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NFGOVI - Newfunds GOVI Index ETF Portfolio - Summarised audited results for

Release Date: 29/06/2012 07:14
Code(s): JSE NFGOVI
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NFGOVI - Newfunds GOVI Index ETF Portfolio - Summarised audited results for the year ended 31 March 2012 NEWFUNDS GOVI INDEX ETF PORTFOLIO Share code: NFGOVI ISIN: ZAE000161949 ("GOVI ETF ETF" or "the ETF") A Portfolio in the NewFunds Collective Investment Scheme in Securities registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 SUMMARISED AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2012 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2012 2012 2011
R R ASSETS
Non-current assets Investments: GOVI Portfolio 37 592 572 - Current assets 767 440 - Trade and other receivables 480 290 - Cash and cash equivalents 287 150 - Total assets 38 360 012 - LIABILITIES
Current liabilities Trade and other payables 21 146 - Net assets attributable to investors 38 338 866 - STATEMENT OF COMPREHENSIVE INCOME FOR THE 3 MONTHS ENDED 31 MARCH 2012 2012 2011 R R
Revenue 1 216 582 - Interest income 1 216 582 - Realised gains on financial 36 825 - instruments designated at fair value through profit or loss Unrealised (loss)on financial (424 961) - instruments designated at fair value through profit or loss Other operating expenditure Management and administration (22 535) - expenses Increase in net assets attributable 805 911 - to investors before tax
Income tax expense - - Increase in net assets attributable 805 911 - to investors before distribution Income distribution - - Increase in net assets attributable 805 911 - to investors after distribution Represented by: Income attributable to investors 1 194 047 - Capital gain attributable to (388 136) - investors STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS FOR THE 3 MONTHS ENDED 31 MARCH 2012 Capital Income Net assets
attributable attributable attributable to investors to investors to investors R R R Balance at 1 April 2010 - - - Increase in net assets attributable to investors - - - Balance at 31 March 2011 - - - New creation of GOVI 37 532 955 - 37 532 955 securities Increase in net assets (388 136) 1 194 047 805 911 attributable to investors Balance at 31 March 2012 37 144 819 1 194 047 38 338 866 STATEMENT OF CASH FLOWS FOR THE 3 MONTHS ENDED 31 MARCH 2012 2012 2011 R R Net cash generated from 287 150 - operating activities Cash utilised from (481 679) - operations Purchases of equity (1 771 502) - securities Proceeds from sale of equity 1 323 749 - securities Interest income 1 216 582 - Net movement in cash and 287 150 - cash equivalents Cash and cash equivalents at - - the beginning of year Cash and cash equivalents at 287 150 - the end of year NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR ALL PORTFOLIOS ("funds") FOR THE YEAR ENDED 31 MARCH 2012 1.1 General information The NewFunds Collective Investment Scheme ETF Portfolios ("the Scheme") are open-ended investment scheme incorporated under the Collective Investment Scheme Control Act of South Africa of 2002. The Scheme is domiciled in the Republic of South Africa and has a March year end. The Scheme`s objective is to track the SA Government Bond total return Index. The Index consists of Bonds issued by the South African government which includes only those issued in which the Department of Finance obliges the Primary Dealers to make a market, and constituting the GOVI Index. GOVI ETF Portfolio was consolidated into Absa Capital. The parent company of Absa Capital is Absa Bank Limited whose ultimate parent company is Barclays PLC. The scheme is mainly managed by Absa Capital, a division of Absa Bank Limited. 1.2 Accounting policies The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 1.2.1 Statement of compliance The audited financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), Interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC), and in the manner required by the Collective Investment Schemes Control Act of 2002, the Trust Deed and the AC 500 series. The financial statements were authorised for issue by the Board of Directors on 26 June 2012. 1.2.2 Basis of measurement The financial statements have been prepared on an accrual basis of accounting, except for cash flow information. The measurement basis used is the historical cost basis, except where specifically indicated in the accounting policies. 1.2.3 Functional and presentation currency The financial statements are presented in South African Rand, which is the Scheme`s functional and presentation currency. All financial information is presented to the nearest Rand. 1.2.4 Use of estimates and judgements The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Management has determined that the underlying assumptions are appropriate and the Scheme`s financial statements therefore present the financial position fairly. Information about significant areas of estimation uncertainty and critical judgements in applying the accounting policies that have the most significant effect on the amounts recognised in the financial statements are included in the individual notes to the financial statements. 