Abridged audited results for the year ended 31 December 2013 - DBXJP db x-trackers MSCI Japan Trust JSE code: DBXJP ISIN: ZAE000115176 A portfolio in the db x-trackers Collective Investment Scheme ("db x- trackers"), 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 Revenue 127 936 667 44 806 168 Investment income 5 969 779 5 965 735 Net fair value gain on investments at fair value through profit or loss 121 966 888 38 840 433 Expenses (2 641 242) (2 238 684) Management and administrative expenses (2 641 156) (2 238 407) Foreign exchange loss on dividends (86) (277) Operating profit before distribution 125 295 425 42 567 484 Comprising: Income available for distribution 3 328 537 3 727 051 Capital profit retained 121 966 888 38 840 433 Distributions (2 974 554) (2 983 466) Change in net assets attributable to investors before tax 122 320 871 39 584 018 Withholding tax (427 898) (389 269) Change in net assets attributable to 121 892 973 39 194 749 investors STATEMENT OF FINANCIAL POSITION as at 31 December 2013 2013 2012 R R Assets Listed investments held at fair value through profit or loss 362 562 986 234 402 306 Trade and other receivables 314 900 268 771 Cash and cash equivalents 2 889 679 2 306 708 Total assets 365 767 565 236 977 785 Liabilities Net assets attributable to investors 362 975 461 234 655 482 Trade and other payables 2 792 104 2 322 303 Total liabilities 365 767 565 236 977 785 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2013 Total R Balance at 1 January 2012 209 811 931 Increase in net assets attributable to investors 39 194 749 Effect of foreign currency translation (14 351 198) Balance at 31 December 2012 234 655 482 Increase in net assets attributable to investors 121 892 973 Effect of foreign currency translation 6 427 006 Balance at 31 December 2013 362 975 461 STATEMENT OF CASH FLOWS for the year ended 31 December 2013 2013 2012 R R Cash (utilised)/ generated by operations (397 943) 28 212 Dividends received 5 923 345 5 527 670 Management fees paid (2 376 886) (2 420 206) Interest received 305 29 147 Net cash inflow from operating activities 3 148 821 3 164 823 Cash inflow/(outflow) from investing activities 233 214 (479 006) Proceeds on sale/(purchase) of listed investments 233 214 (479 006) Net cash outflow from financing activities (2 799 064) (2 922 404) Distributions paid to investors (2 799 064) (2 922 404) Net increase/(decrease) in cash and cash equivalents 582 971 (236 587) Cash and cash equivalents at the beginning of year 2 306 708 2 543 295 Cash and cash equivalents at the end of year 2 889 679 2 306 708 2013 2012 Number Number db x-trackers MSCI Japan securities in issue 45 000 000 45 000 000 In terms of the Trust Deed and CISCA, the Trust would be required to pay the net asset value attributable to investors on redemption of securities. Vested income beneficiaries include all holders of db x-trackers MSCI Japan securities. db x-trackers MSCI Japan securities creations and redemptions There were no Index Securities created during the current and prior year. There were no redemptions during the current and prior year. Distributions The Trust effects semi–annual distributions. All distributions are made out of the income of the db x-trackers MSCI Japan Trust. The rebates represent an investor's partial reduction of the 114 basis points management fee charged for the period 01 January 2013 to 30 June 2013 and the 85.5 basis points management fee charged for the period 01 July 2013 to 31 December 2013. The rebate is calculated using a sliding scale depending on the size of the investor's investment. During the period under review the following distributions were effected per db x-trackers MSCI Japan Index Security: 2013 2012 R R Declared distributions (2 576 652) (2 727 566) 0.02809 Rand per security Declared June 2013 and paid July 2013 (1 263 911) (1 622 842) 0.03606 Rand per security Declared June 2012 and paid July 2012 0.02917 Rand per security Declared December 2013 and paid January 2014 (1 312 741) (1 104 724) 0.02455 Rand per security Declared December 2012 and paid January 2013 Management fees refunded during the year as a rebate distribution (397 902) (255 900) Total distribution expense for the year (2 974 554) (2 983 466) Total Expense Ratio ("TER") The TER represents the total expense to the Trust. The only expense to the Trust is the management fee payable to db x-trackers (Pty) Ltd which is calculated at 1.14% of the assets under management on a daily basis for the period 01 January 2013 to 30 June 2013 and 0.855% of assets under management on a daily basis for the period 01 July 2013 to 31 December 2013. The db x-trackers MSCI Japan had a TER of 114 basis points for the period 01 January 2013 to 30 June 2013 and a TER of 85.5 basis points for the period 01 July 2013 to 31 December 2013(2012:114 bps). Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires Collective Investment Scheme (‘CIS') managers to calculate and publish a total expense ratio for each Portfolio under their management. This is a requirement in terms of the Association for Savings and Investments SA ("ASISA") standard on the calculation and publication of total expense ratios. Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and the Financial Reporting Pronouncements as issued by Financial Reporting Standards Council, and the requirements of the Collective Investment Schemes Control Act No 45 of 2002 ("CISCA"), in order to meet the requirements of the Trust Deed approved by the Financial Services Board. These financial statements were authorised for issue by the board of directors of the Manager on 24 March 2014. Accounting policies The accounting policies applied in the preparation of the financial statements are consistent with those adopted in the previous financial year and are in accordance with IFRS. The trust adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 January 2013. a) IFRS 13: Fair Value Measurement b) IFRS 7: Amendment Disclosures – Offsetting Financial Assets and Financial Liabilities Forthcoming requirements The following standards, amendments to standards, and interpretations, effective for the first time in the future accounting period, and which are relevant to the Portfolio, have not been adopted for the year ended 31 December 2013. IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. The effective date of IFRS 9 is yet to be decided. IAS 32: Financial Instruments: Presentation: Offsetting Financial Assets and Financial Liabilities. The amendments clarify when an entity can offset financial assets and financial liabilities. This amendment is effective in the 2014 financial year. The impact of the above standards will be assessed once the standards become effective, and applied only at that stage. Investment income Investment income comprises: - interest income earned on cash and cash equivalents; - cash equalisation component on creations; and - dividends from listed equities designated as held at fair value through profit or loss. Interest income Interest income is recognised in profit or loss, using the effective interest method taking into account the expected timing and amount of cash flows. Dividend income Dividend income is recognised when the right to receive the expected payment is established. This is usually the ex-dividend date for quoted equities. Audit report KPMG Inc, the entity's independent auditors, has audited the financial statements of the db x-trackers MSCI Japan Trust from which the abridged results contained in this announcement have been derived, and has expressed an unmodified audit opinion on the financial statements. Their audit report is available for inspection at the CIS's registered office. A full copy of these financial statements is available on the db x- trackers website www.dbxtrackers.co.za. Directors' responsibility This abridged report is extracted from the audited information, but is not itself audited. The directors take full responsibility for the preparation of the abridged report and certify that the financial information has been correctly extracted from the underlying financial statements. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager db x-trackers Proprietary Limited 31 March 2014 Date: 31/03/2014 08:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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