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

Release Date: 26/03/2014 17:28
Code(s): STXSWX     PDF:  
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Abridged audited results for the year ended 31 December 2013 - STXSWX

SATRIX SWIX TOP 40
JSE Code: STXSWX
ISIN: ZAE000078580
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                                                                    7 510 560    10 643 536
Fee income: Securities lending                                                        56 416        85 322
Interest income                                                                       47 134       175 294
Total income                                                                       7 614 110    10 904 152
Expenses
Management fee                                                                   (1 013 989)   (1 328 373)
Transaction costs                                                                  (135 077)     (133 844)
Trustee and custodian fees                                                         (103 736)     (147 100)
Total operating expenses                                                         (1 252 802)   (1 609 317)
Income attributable to investors before distributions                              6 361 308     9 294 835
Income distributions                                                             (6 384 594)   (9 358 140)
Realised gains on financial instruments designated at fair value through profit
or loss                                                                            6 614 418    55 783 876
Unrealised gains on financial instruments designated at fair value through
profit or loss                                                                    41 126 477     1 557 712
Total fair value adjustment                                                       47 740 895    57 341 588
Increase in net assets attributable to investors after distributions              47 717 609    57 278 283

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   312 465 235   195 596 512

Interest receivable                                                               453         3 067
Securities lending fee receivable                                                4342         3 928
Other receivables                                                                 205           910
Underlying securities sold and not settled                                          -     1 613 983
Cash and cash equivalents                                                   1 522 581       926 755
Total assets                                                              313 992 816   198 145 155
LIABILITIES
Distributions payable to investors                                          1 371 366       774 116
Other payables                                                                107 863        78 028
Underlying securities purchased and not settled                                     -     1 624 861
Total liabilities (excluding net assets attributable to investors)          1 479 229     2 477 005
Net assets attributable to investors                                      312 513 587   195 668 150

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                                   359 283 755                  134 944              359 418 699
Redemption of Satrix SWIX Top 40 Securities               (221 028 832)                        -            (221 028 832)
Increase in net assets attributable to investors
after distributions                                          57 341 588                  (63 305)              57 278 283


                                                   Capital attributable to   Income attributable to   Net assets attributable
                                                         investors                investors                to investors

                                                                      R                        R                        R

Balance at 31 December 2012                                 195 596 511                   71 639              195 668 150
Creation of Satrix SWIX Top 40 Securities                    69 127 828                        -               69 127 828
Increase in net assets attributable to investors
after distributions                                          47 740 895                 (23 286)               47 717 609
Balance at 31 December 2013                                 312 465 234                   48 353              312 513 587

STATEMENT OF CASH FLOWS
for the year ended 31 December 2013
                                                                 2013             2012
                                                                    R                R

Net cash generated from operating activities                6 383 170        9 227 256
Cash utilised by operations                               (1 233 140)      (1 687 710)
Fee income: Securities lending                                 56 002           92 437
Interest received                                              49 748          178 993
Dividends received                                          7 510 560       10 643 536
Cash (outflow)/inflow from investing activities          (69 127 828)      221 028 832
Purchase of underlying constituents                     (105 188 125)     (30 480 470)
Sale of underlying constituents                            36 060 297      251 509 302
Cash inflow/(outflow) from financing activities            63 340 484    (231 485 964)
Creation of Satrix Swix Top 40 Securities                  69 127 828                -
Redemption of Satrix SWIX Top 40 Securities                         -    (221 028 832)
Cash distributed to security holders                      (5 787 344)     (10 457 132)
Net movement in cash and cash equivalents                     595 826      (1 229 876)
Cash and cash equivalents at the beginning of the year        926 755        2 156 631
Cash and cash equivalents at the end of the year            1 522 581          926 755

Satrix SWIX Top 40 security
During the year, 9 000 000 (2012: nil) Satrix Swix Top 40 securities were created at a value of R69 127 828 (2012: nil) and nil (2012:
33 000 000) Satrix Swix Top 40 securities were redeemed at a value of Rnil and (2012: R221 028 832). All creations and liquidations were
in specie.

Distributions

The Portfolio effects quarterly distributions. All distributions were made out of income of the Satrix SWIX Top 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 SWIX Top 40 security.

                                                                       2013        2012
                                                                          R           R
2.56 cents per security
Declared 28 March 2013 and paid 19 April 2013
                                                                    658 384
2.85 cents per security
Declared 30 March 2012 and paid 11 April 2012                                  1 673 467

6.32 cents per security
Declared 28 June 2013 and paid 12 July 2013                        1 751 786

7.07 cents per security
Declared 29 June 2012 and paid 10 July 2012                                    3 585 772

7.82 cents per security
Declared 27 September 2013 and paid 16 October 2013                2 714 958

7.03 cents per security
Declared 28 September 2012 and paid 12 October 2012                            2 510 985

3.59 cents per security
Declared 27 December 2013 and paid 24 January 2014                 1 371 366

3.01 cents per security
Declared 28 December 2012 and paid 17 January 2013                               774 116

                                                                   (111 900)     813 800
Accrued income portion of NAV received on creation of securities

Total distributions                                                6 384 594   9 358 140

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                                  312 462 235             –         –
Net assets attributable to investors                       –   312 513 587         –
Total                                            312 462 235   312 513 587         –
31 December 2012
Financial instruments designated at fair value
through profit or loss:
Listed equities                                  195 596 512             –         –
Net assets attributable to investors                       –   195 668 150         –
Total                                            195 596 512   195 668 150         –

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                                    –         453           –
Securities lending fee receivable                      –           –       4 342
Other receivables                                      –           –         910
Underlying securities sold and not settled             –           –           –
Cash and cash equivalents                              –    1 522 581          –
Total                                                  –    1 523 034      5 252

                                                 Level 1     Level 2     Level 3
                                                       R           R           R
Liabilities
Distributions payable to investors                     –           –   1 371 366
Other payables                                         –           –     107 863
Total                                                  –           –   1 479 229

                                                 Level 1     Level 2     Level 3
31 December 2012                                       R           R           R
Assets
Interest receivable                                    –       3 067           –
Securities lending fee receivable                      –           –       3 928
Other receivables                                      –           –         910
Underlying securities sold and not settled             –           –   1 613 983
Cash and cash equivalents                              –     926 755           –
Total                                                  –     929 822   1 618 821

Liabilities
Distributions payable to investors                     –           –     774 116
Other payables                                         –           –      78 028

Underlying securities purchased and not settled        –           –   1 624 861
Total                                                  –           –   2 477 005

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                                     885 977   1 186 572
Management fee payable at 31 December 2013
Satrix Managers (RF) (Proprietary) Limited                                     108 021      74 736

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 SWIX Top 40 Portfolio had a TER of 45.66 (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 asset

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 2012 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 SWIX TOP 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.

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

Date: 26/03/2014 05:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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