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THE DB X-TRACKER COL INVEST SCHEME - Abridged Audited Results for the Year Ended 31 December 2014 - DBXUS

Release Date: 31/03/2015 14:33
Code(s): DBXUS     PDF:  
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Abridged Audited Results for the Year Ended 31 December 2014 - DBXUS

The db x-trackers Collective Investment Scheme
db x-trackers MSCI USA Trust
JSE code: DBXUS
ISIN: ZAE000115192

A portfolio in the db x-trackers Collective Investment Scheme (“db x-
trackers”), 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
Revenue                                          248 812 832      198 260 085
Investment income                                 41 899 854       16 527 175
Net fair value gain on the investments at
fair value through profit or loss                206 912 978      181 732 910

Expenses                                         (14 051 935)      (6 203 014)
Management and administrative expenses           (14 051 935)      (6 203 014)


Operating profit before distribution             234 760 897      192 057 071
Comprising:
Income available for distribution before
tax                                               27 847 919       10 324 161
Capital profit retained                          206 912 978      181 732 910
Distributions                                    (22 269 950)      (8 358 425)
Increase in net assets attributable to
redeemable securities before tax                 212 490 947      183 698 646
Withholding tax                                   (5 848 438)      (2 306 943)
Increase in net assets attributable to
redeemable securities                            206 642 509      181 391 703

STATEMENT OF FINANCIAL POSITION
at 31 December 2014
                                                        2014             2013
                                                           R                R
Assets
Listed investments held at fair value
through profit or loss                      2 713 418 895       1 337 156 426
Trade and other receivables                     3 033 642           1 516 756
Cash and cash equivalents                      21 998 457           9 303 883
Total assets                                2 738 450 994       1 347 997 065
Liabilities
Net assets attributable to redeemable
securities                                  2 715 129 369       1 337 790 821
Trade and other payables                       23 321 625          10 186 244
Total liabilities                           2 738 450 994       1 347 977 065
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE
SECURITIES
for the year ended 31 December 2014
                                                                    Total
                                                                        R
 Balance at 1 January 2013                                   311 255 789
 Increase in net assets attributable to redeemable
 securities                                                  181 391 703
 Creations of securities                                     702 173 634
 Foreign currency translation adjustments                    142 969 695
 attributable to redeemable securities
 Balance at 31 December 2013                               1 337 790 821
 Creation of securities                                      864 620 474
 Increase in net assets attributable to redeemable
 securities                                                  206 642 509
 Foreign currency translation adjustments                    306 075 565
 attributable to redeemable securities
                                                           2 715 129 369
 Balance at 31 December 2014

STATEMENT OF CASH FLOWS
for the year ended 31 December 2014
                                                          2014                2013
                                                             R                   R
Cash utilised by operations                      (452     175)       (712     999)
Dividends received                             37 516     034      13 847     603
Management fees paid                           (9 380     352)     (3 504     271)
Interest received                                           -                  25
Net cash inflow from operating activities      27   683   507       9   630   358
Cash outflow from investing activities       (863   273   926)   (701   413   792)
Purchase of listed investments               (863   273   926)   (701   413   792)
Net cash inflow from financing activities     848   284   993     697   768   433

Proceeds on creation of securities            864 620 474          702 173 634
Distributions paid                            (16 335 481)          (4 405 201)
Net increase in cash and cash equivalents      12 694 574            5 984 999

Cash and cash equivalents at the beginning
of year                                          9 303 883           3 318 884
Cash and cash equivalents at the end of
year                                            21 998 457           9 303 883

                                             2014                2013
                                             Number              Number
db x-Trackers MSCI USA securities in issue   120 000 000         72 000 000

In terms of the Trust Deed and CISCA, the Trust would be required to pay
the net asset value attributable to holders of redeemable securities on
redemption of the securities.
Vested income beneficiaries include all holders of db x-trackers MSCI USA
securities.

db x-trackers MSCI USA securities creations and redemptions
There were 48 000 000 (2014: 45 000 000) Index Securities created during
the year for a value of R864 620 474 (2014: R702 173 634). There were no
redemptions during the current and prior year.



