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Abridged Audited Results for the Year Ended 31 December 2014 - STXIND
SATRIX INDI
JSE code: STXIND
ISIN: ZAE000036364
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
SATRIX INDI PORTFOLIO
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2014
2014 2013
R R
Income
Dividend income 36 894 069 25 733 793
Fee income: Securities lending 324 521 212 683
Interest income 238 845 133 772
Total income 37 457 435 26 080 248
Expenses
Management fee (7 107 583) (4 835 276)
Transaction costs (266 535) (529 771)
Trustee and custodian fees (119 503) (112 018)
Total operating expenses (7 493 621) (5 477 065)
Income attributable to investors
before distributions 29 963 814 20 603 183
Income distributions (29 642 274) (20 857 567)
Income attributable to investors
after distributions 321 540 (254 384)
Realised gains on financial
instruments designated at fair
value through profit or loss 34 222 852 57 225 754
Unrealised gains on financial
instruments designated at fair
value through profit or loss 182 794 712 274 273 086
Total fair value adjustment 217 017 564 331 498 840
Increase in net assets
attributable to investors after
distributions 217 339 104 331 244 456
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated held at
fair value through profit or loss 1 795 090 868 1 459 807 264
Interest receivable 30 868 1 126
Securities lending fee receivable 20 972 20 092
Other receivables 327 723 50 973
Underlying securities sold and not
settled - 8 639 069
Cash and cash equivalents 7 520 686 -
Total assets 1 802 991 117 1 468 518 524
LIABILITIES
Bank Overdraft - 5 601 333
Distributions payable to investors 6 868 926 2 547 582
Other payables 759 014 611 576
Total liabilities (excluding net
assets attributable to investors) 7 627 940 8 760 491
Net assets attributable to
investors 1 795 363 177 1 459 758 033
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 718 971 279 205 153 719 176 432
Creation of Satrix INDI
Securities 409 337 145 - 409 337 145
Increase in net assets
attributable to investors
after distributions
331 498 840 (254 384) 331 244 456
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December 2013 1 459 807 264 (49 231) 1 459 758 033
Creation of Satrix INDI
Securities 118 266 040 - 118 266 040
Increase in net assets
attributable to investors
after distributions 217 017 564 321 540 217 339 104
Balance 31 December 2014 1 795 090 868 272 309 1 795 363 177
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating
activities 38 442 949 12 233 490
Cash utilised by operations 1 016 136 (13 853 540)
Fee income: Securities lending 323 641 215 566
Interest received 209 103 137 671
Dividends received 36 894 069 25 733 793
Cash (outflow)/inflow from investing
activities (118 266 040) (409 337 145)
Purchase of Satrix INDI securities (188 691 410) (545 301 705)
Sale of Satrix INDI securities 70 425 370 135 964 560
Cash inflow/(outflow) from financing
activities 92 945 110 389 586 295
Redemption of Satrix INDI Securities - -
Creation of Satrix INDI Securities 118 266 040 409 337 145
Cash distributed to security holders (25 320 930) (19 750 850)
Net movement in cash and cash equivalents 13 122 019 (7 517 360)
Cash and cash equivalents at the
beginning of the year (5 601 333) 1 916 027
Cash and cash equivalents at the end of
the year 7 520 686 (5 601 333)
SATRIX INDI SECURITIES
During the year, nil (2013:nil) Satrix Indi securities were redeemed at a
value of Rnil (2013: Rnil) and 2 000 000 (2013: 9 000 000) Satrix Indi
securities were created at a value of R118 266 040(2013: R409 337 145). All
creations and liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix INDI 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 INDI Index Security.
2014 2013
R R
14.06 cents per security
Announced 28 March 2014 and paid 10
April 2014 3 766 457
8.63 cents per security
Announced 28 March 2013 and paid 19
April 2013 1 794 044
25.20 cents per security
Announced 27 June 2014 and paid 18
July 2014 6 750 691
20.67 cents per security
Announced 28 June 2013 and paid 12
July 2013 4 917 074
44.53 cents per security
Announced 26 September 2014 and paid
16 October 2014 12 374 200
50.16 cents per security
Announced 28 September 2013 and paid
12 October 2013 12 433 890
23.86 cents per security
Announced 24 December 2014 and paid
23 January 2015 6 868 926
9.51 cents per security
Announced 27 December 2013 and paid
24 January 2014 2 547 582
Accrued income portion of NAV
(paid)/received on
redemption/creation of securities (118 000) (835 023)
Total distributions 29 642 274 20 857 567
Operating Segments
The Satrix INDI 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
Financial 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 1 795 090 868 – –
Net assets attributable to
investors – 1 795 363 177 –
Total 1 795 090 868 1 795 363 177 –
31 December 2013
Financial instruments
designated at fair value
through profit or loss:
Listed equities 1 459 807 264 – –
Net assets attributable to
investors – 1 459 758 033 –
Total 1 459 807 264 1 459 758 033 –
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 – 30 868 –
Securities lending fee
– – 20 972
receivable
Other receivables – – 327 723
Underlying securities sold
– – –
and not settled
Cash and cash equivalents – 7 520 686 –
Total – 7 551 554 348 695
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
investors – – 6 868 926
Other payables – – 759 014
Total – – 7 627 940
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 1 126 –
Securities lending fee
receivable – – 20 092
Other receivables – – 50 973
Cash and cash equivalents – - –
Total – 1 126 71 065
Liabilities
Bank overdraft - 5 601 333
Distributions payable to
investors – – 2 547 582
Other payables – – 611 576
Total – 5 601 333 3 159 158
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 7 031 221 4 263 289
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary
Limited 677 359 529 919
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 INDI Portfolio had a TER of 45.6 (2013: 45.7) 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 the 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 INDI 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 01:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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