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SATRIX COLLECTIVE INVESTMENT SCHEME - Abridged Audited Results for the Year Ended 31 December 2014 - STXRES

Release Date: 26/03/2015 13:05
Code(s): STXRES     PDF:  
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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

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