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Abridged audited results for the year ended 31 December 2013 - STX40
SATRIX 40
JSE code: STX40
ISIN: ZAE000027108
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 2013
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2013
2013 2012
R R
Income
Dividend income 229 254 714 222 233 384
Fee income: Securities lending 1 698 183 2 268 454
Interest income 5 683 010 3 261 688
Total income 236 635 907 227 763 526
Expenses
Management fee (36 713 373) (34 725 565)
Trustee and custodian fees (306 881) (227 040)
Transaction costs (3 741 268) (1 211 994)
Total operating expenses (40 761 522) (36 164 599)
Income attributable to investors before distributions 195 874 385 191 598 927
Income distributions (196 083 993) (193 854 325)
Realised gains on financial instruments designated at fair value 705 805 637 267 280 340
through profit and loss
Unrealised gains on financial instruments designated at fair value 713 298 013 1 202 275 970
through profit and loss
Total fair value adjustments 1 419 103 650 1 469 565 310
Increase in net assets attributable to investors after distributions 1 418 894 042 1 467 300 912
STATEMENT OF FINANCIAL POSITION
at 31 December 2013
2013 2012
R R
ASSETS
Listed equities designated as held at fair value through profit or loss 8 856 199 379 8 020 097 263
Interest receivable 11 304 89 722
Securities lending fee receivable 106 558 167 344
Other receivables 107 327 131 625
Underlying securities sold and not settled - 50 903 583
Cash and cash equivalents 30 228 892 29 474 969
Total assets 8 886 653 460 8 100 864 506
LIABILITIES
Distributions payable to investors 27 967 451 26 552 677
Other payables 4 222 275 4 344 073
Underlying securities purchased and not settled - 51 396 530
Total liabilities (excluding net assets attributable to investors) 32 189 726 82 293 280
Net assets attributable to investors 8 854 463 734 8 018 571 226
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2013
Capital attributable Income attributable Net assets attributable
to investors to investors to investors
R R R
Balance at 1 January 2012 6 733 009 836 729 362 6 733 739 198
Creation of Satrix 40 Securities 419 300 061 - 419 300 061
Redemption of Satrix 40 Securities (601 768 945) - (601 768 945)
Increase in net assets attributable to
investors after distributions 1 469 556 310 (2 255 398) 1 467 300 912
Capital attributable Income attributable Net assets attributable
to investors to investors to investors
R R R
Balance at 31 December 2012 8 020 097 262 (1 526 036) 8 018 571 226
Creation of Satrix 40 securities 227 918 368 - 227 918 368
Redemption of Satrix 40 securities (810 919 902) - (810 919 902)
Increase in net assets attributable to
investors after distributions 1 419 103 650 (209 608) 1 418 894 042
Balance at 31 December 2013
8 856 199 378 (1 735 644) 8 854 463 734
STATEMENT OF CASH FLOWS
for the year ended 31 December 2013
2013 2012
R R
Net cash generated from operating activities
195 423 142 194 277 783
Cash utilised by operations (41 351 969) (33 650 066)
Fee income: Securities lending 1 758 969 2 408 642
Interest received
5 761 428 3 285 823
Dividends received 229 254 714 222 233 384
Cash inflow from investing activities 583 001 534 182 468 884
Purchase of underlying constituents
(1 337 634 446) (654 896 595)
Sale of underlying constituents
1 920 635 980 837 365 479
Cash outflow from financing activities (777 670 753) (377 014 403)
Creation of Satrix 40 Securities
227 918 368 419 300 061
Redemption of Satrix 40 Securities
(810 919 902) (601 768 945)
Cash distributed to security holders
(194 669 219) (194 545 519)
Net movement in cash and cash equivalents
753 923 (267 736)
Cash and cash equivalents at the beginning of the year
29 474 969 29 742 705
Cash and cash equivalents at the end of the year 30 228 892 29 474 969
SATRIX 40 SECURITIES
During the year 6 000 000 (2012: 14 000 000) Satrix 40 securities were created at a value of R227 918 368 (2012: R419 300 061)
and 23 000 000 (2012: 20 000 000) Satrix 40 securities were redeemed at a value of R810 919 902 (2012: R601 768 945). All
creations and liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix 40 Portfolio. The record dates
were 28 March 2013, 28 June 2013, 27 September 2013 and 27 December 2013 respectively.
During the year under review the following distributions were effected per Satrix 40 Security.
2013 2012
R R
15.55 cents per security
Declared 28 March 2013 and paid 19 April 2013 35 375 005
13.86 cents per security
Declared 30 March 2012 and paid 11 April 2012 32 084 790
21.28 cents per security
Declared 28 June 2013 and paid 12 July 2013 46 707 896
24.80 cents per security
Declared 29 June 2012 and paid 10 July 2012 59 394 014
40.70 cents per security
Declared 27 September 2013 and paid 16 October 2013 84 744 841
33.08 cents per security
Declared 28 September 2012 and paid 12 October 2012 76 577 551
13.10 cents per security
Declared 27 December 2013 and paid 24 January 2014 27 967 451
11.52 cents per security
Declared 28 December 2012 and paid 17 January 2013 26 552 677
Accrued income portion of NAV paid on redemption of securities 1 288 800 (754 707)
Total distribution 196 083 993 193 854 325
Fair value estimation
IFRS 13 became effective in the current year. We have assessed the impact of the new requirements and have found that no changes
with regard to fair value measurement are necessary. The fair value of financial assets and liabilities traded in active markets (such as
publicly traded derivatives and trading securities) are based on quoted market prices at the close of trading at the year-end date.
