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CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY LIMITED - Abridged results for CoreShares Index Tracker Collec Investment Scheme & CoreShares Index Tracker Managers DIVTRX

Release Date: 30/12/2015 17:00
Code(s): DIVTRX     PDF:  
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Abridged results for CoreShares Index Tracker Collec Investment Scheme & CoreShares Index Tracker Managers DIVTRX

CoreShares Index Tracker Managers (RF) Proprietary Limited
CoreShares DivTrax
Share code: DIVTRX ISIN: ZAE000190104
("DIVTRX")

A portfolio in the CoreShares Index Tracker Collective Investment Scheme (formerly Grindrod Index
Tracker Collective Investment Scheme)(“the Scheme”) registered as such in terms of the Collective
Investment Schemes Control Act, 45 of 2002, managed by CoreShares Index Tracker Managers (RF)
Proprietary Limited (formerly Grindrod Index Tracker Managers Proprietary Limited)(“the Manager”)

ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME AND CORESHARES INDEX TRACKER MANAGERS PROPRIETARY LIMITED FOR THE
PERIOD ENDED 30 SEPTEMBER 2015

The financial information set out in this announcement is based on the financial statements which have
been audited by the auditors Deloitte & Touche. Their unmodified audit report is available for inspection
at the Manager’s registered address.

The full financial statements are available on www.grindrodbank.co.za.

  STATEMENT OF FINANCIAL POSITION
  As at 30 September 2015
                                                                             30 September           30 September

                                                        Notes                         2015                   2014
                                                                                         R                      R

  ASSETS

  CURRENT ASSETS

  Listed investments held at fair value                   1                     47,943,151             11,692,218

  Distributions receivable                                                         120,409                 23,102

  Cash and cash equivalents                               1                        491,457                 83,733


  TOTAL ASSETS                                                                  48,555,017             11,799,053


  EQUITY AND LIABILITIES


  EQUITY

  Net assets attributable to investors                                          48,458,502             11,767,649


  CURRENT LIABILITIES

  Trade and other payables                                4                         96,515                 31,404


TOTAL EQUITY AND LIABILITIES                                                    48,555,017             11,799,053
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the year ended 30 September 2015
                                                                                                      7 months *
                                                                             30 September           30 September
                                                                Notes                2015                   2014
                                                                                        R                      R


Distribution income                                                                 1,238,595           185,678

Investment income                                                                     17,061             10,938

Total Revenue                                                                       1,255,656           196,616

Management and administration expenses                                              (110,046)           (76,662)

Profit before taxation                                                              1,145,610           119,954

Taxation                                                         7                       -                    -

Profit and total comprehensive income                            3                  1,145,610           119,954

Distributions paid                                                                  (796,122)           (39,077)

                                                                                     349,488             80,877

 Realised gains on financial instruments designated at fair
value through profit or loss                                                         674,748            203,803
 Unrealised gains on financial instruments designated at fair
value through profit or loss                                                   (2,095,800)              554,969

Total fair value adjustments                                                   (1,421,052)              758,772


Increase in net assets attributable to investors                               (1,071,564)              839,649

 * The Scheme commenced in March 2014 and therefore the amounts reported above are not comparable to the prior
period.




STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO
INVESTORS
For the year ended 30 September 2015


                                                                          Capital     Accumulated
                                                 Notes   Contributions     Profit         Total
                                                                    R          R             R


Creation of 498 536 units on 09 April 2014                 10,928,000           -   10,928,000

Change in net assets attributable to investors                758,772     80,877       839,649


Balance at 30 September 2014                               11,686,772     80,877    11,767,649



Creation of 100 000 units on 01 January 2015                2,734,269                2,734,269

Creation of 100 000 units on 02 February 2015               2,789,586                2,789,586

Creation of 100 000 units on 04 April 2015                  2,853,096                2,853,096

Creation of 51 464 units on 05 May 2015                     1,534,644                1,534,644

Creation of 150 000 units on 06 May 2015                    4,369,622                4,369,622

Creation of 50 000 units on 27 May 2015                     1,439,174                1,439,174

Creation of 50 000 units on 02 June 2015                    1,390,488                1,390,488

Creation of 100 000 units on 04 June 2015                   2,762,065                2,762,065

Creation of 100 000 units on 07 July 2015                   2,808,473                2,808,473

Creation of 150 000 units on 14 July 2015                   4,199,367                4,199,367

Creation of 100 000 units on 23 July 2015                   2,804,702                2,804,702

Creation of 100 000 units on 06 August 2015                 2,766,758                2,766,758

Creation of 100 000 units on 19 August 2015                 2,679,285                2,679,285

Creation of 100 000 units on 25 August 2015                 2,630,887                2,630,887

Change in net assets attributable to investors            (1,421,052)    349,488    (1,071,564)


Balance at 30 September 2015                               48,028,137    430,365    48,458,502
STATEMENT OF CASH FLOWS
For the year ended 30 September 2015
                                                                          7 months
                                                       30 September   30 September
                                               Notes          2015           2014
                                                                 R              R

CASH FLOWS FROM OPERATING ACTIVITIES


Cash generated from/(utilised by) operations
                                                A         1,788,162       (68,360)
Distributions paid
                                                B         (796,122)       (39,077)


