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Abridged Audited Results For The Year Ended 30 June 2012
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
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2012
STATEMENT OF FINANCIAL POSITION
as at 30 June 2012
2012 2011
R R
ASSETS
Current assets
Listed investments held at fair value 47 635 602 21 984 611
Trade and other receivables 319 837 158 786
Cash and cash equivalents 372 898 156 944
Total assets 48 328 337 22 300 341
EQUITY AND LIABILITIES
Current liabilities
Net assets attributable to investors 48 242 211 22 287 283
Trade and other payables 86 126 13 058
Total equity and liabilities 48 328 337 22 300 341
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2012
For the 12 months For the 2 months
ended 30 June ended 30 June
2012 2011
R R
Distribution income 2 180 048 256 186
Interest income 8 498 512
Investment income 2 188 546 256 698
Other income - 64 188
Total income 2 188 546 320 886
Management and administration expenses (250 592) (17 187)
Income available for distribution 1 937 954 303 699
Distributions paid (1 628 982) -
Change in net assets attributable to investors 308 972 303 699
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
R R R
1 400 000 units created on 24 May 2011 15 338 356 15 338 356
563 307 units created on 20 May 2011 6 191 631 6 191 631
Change in net assets attributable to investors 453 597 303 699 757 296
Balance at 30 June 2011 21 983 584 303 699 22 287 283
400 000 units created on 20 February 2012 4 886 851 4 886 851
400 000 units created on 3 April 2012 4 896 649 4 896 649
500 000 units created on 13 April 2012 6 050 184 6 050 184
400 000 units created on 17 May 2012 4 949 129 4 949 129
Change in net assets attributable to investors 4 863 143 308 972 5 172 115
Balance at 30 June 2012 47 629 540 612 671 48 242 211
STATEMENT OF CASH FLOWS
for the year ended 30 June 2012
2012 2011
R R
Cash flows from operating activities
Cash (utilised by)/generated from operations (177 524) 60 059
Distribution income 2 018 997 97 400
Interest income 8 498 512
Cash distributed to investors (1 628 982) -
Cash inflow from operating activities 220 989 157 971
Cash flows from investing activities
Purchase of equities (24 821 667) (21 920 213)
Proceeds from sale of equities 4 033 819 389 199
Cash outflow from investing activities (20 787 848) (21 531 014)
Cash flows from financing activities
Creation of securities 20 782 813 21 529 987
Cash inflow from financing activities 20 782 813 21 529 987
Net increase in cash and cash equivalents 215 954 156 944
Cash and cash equivalents at beginning of year 156 944 -
Cash and cash equivalents at end of year 2 372 898 156 944
NOTES
1. ACCOUNTING POLICIES
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 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 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 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 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 any time. 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 02:37:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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