1.2.5 Recent accounting developments New and amended standards adopted by the Scheme There are no IFRS or IFRIC interpretations that are effective for the first time for the financial year beginning on or after 1 April 2011 that have a material impact on the Scheme. New standards, amendments and interpretations issued but not effective for the financial year beginning 1 April 2011 and not early adopted IFRS 7, `Financial Instruments Disclosures` (amendments) require additional quantitative and qualitative disclosures in respect of risk exposures arising from transferred financial assets. The amendments include a requirement to disclose by class of asset: the nature, carrying amount and a description of the risks and rewards of financial assets that have been transferred to another party yet remain on the Scheme`s statement of financial position. Disclosures are also required to enable a user to understand the amount of any associated liabilities, and the relationship between the financial assets and associated liabilities. Comparative disclosures are not required for any period beginning before the effective date. The amendments are effective for annual periods beginning on or after 1 July 2011 and are required to be applied retrospectively. The Scheme is yet to perform a detailed assessment of the amended IFRS 7`s full impact. The Scheme does not expect any impact. The Scheme intends to adopt the amended IFRS 7 no later than the accounting period beginning on or after 1 July 2011. IFRS 7, `Financial Instruments: Disclosures` was amended in December 2011. The disclosures required were amended to include information that will enable users of the Scheme`s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the Scheme`s recognised financial assets and recognised financial liabilities, on the Scheme`s financial position. The amendments are effective for annual periods beginning on or after 1 January 2013 and are required to be applied retrospectively. The Scheme is yet to perform a detailed assessment of the amended IFRS 7`s full impact. The Scheme does not expect a significant impact. The Scheme intends to adopt the amended IFRS 7 no later than the accounting period beginning on or after 1 January 2013. IFRS 9, `Financial instruments`, addresses the classification, measurement and recognition of financial assets and financial liabilities. IFRS 9 was issued in November 2009 and October 2010. It replaces the parts of IAS 39 that relate to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. The classification depends on the Scheme`s business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to the Scheme`s own credit risk is recorded in other comprehensive income rather than the statement of comprehensive income, unless this creates an accounting mismatch. The Scheme is yet to perform a detailed assessment of IFRS 9`s full impact. The Scheme does not expect a significant impact. The Scheme intends to adopt IFRS 9 no later than the accounting period beginning on or after 1 January 2015. IFRS 10, Consolidated financial statements` builds on existing principles by identifying the concept of control as the determining factor in whether the Scheme should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. The Scheme does not expect any impact. The Scheme intends to adopt IFRS 10 no later than the accounting period beginning on or after 1 January 2013. IFRS 12, `Disclosures of interests in other entities` includes the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. The Scheme is yet to perform a detailed assessment of IFRS 12`s full impact. The Scheme does not expect a significant impact. The Scheme intends to adopt IFRS 12 no later than the accounting period beginning on or after 1 January 2013. IFRS 13, `Fair value measurement`, aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements, which are largely aligned between IFRSs and US GAAP, do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs or US GAAP. The Scheme is yet to perform a detailed assessment of IFRS 13`s full impact. The Scheme does not expect a significant impact. The Scheme intends to adopt IFRS 13 no later than the accounting period beginning on or after 1 January 2013. IAS 1 (amendments) Presentation of Items of Other Comprehensive Income revises the way other comprehensive income is presented by; preserving the amendments made to IAS 1 in 2007 to require profit or loss and other comprehensive income to be presented together or a separate `statement of profit or loss` and a `statement of comprehensive income`; requires entities to group items presented in other comprehensive income based on whether they are potentially re-classifiable to profit or loss subsequently, i.e. those that might be reclassified and those that will not be reclassified; and requires the tax associated with items presented before tax to be shown separately for each of the two groups of other comprehensive income items (without changing the option to present items of other comprehensive income either before tax or net of tax). The amendments are effective for annual periods beginning on or after 1 July 2012 and are required to be applied retrospectively. The Scheme is yet to perform a detailed assessment of the amended IAS 1`s full impact. The Scheme does not expect any impact. The Scheme intends to adopt the amended IAS 1 no later than the accounting period beginning on or after 1 July 2012. IAS 32 `Financial Instruments: Presentation` was amended in December 2011. The amendments address inconsistencies in current practice when applying the offsetting criteria in IAS 32, the amendments clarify: the meaning of `currently has a legally enforceable right of set-off`; and that some gross settlement systems may be considered equivalent to net settlement. The amendments are effective for annual periods beginning on or after 1 January 2014 and are required to be applied retrospectively. The Scheme is yet to perform a detailed assessment of the amended IAS 32`s full impact. The Scheme does not expect any impact. The Scheme intends to adopt the amended IAS 32 no later than the accounting period beginning on or after 1 January 2014. There are no other IFRSs or IFRIC interpretations that have been issued but are not yet effective that would be applicable at year end, specifically to the Scheme. 