Abridged Audited Results for the year ended 31 December 2013 - STXDIV SATRIX DIVIDEND PLUS JSE code: STXDIV ISIN: ZAE000102018 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") (the "portfolio") ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013 Satrix DIVI Plus Portfolio STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2013 2013 2012 R R Income Dividend income 79 293 208 74 939 062 Fee income: Securities lending 417 396 294 825 Interest income 582 901 438 226 Total income 80 293 505 75 672 113 Expenses Management fee (8 378 984) (7 006 551) Transaction costs (3 072 984) (2 027 437) Trustee and custodian fees (91 477) (84 478) Total operating expenses (11 543 445) (9 118 466) Income attributable to investors before distributions 68 750 060 66 553 647 Income distributions (68 527 362) (66 239 506) Realised gains on financial instruments designated at fair value through profit or loss 152 434 120 51 358 421 Unrealised (losses)/gains on financial instruments designated at fair value through profit or loss (112 789 186) 244 599 672 Total fair value adjustments 39 644 934 295 958 093 Increase in net assets attributable to investors after distributions 39 867 632 296 272 234 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 1 942 254 877 1 862 853 953 Interest receivable 3 428 41 648 Securities lending fee receivable 88 237 59 372 Other receivables 1 356 305 977 788 Cash and cash equivalents 15 423 470 16 234 065 Total assets 1 959 126 317 1 880 166 826 LIABILITIES Distributions payable to investors 15 088 866 15 781 734 Other payables 736 515 707 778 Total liabilities (excluding net assets attributable to investors) 15 825 381 16 489 512 Net assets attributable to investors 1 943 300 936 1 863 677 314 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2013 Capital attributable to Income attributable to Net assets investors investors attributable to investors R R R Balance at 1 January 2012 1 221 147 568 509 220 1 221 656 788 Creation of Satrix DIVI Plus Securities 345 748 292 - 345 748 292 Increase in net assets attributable to investors after distributions 295 958 093 314 141 296 272 234 Balance at 31 December 2012 1 862 853 953 823 361 1 863 677 314 Creation of Satrix DIVI Plus Securities 39 755 990 - 39 755 990 Increase in net assets attributable to investors after distributions 39 644 934 222 698 39 867 632 Balance at 31 December 2013 1 942 254 877 1 046 059 1 943 300 936 STATEMENT OF CASH FLOWS for the year ended 31 December 2013 2013 2012 R R Net cash generated from operating activities 68 409 636 66 337 209 Cash utilised by operations (11 893 224) (9 298 374) Fee income: Securities lending 388 531 240 286 Interest received 621 121 456 235 Dividends received 79 293 208 74 939 062 Cash outflow from investing activities (39 755 991) (345 748 294) Purchase of underlying constituents (826 950 189) (914 565 354) Sale of underlying constituents 787 194 198 568 817 060 Cash (outflow)/inflow from financing activities (29 464 240) 285 392 107 Creation of Satrix DIVI Plus Securities 39 755 990 345 748 292 Cash distributed to security holders (69 220 230) (60 356 185) Net movement in cash and cash equivalents (810 595) 5 981 022 Cash and cash equivalents at the beginning of the year 16 234 065 10 253 043 Cash and cash equivalents at the end of the year 15 423 470 16 234 065 SATRIX DIVI PLUS SECURITIES During the year, 20 000 000 (2012: 175 000 000) Satrix Divi Plus securities were created at a value of R39 755 990 (2012: R345 748 292) and nil (2012: nil) Satrix Divi Plus securities were redeemed at a value of nil (2012: Rnil). All creations and liquidations were in specie. Distributions The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix DIVI Plus 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 DIVI Plus Index Security. 2013 2012 R R 0.99 cents per security Declared 28 March 2013 and paid 19 April 2013 8 537 659 1.52 cents per security Declared 30 March 2012 and paid 11 April 2012 10 828 325 2.34 cents per security Declared 28 June 2013 and paid 12 July 2013 20 647 922 2.81 cents per security Declared 29 June 2012 and paid 10 July 2012 22 828 154 2.80 cents per security Declared 27 September 2013 and paid 16 October 2013 24 706 915 2.23 cents per security Declared 28 September 2012 and paid 12 October 2012 18 673 793 1.71 cents per security Declared 27 December 2013 and paid 24 January 2014 15 088 866 1.83 cents per security Declared 28 December 2012 and paid 17 January 2013 15 781 734 Accrued income portion of NAV paid on redemption of securities (454 000) (1 872 500) Total distributions 68 527 362 66 239 506 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 1 942 254 877 – – Net assets attributable to investors – 1 943 300 936 – Total 1 942 254 877 1 943 300 936 – 31 December 2012 Financial instruments designated at fair value through profit or loss: Listed equities 1 862 853 953 – – Net assets attributable to investors – 1 863 677 314 – Total 1 862 853 953 1 863 677 314 – 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 – 3 428 – Securities lending fee receivable – – 88 237 Other receivables – – 1 356 305 Cash and cash equivalents – 15 423 470 – Total – 15 426 898 1 444 542 Level 1 Level 2 Level 3 R R R Liabilities Distributions payable to investors – – 15 088 866 Other payables – – 736 515 Total – – 15 825 381 Level 1 Level 2 Level 3 31 December 2012 R R R Assets Interest receivable – 41 648 – Securities lending fee receivable – – 59 372 Other receivables – – 977 788 Cash and cash equivalents – 16 234 065 – Total – 16 275 713 1 037 160 Liabilities Distributions payable to investors – – 15 781 734 Other payables – – 707 778 Total – – 16 489 512 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 7 365 560 6 179 327 Management fee payable at 31 December 2012 Satrix Managers (RF) (Proprietary) Limited 726 229 695 767 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 DIVI Plus Portfolio had a TER of 45.60 (2012: 45.60) basis points 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. 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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