Abridged audited results for the year ended 31 December 2013 - STXIND SATRIX INDI JSE code: STXIND ISIN: ZAE000036364 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 SATRIX INDI PORTFOLIO STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2013 2013 2012 R R Income Dividend income 25 733 793 18 080 501 Fee income: Securities lending 212 683 306 436 Interest income 133 772 106 064 Total income 26 080 248 18 493 001 Expenses Management fee (4 835 276) (2 949 389) Transaction costs (529 771) (152 616) Trustee and custodian fees (112 018) (115 476) Total operating expenses (5 477 065) (3 217 481) Income attributable to investors before distributions 20 603 183 15 275 520 Income distributions (20 857 567) (15 497 121) Realised gains on financial instruments designated at fair value through profit or loss 57 225 754 91 934 689 Unrealised gains on financial instruments designated at fair value through profit or loss 274 273 086 123 164 940 Total fair value adjustment 331 498 840 215 099 629 Increase in net assets attributable to investors after distributions 331 244 456 214 878 028 STATEMENT OF FINANCIAL POSITION at 31 December 2013 2013 2012 R R ASSETS Listed equities designated held at fair value through profit or loss 1 459 807 264 718 971 279 Interest receivable 1 126 5 025 Securities lending fee receivable 20 092 22 975 Other receivables 50 973 219 110 Underlying securities sold and not settled 8 639 069 6 430 085 Cash and cash equivalents - 1 916 027 Total assets 1 468 518 524 727 564 501 LIABILITIES Bank Overdraft 5 601 333 - Distributions payable to investors 2 547 582 1 440 865 Other payables 611 576 485 500 Underlying securities purchased and not settled - 6 461 704 Total liabilities (excluding net assets attributable to investors) 8 760 491 8 388 069 Net assets attributable to investors 1 459 758 033 719 176 432 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2013 Capital attributable to Income attributable to Net assets attributable investors investors to investors R R R Balance at 1 January 2012 597 997 607 426 754 598 424 361 Redemption of Satrix INDI Securities (164 312 761) - (164 312 761) Creation of Satrix INDI securities 70 186 804 - 70 186 804 Increase in net assets attributable to investors after distributions 215 099 629 (221 601) 214 878 028 Capital attributable Income attributable Net assets to investors to investors attributable to investors R R R Balance at 31 December 2012 718 971 279 205 153 719 176 432 Creation of Satrix INDI Securities 409 337 145 - 409 337 145 Increase in net assets attributable to investors after distributions 331 498 840 (254 384) 331 244 456 Balance 31 December 2013 1 459 807 264 (49 231) 1 459 758 033 STATEMENT OF CASH FLOWS for the year ended 31 December 2013 2013 2012 R R Net cash generated from operating activities 12 233 490 15 552 512 Cash utilised by operations (13 853 540) (2 946 473) Fee income: Securities lending 215 566 307 062 Interest received 137 671 111 422 Dividends received 25 733 793 18 080 501 Cash (outflow)/inflow from investing activities (409 337 145) 94 125 957 Purchase of Satrix INDI securities (545 301 705) (83 263 992) Sale of Satrix INDI securities 135 964 560 177 389 949 Cash inflow/(outflow) from financing activities 389 586 295 (110 042 780) Redemption of Satrix INDI Securities - (164 312 761) Creation of Satrix INDI Securities 409 337 145 70 186 804 Cash distributed to security holders (19 750 850) (15 916 823) Net movement in cash and cash equivalents (7 517 360) (364 311) Cash and cash equivalents at the beginning of the year 1 916 027 2 280 338 Bank overdraft at the end of the year (5 601 333) 1 916 027 SATRIX INDI SECURITIES During the year, nil (2012:5 000 000) Satrix Indi securities were redeemed at a value of Rnil (2012: R164 312 761) and 9 000 000 (2012: R2 000 000) Satrix 40 securities were created at a value of R409 337 145 (2012: 70 186 804). All creations and liquidations were in specie. Distributions The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix INDI Portfolio. The record dates were 28 March 2013, 28 June 2013, 27 September 2013 and 27 December 2013 respectively. 2013 2012 R R 8.63 cents per security 1 794 044 Declared 28 March 2013 and paid 19 April 2013 9.07 cents per security 1 976 213 Declared 30 March 2012 and paid 11 April 2012 20.67 cents per security Declared 28 June 2013 and paid 12 July 2013 4 917 074 25.08 cents per security 5 464 545 Declared 29 June 2012 and paid 10 July 2012 50.16 cents per security 12 433 890 Declared 27 September 2013 and paid 16 October 2013 39.52 cents per security 6 634 798 Declared 28 September 2012 and paid 12 October 2012 9.51 cents per security 2 547 582 Declared 27 December 2013 and paid 24 January 2014 8.10 cents per security 1 440 865 Declared 28 December 2012 and paid 17 January 2013 Accrued income portion of NAV (paid)/received on redemption/creation of securities (835 023) (19 300) Total distributions 20 857 567 15 497 121 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 1 459 807 264 – – Net assets attributable to investors – 1 459 758 033 – Total 1 459 807 264 1 459 758 033 – 31 December 2012 Financial instruments designated at fair value through profit or loss: Listed equities 718 971 279 – – Net assets attributable to investors – 719 176 432 – Total 718 971 279 719 176 432 – 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 – 1 126 – Securities lending fee receivable – – 20 092 Other receivables – – 50 973 Underlying securities sold and not settled – – – Cash and cash equivalents – – – Total – 1 126 71 065 Level 1 Level 2 Level 3 R R R Liabilities Distributions payable to investors – – 2 547 582 Other payables – – 611 576 Total – – 3 159 158 Level 1 Level 2 Level 3 31 December 2012 R R R Assets Interest receivable – 5 025 – Securities lending fee receivable – – 22 975 Other receivables – – 219 110 Underlying securities sold and not settled – – 6 430 085 Cash and cash equivalents – 1 916 027 – Total – 1 921 052 6 672 170 Liabilities Distributions payable to investors – – 1 440 865 Other payables – – 485 500 Underlying securities purchased and not settled – – 6 461 704 Total – – 8 388 069 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 4 263 289 2 630 756 Management fee payable at 31 December 2013 Satrix Managers (RF) (Proprietary) Limited 529 919 388 673 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 INDI Portfolio had a TER of 45.67 (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, 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 the 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 Annual periods beginning on or after financial 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 Annual periods beginning on or after Entities 1 January 2014 IAS 36 amendment Impairment of assets Annual periods beginning on or after 1 January 2014 IAS 39 amendment Financial instruments: Recognition Annual periods beginning on or after and 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 INDI 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. A full copy of these financial statements is available on the Satrix website www.satrix.co.za. 26 March 2014 Sponsor Vunani Corporate Finance Trustee Standard Chartered Bank Manager Satrix Managers (RF) (Proprietary) Limited Date: 26/03/2014 05:25:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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