DBXJP - Abridged audited results for the year ended 31 December 2012 db x-trackers MSCI Japan Trust JSE code: DBXJP ISIN: ZAE000115176 A portfolio in the db x-trackers Collective Investment Scheme ("db x-trackers"), 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 Revenue 44 806 168 4 595 165 Investment income 5 965 735 4 595 165 Fair value gain on investments 38 840 433 - Expenses (2 238 684) (45 139 781) Fair value loss on the investments - (43 118 340) Management and administrative expenses (2 238 407) (2 013 565) Finance cost - (7 825) Foreign exchange loss on dividends (277) (51) Operating profit/(loss) before distribution 42 567 484 (40 544 616) Comprising: Income available for distribution before tax 3 727 051 2 573 724 Capital profit/(loss) retained 38 840 433 (43 118 340) Distributions (2 983 466) (2 300 741) Change in net assets attributable to investors before tax 39 584 018 (42 845 357) Withholding tax (389 269) (295 041) Change in net assets attributable to investors 39 194 749 (43 140 398) STATEMENT OF FINANCIAL POSITION as at 31 December 2012 2012 2011 R R Assets Listed investments held at fair value through profit or loss 234 402 306 209 434 065 Trade and other receivables 268 771 235 455 Cash and cash equivalents 2 306 708 2 543 295 Total assets 236 977 785 212 212 815 Liabilities Net assets attributable to investors 234 655 482 209 811 931 Trade and other payables 2 322 303 2 400 884 Total liabilities 236 977 785 212 212 815 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2012 Total R Balance at 1 January 2011 150 635 990 Change in net assets attributable to investors (43 140 398) Creation of securities 49 188 084 Effect of foreign currency translation 53 128 255 Balance at 31 December 2011 209 811 931 Change in net assets attributable to investors 39 194 749 Effect of foreign currency translation (14 351 198) Balance at 31 December 2012 234 655 482 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Cash generated/(utilised) by operations 28 212 (332 526) Dividends received 5 527 670 4 120 136 Management fees paid (2 420 206) (1 263 865) Interest received/(paid) 29 147 (7 825) Net cash inflow from operating activities 3 164 823 2 515 920 Cash outflow from investing activities (479 006) (48 961 616) Purchase of listed investments (479 006) (48 961 616) Net cash (outflow)/inflow from financing activities (2 922 404) 47 505 019 Distributions paid to investors (2 922 404) (1 683 065) Proceeds on creation of securities - 49 188 084 Net (decrease)/increase in cash and cash equivalents (236 587) 1 059 323 Cash and cash equivalents at the beginning of year 2 543 295 1 483 972 Cash and cash equivalents at the end of year 2 306 708 2 543 295 2012 2011 Number Number db x-trackers MSCI Japan securities in issue 45 000 000 45 000 000 In terms of the Trust Deed and CISCA, the Trust would be required to pay the net asset value attributable to investors on redemption of securities. Vested income beneficiaries include all holders of db x-trackers MSCI Japan securities. db x-trackers MSCI Japan securities creations and liquidations There were no (2011: 12 000 000 at a value of R49 188 084) Index Securities created during the year. There were no liquidations during the current and prior year. Distributions The Trust effects semiannual distributions. All distributions are made out of the income of the db x-trackers MSCI Japan Trust. The rebates represent an investors partial reduction of the 114 basis point management fee charged. The rebate is calculated using a sliding scale depending on the size of the investors investment. During the period under review the following distributions were effected per db x-trackers MSCI Japan Index Security: 2012 2011 R R Declared distributions (2 727 566) (2 147 115) 0.03606 Rand per security Declared June 2012 and paid July 2012 (1 622 842) 0.02565 Rand per security Declared June 2011 and paid July 2011 (1 154 409) 0.02455 Rand per security Declared December 2012 and paid January 2013 (1 104 724) 0.02206 Rand per security Declared December 2011 and paid January 2012 (992 706) Management fees refunded during the year as a rebate distribution (255 900) (153 626) Total distribution expense for the year (2 983 466) (2 300 741) Total Expense Ratio ("TER") The TER represents the total expense to the Trust. The only expense to the Trust is the management fee payable to db x-trackers (Pty) Ltd which is calculated at 1.14% of the assets under management on a daily basis. The db x-trackers MSCI Japan Trust had a TER of 114 basis points (2011:114 bps) for the period 1 January to 31 December 2012. Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires Collective Investment Scheme ('CIS') managers to calculate and publish a total expense ratio for each Portfolio under their management. This is a requirement in terms of the Association for Savings and Investments SA ("ASISA") standard on the calculation and publication of total expense ratios. Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the JSE Listing Requirements and the requirements of the Collective Investment Schemes Control Act No 45 of 2002 ("CISCA"), in order to meet the requirements of the Trust Deed approved by the Financial Services Board. Accounting policies The accounting policies applied in the preparation of the financial statements are consistent with those adopted in the previous financial year and are in accordance with IFRS. Forthcoming requirements The following standards, amendments to standards, and interpretations, effective for the first time in the future accounting period, and which are relevant to the Portfolio, have not been adopted for the year ended 31 December 2012: IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. IFRS 9 is effective in the 2015 financial year. IFRS 13 Fair Value Measurement - IFRS 13 deals with the measurement and disclosure of fair value assets and liabilities. IFRS 13 is effective in the 2013 financial year. IAS 32: Financial Instruments: Presentation: Offsetting Financial Assets and Financial Liabilities. The amendments clarify when an entity can offset financial assets and financial liabilities. This amendment is effective in the 2014 financial year. IFRS 7: Amendment Disclosures Offsetting Financial Assets and Financial Liabilities. This amendment contains new disclosure requirements for financial assets and financial liabilities that are offset in the statement of financial position; or are subject to enforceable master netting arrangements or similar agreements. This amendment is effective in the 2013 financial year. The impact of the above standards will be assessed once the standards become effective, and applied only at that stage. Investment income Investment income comprises: - interest income earned on cash and cash equivalents; and - dividend income from listed equities designated as held at fair value through profit or loss. Interest income Interest income is recognised in profit or loss, using the effective interest method taking into account the expected timing and amount of cash flows. Dividend income Dividend income is recognised when the right to receive the expected payment is established. This is usually the ex-dividend date for quoted equities. Audit report KPMG Inc, the entity's independent auditors, has audited the financial statements of the db x-trackers MSCI Japan Trust 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 CIS's registered office. A full copy of these financial statements is available on the db x-trackers website www.dbxtrackers.co.za. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager db x-trackers (Pty) Ltd 28 March 2013 Date: 28/03/2013 09:02:00 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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