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SATRIX COLLECTIVE INVESTMENT SCHEME - Abridged audited results for the year ended 31 December 2013 - STXRES

Release Date: 26/03/2014 17:26
Code(s): STXRES     PDF:  
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Abridged audited results for the year ended 31 December 2013 - STXRES

SATRIX RESI
JSE Code: STXRES
ISIN: ZAE000078622
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                                                      15 182 069     8 315 389
Fee income: Securities lending                                           89 211        84 975
Interest income                                                          72 760        63 783
Other income                                                                  -        93 952
Total income                                                         15 344 040     8 558 099
Expenses
Management fee
                                                                    (2 127 573)   (1 488 431)
Transaction costs
                                                                      (125 026)      (56 195)
Trustee and custodian fees
                                                                       (62 478)      (64 767)
Total operating expenses                                            (2 315 077)   (1 609 393)

Income attributable to investors before distributions                13 028 963     6 948 706
Income distributions                                               (13 025 852)   (7 064 311)

Realised gains on financial instruments designated at fair
value through profit or loss
                                                                     23 245 109     1 866 682
Unrealised (losses)/gains on financial instruments designated
at fair value through profit or loss
                                                                   (28 340 657)        30 387
Total fair value adjustment                                         (5 095 548)     1 897 069

(Decrease)/Increase in net assets attributable to investors after
distributions                                                       (5 092 437)     1 781 464

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                                                                 483 963 723   486 542 580
Interest receivable                                                        1 243         8 699
Securities lending fee receivable                                          7 374         6 148
Other receivables                                                              -         7 615
Underlying securities sold and not settled                                     -        50 274
Cash and cash equivalents                                              2 569 883     2 560 923
Total assets                                                         486 542 223   489 176 239
LIABILITIES
Distributions payable to investors                                     2 021 546     2 006 707
Other payables                                                           175 467       195 299
Underlying securities purchased and not settled                                -        53 277
Total liabilities (excluding net assets attributable to investors)     2 197 013     2 255 283

Net assets attributable to investors                                 484 345 210   486 920 956

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 to
                                                         investors                investors                  investors

                                                                    R                         R                         R
Balance at 1 January 2012
                                                          281 441 388                   493 981               281 935 369
Creation of Satrix RESI Securities
                                                          203 204 123                         -               203 204 123
Increase in net assets attributable to investors
after distributions
                                                            1 897 069                 (115 605)                 1 781 464

                                                   Capital attributable   Income attributable   Net assets attributable
                                                      to investors            to investors           to investors
Balance at 31 December 2012
                                                         486 542 580                 378 376            486 920 956
Creation of Satrix RESI Securities                        87 114 381                       -             87 114 381
Redemption of Satrix RESI Securities
                                                        (84 597 690)                       -           (84 597 690)
Increase in net assets attributable to investors
after distributions
                                                         (5 095 548)                   3 111            (5 092 437)
Balance at 31 December 2013
                                                         483 963 723                 381 487            484 345 210

STATEMENT OF CASH FLOWS
for the year ended 31 December 2013
                                                                 2013            2012
                                                                    R               R
Net cash generated from operating activities
                                                           13 019 973       7 029 123
Cash utilised by operations
                                                          (2 330 297)     (1 440 409)
Fee income: Securities lending                                 87 985          94 573
Interest received
                                                               80 216          59 570
Dividend received                                          15 182 069       8 315 389
Cash (outflow)from investing activities                   (2 516 691)   (203 204 123)
Purchase of underlying constituents                     (142 290 043)   (214 830 284)
Sale of underlying constituents                           139 773 352      11 626 161
Cash (outflow)/ inflow from financing activities
                                                         (10 494 322)     197 090 426
Creation of Satrix RESI
Securities                                                 87 114 381     203 204 123
Redemptions of Satrix RESI Securities
                                                         (84 597 690)               -
Cash distributed to security holders
                                                         (13 011 013)     (6 113 697)
Net movement in cash and cash equivalents
                                                                8 960         915 426
Cash and cash equivalents at the beginning of the year
                                                            2 560 923       1 645 497
Cash and cash equivalents at the end of the year            2 569 883       2 560 923

Satrix RESI SECURITIES
During the year, 2 000 000 (2012: 4 000 000) Satrix Resi securities were created at a value of R87 114 381 (2012: R203 204 123)
and 2 000 000 (2012: Rnil) Satrix Resi securities were redeemed at a value of R84 597 690 (2012: Rnil). All creations and
redemptions were in specie.

Distributions
The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix RESI 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 RESI Index Security.

                                                            2013        2012
                                                               R           R
53.39 cents per security
Declared 28 March 2013 and paid 19 April 2013          5 065 630

38.33 cents per security
Declared 30 March 2012 and paid 11 April 2012                      2 103 541

6.69 cents per security 
Declared 28 June 2013 and paid 12 July 2012              768 546

23.18 cents per security
Declared 29 June 2012 and paid 10 July 2012                        1 272 113

56.64 cents per security
Declared 27 September 2013 and paid 16 October 2013    5 373 989

47.82 cents per security
Declared 28 September 2012 and paid 12 October 2012                2 624 350

21.31 cents per security
Declared 27 December 2013 and paid 24 January 2014     2 021 887

21.15 cents per security
Declared 28 December 2012 and paid 17 January 2013                 2 006 707

Accrued income portion of NAV (paid)/received on
redemption/(creation) of securities                    (204 200)   (942 400)

Total distributions                                   13 025 852   7 064 311

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                            483 963 723            –          –
Net assets attributable to investors                 –   484 345 210         –
Total                                      483 963 723   484 345 210         –
31 December 2012
Financial instruments designated at fair
value through profit or loss:
Listed equities                            486 542 580             –         –
Net assets attributable to investors                 –   486 920 956         –
Total                                      486 542 580   486 920 956         –

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                               –       1 243           –
Securities lending fee receivable                 –           –       7 374
Other receivables                                 –           –           -
Underlying securities sold and not settled        –           –           –
Cash and cash equivalents                         –   2 569 883           –
Total                                             –   2 571 126       7 374

                                            Level 1     Level 2     Level 3
                                                  R           R           R
Liabilities
Distributions payable to investors                –           –   2 021 546
Other payables                                    –           –     175 467
Total                                             –           –   2 197 013

                                            Level 1     Level 2     Level 3
31 December 2012                                  R           R           R
Assets
Interest receivable                               –       8 699           –
Securities lending fee receivable                 –           –       6 148
Other receivables                                 –           –       7 615
Underlying securities sold and not settled        –           –      50 274
Cash and cash equivalents                         –   2 560 923           –
Total                                             –   2 569 622      64 037

Liabilities
Distributions payable to investors                –           –   2 006 707
Other payables                                    –           –     195 299
Underlying securities purchased and not
settled                                           –           –      53 277
Total                                             –           –   2 255 283

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                                 1 872 360   1 304 689
Management fee payable at
31 December 2013
Satrix Managers (RF) (Proprietary) Limited                                   175 016     185 130

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 RESI Portfolio had a TER of 45.58(2012: 45.60) basis points (annualised) 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.

The Portfolio engages in securities lending with the sole aim of reducing the net expenses of managing the Satrix RESI Portfolio and in
this way the income from securities lending proves beneficial to all holders of Satrix RESI Portfolio.

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 financial   Annual periods beginning on or after 1 January
                          liabilities                                 2014

IAS 27 amendment          Investments in Associates and Joint         Annual periods beginning on or after 1 January
                          Ventures                                    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 1 January
                          measurement                                 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 RESI 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
ABSA Bank Limited

Manager
Satrix Managers (RF) (Proprietary) Limited



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