Abridged Audited Results for The Year Ended 31 December 2013 BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme A portfolio in the BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme (BBET40) registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the “Act”) (the “portfolio”) JSE code:BBET40 ISIN: ZAE000144507 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 3 722 238 2 117 976 Interest income 18 327 101 525 Total income 3 740 565 2 219 501 Fair value adjustment Realised net gains on financial instruments designated at fair value through profit or loss 1 879 137 5 386 889 Unrealised net gains on financial instruments designated at fair value through profit or loss 8 071 272 9 285 549 Total fair value adjustment 9 950 409 14 672 438 Management fee written off - 369 292 Expenses Management fee (35 405) (66 177) Other (7 366) (50 349) Trustee and custodian fees (70 470) (66 348) Investment fee (160 044) (86 005) Total operating expenses (273 285) (268 879) Increase in net assets attributable to investors before distributions 13 417 689 16 992 352 Income distributions (2 920 775) (2 354 774) Increase in net assets attributable to investors after distributions 10 496 914 14 637 578 STATEMENT OF FINANCIAL POSITION at 31 December 2013 2013 2012 R R ASSETS Listed equities designated at fair value through profit or loss 139 447 722 59 706 265 Cash and cash equivalents 620 613 283 383 Trade and other receivables 955 757 - Total assets 140 024 092 59 989 648 LIABILITIES Other payables 923 916 301 755 Total liabilities (excluding net assets attributable to investors) 923 916 301 755 Net assets attributable to investors 140 100 176 59 687 893 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2013 Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Balance at 1 January 2012 81 865 403 (91 459) 81 773 944 Redemption of BBET40 Securities (36 723 629) - (36 723 629) Increase/(decrease) in net assets attributable 14 910 994 (273 416) 14 637 578 to investors Balance at 31 December 2012 60 052 768 (364 875) 59 687 893 Creation of BBET40 Securities 69 915 369 - 69 915 369 Increase in net assets attributable to investors 10 414 501 82 413 10 496 914 Balance at 31 December 2013 140 382 638 (282 462) 140 100 176 STATEMENT OF CASH FLOWS for the year ended 31 December 2013 2013 2012 R R Cash flow from operating activities Cash utilised by operations (606 881) (272 849) Dividends received 3 722 238 2 117 976 Interest incurred on creation of units (16 516) - Interest received 18 327 101 525 Investment in listed investments (76 525 766) (12 925 825) Disposal of listed investments 30 067 516 49 406 402 Cash (outflow)/inflow from operating activities (43 341 082) 38 427 229 Cash flow from financing activities Creation of fund Securities 46 599 087 (36 723 629) Distributions paid to fund security holders (2 920 775) (2 078 266) Net cash generated from financing activities 43 678 312 (38 801 895) Net movement in cash and cash equivalents 337 230 (374 666) Cash and cash equivalents at the beginning of the year 283 383 658 049 Cash and cash equivalents at the end of the year 620 613 283 383 During the year, 1 050 000 BettaBeta Equally Weighted Top 40 securities were created at a value of R46 599 087. 564 491 BettaBeta Equally Weighted Top 40 securities were created in specie to the value of R23 316 282. The total securities created during the period was 1 614 491 at a value of R69 915 369 (2012: nil). Zero BettaBeta Equally Weighted Top 40 securities were redeemed during the period (2012: R36 723 629). The total number of securities in issue at year end 3 000 000 (2012: 1 385 509). Distributions The Portfolio declares dividends quarterly. Distributions are made from the income of the BBET40 Portfolio. 2013 2012 R R Distributions declared during the period were as follows: 23.33585 cents per share declared on 4 December 2012 and paid on the 21 January 2013 (2012: 10.82 cents per share) 275 092 84 270 Botswana: 23.33585 cents per share declared on 4 December 2012 and paid on 21 January 2013 (2012: 10.82 cents per share) 48 216 173 755 30.17122 cents per share declared on 8 March 2013 and paid on 22 April 2013 (2012: 17.21 cents per share) 672 468 134 038 Botswana: 30.17122 cents per share declared on 8 March 2013 and paid on 22 April 2013 (2012: 17.21 cents per share) 62 081 276 508 23.97465 cents per share declared on 11 June 2013 and paid on 29 July 2013 (2012: 63.02 cents per share) 534 356 743 018 Botswana: 23.97465 cents per share declared on 11 June 2013 and paid on 29 July 2013 (2012: 63.02 cents per share) 49 549 130 263 42.63404 cents per share declared on 12 September 2013 and paid on 14 October 2013 (2012: 58.67cents per share) 1 190 909 691 662 Botswana: 42.63404 cents per share declared on 12 September 2013 and paid on 21 October 2013 (2012: 58.67 cents per share) 88 104 121 260 Total Expense Ratio ('TER') 29.84bps 39.17bps 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, bank charges, custodian fees, costs related to securities lending and taxes. The BBET40 Portfolio had a TER of 29.84bps (2012: 39.17bps) basis points (annualised) for the period 1 January 2013 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), the SAICA Financial Reporting Pronouncements as issued by Financial Reporting Standards Council and in the manner required by the Collective Investment Schemes Control Act and the Principal Deed. Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in South African Rand, which is the Scheme’s functional and presentation currency. 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. Audit report KPMG Inc, the entity’s independent auditors, has audited the annual financial statements of the BBET40 Portfolio from which the abridged results contained in this announcement have been derived, and has expressed an unmodified audit opinion on the annual financial statements. Their audit report is available for inspection at the registered office of Nedbank Limited. A full copy of these financial statements is available on the BettaBeta website www.bettabeta.co.za. 31 March 2014 Sponsor Nedbank Capital Trustee FirstRand Bank Limited Manager Nedgroup Beta Solutions (Proprietary) Limited Date: 01/04/2014 02:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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