1.2.6 Financial instruments Financial instruments are initially measured at fair value and are subsequently measured on the basis as set out below. Transaction costs of instruments carried at fair value through profit and loss are recognised immediately through the profit and loss component of the statement of comprehensive income. For other categories of financial instruments, transaction costs (which includes incremental costs) and transaction income (i.e. initiation fees) are capitalised to the initial carrying amount. Financial instruments are recognised on the date when the entity enters into contractual arrangements with counterparties to purchase or sell the financial instruments. The Scheme is required to group instruments into classes that are appropriate to the nature of the information disclosed and take into account the characteristics of those financial instruments. Classes of financial instruments have been determined by referring to the nature and extent of risks arising from the financial instruments and how these are managed. 1.2.6.1 Financial instruments at fair value through profit or loss This category includes investments in portfolios and net assets attributable to investors (redeemable securities). Financial instruments are classified in this category if they meet one or more of the criteria set out below at initial recognition, and are so designated by management. The entity may only designate financial instruments at fair value through profit and loss when the designation results in more relevant information, as follows: It eliminates or significantly reduces valuation or recognition inconsistencies that would arise from measuring financial assets or financial liabilities, or recognising gains or losses on them, on different bases. When groups of financial assets, financial liabilities or combinations thereof are managed, and their performance evaluated, on a fair value basis in accordance with a documented risk management or investment strategy, and where information about the entity`s financial instruments is reported to management on that basis. The entity has documented risk management and investment strategies designed to manage such assets at fair value, taking into consideration the relationship of assets to liabilities in a way that mitigates market risks. The entity can also designate a financial instrument at fair value through profit or loss if it relates to a contract containing one or more embedded derivatives that significantly modify the cash flows resulting from that contract. The fair value designation, once made, is irrevocable. Measurement is initially at fair value, with transaction costs taken directly to the profit and loss component of the statement of comprehensive income. Subsequent to initial recognition, the fair value is remeasured, and gains and losses from changes therein are recognised in the statement of comprehensive income. Interest income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive income, within interest. Dividend income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive income within dividend income when the Scheme`s right to receive payments is established. Investment in portfolio The Scheme comprises of thirteen portfolios. Creation and redemption Creation and redemption are recorded on trade date using historic cost being the previous day closing index price. Net assets attributable to investors (redeemable securities) All redeemable securities provided by the portfolios provide investors with the right to request redemption for cash or in specie at the value proportionate to each investor`s share. The securities are redeemable at any time at the option of the security holder and are therefore classified as financial liabilities. 1.2.6.2 Financial instruments at amortised cost. The effective interest method is a method of calculating the amortised cost of financial instruments and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or, when appropriate, a shorter period, to the net carrying amount of the financial instrument. The calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. 1.2.6.2.1 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables comprises of trade & other receivables. Trade & other receivables includes interest income receivable and dividend receivable. After initial measurement, loans and receivables are subsequently measured at amortised cost using the effective interest rate method, less allowance for impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the effective interest rate. The interest is included in the profit and loss component of the statement of comprehensive income. The carrying amount of impaired loans on the statement of financial position is reduced through the use of identified or unidentified impairment. The carrying amounts approximates the fair value. Once a loan has been written down as a result of an impairment loss, interest income is thereafter recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Cash and cash equivalents Comprise of cash balances and call deposits with an original maturity of three months or less measured at amortised cost at reporting date. The carrying value approximates the fair value. 1.2.6.3 Financial liabilities at amortised cost Financial liabilities are measured at amortised cost except for liabilities designated at fair value which are held at fair value through profit and loss. Financial liabilities comprise of trade & other payables. Trade & other payables comprise of management and trustee fee payables and are measured at amortised cost using the effective interest method. The carrying value approximates the fair value. 