Abridged audited results for the year ended 31 December 2013 SATRIX 40 JSE code: STX40 ISIN: ZAE000027108 A portfolio in the Satrix Collective Investment Scheme ("Satrix"), registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the "Act") ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2012 2012 2011 R R Income Dividend income 222 233 384 178 555 364 Fee income: Securities lending 2 268 454 3 163 537 Other income - 1 065 427 Interest income 3 261 688 1 148 111 Total income 227 763 526 183 932 439 Expenses Management fee (34 725 565) (29 323 770) Trustee and custodian fees (227 040) (332 756) Transaction costs (1 211 994) (858 937) Total operating expenses (36 164 599) (30 515 463) Income attributable to investors before distributions 191 598 927 153 416 976 Income distributions (193 854 325) (151 335 004) Realised gains on financial instruments designated at fair value through profit and loss 267 280 340 447 420 089 Unrealised gains/(losses) on financial instruments designated at fair value through profit and loss 1 202 275 970 (469 538 990) Total fair value adjustments 1 469 556 310 (22 118 901) Increase/(decrease) in net assets attributable to investors after distributions 1 467 300 912 (20 036 929) STATEMENT OF FINANCIAL POSITION at 31 December 2012 2012 2011 R R ASSETS Listed equities designated held at fair value through profit or loss 8 020 097 263 6 733 009 837 Interest receivable 89 722 113 857 Securities lending fee receivable 167 344 307 532 Other receivables 131 625 1 594 137 Underlying securities sold and not settled 50 903 583 - Cash and cash equivalents 29 474 969 29 742 705 Total assets 8 100 864 506 6 764 768 068 LIABILITIES Distributions payable to investors 26 552 677 27 243 871 Other payables 4 344 073 3 784 999 Underlying securities purchased and not settled 51 396 530 - Total liabilities (excluding net assets attributable to investors) 82 293 280 31 028 870 Net assets attributable to investors 8 018 571 226 6 733 739 198 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2012 Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Balance at 1 January 2011 6 658 251 336 (1 352 610) 6 656 898 726 Creation of Satrix 40 Securities 821 226 143 - 821 226 143 Redemption of Satrix 40 Securities (724 348 742) - (724 348 742) Increase/(decrease) in net assets attributable to investors after distributions (22 118 901) 2 081 972 (20 036 929) Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Balance at 31 December 2011 6 733 009 836 729 362 6 733 739 198 Creation of Satrix 40 securities 419 300 061 - 419 300 061 Redemption of Satrix 40 securities (601 768 945) - (601 768 945) Increase/(decrease) in net assets attributable to investors after distributions 1 469 556 310 (2 255 398) 1 467 300 912 Balance at 31 December 2012 8 020 097 262 (1 526 036) 8 018 571 226 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Net cash generated from operating activities 194 277 783 152 331 519 Cash utilised by operations (33 650 066) (30 481 877) Fee income: Securities lending 2 408 642 3 155 985 Interest received 3 285 823 1 102 047 Dividends received 222 233 384 178 555 364 Cash inflow/(outflow) from investing activities 182 468 884 (96 877 402) Purchase of underlying constituents (654 896 595) (1 260 094 506) Sale of underlying constituents 837 365 479 1 163 217 104 Cash outflow from financing activities (377 014 403) (46 254 826) Creation of Satrix 40 Securities 419 300 061 821 226 143 Redemption of Satrix 40 Securities (601 768 945) (724 348 742) Cash distributed to security holders (194 545 519) (143 132 227) Net movement in cash and cash equivalents (267 736) 9 199 291 Cash and cash equivalents at the beginning of the year 29 742 705 20 543 414 Cash and cash equivalents at the end of the year 29 474 969 29 742 705 SATRIX 40 SECURITIES During the year 14 000 000 (2011: 29 000 000) Satrix 40 securities were created at a value of R419 300 061 (2011: R821 226 143) and 20 000 000 (2011: 25 000 000) Satrix 40 securities were redeemed at a value of R601 768 945 (2011: R724 348 742). All creations and liquidations were in specie. Distributions The Portfolio effects quarterly distributions. All distributions are made out of income of the Satrix 40 Portfolio. The record dates are 30 March 2012, 29 June 2012, 28 September 2012 and 28 December 2012 respectively. During the year under review the following distributions were effected per Satrix 40 Security. 2012 2011 R R 13.86 cents per security Declared 30 March 2012 and paid 11 April 2012 32 084 790 9.54 cents per security Declared 25 March 2011 and paid 21 April 2011 22 179 735 24.80 cents per security Declared 29 June 2012 and paid 10 July 2012 59 394 014 16.98 cents per security Declared 24 June 2011 and paid 18 July 2011 38 628 140 33.08 cents per security Declared 28 September 2012 and paid 12 October 2012 76 577 551 26.82 cents per security Declared 23 September 2011 and paid 18 October 2011 63 427 152 11.52 cents per security Declared 28 December 2012 and paid 17 January 2013 26 552 677 11.52 cents per security Declared 30 December 2011 and paid 17 January 2012 27 243 877 Accrued income portion of NAV paid on redemption of securities (754 707) (143 900) Total distribution 193 854 325 151 335 004 Related parties Related parties include Satrix Managers (Proprietary) Limited in its capacity as the management company of the Portfolio. The following related party balances and transactions occurred during the year. 2012 2011 R R Management fee paid Satrix Managers (Proprietary) Limited 30 948 094 26 150 854 Management fee payable at 31 December 2012 Satrix Managers (Proprietary) Limited 3 056 229 2 631 664 All related party transactions are conducted at arm's length on normal commercial terms and conditions. Outstanding balances will be settled in the ordinary course of business. Total Expense Ratio ('TER') The TER is a standard measure used by the Collective Investment Scheme ('CIS') industry to illustrate costs of portfolios on a comparable basis. The TER includes the management fee, audit fees, bank charges, custodian fees, costs related to securities lending and taxes. The Satrix 40 Portfolio had a TER of 45.60 (2011: 45.60) basis points (annualised) for the period 1 January to 31 December 2012. The ratio is calculated based on the Association for Savings and Investments South Africa ('ASISA') standard and does not include the cost of acquiring assets. Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires managers to calculate and publish a total expense ratio for each Portfolio under their management. This is a requirement in terms of the ASISA standard on the calculation and publication of total expense ratios. Actual Expense Ratio ('AER') The Satrix 40 Portfolio had an AER of 44.76 (2011: 43.32) basis points (annualised) for 2012, as determined by the Management Company. The AER is calculated using total management expenses of the Portfolio, including management fees, audit fees, bank charges, custodian fees, brokerage, securities lending costs and taxes less the income derived from securities lending activities. The Portfolio engages in securities lending with the sole aim of reducing the net expenses of managing the Satrix 40 Portfolio and in this way the income from securities lending proves beneficial to all holders of Satrix 40 Portfolio. Statement of compliance The financial statements are prepared in accordance with International Financial Reporting Standards ('IFRS') issued by the International Accounting Standards Board ('IASB') and SAICA Financial Reporting Guides as issued by the Accounting Practices Committee in accordance with the requirements of the Collective Investment Schemes Control Act of South Africa ('CISCA'), in order to meet the requirements of the Trust Deed approved by the Financial Services Board. The abridged financial results have been prepared in accordance with the framework concepts and the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Board. The disclosures comply with International Accounting Standards (IAS) 34. Functional and presentation currency These financial statements are presented in South African Rand, which is the Portfolio's functional currency. Accounting policies The financial statements incorporate the principal accounting policies that are consistent with those adopted in the previous financial year. The new pronouncements applicable for the financial year ending 31 December 2012 for the first time, was assessed to have no impact to the financial position or performance of the Portfolio. Forthcoming requirements New standards and interpretations not yet adopted A number of standards, amendments to the standards and interpretations are not effective for the year ended 31 December 2012, and have not been applied in preparing these financial statements. All standards and interpretations issued but not effective for the year ended 31 December 2012 have been considered. None of these are expected to have a significant effect on the recognition and measurement of the amounts recognised in the financial statements of the Portfolio. Standard/Interpretation Effective date IAS 1 amendment Presentation of Annual periods Financial Statements: beginning on or Presentation of Items of after 1 July Other Comprehensive 2012 Income IAS 19 Employee Benefits: Annual periods amendment Defined benefit plans beginning on or after 1 January 2013 IAS 27 Separate Financial Annual periods Statements (2011) beginning on or after 1 January 2013 IAS 28 Investments in Annual periods Associates and Joint beginning on or Ventures (2011) after 1 January 2013 IFRS 10 Consolidated Financial Annual periods Statements beginning on or after 1 January 2013 IFRS 11 Joint Arrangements Annual periods beginning on or after 1 January 2013 IFRS 12 Disclosure of Interests Annual periods in Other Entities beginning on or after 1 January 2013 IFRS 13 Fair Value Measurement Annual periods beginning on or after 1 January 2013 IFRS 9 (2009) Financial Instruments Annual periods beginning on or after 1 January 2015 IFRS 9 (2010) Financial Instruments Annual periods beginning on or after 1 January 2015 IFRS 7 Disclosures-offsetting Annual periods financial assets and beginning on or financial liabilities after 1 January 2013 IFRS 7 Mandatory effective date Annual periods and transition beginning on or disclosures after 1 January 2015 IFRS 1 First-time adoption of Annual periods International Financial beginning on or Reporting Standards after 1 January 2013 IAS 32 Offsetting financial Annual periods assets and financial beginning on or liabilities after 1 January 2014 IFRS 9 Mandatory effective date Annual periods and transition beginning on or disclosures after 1 January 2015 Audit report Ernst & Young Inc, the entity's independent auditors, has audited the annual financial statements of the Satrix 40 Portfolio from which the abridged results contained in this announcement have been derived, and has expressed an unmodified audit opinion on the annual financial statements. Their audit report is available for inspection at the registered office of Satrix Managers (Pty) Limited, First Floor, Three Exchange Square, 87 Maude Street, Sandown. A full copy of these financial statements is available on the Satrix website www.satrix.co.za. 27 March 2013 Sponsor Vunani Corporate Finance Trustee ABSA Bank Limited Manager Satrix Managers (Proprietary) Limited Date: 27/03/2013 04:30:00 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. 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