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Abridged Audited Results for Property Index Tracker Collective Investment Scheme (“Proptrax Sapy”) for the year ende
PropTrax SAPY
Share code: PTXSPY ISIN: ZAE 000101911
("PropTrax SAPY")
A portfolio in the Property Index Tracker Collective Investment Scheme registered as such in terms of
the Collective Investment Schemes Control Act, 45 of 2002, managed by Property Index Tracker
Managers (Proprietary) Limited
ABRIDGED AUDITED RESULTS FOR PROPERTY INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME (“PROPTRAX SAPY”) FOR THE YEAR ENDED 30 June 2013
STATEMENT OF FINANCIAL POSITION
as at 30 June 2013
2013 2012
R R
ASSETS
Current assets
Listed investments held at fair value 117 370 510 131 879 046
Trade and other receivables - 383 118
Cash and cash equivalents 1 345 836 1 451 011
Total assets 118 716 346 133 713 175
EQUITY AND LIABILITIES
Current liabilities
Net assets attributable to investors 118 398 383 132 944 310
Trade and other payables 317 963 768 865
Total equity and liabilities 118 716 346 133 713 175
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STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
2013 2012
R R
Revenue
Distribution income 6 775 485 24 292 850
Interest income 23 645 99 495
Investment income 6 799 130 24 392 345
Fee income 1 070 25 034
Total income 6 800 200 24 417 379
Management and administration expenses (1 276 722) (3 319 027)
Income available for distribution 5 523 478 21 098 352
Distributions paid (5 376 447) (20 161 335)
Change in net assets attributable to investors 147 031 937 017
STATEMENT OF CHANGES IN NET ASSET VALUE ATTRIBUTABLE TO INVESTORS
for the year ended 30 June 2013
Capital Income
attributable attributable
to investors to investors Total
R R R
Balance at 30 June 2011 314 968 986 2 871 335 317 840 321
Change in net assets attributable to investors 39 278 160 937 017 40 215 177
1 800 000 units liquidated on 4 June 2012 (75 097 844) - (75 097 844)
(147 321 (147 321
3 500 000 units liquidated on 11 June 2012 -
959) 959)
Cumulative distributions paid on liquidated units - (2 691 385) (2 691 385)
Balance at 30 June 2012 131 827 343 1 116 967 132 944 310
Liquidation of 300 000 units on 18 July 2012 (13 921 448) (13 921 448)
Liquidation of 200 000 units on 21 August 2012 (9 747 627) (9 747 627)
Liquidation of 200 000 units on 4 September 2012 (10 298 793) (10 298 793)
Liquidation of 200 000 units on 17 October 2012 (9 685 976) (9 685 976)
Liquidation of 100 000 units on 14 December 2012 (5 014 523) (5 014 523)
Creation of 100 000 units on 15 January 2013 5 018 089 5 018 089
Creation of 100 000 units on 3 April 2013 5 336 201 5 336 201
Creation of 100 000 units on 7 May 2013 5 771 189 5 771 189
Change in net assets attributable to investors 17 925 699 147 031 18 072 730
Cumulative distributions paid on liquidated units (75 769) (75 769)
Balance at 30 June 2013 117 210 154 1 188 229 118 398 383
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STATEMENT OF CASH FLOWS
for the year ended 30 June 2013
2013 2012
R R
Cash flows from operating activities
Cash utilised by operations (1 726 554) (3 316 549)
Distribution income 7 158 603 24 882 136
Interest income 23 645 99 495
Cash distributed to unitholders (5 452 216) (22 852 720)
Cash inflow/(outflow) from operating activities 3 478 (1 187 638)
Cash flows from investing activities
Purchase of equities (29 684 059) (91 436 441)
Proceeds from sale of equities 62 118 294 313 713 951
Cash inflow from investing activities 32 434 235 222 277 510
Cash flows from financing activities
Creation of securities 16 125 479 -
Liquidation of securities (48 668 367) (222 419 803)
Cash outflow from financing activities (32 542 888) (222 419 803)
Net decrease in cash and cash equivalents (105 175) (1 329 931)
Cash and cash equivalents at the beginning of the year 1 451 011 2 780 942
Cash and cash equivalents at the end of the year 1 345 836 1 451 011
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 30 June 2013
1. ACCOUNTING POLICIES
1.1 Reporting entity
Property Index Tracker Collective Investment Scheme is a collective investment scheme in
securities established in South Africa in terms of the Collective Investment Schemes Control
Act, 45 of 2002.
1.2 Basis of preparation
Basis of measurement
The financial statements are prepared on a historic cost basis, except for financial instruments,
which are accounted for as set out in note 1.5.
Statement of compliance
The financial statements are prepared in accordance with International Financial Reporting
Standards ("IFRS"), its interpretations adopted by the International Accounting Standards Board
("IASB"), the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, the requirements of the Trust Deed and the
Collective Investment Schemes Control Act, 45 of 2002.
1.3 Functional and reporting currency
The financial statements are presented in Rands which is the functional currency of the
Scheme.
1.4 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain
critical accounting estimates, judgements and assumptions that affect the reported amounts. It
also requires management to exercise its judgement in the Scheme's process of applying the
accounting policies. Actual results may vary from these estimates. There are no areas involving
a higher degree of judgement of complexities or areas where assumptions or estimates are
significant.
The principal accounting policies applied in the preparation of these financial statements are set
out below.
1.5 Financial instruments
Measurement
Financial instruments are recognised when, and only when, the PropTrax Fund becomes a
party to the contractual provisions of that particular instrument. Financial instruments are initially
measured at fair value, which except for financial instruments not at fair value through profit and
loss, include direct attributable transaction costs. Subsequent to initial recognition these
instruments are measured as set out below.
