Abridged audited results for the year ended 31 December 2012 - STXSWX SATRIX SWIX TOP 40 JSE Code: STXSWX ISIN: ZAE000078580 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 10 643 536 13 614 716 Fee income: Securities lending 85 322 127 348 Interest income 175 294 99 981 Other income - 61 059 Total income 10 904 152 13 903 104 Expenses Management fee (1 328 373) (1 952 662) Transaction costs (133 844) (70 445) Trustee and custodian fees (147 100) (129 972) Total operating expenses (1 609 317) (2 153 079) Income attributable to investors before distributions 9 294 835 11 750 025 Income distributions (9 358 140) (11 605 469) Realised gains on financial instruments designated at fair value through profit or 55 783 876 65 637 629 loss Unrealised gains/(losses) on financial instruments designated at fair value 1 557 712 (62 967 264) through profit or loss Total fair value adjustment 57 341 588 2 670 365 Increase in net assets attributable to investors after distributions 57 278 283 2 814 921 STATEMENT OF FINANCIAL POSITION at 31 December 2012 2012 2011 R R ASSETS Listed equities designated held at fair value through profit or loss 195 596 512 359 283 756 Interest receivable 3 067 6 766 Securities lending fee receivable 3 928 11 403 Other receivables 910 84 985 Underlying securities sold and not settled 1 613 983 - Cash and cash equivalents 926 755 2 156 631 Total assets 198 145 155 361 543 181 LIABILITIES Distributions payable to investors 774 116 1 873 108 Other payables 78 028 251 374 Underlying securities purchased and not settled 1 624 861 - Total liabilities (excluding net assets attributable to investors) 2 477 005 2 124 482 Net assets attributable to investors 195 668 150 359 418 699 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 726 517 742 (9 612) 726 508 130 Redemption of Satrix SWIX Top 40 Securities (369 904 352) - (369 904 352) Increase in net assets attributable to investors 2 670 365 144 556 2 814 921 after distributions Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Balance at 31 December 2011 359 283 755 134 944 359 418 699 Redemption of Satrix SWIX Top 40 Securities (221 028 832) - (221 028 832) Increase in net assets attributable to investors 57 341 588 (63 305) 57 278 283 after distributions Balance at 31 December 2012 195 596 511 71 639 195 668 150 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Net cash generated from operating activities 9 227 256 11 720 718 Cash utilised by operations (1 687 710) (2 146 056) Fee income: Securities lending 92 437 147 890 Interest received 178 993 104 168 Dividends received 10 643 536 13 614 716 Cash inflow from investing activities 221 028 832 369 904 352 Purchase of underlying constituents (30 480 470) (44 446 153) Sale of underlying constituents 251 509 302 414 350 505 Cash outflow from financing activities (231 485 964) (382 318 399) Redemption of Satrix SWIX Top 40 Securities (221 028 832) (369 904 352) Cash distributed to security holders (10 457 132) (12 414 047) Net movement in cash and cash equivalents (1 229 876) (693 329) Cash and cash equivalents at the beginning of the year 2 156 631 2 849 960 Cash and cash equivalents at the end of the year 926 755 2 156 631 Satrix SWIX Top 40 security During the year, nil (2011: nil) Satrix Swix Top 40 securities were created at a value of nil (2011: nil) and 33 000 000 (2011: 61 000 000) Satrix Swix Top 40 securities were redeemed at a value of R221 028 832 and (2011: R369 904 352). All liquidations were in specie. Distributions The Portfolio effects quarterly distributions. All distributions are made out of income of the Satrix SWIX Top 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 SWIX Top 40 security. 2012 2011 R R 2.85 cents per security Declared 30 March 2012 and paid 11 April 2012 1 673 467 2.10 cents per security Declared 25 March 2011 and paid 21 April 2011 1 884 081 7.07 cents per security Declared 29 June 2012 and paid 10 July 2012 3 585 772 4.79 cents per security Declared 24 June 2011 and paid 18 July 2011 3 626 898 7.03 cents per security Declared 28 September 2012 and paid 12 October 2012 2 510 985 5.91 cents per security Declared 23 September 2011 and paid 18 October 2011 3 470 241 3.01 cents per security Declared 28 December 2012 and paid 17 January 2013 774 116 3.19 cents per security Declared 30 December 2011 and paid 17 January 2012 1 873 108 Accrued income portion of NAV received on creation of securities 813 800 751 141 Total distributions 9 358 140 11 605 469 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 1 186 572 1 717 887 Management fee payable at 31 December 2012 Satrix Managers (Proprietary) Limited 74 736 141 104 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 SWIX Top 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 asset. 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 SWIX Top 40 Portfolio had an AER of 48.08 (2011: 46.33) 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 SWIX Top 40 Portfolio and in this way the income from securities lending proves beneficial to all holders of Satrix SWIX Top 40 securities. 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 beginning Financial Statements: on or after 1 July 2012 Presentation of Items of Other Comprehensive Income IAS 19 Employee Benefits: Annual periods beginning amendment Defined benefit plans on or after 1 January 2013 IAS 27 Separate Financial Annual periods beginning Statements (2011) on or after 1 January 2013 IAS 28 Investments in Annual periods beginning Associates and Joint on or after 1 January 2013 Ventures (2011) IFRS 10 Consolidated Financial Annual periods beginning Statements 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 beginning in Other Entities 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 beginning financial assets and on or after 1 January 2013 financial liabilities IFRS 7 Mandatory effective date Annual periods beginning and transition on or after 1 January 2015 disclosures IFRS 1 First-time adoption of Annual periods beginning International Financial on or after 1 January 2013 Reporting Standards IAS 32 Offsetting financial Annual periods beginning assets and financial on or after 1 January 2014 liabilities IFRS 9 Mandatory effective date Annual periods beginning and transition on or after 1 January 2015 disclosures Audit report Ernst & Young Inc, the entity's independent auditors, has audited the annual financial statements of the Satrix SWIX Top 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 04:34:00 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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