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Abridged Audited Results for the Year Ended 31 December 2014 - STXFIN
SATRIX FINI
JSE code: STXFIN
ISIN: ZAE000036356
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 2014
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2014
2014 2013
R R
Income
Dividend income 25 059 013 26 868 870
Fee income: Securities lending 142 393 126 403
REIT income 2 173 567 -
Interest income 215 016 2 429 354
Total income 27 589 989 29 424 627
Expenses
Management fee (3 020 827) (3 399 095)
Transaction costs (273 273) (357 741)
Trustee and custodian fees (93 287) (77 700)
Total operating expenses (3 387 387) (3 834 536)
Income attributable to investors before
distribution 24 202 602 25 590 091
Income distributions (24 233 212) (25 614 490)
Income attributable to investors after
distributions (30 610) (24 399)
Realised gains on financial instruments
designated at fair value through profit
or loss 153 037 435 35 809 115
Unrealised (losses)/gains on financial
instruments designated at fair value
through profit or loss (20 928 326) 74 526 140
Total fair value adjustments 132 109 109 110 335 255
Increase in net assets attributable to
investors after distributions 132 078 499 110 310 856
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated as held at
fair value through profit or loss 715 432 481 837 863 048
Interest receivable 20 129 11 586
Securities lending fee receivable 8 911 10 148
Other receivables 678 488 659 860
Cash and cash equivalents 5 439 053 6 412 882
Total assets 721 579 062 844 957 524
LIABILITIES
Distributions payable to investors 5 369 523 6 245 014
Other payables 265 523 307 317
Total liabilities (excluding net assets
attributable to investors) 5 635 046 6 552 331
Net assets attributable to investors 715 944 016 838 405 193
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2014
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 1 January 2013 704 770 494 566 544 705 337 038
Creation of Satrix FINI
securities 22 757 299 - 22 757 299
Increase in net assets
attributable to investors
after distributions 110 335 255 (24 399) 110 310 856
Balance at 31 December 2013 837 863 048 542 145 838 405 193
Creations of Satrix FINI
Securities 43 884 007 - 43 884 007
Redemption of Satrix FINI
Securities (298 423 683) - (298 423 683)
Increase in net assets
attributable to investors
after distributions 132 109 109 (30 610) 132 078 499
Balance at 31 December 2014 715 432 481 511 535 715 944 016
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating activities 24 134 874 25 621 421
Cash utilised by operations (3 447 809) (3 806 416)
Fee income: Securities lending 143 630 126 315
Interest received 206 473 2 432 652
REIT received 2 173 567
Dividend received 25 059 013 26 868 870
Cash inflow/(outflow) from investing
activities 254 539 676 (22 757 299)
Purchase of underlying constituents (72 374 680) (123 884 869)
Sale of underlying constituents 326 914 356 101 127 570
Cash outflow from financing activities (279 648 379) (1 723 884)
Creation of Satrix FINI Securities 43 884 007 22 757 299
Redemption of Satrix FINI Securities (298 423 683) -
Cash distributed to security holders (25 108 703) (24 481 183)
Net movement in cash and cash equivalents (973 829) 1 140 238
Cash and cash equivalents at the beginning
of the year 6 412 882 5 272 644
Cash and cash equivalents at the end of the
year 5 439 053 6 412 882
SSATRIX FINI SECURITIES
During the year, 3 000 000 (2013: 2 000 000) Satrix Fini securities were
created at a value of R 43 884 007 (2013: R22 757 299) and 23 000 000
(2013: nil) Satrix Fini securities were redeemed at a value of R298 423
683 (2013:nil). All creations and liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix FINI Portfolio. The record dates were 28 March
2014, 27 June 2014, 26 September 2014 and 24 December 2014 respectively.
During the year under review the following distributions were effected per
Satrix FINI Security.
2014 2013
R R
0.00 cents per security
Announced 28 March 2014 -
0.19 cents per security
Announced 28 March 2013 and paid 19
April 2013 123 000
27.77 cents per security
Announced 27 June 2014 and paid 18
July 2014 11 868 062
20.51 cents per security
Announced 28 June 2013 and paid 12
July 2013 13 277 557
11.32 cents per security
Announced 26 September 2014 and paid
16 October 2014 4 951 027
9.08 cents per security
Announced 27 September 2013 and paid
16 October 2013 5 968 919
11.74 cents per security
Announced 24 December 2014 and paid
26 January 2015 5 369 523
9.50 cents per security
Announced 27 December 2013 and paid
24 January 2014 6 245 014
Accrued income portion of NAV paid
redemption of securities 2 044 600 -
Total distributions 24 233 212 25 614 490
Operating Segments
The Satrix FINI Portfolio offers only one product, being the specific
exchange traded fund, tracking the specific identified index.
Information regarding the results of the reportable segment is disclosed in
Financials statements as currently set out, thus no further IFRS 8 disclosure
is required.
Fair value estimation
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 2014 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 715 432 481 – –
Net assets attributable to
investors – 715 944 016 –
Total 715 432 481 715 944 016 –
Level 1 Level 2 Level 3
R R R
31 December 2013
Financial instruments
designated at fair value
through profit or loss:
Listed equities 837 863 048 – –
Net assets attributable to
investors – 838 405 193 –
Total 837 863 048 838 405 193 –
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 2014 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 2014 R R R
Assets
Interest receivable – 20 129 –
Securities lending fee
– – 8 911
receivable
Other receivables – – 678 488
Underlying securities sold
and not settled – – –
Cash and cash equivalents – 5 439 053 –
Total – 5 459 182 687 399
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
investors – – 5 369 523
Other payables – – 265 523
Total – – 5 635 046
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 11 586 –
Securities lending fee
receivable – – 10 148
Other receivables – – 659 860
Cash and cash equivalents – 6 412 882 –
Total – 6 424 468 670 008
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
– – 6 245 014
investors
Other payables – – 307 317
Total – – 6 552 331
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.
2014 2013
R R
Management fee paid
Satrix Managers (RF) Proprietary
Limited 3 098 412 2 997 580
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary
Limited 265 540 307 329
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 FINI Portfolio had a TER of 45.60 (2013: 45.60) basis points for
the period 1 January to 31 December 2014. 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’) 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 2014 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 standards and interpretations are not
effective for the year ended 31 December 2014, and have not been applied in
preparing these financial statements. All standards and interpretations
issued but not effective for the year ended 31 December 2014 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
IFRS 9 Financial Instruments Annual periods beginning
on or after 1 January 2018
IFRS 14 Regulatory deferral Annual periods beginning
accounts on or after 1 January 2016
IFRS 15 Revenue from contracts Annual periods beginning
with customers on or after 1 January 2017
IFRS 11 amendment Accounting for Annual periods beginning
acquisition of interest on or after 1 January 2016
in joint operations
IAS 16 and IAS 38 Clarification of Annual periods beginning
amendment acceptable methods of on or after 1 January 2016
depreciation and
amortisation
IAS 16 and IAS 41 Agricultural: Bearer Annual periods beginning
amendment plants on or after 1 January 2016
IAS 19 Defined benefit plans: Annual periods beginning
Employee contributions on or after 1 July 2014
Preparer of Abridged annual financial statements for the year ended 31
December 2014
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 FINI Portfolio for the year ended 31
December 2014 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, 4th Floor, Building
2, 11 Alice Lane, Sandton.
A full copy of these financial statements is available on the Satrix
website www.satrix.co.za.
26 March 2015
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) Proprietary Limited
Date: 26/03/2015 01:02:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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