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Abridged Audited Results for the Year Ended 31 December 2014 - STXRES
SATRIX RESI
JSE Code: STXRES
ISIN: ZAE000078622
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 11 937 104 15 182 069
Fee income: Securities lending 91 464 89 211
Interest income 67 649 72 760
Total income 12 096 217 15 344 040
Expenses
Management fee (1 600 921) (2 127 573)
Transaction costs (8 113) (125 026)
Trustee and custodian fees (66 206) (62 478)
Total operating expenses (1 675 240) (2 315 077)
Income attributable to investors
before distributions 10 420 977 13 028 963
Income distributions (10 395 034) (13 025 852)
Income attributable to investors
after distributions 25 943 3 111
Realised gains on financial
instruments designated at fair
value through profit or loss 6 736 911 23 245 109
Unrealised (losses)/gains on
financial instruments designated
at fair value through profit or
loss (53 789 637) (28 340 657)
Total fair value adjustment (47 052 726) (5 095 548)
Decrease in net assets
attributable to investors after
distributions (47 026 783) (5 092 437)
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 272 058 601 483 963 723
Interest receivable 8 633 1 243
Securities lending fee receivable 7 694 7 374
Other receivables 5 696 -
Cash and cash equivalents 2 033 540 2 569 883
Total assets 274 114 164 486 542 223
LIABILITIES
Distributions payable to investors 1 547 382 2 021 546
Other payables 100 751 175 467
Total liabilities (excluding net
assets attributable to investors) 1 648 133 2 197 013
Net assets attributable to
investors 272 466 031 484 345 210
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 486 542 580 378 376 486 920 956
Creation of Satrix RESI
Securities 87 114 381 - 87 114 381
Redemption of Satrix RESI
Securities
(84 597 690) - (84 597 690)
Increase in net assets
attributable to investors
after distributions
(5 095 548) 3 111 (5 092 437)
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December 2013 483 963 723 381 487 484 345 210
Redemption of Satrix RESI
Securities (164 852 396) - (164 852 396)
Increase in net assets
attributable to investors
after distributions (47 052 726) 25 943 (47 026 783)
Balance at 31 December 2014 272 058 601 407 430 272 466 031
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating
activities 10 332 855 13 019 973
Cash utilised by operations (1 755 652) (2 330 297)
Fee income: Securities lending 91 144 87 985
Interest received 60 259 80 216
Dividend received 11 937 104 15 182 069
Cash inflow/(outflow)from investing
activities 164 852 396 (2 516 691)
Purchase of underlying constituents (1 568 363) (142 290 043)
Sale of underlying constituents 166 420 759 139 773 352
Cash (outflow)/ inflow from
financing activities (175 721 594) (10 494 322)
Creation of Satrix RESI
Securities - 87 114 381
Redemptions of Satrix RESI
Securities (164 852 396) (84 597 690)
Cash distributed to security
holders (10 869 198) (13 011 013)
Net movement in cash and cash
equivalents (536 343) 8 960
Cash and cash equivalents at the
beginning of the year 2 569 883 2 560 923
Cash and cash equivalents at the
end of the year 2 033 540 2 569 883
Satrix RESI SECURITIES
During the year, nil(2013: 2 000 000) Satrix Resi securities were
created at a value of Rnil (2013: R87 114 381) and 3 000 000 (2013:
2 000 000) Satrix Resi securities were redeemed at a value of R 164 852
396 (2013: R84 597 690). All creations and redemptions were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix RESI 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 RESI Index Security.
2014 2013
R R
67.13 cents per security
Announced 28 March 2014 and paid 10
April 2014 4 355 378
53.39 cents per security
Announced 28 March 2013 and paid
19 April 2013 5 065 630
10.27 cents per security
Announced 27 June 2014 and paid
18 July 2014 666 315
6.69 cents per security
Announced 28 June 2013 and paid
12 July 2013 768 546
58.97 cents per security
Announced 26 September 2014 and paid
16 October 2014 3 825 959
56.64 cents per security
Announced 27 September 2013 and paid
16 October 2013 5 373 989
23.85 cents per security
Announced 24 December 2014 and paid
23 January 2015 1 547 382
21.31 cents per security
Announced 27 December 2013 and paid
24 January 2014 2 021 887
Accrued income portion of NAV
(paid)/received on
redemption/(creation) of securities - (204 200)
Total distributions 10 395 034 13 025 852
Operating Segments
The Satrix RESI 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 272 058 601 – –
Net assets attributable
to investors – 272 466 031 –
Total 272 058 601 272 466 031 –
31 December 2013
Financial instruments
designated at fair value
through profit or loss:
Listed equities 483 963 723 – –
Net assets attributable
to investors – 484 345 210 –
Total 483 963 723 484 345 210 –
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 – 8 633 –
Securities lending fee
– – 7 694
receivable
Other receivables – – 5 696
Cash and cash equivalents – 2 033 540 –
Total – 2 042 173 13 390
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
investors – – 1 547 382
Other payables – – 100 751
Total – – 1 648 133
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 1 243 –
Securities lending fee
receivable – – 7 374
Cash and cash equivalents – 2 569 883 –
Total – 2 571 126 7 374
Liabilities
Distributions payable to
investors – – 2 021 546
Other payables – – 175 467
Total – – 2 197 013
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 1 691 577 1 872 360
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary Limited 100 751 175 016
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 RESI Portfolio had a TER of 45.6(2013: 45.6) basis points
(annualised) 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.
The Portfolio engages in securities lending with the sole aim of reducing
the net expenses of managing the Satrix RESI Portfolio and in this way the
income from securities lending proves beneficial to all holders of Satrix
RESI Portfolio.
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 RESI 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
ABSA Bank Limited
Manager
Satrix Managers (RF) Proprietary Limited
Date: 26/03/2015 01:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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