1.2.6.4 Impairment of financial assets at amortised cost An impairment assessment of financial assets at amortised cost is performed at each reporting date. Amortised cost instruments are considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of an amortised cost investment is calculated as the difference between its carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Loans and receivables are stated net of identified and unidentified impairments. A financial asset or group of financial assets is considered impaired if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (known as the loss event) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets and can be reliably measured. In determining whether a loss event has occurred, advances are subjected to regular evaluations that take cognisance of, inter alia, past experience of the economic climate similar to the current economic climate, overall customer risk profile and payment record and the realisable value of any collateral. Objective evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the entity and may include the following loss events: A breach of contract, such as a default or delinquency in interest or principal payments; The disappearance of an active market for that financial asset because of financial difficulties; Observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group, including: - adverse changes in the payment status of borrowers in the group; or - national or local economic conditions that correlate with defaults on the assets in the group. The entity first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the entity determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses that group for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised, are not included in a collective assessment of impairment. The amount of impairment loss is measured as the difference between the asset`s carrying amount and the present value of estimated future cash flows (excluding future credit losses) discounted at the financial asset`s original effective interest rate. The carrying amount of the asset is reduced through the use of a provision account and the amount of the impairment loss is recognised in the profit and loss component of the statement of comprehensive income. If a loan receivable or held-to-maturity investment has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. The calculation of the present value of the estimated future cash flows of collateralised financial assets reflects the cash flows that may result from foreclosure, less cost of obtaining and selling the collateral, whether or not foreclosure is probable. For the purposes of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk characteristics (i.e. on the basis of the entity`s grading process that considers asset type, industry, geographical location, collateral type, past-due status and other relevant factors). These characteristics are relevant to the estimation of the cash flows for groups of such assets by being indicative of the debtors` ability to pay all amounts due according to the contractual terms of the assets being evaluated. Future cash flows for a group of financial assets that are collectively evaluated for impairment are estimated on the basis of the contractual cash flows of the assets in the group and historical loss experienced for assets with credit risk characteristics similar to those in the group. Historical loss experience is adjusted on the basis of current observable data to reflect the effects of current conditions and to remove the effects of conditions in the historical period that do not currently exist. Estimates of changes in future cash flows for groups of assets should reflect and be directionally consistent with changes in related observable data from period to period (i.e. changes in unemployment rates, property prices, payment status, or other factors indicative of changes in the probability of losses in the group and their magnitude). The methodology and assumptions used for estimating future cash flows are reviewed regularly by the entity to reduce any differences between loss estimates and actual loss experience. Loans or other receivables, together with the associated allowance, are written off when there are no realistic prospects of future recovery and all collateral has been realised or has been transferred to the entity. 1.2.6.5 Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised when: The contractual rights to the cash flows arising from the financial assets have expired or being forfeited by the entity; or The entity retains the rights to receive cash flows from the asset but has assumed an obligation to pay for them in full without material delay to a third party under a pass-through arrangement; or It transfers the financial asset including substantially all the risks and rewards of ownership of the assets; or It transfers the financial asset, neither retaining nor transferring substantially all the risks and rewards of ownership of the asset, but no longer retains control of the assets. Where the entity has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the entity`s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of the consideration that the entity could be required to repay. 1.2.6.6 Derecognition of financial liabilities A financial liability is derecognised when and only when the liability is extinguished, that is, when the obligation specified in the contract is discharged, cancelled or has expired. Where an existing financial liability is replaced by another from the same tender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the profit and loss component of the statement of comprehensive income. 1.2.6.7 Fair value The listed underlying investments are carried at fair value through profit or loss such as those designated by management under the fair value option. