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Abridged Audited Results for the Year Ended 31 December 2014 - STXSWX
SATRIX SWIX TOP 40
JSE Code: STXSWX
ISIN: ZAE000078580
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 9 971 296 7 510 560
Fee income: Securities lending 77 107 56 416
Interest income 79 331 47 134
REIT income 276 209 -
Total income 10 403 943 7 614 110
Expenses
Management fee (1 466 441) (1 013 989)
Transaction costs (182 225) (135 077)
Trustee and custodian fees (104 539) (103 736)
Total operating expenses (1 753 205) (1 252 802)
Income attributable to investors before
8 650 738 6 361 308
distributions
Income distributions (8 733 050) (6 384 594)
Income attributable to investors after
(82 312) (23 286)
distributions
Realised gains on financial instruments
designated at fair value through profit or 7 418 642 6 614 418
loss
Unrealised gains on financial instruments
designated at fair value through profit or 26 007 843 41 126 477
loss
Total fair value adjustment 33 426 485 47 740 895
Increase in net assets attributable to
33 344 173 47 717 609
investors after distributions
STATEMENT OF FINANCIAL POSITION
at 31 December 2014
2014 2013
R R
ASSETS
Listed equities designated as held at fair
376 238 844 312 465 235
value through profit or loss
Interest receivable 8 328 453
Securities lending fee receivable 6 460 4342
Other receivables 9 285 205
Cash and cash equivalents 2 018 388 1 522 581
Total assets 378 281 305 313 992 816
LIABILITIES
Distributions payable to investors 1 938 712 1 371 366
Other payables 137 709 107 863
Total liabilities (excluding net assets
2 076 421 1 479 229
attributable to investors)
Net assets attributable to investors 376 204 884 312 513 587
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 195 596 512 71 638 195 668 150
Creation of Satrix SWIX Top 40
69 127 828 - 69 127 828
Securities
Increase in net assets
attributable to investors 47 740 895 (23 286) 47 717 609
after distributions
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 31 December 2013 312 465 235 48 352 312 513 587
Creation of Satrix SWIX Top 40
30 347 124 - 30 347 124
Securities
Increase in net assets
attributable to investors 33 426 485 (82 312) 33 344 173
after distributions
Balance at 31 December 2014 376 238 844 (33 960) 376 204 884
STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
2014 2013
R R
Net cash generated from operating
8 661 511 6 383 170
activities
Cash utilised by operations (1 732 439) (1 233 140)
Fee income: Securities lending 74 989 56 002
Interest received 71 456 49 748
REIT income 276 209 -
Dividends received 9 971 296 7 510 560
Cash (outflow)/inflow from investing
(30 347 124) (69 127 828)
activities
Purchase of underlying constituents (57 290 948) (105 188 125)
Sale of underlying constituents 26 943 824 36 060 297
Cash inflow/(outflow) from financing
activities 22 181 420 63 340 484
Creation of Satrix SWIX Top 40 Securities 30 347 124 69 127 828
Cash distributed to security holders (8 165 704) (5 787 344)
Net movement in cash and cash equivalents 495 807 595 826
Cash and cash equivalents at the beginning
1 522 581 926 755
of the year
Cash and cash equivalents at the end of
2 018 388 1 522 581
the year
Satrix SWIX Top 40 security
During the year, 3 000 000 (2013: 9 000 000) Satrix Swix Top 40 securities
were created at a value of R30 347 124 (2013: R69 127 828) and nil (2013:
nil) Satrix Swix Top 40 securities were redeemed at a value of Rnil and
(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 SWIX Top 40 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 SWIX Top 40 security.
2014 2013
R R
3.36 cents per security
Announced 28 March 2014 and paid
10 April 2014 1 166 529
2.56 cents per security
Announced 28 March 2013 and paid
658 384
19 April 2013
8.46 cents per security
Announced 27 June 2014 and paid
2 937 154
18 July 2014
6.32 cents per security
Announced 28 June 2013 and paid
1 751 786
12 July 2013
7.75 cents per security
Announced 26 September 2014 and paid
2 923 155
16 October 2014
7.82 cents per security
Announced 27 September 2013 and paid
2 714 958
16 October 2013
5.14 cents per security
Announced 24 December 2014 and paid
1 938 712
23 January 2015
3.95 cents per security
Announced 27 December 2013 and paid
1 371 366
24 January 2013
Accrued income portion of NAV received on
creation of securities (232 500) (111 900)
Total distributions 8 733 050 6 384 594
Operating Segments
The Satrix SWIX 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 376 238 844 – –
Net assets attributable to
investors – 376 204 884 –
Total 376 238 844 376 204 884 –
31 December 2013
Financial instruments
designated at fair value
through profit or loss:
Listed equities 312 465 235 – –
Net assets attributable to
investors – 312 513 587 –
Total 312 465 235 312 513 587 –
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 – 8 328 –
Securities lending fee
– – 6 460
receivable
Other receivables – – 9 285
Underlying securities sold
and not settled – – –
Cash and cash equivalents – 2 018 388 –
Total – 2 026 716 15 745
Level 1 Level 2 Level 3
R R R
Liabilities
Distributions payable to
investors – – 1 938 712
Other payables – – 137 709
Total – – 2 076 421
Level 1 Level 2 Level 3
31 December 2013 R R R
Assets
Interest receivable – 453 –
Securities lending fee
receivable – – 4 342
Other receivables – – 205
Cash and cash equivalents – 1 522 581 –
Total – 1 523 034 4 547
Liabilities
Distributions payable to
investors – – 1 371 366
Other payables – – 107 863
Total – – 1 479 229
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 1 451 658 885 977
Management fee payable at
31 December 2014
Satrix Managers (RF) Proprietary Limited 137 708 108 021
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 SWIX Top 40 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 asset
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 2013
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 SWIX TOP 40 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 01:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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