Abridged audited results for the year ended 31 December 2012 - STXRES SATRIX RESI JSE Code: STXRES ISIN: ZAE000078622 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 8 315 389 8 931 585 Fee income: Securities lending 84 975 195 987 Interest income 63 783 57 245 Other income 93 952 127 696 Total income 8 558 099 9 312 513 Expenses Management fee (1 488 431) (1 746 515) Transaction costs (56 195) (94 296) Trustee and custodian fees (64 767) (70 717) Total operating expenses (1 609 393) (1 911 528) Income attributable to investors before distributions 6 948 706 7 400 985 Income distributions (7 064 311) (7 269 360) Realised gains/(losses) on financial instruments designated at fair value through profit or loss 1 866 682 (23 878 350) Unrealised gains/(losses)/gains on financial instruments designated at fair value through profit or loss 30 387 (14 052 897) Total fair value adjustment 1 897 069 (37 931 247) Increase/(decrease) in net assets attributable to investors after distributions 1 781 464 (37 799 622) STATEMENT OF FINANCIAL POSITION at 31 December 2012 2012 2011 R R ASSETS Listed equities designated held at fair value through profit or loss 486 542 580 281 441 388 Interest receivable 8 699 4 486 Securities lending fee receivable 6 148 15 746 Other receivables 7 615 162 641 Underlying securities sold and not settled 50 274 - Cash and cash equivalents 2 560 923 1 645 497 Total assets 489 176 239 283 269 758 LIABILITIES Distributions payable to investors 2 006 707 1 056 093 Other payables 195 299 278 296 Underlying securities purchased and not settled 53 277 - Total liabilities (excluding net assets attributable to investors) 2 255 283 1 334 389 Net assets attributable to investors 486 920 956 281 935 369 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 421 605 142 362 356 421 967 498 Creation of Satrix RESI Securities 110 017 986 - 110 017 986 Redemption of Satrix RESI Securities (212 250 493) - (212 250 493) Decrease in net assets attributable to investors after distributions (37 931 247) 131 625 (37 799 622) Balance at 31 December 2011 281 441 388 493 981 281 935 369 Creation of Satrix RESI Securities 203 204 123 - 203 204 123 Increase in net assets attributable to investors after distributions 1 897 069 (115 605) 1 781 464 Balance at 31 December 2012 486 542 580 378 376 486 920 956 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Net cash generated from operating activities 7 029 123 7 409 027 Cash utilised by operations (1 440 409) (1 772 303) Fee income: Securities lending 94 573 192 341 Interest received 59 570 57 404 Dividend received 8 315 389 8 931 585 Cash (outflow)/inflow from investing activities (203 204 123) 102 232 507 Purchase of underlying constituents (214 830 284) (129 318 347) Sale of underlying constituents 11 626 161 231 550 854 Cash inflow/(outflow) from financing activities 197 090 426 (109 320 777) Creation of Satrix RESI Securities 203 204 123 110 017 986 Redemptions of Satrix RESI Securities - (212 250 493) Cash distributed to security holders (6 113 697) (7 088 270) Net movement in cash and cash equivalents 915 426 320 757 Cash and cash equivalents at the beginning of the year 1 645 497 1 324 740 Cash and cash equivalents at the end of the year 2 560 923 1 645 497 Satrix RESI SECURITIES During the year, 4 000 000 (2011: 2 000 000) Satrix Resi securities were created at a value of R203 204 123 (2011: R110 017 986) and nil (2011: 4 000 000) Satrix Resi securities were redeemed at a value of nil (2011: R212 250 493). All creations were in specie. Distributions The Portfolio effects quarterly distributions. All distributions are made out of income of the Satrix RESI Portfolio. The record dates are 30 March 2012, 28 June 2012, 28 September 2012 and 28 December 2012 respectively. During the year under review the following distributions were effected per Satrix RESI Index Security. 2012 2011 R R 38.33 cents per security Declared 30 March 2012 and paid 11 April 2012 2 103 541 25.17 cents per security Declared 25 March 2011 and paid 21 April 2011 1 884 723 23.18 cents per security Declared 29 June 2012 and paid 10 July 2012 1 272 113 13.78 cents per security Declared 24 June 2011 and paid 18 July 2011 1 169 643 47.82 cents per security Declared 28 September 2012 and paid 12 October 2012 2 624 350 43.17 cents per security 2 800 859 Declared 23 September 2011 and paid 18 October 2011 21.15 cents per security Declared 28 December 2012 and paid 17 January 2013 2 006 707 19.25 cents per security Declared 30 December 2011 and paid 17 January 2012 1 056 435 Accrued income portion of NAV (paid)/received on redemption/(creation) of securities (942 400) 357 700 Total distributions 7 064 311 7 269 360 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 1 304 689 1 554 020 Management fee payable at 31 December 2012 Satrix Managers (Proprietary) Limited 185 130 106 860 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 RESI 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 RESI Portfolio had an AER of 44.22 (2011: 43.05) 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 RESI Portfolio and in this way the income from securities lending proves beneficial to all holders of Satrix RESI 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 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 RESI 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 04:36:00 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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