Abridged audited results for the year ended 31 December 2012 - BBET40 BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme A portfolio in the BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme (BBET40) registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the “Act”) (the “portfolio”) JSE code:BBET40 ISIN: ZAE000144507 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 2 117 976 2 360 084 Interest income 101 525 121 981 Total income 2 219 501 2 482 065 Fair value adjustment Realised gains on financial instruments designated at fair value through profit or loss 5 386 889 795 168 Unrealised (losses)/ gains on financial instruments designated at fair value through profit or loss 9 285 549 407 011 Total fair value adjustment 14 672 438 1 202 179 Management fee written off 369 292 - Expenses Management fee 66 177 274 473 Other 50 349 20 889 Trustee and custodian fees 66 348 562 922 Investment fee 86 005 89 765 Audit fee - 123 288 Total operating expenses 268 879 571 337 Increase in net assets attributable to investors before distributions 16 992 352 3 112 907 Income distributions (2 354 774) (1 572 017) Increase in net assets attributable to investors after distributions 14 637 578 1 540 890 STATEMENT OF FINANCIAL POSITION at 31 December 2012 2012 2011 R R ASSETS Listed equities designated at fair value through profit or loss 59 706 265 81 514 404 Cash and cash equivalents 283 383 658 049 Total assets 59 989 648 82 172 453 LIABILITIES Other payables 301 755 398 509 Total liabilities (excluding net assets attributable to investors) 301 755 398 509 Net assets attributable to investors 59 687 893 81 773 944 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 36 497 336 98 231 36 595 567 Creation of BBET40 Securities 43 637 487 - 43 637 487 Increase in net assets attributable to investors 1 730 580 (189 690) 1 540 890 Balance at 31 December 2011 81 865 403 (91 459) 81 773 944 Redemption of BBET40 Securities (36 723 629) - (36 723 629) Increase in net assets attributable to investors 14 910 994 (273 416) 14 637 578 Balance at 31 December 2012 60 052 768 (364 875) 59 687 893 STATEMENT OF CASH FLOWS for the year ended 31 December 2012 2012 2011 R R Cash flow operating activities Cash utilised by operations (272 849) (253 380) Interest received 101 525 121 981 Dividends received 2 117 976 2 360 084 Investment in listed investments (12 925 825) (58 383 420) Disposal of listed investments 49 406 402 14 581 173 Cash outflow from operating activities 38 427 229 (41 573 562) Cash flow from financing activities Creation of fund Securities (36 723 629) 43 637 487 Distributions paid to fund security holders (2 078 266) (1 572 017) Net cash generated from financing activities (38 801 895) 42 065 470 Net movement in cash and cash equivalents (374 666) 491 908 Cash and cash equivalents at the beginning of the year 658 049 166 141 Cash and cash equivalents at the end of the year 283 383 658 049 During the year, 1 000 000 BBET40 securities were redeemed at a value of R36 723 629 (2011:nil). Distributions The Portfolio declares dividends quarterly. Distributions are made from the income of the BBET40 Portfolio. 2012 2011 R R Distributions declared during the period were as follows: 10.82 cents per security declared on 30 December 2011 distribution paid on 23 January 2012 84 270 85 538 Botswana: 10.82 cents per share declared on 30 December 2011 distribution paid on 23 January 2012 173 755 - 17.21 cents per security Declared 8 March 2012 and paid 30 April 2012 134 038 162 392 Botswana:17.20 cents per security Declared 8 March 2012 and paid 30 April 2012 276 508 - 63.02 cents per security Declared 15 June 2012 and paid 23 July 2012 743 018 207 794 Botswana: 63.02 cents per share Declared 15 June 2012 and paid 23 July 2012 130 263 428 660 58.67 cents per security Declared 6 September 2012 and paid 22 October 2012 691 662 224 461 Botswana: 58.67 cents per security Declared 6 September 2012 and paid 29 October 2012 121 260 463 172 Total Expense Ratio ('TER') 39.71bps 39.8bps 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 BBET40 Portfolio had a TER of 39.71bps (2011: 39.8bps) 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. Statement of compliance The financial statements are prepared in accordance with International Financial Reporting Standards (‘IFRS’) issued by the International Accounting Standards Board (‘IASB’), the AC500 Standards issued by the Accounting Practices Board and 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. 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. 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. Except for the IFRS3 and IFRS10, none of these are expected to have a significant effect on the measurement of the amounts recognized in the financial statements of the Portfolio. Standard/Interpretation Effective date IAS 1 amendment Presentation of Annual periods beginning on or Financial Statements: after 1 July 2012 Presentation of Items of Other Comprehensive Income IFRS 13 Fair Value Measurement Annual periods beginning on or after 1 January 2013 IFRS 7 Financial Annual periods beginning on or Instruments:Disclosures: after 1 January 2013 Offsetting Financial Assets and Financial Liabilities IAS 32 Financial Instruments: Annual periods beginning on or Presentation: Offsetting after 1 January 2014 Financial Assets and Financial Liabilities 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 Audit report KPMG Inc, the entity’s independent auditors, has audited the annual financial statements of the BBET40 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 Nedbank Limited. A full copy of these financial statements is available on the BettaBeta website www.bettabeta.co.za. 28 March 2013 Sponsor Nedbank Capital Trustee FirstRand Bank Limited Manager Nedgroup Beta Solutions(Proprietary) Limited Date: 28/03/2013 03:30:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.