Investments
Listed investments are measured at fair value. Fair value is determined with reference to quoted
market prices at the reporting date, as published in the financial press at the reporting date.
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Trade and other receivables
Trade and other receivables originated by the PropTrax Fund are measured at amortised cost
using the effective interest method, less impairment losses. Trade and other receivables are
short term in nature.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit or loss, are measured at
amortised cost using the effective interest rate method. Financial liabilities arising from the
securities issued by the PropTrax Fund are carried at the fair value representing the investor's
right to a residual interest in the PropTrax Fund's net assets, i.e. the net asset value of the
Scheme. Changes in the fair value are included in net profit or loss in the year in which the
change arises.
Fair value gains and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of financial instruments are
included in statement of net assets attributable to investors.
Offset
Financial assets and financial liabilities are offset and the net amount reported in the statement
of financial position when the PropTrax Fund has a legally enforceable right to set off the
recognised amounts, and intends to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
Derecognition of financial instruments
The PropTrax Fund derecognises financial assets when and only when:
- The contractual rights to the cash flows arising from the financial assets have expired or have
been forfeited by the Proptrax Fund; or
- It transfers the financial assets including substantially all the risks and rewards of ownership of
the assets; or
- It transfers the financial assets, neither retaining nor transferring substantially all the risks and
rewards of the ownership of the asset, but no longer retains control of the asset.
A financial liability is derecognised when and only when the liability is extinguished, this is, when
the obligation specified in the contract is discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability (or part thereof) extinguished
or transferred to another party and consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss.
1.6 Revenue
Revenue comprises income from securities lending activities and investment income.
Securities lending fee income
The fees earned for the administration of securities lending activities are accounted for on an
accrual basis in the year in which the service is rendered. Assets subject to securities lending
are not derecognised.
Investment income
Interest income is recognised in the statement of comprehensive income, using the effective
rate method taking into account the expected timing and amount of cash flows.
Distribution income in the form of cash and manufactured dividends are recognised when the
right to receive payment is established. Manufactured dividends received are recognised as
income in profit or loss.
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1.7 Income tax
Under the current system of taxation in South Africa, the PropTrax Fund is exempt from paying
tax on income or capital gains. Both income and capital gains are taxed in the hands of
investors.
1.8 Securities lending
The portfolio engages in securities lending activities up to 50% of the assets under
management. Collateral is held by the relevant lending desks. There was no lending activity at
year end.
1.9 Expenses
Expenses are recognised on the accrual basis.
1.10 Impairment
Financial assets that are stated at amortised cost are reviewed at each reporting date to
determine whether there is objective evidence of impairment. If any such indication exists, an
impairment loss is recognised in profit or loss as the difference between the asset's carrying
amount and the present value of estimated future cash flows discounted at the financial asset's
original effective interest rate. If in a subsequent period the amount of an impairment loss
recognised on a financial asset carried at amortised cost decreases and the decrease can be
linked objectively to an event occurring after the write-down the impairment loss is reversed
through profit or loss.
1.11 Distributions
Distributions payable on redeemable units are recognised in profit or loss as distributions.
In accordance with the PropTrax Deed, the Portfolio distributes its distributable income and any
other amounts determined by the PropTrax Managers, to security holders in cash. The
distributions are payable shortly after the end of each quarter and recognised in the statement
of comprehensive income as distributions.
1.12 Creations and redemptions
Investors can acquire PropTrax SAPY securities by trading on the JSE. These purchases will be
made at the current market price of the securities plus a brokerage fee that is negotiable with
the broker and any additional transaction costs applicable to such a trade.
The cash subscription price and number of PropTrax securities to be issued to an investor for
cash will be determined by the amount which the investor invests (net of transaction costs) and
will be a function of the pro rata cost to the portfolio of acquiring the underlying basket of
securities.
Investors subscribing for PropTrax SAPY securities, by the delivery of one or more full baskets
of constituent securities, are obliged to deliver securities with a perfect match to the SAPY
index.
Investors may sell securities by trading on the JSE.
Securities prices are determined by reference to the net assets of the Portfolio divided by the
number of securities in issue. For unit pricing purposes, net assets are determined using the last
reported trade price for securities. These prices may differ from the market price quoted on the
JSE.
1.13 Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require
redemption for cash or in specie at the value proportionate to the investors' share. Such
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instruments give rise to a financial liability for the net asset value of the redemption amount in
the PropTrax Fund's net assets at redemption date. In accordance with the PropTrax Deed and
the Act, the PropTrax Fund is contractually obliged to redeem securities at the net asset value.
A redemption fee, depending on the size of the recall, would be payable by the investor making
the redemption.
1.14 Net assets attributable to security holders
Securities are redeemable at the security holder's option and are therefore classified as
financial liabilities. The securities may be sold back to the Portfolio at anytime. The fair value of
redeemable securities is measured at the redemption amount that is payable (in cash and
securities representing each investor's equal, undivided and vested interest in the assets as a
whole, subject to liabilities, as defined by the Portfolio's Trust Deed) at the reporting date if
security holders exercise their right to put the securities back to the Portfolio.
1.15 Increase/decrease in net assets attributable to security holders
Income not distributed is included in net assets attributable to security holders.
The auditors Deloitte & Touche, have audited the financial information set out in this announcement.
Their unmodified audit report is available for inspection at the Manager's registered address.
The full financial statements are available on www.proptrax.co.za.
30 September 2013
Sponsor
Grindrod Bank Limited
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