Abridged audited results for the year ended 31 December 2013 - DBXWD db x-trackers MSCI World Trust JSE code: DBXWD ISIN: ZAE000115184 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 267 908 181 111 797 707 Investment income 26 181 009 22 648 457 Net fair value gain on the investments at fair value through profit or loss 241 727 172 89 149 250 Expenses (10 767 409) (6 984 064) Foreign exchange loss on dividends (2 614 840) (242 871) Management and administrative expenses (7 939 942) (6 741 193) Equilisation on expropriations (207 598) - Finance costs (5 029) - Operating profit before distribution 257 140 772 1 104 813 643 Comprising: Income available for distribution 15 413 600 15 664 393 Capital profit retained 241 727 172 89 149 250 Distributions (17 135 350) (13 334 710) Change in net assets attributable to investors before tax 240 005 422 91 478 933 Withholding tax (3 588 663) (3 056 944) Change in net assets attributable to investors 236 416 759 88 421 989 STATEMENT OF FINANCIAL POSITION as at 31 December 2013 2013 2012 R R Assets Listed investments held at fair value through profit or loss 1 673 683 160 847 509 110 Trade and other receivables 1 765 644 929 631 Cash and cash equivalents 14 111 037 9 719 837 Total assets 1 689 559 841 858 158 578 Liabilities Net assets attributable to investors 1 675 325 479 848 848 160 Trade and other payables 14 234 362 9 310 418 Total liabilities 1 689 559 841 858 158 578 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2013 Total R Balance at 1 January 2012 658 851 891 Creation of securities 60 279 320 Increase in net assets attributable to investors 88 421 989 Effect of foreign currency translation 41 294 960 Balance at 31 December 2012 848 848 160 Creation of securities 639 501 603 Redemption of securities (263 912 168) Increase in net assets attributable to investors 236 416 759 Effect of foreign currency translation 214 471 125 Balance at 31 December 2013 1 675 325 479 STATEMENT OF CASH FLOWS for the year ended 31 December 2013 2013 2012 R R Cash utilised by operations (7 347 287) (2 764 920) Dividends received 25 353 535 22 571 105 Management fees paid (7 029 295) (6 134 926) Interest income - 11 471 Finance costs (5 029) - Net cash inflow from operating activities 10 971 924 13 682 730 Cash outflow from investing activities (369 975 753) (58 979 330) Purchase of listed investments (369 975 753) (58 979 330) Net cash inflow from financing activities 363 395 029 48 099 589 Proceeds on creation of securities 639 501 603 60 279 320 Payment on redemption of securities (263 912 168) - Distributions paid to investors (12 194 406) (12 179 731) Net increase in cash and cash equivalents 4 391 200 2 802 989 Cash and cash equivalents at the beginning of year 9 719 837 6 916 848 Cash and cash equivalents at the end of year 14 111 037 9 719 837 2013 2012 Number Number db x-trackers MSCI World securities in issue 96 000 000 75 000 000 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 World securities. Distributions The Trust effects semi–annual distributions. All distributions are made out of the income of the db x-trackers MSCI World 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 68.4 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 World Index Security – 2013 2012 R R Declared distributions (16 114 345) (11 345 180) 0.10823 Rand per security Declared June 2013 and paid July 2013 (6 494 458) (6 732 095) 0.08976 rand per security Declared June 2012 and paid July 2012 0.10021 Rand per security Declared December 2013 and paid January (9 619 887) (4 613 085) 2014 0.06151 rand per security Declared December 2012 and paid January 2013 Management fees refunded during the year as a rebate distribution (1 021 005) (1 989 530) Total distribution expense for the year (17 135 350) (13 334 710) 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 0.684% of assets under management on a daily basis for the period 01 July 2013 to 31 December 2013. The db x-trackers MSCI World Trust had a TER of 114 basis points for the period 01 January 2013 to 30 June 2013 and a TER of 68.4 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 World 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 08:52:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.