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The method of determining the fair value of financial instruments can be analysed into the following categories: (a) Level 1 - Unadjusted quoted prices in active markets where the quoted price is readily available and the price represents actual and regularly occurring market transactions on an arm`s length basis. (b) Level 2 - Valuation techniques using market observable inputs. Such techniques may include: - using recent arm`s length market transactions; - reference to the current fair value of similar instruments; and - discounted cash flow analysis, pricing models or other techniques commonly used by market participants. (c) Level 3 - Valuation techniques, as described in (b) above, for which not all inputs are market observable prices or rates. Such a financial instrument is initially recognised at the transaction price, which is the best indicator of fair value, although the value obtained from the relevant valuation model may differ. The difference between the transaction price and the model value, commonly referred to as `day one profit and loss`, is either amortised over the life of the transaction, deferred until the instrument`s fair value can be determined using market observable inputs, or realised through settlement. The valuation techniques in (b) and (c) use inputs such as interest rate yield curves, equity prices, volatilities of the underlying and correlations between inputs. The models used in these valuation techniques are calibrated against industry standards, economic models and to observed transaction prices where available. The best evidence of fair value at initial recognition is the transaction price (i.e. the fair value of the consideration given or received), unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. All changes in fair value, other than dividend and interest income, is recognised in the statement of comprehensive income as a net gain/ (loss) from financial instruments at fair value through profit or loss. 1.2.7 Offsetting Financial assets and liabilities are offset and the net amount reported in the statement of financial position when the entity holds a current legally enforceable right to set off the recognised amounts and intends to either settle on a net basis, or realise the asset and settle the liability simultaneously. 1.2.8 Revenue Income comprises of interest income, coupon interest income, dividend income and scrip lending income. It is recognised to the extent that it is probable that there will be an inflow of economic benefits and the income can be reliably measured. Interest income is recognised in the statement of comprehensive income on a time-proportionate basis using the effective interest method and includes interest income from debt securities. Dividends from equity investments are recognised in the statement of comprehensive income when the shareholders` rights to receive payment have been established except to the extent that dividends, clearly reflect a realisation of the underlying investments. Securities lending fee income are fees earned for the administration of securities lending activities are accounted for on the accrual basis in the period in which the service is rendered. Revenue from lending securities is recognised in profit or loss in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to amount of scrip lent out. 1.2.9 Distributions In accordance with the Scheme`s Trust Deed, the price index portfolios distribute their distributable income and any other amounts determined by the management scheme to security holders in cash. As per the Scheme`s Trust Deed, the total return index portfolios re-invest the distributions on behalf of investors through the purchase of additional Constituent securities in the weightings of the specific index. 1.2.10 Fair value gains and losses Realised profits or losses on the disposal of investments are the differences between the fair value of the consideration received less any directly attributable costs, on the sale of equity investments, and its carrying value at the start of the full reporting period. Unrealised profits or losses on the revaluation of investments are the movements in the carrying value of investments between the start and end of the accounting period. 1.2.11 Taxation Income is taxed in the hands of the investor if the portfolio distributes within 12 months of having received income, failing which income will be deemed to be received by and accrued to the portfolio and will be taxed in its hands. Capital gains and losses are taxed in the investors hands. 1.2.12 Provisions Provisions are recognised when the Scheme has a present legal or constructive obligation as a result of past events, for which it is probable that an outflow of economic benefits will occur, and where a reliable estimate can be made of the amount of the obligation. Where the effect of discounting is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Future operating costs or losses are not provided for. 1.2.13 Operating Segments The portfolio, GOVI trade under the umbrella of the NewFunds Collective Investment Schemes (CIS) as separate exchange traded funds. Each of the mentioned funds is separately listed and trades on the JSE. Thus each of the separate portfolios fall within the scope of IFRS 8: Operating Segments. Comparative segment information has been presented in conformity with the requirements of such standards. The application of the standard only impacts the presentation and disclosure aspect of the financial statements. 1.2.14 Scrip lending Securities lent are retained in the statement of financial position when substantially all the risks and rewards of ownership remain with the Scheme. Securities will only be repurchased when the lender defaults. This collateral (as a form of guarantee) is only deposited with the lender if required in terms of the Global Master Securities Lending Arrangement. Audit report KPMG Inc, the NewFunds Collective Investment Scheme`s independent auditor, has audited the annual financial statements of the NewFunds eRAFITrade Mark SA Financial 15 Index ETF from which the summarised results contained in this announcement have been derived, and has expressed an unmodified opinion on the annual financial statements. Their audit report is available for inspection at the CIS`s registered office. The complete set of financial statements are available on Absa Capital`s website (www.absacapitaletfs.com). 29 June 2012 Sponsor Absa Capital (the investment banking division of Absa Bank Limited,affiliated with Barclays) Date: 29/06/2012 07:14:02 Supplied by www.sharenet.co.za 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, information disseminated through SENS.

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