Distributions
The Trust effects semi–annual distributions. All distributions are made
out of the income of the db x-trackers MSCI USA Trust.       The rebates
represent an investor’s partial reduction of the 85.5 basis points
management fee charged (114 basis point management fee charged for the
period 01 January 2013 to 30 June 2013 and the 85.5 basis point
management fee charged for the period 01 July 2013 to 31 December 2013).
The rebate is calculated using a sliding scale depending on the size of
the investor’s investment. During the period the following distributions
were effected per db x-trackers MSCI USA Index Security –
                                             2014           2013
                                             R              R
Declared distributions                       (20 084 622)   (7 807 790)
0.08672 Rand per security
Declared June 2014 and paid July 2014        (8 584 872)
0.05086 Rand per security                                   (2 136 303)
Declared June 2013 and paid July 2013
0.09583 Rand per security
Declared December 2014 and paid January
2015                                         (11 499 750)
0.07877 Rand per security
Declared December 2013 and paid January                     (5 671 487)
2014
Management fees refunded during the year as (2 185 328)     (550 635)
a rebate distribution
Total distribution expense for the year      (22 269 950)   (8 358 425)


Total Expense Ratio ("TER")
The TER represents the total expense to the Trust.    The only expense to
the Trust is the management fee payable to db x-trackers Proprietary Ltd
which is calculated at 0.855% of assets under management on a daily basis
(2013: 1.14% of the assets under management on a daily basis for the
period 01 January 2013 to 30 June 2013 and 0.855% of the assets under
management on daily basis for the period 01 July 2013 to 31 December
2013).

The db x-trackers MSCI USA Trust had a TER of 85.5 basis points (2013:114
basis points for the period 1 January to 30 June 2013 and a TER of 85.5
basis points for the period 01 July 2013 to 31 December 2013).

Increased consumer demand for greater transparency in financial services
and the recognition thereof by the collective investment industry requires
Collective Investment Scheme (‘CIS’) managers to calculate and publish a
total expense ratio for each Trust under their management. This is a
requirement in terms of the Association for Savings and Investments SA
(“ASISA”) standard on the calculation and publication of total expense
ratios.
Statement of compliance
The financial statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”), and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee
and the Financial Reporting Pronouncements as issued by Financial
Reporting Standards Council, and the requirements of the Collective
Investment Schemes Control Act No 45 of 2002 (“CISCA”), in order to meet
the requirements of the Trust Deed approved by the Financial Services
Board. These financial statements were authorised for issue by the board
of directors of the Manager on 25 March 2015.

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) Amendment to IAS 32– Offsetting Financial Assets and Financial
     Liabilities.

Forthcoming requirements
The following standards, amendments to standards, and interpretations,
effective for the first time in future accounting periods, and which are
relevant to the Trust, 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. IFRS 9 is
effective for the year ending 31 December 2018 and the impact of this
standard will be assessed once the standard becomes effective. The Trust
will apply the standard only once the standard becomes effective

IFRS 15: Revenue from Contracts with Customers - IFRS 15 contains a single
model that applies to contracts with customers and two approaches to
recognising revenue: at a point in time or over time. IFRS 15 is effective
for the year ending 31 December 2017 and the impact of this standard will
be assessed once the standard becomes effective. The Trust will apply the
standard only once the standard becomes effective

The impact of the above standards will be assessed once the standards
become effective, and applied only at that stage.

Investment income
Investment income comprises:
-interest income earned on cash and cash equivalents;
-cash equalisation component on creations (at the time of creation it
 represents the income portion attributable to the net asset value at the
 time that is payable by the creating party); and
-dividends from listed equities designated as held at fair value through
 profit or loss.

Interest income
Interest income is recognised in profit or loss, using the effective
interest method taking into account the expected timing and amount of cash
flows.


Dividend income
Dividend income is recognised when the right to receive the expected
payment is established. This is usually the ex-dividend date for quoted
equities.

Audit report
This summarised report is extracted from audited information, but is not
itself audited. The annual financial statements were audited by KPMG Inc,
who expressed an unmodified opinion thereon. The audited annual financial
statements and the auditor’s report thereon are available for inspection
at the company’s registered office.

A full copy of these financial statements is available on the db x-
trackers website www.dbxtrackers.co.za.

Directors’ responsibility
The directors take full responsibility for the preparation of the abridged
report and the financial information has been correctly extracted from the
underlying annual financial statements.

Sponsor
Vunani Corporate Finance

Trustee
Standard Bank of SA Limited

Manager
db x-trackers Proprietary Limited

31 March 2015

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