Abridged audited results for the year ended 31 December 2014 - BBET40 BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme A portfolio in the BettaBeta Equally Weighted Top40 Exchange Traded Fund Collective Investment Scheme (BBET40) registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the “Act”) (the “portfolio”) JSE code:BBET40 ISIN: ZAE000144507 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 6 523 408 3 722 238 Interest income 50 069 18 327 Total income 6 573 477 3 740 565 Fair value adjustment Realised net gains on financial instruments designated at fair value through profit or loss 676 839 1 879 137 Unrealised net gains on financial instruments designated at fair value through profit or loss 6 123 177 8 071 272 Total fair value adjustment 6 800 016 9 950 409 Management fee written off - - Expenses Management fee (157 842) (35 405) Other (7 539) (7 366) Trustee and custodian fees (88 943) (70 470) Investment fee (384 058) (160 044) Total operating expenses (638 382) (273 285) Increase in net assets attributable to investors before distributions 12 735 111 13 417 689 Income distributions (4 671 272) (2 920 775) Increase in net assets attributable to investors after distributions 8 063 839 10 496 914 STATEMENT OF FINANCIAL POSITION at 31 December 2014 2014 2013 R R ASSETS Listed equities designated at fair value through profit or loss 298 682 164 139 447 722 Cash and cash equivalents 2 347 492 620 613 Trade and other receivables - 955 757 Total assets 301 029 656 140 024 092 LIABILITIES Other payables 386 594 923 916 Total liabilities (excluding net assets attributable to investors) 386 594 923 916 Net assets attributable to investors 300 643 062 140 100 176 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 60 052 768 (364 875) 59 687 893 Creation of BBET40 Securities 69 915 369 - (69 915 369) Increase/(decrease) in net assets attributable 10 414 501 82 413 10 496 914 to investors Balance at 31 December 2013 140 382 638 (282 462) 140 100 176 Creation of BBET40 Securities 152 479 047 - 152 479 047 Increase in net assets attributable to investors 6 800 016 1 263 823 8 063 839 Balance at 31 December 2014 299 661 701 981 361 300 643 062 STATEMENT OF CASH FLOWS for the year ended 31 December 2014 2014 2013 R R Cash flow from operating activities Cash utilised by operations (219 947) (606 881) Dividends received 6 523 408 3 722 238 Interest incurred on creation of units (24) (16 516) Interest received 50 069 18 327 Investment in listed investments (59 659 285) (76 525 766) Disposal of listed investments 59 498 631 30 067 516 Cash (outflow)/inflow from operating activities 6 192 852 (43 341 082) Cash flow from financing activities Creation of fund Securities 205 299 46 599 087 Distributions paid to fund security holders (4 671 272) (2 920 775) Net cash generated from financing activities (4 465 973) 43 678 312 Net movement in cash and cash equivalents 1 726 879 337 230 Cash and cash equivalents at the beginning of the year 620 613 283 383 Cash and cash equivalents at the end of the year 2 347 492 620 613 During the year, 3 000 000 BBET40 securities were created at a value of R152 479 047 (2013: 1 614 491 at a value of R69 915 369). Zero BBET40 securities were redeemed during the period (2013: Zero) Distributions The Portfolio declares dividends quarterly. Distributions are made from the income of the BBET40 Portfolio. 2014 2013 R R Distributions declared during the period were as follows: 21.92505 cents per share declared on 4 December 2013 and paid on the 27 January 2014 (2013: 23.33585 cents per share) 612 439 275 092 Botswana: 21.92505 cents per share declared on 4 December 2013 and paid on 27 January 2014 (2013: 23.33585 cents per share) 45 302 48 216 30.05061 cents per share declared on 8 March 2014 and paid on 22 May 2014 (2013: 30.17122 cents per share) 839 412 672 468 Botswana: 30.05061 cents per share declared on 8 March 2014 and paid on 22 May 2014 (2013: 30.17122 cents per share) 62 106 62 081 44.44826 cents per share declared on 11 June 2014 and paid on 5 August 2014 (2013: 23.97465 cents per share) 1 185 720 534 356 Botswana: 42.44826 cents per share declared on 11 June 2014 and paid on 5 August 2014 (2013: 23.97465 cents per share) 87 728 49 549 30.64258 cents per share declared on 4 September 2014 and paid on 27 October 2014 (2013: 42.63404 cents per share) 781 386 1 190 909 Botswana: 30.64258 cents per share declared on 4 September 2014 and paid on 27 October 2014 (2013: 42.63404 cents per share) 1 057 169 88 104 Total Expense Ratio ('TER') 29.89bps 29.84bps 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 BBET40 Portfolio had a TER of 29.89bps (2013 29.84bps) basis points (annualised) for the period 1 January 2014 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), the SAICA Financial Reporting Pronouncements as issued by Financial Reporting Standards Council and in the manner required by the Collective Investment Schemes Control Act and the Principal Deed. Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in South African Rand, which is the Scheme’s functional and presentation currency. Accounting policies The accounting policies applied in the preparation of the financial statements are consistent with those adopted in the previous financial year and are in accordance with IFRS. The trust adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 January 2014. a) IFRS 10: Consolidated Financial Statements b) IFRS 12: Disclosure of Interest in Other Entities c) IAS27: Separate Financial Statements Forthcoming requirements The following standards, amendments to standards, and interpretations, effective for the first time in the future accounting period, and which are relevant to the Portfolio, have not been adopted for the year ended 31 December 2014: IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. The effective date of IFRS 9 is yet to be decided. The impact of the above standards will be assessed once the standards become effective, and applied only at that stage. Audit report KPMG Inc, the entity’s independent auditors, has audited the annual financial statements of the BBET40 Portfolio from which the abridged results contained in this announcement have been derived, and has expressed an unmodified audit opinion on the annual financial statements. Their audit report is available for inspection at the registered office of Nedbank Limited. A full copy of these financial statements is available on the BettaBeta website www.bettabeta.co.za. 31 March 2015 Sponsor Nedbank Capital Trustee FirstRand Bank Limited Manager Nedgroup Beta Solutions(Proprietary) Limited Date: 31/03/2015 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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