The following tables analyse, within the fair value hierarchy, the Portfolio's financial assets and liabilities (by class) measured at fair
value at 31 December:
Level 1 Level 2 Level 3
31 December 2013
R R R
Financial instruments designated at fair value
through profit or loss:
Listed equities 8 856 199 379 – –
Net assets attributable to investors – 8 854 463 734 –
Total 8 856 199 379 8 854 463 734 –
31 December 2012
Financial instruments designated at fair value
through profit or loss:
Listed equities 8 020 097 263 – –
Net assets attributable to investors – 8 018 571 226 –
Total 8 020 097 263 8 018 571 226 –
The following table analyses, within the fair value hierarchy, the Portfolio's assets and liabilities (by class) not measured at fair value at
31 December 2013 but for which fair value is disclosed:
The assets and liabilities included in the below table are carried at amortised cost; their carrying values are a reasonable approximation
of fair value.
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 11 304 –
Securities lending fee receivable – – 106 558
Other receivables – – 107 327
Underlying securities sold and not settled – – –
Cash and cash equivalents – 30 228 892 –
Total – 30 240 196 213 885
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to investors – – 27 967 451
Other payables – – 4 222 275
Total – – 32 189 726
Level 1 Level 2 Level 3
31 December 2012 R R R
Assets
Interest receivable – 89 722 –
Securities lending fee receivable – – 167 344
Other receivables – – 131 625
Underlying securities sold and not settled – – 50 903 583
Cash and cash equivalents – 29 474 969 –
Total – 29 564 691 51 202 552
Liabilities
Distributions payable to investors – – 26 552 677
Other payables – – 4 344 073
Underlying securities purchased and not settled – – 51 396 530
Total – – 82 293 280
Related parties
Related parties include Satrix Managers (RF) (Proprietary) Limited in
its capacity as the management company of the Portfolio. The
following related party balances and transactions occurred during the
year.
2013 2012
R R
Management fee paid
Satrix Managers (RF) (Proprietary) Limited 32 387 624 30 948 094
Management fee payable at
31 December 2013
Satrix Managers (RF) (Proprietary) Limited 3 246 089 3 056 229
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 40 Portfolio had a TER of 45.59 (2012: 45.60) basis point for the period 1 January to 31 December
2013. 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') and SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee, the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council 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.
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.
Events after the Statement of Financial Position date
No matter which is material to the financial affairs of Portfolio has occurred between 31 December and the date of approval of the
financial statements.
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 2013 for the first time, was assessed and did not
have a significant impact to the financial position or performance of the Portfolio
Forthcoming requirements
New standards, amendments to standards and interpretations not yet adopted
A number of standards, amendments to standards and interpretations are not effective for the year ended 31 December 2013, and
have not been applied in preparing these financial statements.
All standards and interpretations issued but not effective for the year ended 31 December 2013 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 32 amendment Offsetting financial assets and financial Annual periods beginning on or after
liabilities 1 January 2014
IAS 27 amendment Investments in Associates and Joint Annual periods beginning on or after
Ventures 1 January 2014
IFRS 10 amendment Consolidated Financial Statements Annual periods beginning on or after
1 January 2014
IFRS 12 amendment Disclosure of Interests in Other Entities Annual periods beginning on or after
1 January 2014
IAS 36 amendment Impairment of assets Annual periods beginning on or after
1 January 2014
IAS 39 amendment Financial instruments: Recognition and Annual periods beginning on or after
measurement 1 January 2014
IFRIC 21 Levies Annual periods beginning on or after
1 January 2014
IAS 24 - Amendment Management entity Annual periods beginning on or after 1 July
2014
IFRS 2 - Amendment Vesting conditions Annual periods beginning on or after 1 July
2014
IFRS 3 - Amendment Contingent consideration Annual periods beginning on or after 1 July
2014
IFRS 9 - Amendment Financial Instruments Annual periods beginning on or after
1 January 2015
Preparer of Abridged annual financial statements for the year ended 31 December 2013
These Abridged annual financial statements have been prepared by R D Martin CA(SA), the Company Secretary.
Audit report
Ernst & Young Inc, the entity's independent auditors, has audited the abridged results of the Satrix 40 Portfolio
for the year ended 31 December 2013 and has expressed an unmodified audit opinion thereon. The auditor also expressed
an unmodified opinion on the annual financial statements from which these abridged results were derived. Their audit
report and the abridged results is available for inspection at the registered office of Satrix Managers (RF) (Pty) Limited,
First Floor, Three Exchange Square, 87 Maude Street, Sandown.
26 March 2014
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) (Proprietary) Limited
Date: 26/03/2014 05:24:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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