Abridged audited results for the year ended 31 December 2012 - STXRAF SATRIX RAFI 40 JSE code: STXRAF ISIN: ZAE000126033 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") (the "portfolio") 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 21 145 411 17 487 773 Interest income 248 594 9 590 Total income 21 394 005 17 497 363 Expenses Management fee (3 512 526) (3 023 231) Transaction costs (209 833) (353 739) Trustee and custodian fees (93 487) (87 253) Total operating expenses (3 815 846) (3 464 223) Income attributable to investors before distributions 17 578 159 14 033 140 Income distributions (14 783 387) (14 075 146) Realised gains on financial instruments designated at fair value through profit or loss 21 159 425 17 699 552 Unrealised gains/(losses) on financial instruments designated at fair value through profit or loss 110 874 890 (18 789 154) Total fair value adjustment 132 034 315 (1 089 602) Increase/(Decrease) in net assets attributable to investors after distributions 134 829 087 (1 131 608) STATEMENT OF FINANCIAL POSITION at 31 December 2012 2012 2011 R R ASSETS Listed equities designated held at fair value through profit or loss 779 261 679 633 216 738 Interest receivable 4 309 2 926 Underlying securities sold and not settled 1 235 994 - Cash and cash equivalents 1 654 062 391 269 Total assets 782 156 044 633 610 933 LIABILITIES Other payables 335 388 284 780 Underlying securities purchased and not settled 1 242 070 - Total liabilities (excluding net assets attributable to investors 1 577 458 284 780 Net assets attributable to investors 780 578 586 633 326 153 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 545 819 088 156 222 545 975 310 Creation of Satrix RAFI 40 Securities 103 711 289 - 103 711 289 Redemption of Satrix RAFI 40 Securities (29 303 984) - (29 303 984) Increase/(decrease) in net assets attributable to investors before distributions (1 089 602) 14 033 140 12 943 538 Dividends reinvested 14 075 146 - 14 075 146 Distributions to investors - (14 075 146) (14 075 146) Balance at 31 December 2011 633 211 937 114 216 633 326 153 Creation of Satrix RAFI 40 Securities 38 825 916 - 38 825 916 Redemption of Satrix RAFI 40 Securities (39 598 677) - (39 598 677) Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Increase in net assets attributable to investors after distributions 132 034 315 17 578 159 149 612 474 Dividends reinvested 13 196 107 - 13 196 107 Distributions to investors - (14 783 387) (14 783 387) Balance at 31 December 2012 777 669 598 2 908 988 780 578 586 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Net cash generated from operating activities 16 044 635 14 116 385 Cash utilised by operations (3 759 162) (3 381 219) Interest received 247 211 9 831 Dividends received 19 556 586 17 487 773 Cash outflow from investing activities (14 009 081) (88 487 250) Purchase of underlying constituents (126 714 043) (201 446 375) Sale of underlying constituents 112 704 962 112 959 125 Cash (outflow)/inflow from financing activities (772 761) 74 407 305 Creation of Satrix RAFI 40 Securities 38 825 916 103 711 289 Redemption of Satrix RAFI 40 Securities (39 598 677) (29 299 184) Cash distributed to security holders - (4 800) Net movement in cash and cash equivalents 1 262 793 36 441 Cash and cash equivalents at the beginning of the year 391 269 354 828 Cash and cash equivalents at the end of the year 1 654 062 391 269 SATRIX RAFI 40 SECURITIES During the year, 5 000 000 (2011: 14 000 000) Satrix Rafi 40 securities were created at a value of R38 825 916 (2011: R103 711 289) and 5 000 000 (2011: 4 000 000) Satrix Rafi 40 securities were redeemed at a value of R39 598 677 (2011: R29 299 184). All creations and liquidations were in specie. Distributions The Portfolio announces dividends monthly. All distributions that are made out of income of the Satrix RAFI 40 Portfolio are reinvested back into the Portfolio net of withholding tax. During the year under review the following distributions were effected per Satrix RAFI 40 Security. 2012 2011 R R 6.34 cents per security Declared and re-invested 30 March 2012 5 064 219 - 1.14 cents per security Declared 26 April 2012 and re-invested 11 May 2012 910 601 - 1.02 cents per security Declared 25 May 2012 and re-invested 5 June 2012 814 748 - 1.03 cents per security Declared 29 June 2012 and re-invested 10 July 2012 874 236 - 3.83 cents per security Declared 18 June 2011 and paid 23 July 2011 5 709 935 0.33 cents per security Declared 27 July 2012 and re-invested 6 August 2012 280 095 - 1.08 cents per security Declared 31 August 2012 and re-invested 10 September 2012 916 675 - 4.27 cents per security Declared 28 September 2012 and re-invested 10 October 2012 3 624 259 - 4.58 cents per security Declared 26 October 2012 and re-invested 2 November 2012 3 887 379 - 0.00 cents per security Declared 30 November 2012 and re-invested 18 December 2012 - - 9.85 cents per security Declared 28 December 2012 and re-invested 11 January 2013 1 035 503 - 6.83 cents per security Declared 23 December 2011 and paid 27 January 2012 8 360 411 Accrued income portion of NAV paid on creation/redemption of securities - 4 800 Total distribution 17 407 715 14 075 146 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 3 069 682 2 641 242 Management fee payable at 31 December 2012 Satrix Managers (Proprietary) Limited 335 387 284 796 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 RAFI 40 Portfolio had a TER of 52.75 (2011: 52.75) 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 RAFI 40 Portfolio had an AER of 58.54 (2011: 59.50) basis points (annualised) for 2012, as determined by the Management Company. The AER is calculated using 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. 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 after Presentation of Items of 1 July 2012 Other Comprehensive 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 after Ventures (2011) 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 after 1 financial liabilities January 2013 IFRS 7 Mandatory effective date Annual periods and transition beginning on or after disclosures 1 January 2015 IFRS 1 First-time adoption of Annual periods International Financial beginning on or after 1 Reporting Standards January 2013 IAS 32 Offsetting financial Annual periods assets and financial beginning on or after 1 liabilities January 2014 IFRS 9 Mandatory effective date Annual periods and transition beginning on or after disclosures 1 January 2015 Audit report Ernst & Young Inc, the entity's independent auditors, has audited the annual financial statements of the Satrix RAFI 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 04:33:00 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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