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 Date: 31/03/2015 02:33:00 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.