distributions.
1.12 Creations and redemptions
Investors can acquire PropTrax Ten 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.
The cash subscription price and number of PropTrax Ten 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 PropTrax Ten 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.
Securities prices are determined by reference to the net assets of the
Portfolio 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.
1.13 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
PropTrax Ten Fund`s net assets at redemption date. In accordance with the
PropTrax Ten Deed and the Act, the PropTrax Ten Fund 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.
1.14 Net assets attributable to security holders
Securities are redeemable at the security holder`s option and are therefore
classified as financial liabilities. The securities may be sold back to the
Portfolio 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 Portfolio`s
Trust Deed) at the reporting date if security holders exercise their right
to put the securities back to the Portfolio.
1.15 Increase/decrease in net assets attributable to security holders
Income not distributed is included in net assets attributable to security
holders.
30 September 2011
Sponsor
Java Capital
Auditors
Deloitte & Touche
Trustees
Absa Bank Limited
Date: 30/09/2011 08:43:01 Supplied by www.sharenet.co.za
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