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Abridged Audited Results For The Year Ended 30 June 2012
PropTrax SAPY
Share code: PTXSPY ISIN: ZAE000101911
(“PropTrax SAPY”)
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
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2012
STATEMENT OF FINANCIAL POSITION
at 30 June 2012
2012 2011
R R
ASSETS
Current assets
Listed investments held at fair
value 131 879 046 314 878 396
Trade and other receivables 383 118 976 901
Cash and cash equivalents 1 451 011 2 780 942
Total assets 133 713 175 318 636 239
EQUITY AND LIABILITIES
Current liabilities
Net assets attributable to investors 132 944 310 317 840 321
Trade and other payables 768 865 795 918
Total equity and liabilities 133 713 175 318 636 239
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2012
2012 2011
R R
Revenue
Distribution income 24 292 850 23 883 373
Interest income 99 495 95 697
Investment income 24 392 345 23 979 070
Fee income 25 034 124 292
Total income 24 417 379 24 103 362
Management and administration expenses (3 319 027) (3 418 233)
Income available for distribution 21 098 352 20 685 129
Distributions paid (20 161 335) (20 442 820)
Change in net assets attributable to investors 937 017 242 309
STATEMENT OF CHANGES IN NET ASSET VALUE ATTRIBUTABLE TO INVESTORS
for the year ended 30 June 2012
Capital Income
attributable attributable
to investors to investors Total
Balance at 30 June 2010 279 918 939 2 629 026 282 547 965
Change in net assets attributable to investors 31 350 873 242 309 31 593 182
100 000 units created on 17 May 2011 3 699 174 3 699 174
Balance at 30 June 2011 314 968 986 2 871 335 317 840 321
Change in net assets attributable to investors 39 278 160 937 017 40 215 177
1 800 000 units liquidated on 4 June 2012 (75 097 844) - (75 097 844)
3 500 000 units liquidated on 11 June 2012 (147 321 959) - (147 321 959)
Cumulative distributions paid on liquidated units - (2 691 385) (2 691 385)
Balance at 30 June 2012 131 827 343 1 116 967 132 944 310
STATEMENT OF CASH FLOWS
for the year ended 30 June 2012
2012 2011
R R
Cash flows from operating activities
Cash utilised by operations (3 316 549) (3 115 866)
Distribution income 24 882 136 22 910 969
Interest income 99 495 95 697
Cash distributed to unitholders (22 852 720) (20 442 820)
Cash outflow from operating activities (1 187 638) (552 020)
Cash flows from investing activities
Purchase of equities (91 436 441) (46 177 079)
Proceeds from sale of equities 313 713 951 42 365 681
Cash inflow/(outflow) from investing activities 222 277 510 (3 811 398)
Cash flows from financing activities
Creation of securities - 3 699 174
Liquidation of securities (222 419 803) -
Cash (outflow)/inflow from financing activities (222 419 803) 3 699 174
Net decrease in cash and cash equivalents (1 329 931) (664 244)
Cash and cash equivalents at the beginning of the year 2 780 942 3 445 186
Cash and cash equivalents at the end of the year 1 451 011 2 780 942
NOTES TO THE ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2012
1. ACCOUNTING POLICIES
1.1 Reporting entity
Property Index Tracker Collective Investment Scheme 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 measurement
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 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 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 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 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 cost
using the effective interest rate method. Financial liabilities arising from the securities issued by the PropTrax
Fund are carried at the fair value representing the investor's right to a residual interest in the PropTrax Fund's
net assets, i.e. the net asset value of the Scheme. Changes in the fair value are included in net profit or loss in
the year in which the change arises.
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 the
statement of net assets attributable to investors.
Offset
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial
position when the PropTrax 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 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 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 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 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 (refer to note 9).
1.9 Expenses
Expenses are recognised on the accrual basis.
1.10 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.
1.11 Distributions
Distributions payable on redeemable units are recognised in profit or loss as distributions.
In accordance with the PropTrax 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 recognised in the statement of comprehensive income as distributions.
1.12 Creations and redemptions
Investors can acquire PropTrax SAPY 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 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 SAPY securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the SAPY 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 Fund's net assets at redemption date. In
accordance with the PropTrax Deed and the Act, the PropTrax 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.
The full financial statements are available on www.proptrax.co.za.
19 September 2012
Sponsor
Java Capital
Date: 19/09/2012 02:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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