Net cash inflow from operating activities
                                                           992,040         89,179

CASH FLOWS FROM INVESTING ACTIVITIES


Purchase of investments
                                                       (58,859,331)   (13,976,240)
Proceeds from sale of investments
                                                         20,512,599     3,042,794


Net cash outflow from investing activities
                                                       (38,346,732)   (10,933,446)

CASH FLOWS FROM FINANCING ACTIVITIES


Contributions received
                                                         37,762,416    10,928,000


Net cash inflow from financing activities
                                                         37,762,416    10,928,000


NET INCREASE IN CASH AND CASH EQUIVALENTS
                                                           407,724         83,733

CASH AND CASH EQUIVALENTS AT BEGINNING OF
THE PERIOD                                                   83,733             -

CASH AND CASH EQUIVALENTS AT END OF THE
PERIOD                                                     491,457         83,733
ACCOUNTING POLICIES
for the period ended 30 September 2015

         The financial statements have been prepared consistently on the following principal accounting policies:

    1.   Basis of Preparation
         The financial statements are prepared on a historic cost basis, except for financial instruments, which are
         accounted for as set out below.

         The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS’’),
         its interpretations adopted by the International Accounting Standards Board (“IASB”), the SAICA Financial
         Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as
         issued by the Financial Reporting Standards Council, the JSE Listings Requirements, the requirements of the
         Coreshares Index Tracker Collective Investment Scheme Deed and the Collective Investment Schemes Control
         Act, 45 of 2002 ("the Act").

         At the date of approval of the annual financial statements, the following new standards, interpretations and
         amendments that apply to the Scheme were in issue but not yet effective:

         New standards
         IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018.
         IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016.
         IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January
         2018.

         Amendments to existing standards
         At the date of approval of the annual financial statements, there were no amendments to existing standards in
         issue but not yet effective that may have the effect on the Scheme's financial statements.

    2.   Functional and reporting currency
         The annual financial statements are presented in South African Rands which is the functional currency of the
         Scheme.

    3.   Use of estimates and judgements
         The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
         judgements and assumptions that affect the reported amounts. It also requires management to exercise its
         judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
         estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions or
         estimates are significant.

    4.   Financial Instruments
         Measurement
         Financial instruments are recognised when the Scheme becomes a party to the contractual provisions of that
         particular instrument. Financial instruments are initially measured at fair value, which except for financial
         instruments not at fair value through profit and loss, include direct attributable transaction costs. Subsequent to
         initial recognition, these instruments are measured as set out below.

         Investments
         Listed investments are measured at fair value. Fair value is determined with reference to quoted market prices at
         the reporting date, as published in the financial press at the reporting date.
     Cash and cash equivalents
     Cash and cash equivalents are measured at fair value.

     Financial liabilities
     Financial liabilities, other than those held at fair value through profit or loss, are measured at amortised cost using
     effective interest rate method. Financial liabilities arising from the securities issued by the Scheme are carried at
     the fair value representing the investor’s right to a residual interest in the Scheme’s net assets, i.e. the net asset
     value of the Scheme. Changes in the fair value are included in net profit or loss in the year in which the change
     arises.

     Fair value against and losses on subsequent measurement
     Unrealised gains and losses arising from a change in the fair value of financial instruments are included in
     statement of net assets attributable to investors.

     Offset
     Financial assets and financial liabilities are offset and the net amount reported in the statement of financial
     position when the Scheme has a legally enforceable right to set off the recognised amounts, and intends to settle
     on a net basis, or to realise the asset and settle the liability simultaneously.

     Derecognition of financial instruments


     The Scheme derecognises financial assets when:
     - The contractual rights to the cash flows arising from the financial assets have expired or have been
        forfeited by the Scheme; or
     - It transfers the financial assets including substantially all the risks and rewards of ownership of the
        assets; or
     - It transfers the financial assets, neither retaining nor transferring substantially all the risks and rewards
        of the ownership of the asset, but no longer retains control of the asset.

     A financial liability is derecognised when the liability is extinguished. This is, when the obligation specified in
     the contract is discharged, cancelled or has expired.

     The difference between the carrying amount of a financial liability (or part thereof) extinguished or transferred to
     another party and consideration paid, including any non-cash assets transferred or liabilities assumed, is
     recognised in profit or loss.

5.   Revenue
     Revenue comprises income from distribution income and interest income.

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

     Distribution income
     Distribution income in the form of cash and manufactured dividends are recognised when the right to receive
     payment is established. Manufactured dividends received are recognised as income in profit or loss.

6.   Income tax
     Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income or capital
     gains. Both income and capital gains are taxed in the hands of investors.

7.   Securities lending
     The portfolio engages in securities lending activities up to 50% of the assets under management. Collateral is
     held by the relevant lending desks. There was no lending activity at year end.
 8.   Expenses
      Expenses are recognised on the accrual basis.


 9.   Impairment

      Financial assets that are stated at amortised cost are reviewed at each reporting date to determine whether there is
      objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss
      as the difference between the asset’s carrying amount and the present value of estimated future cash flows
      discounted at the financial asset’s original effective interest rate. If in a subsequent period the amount of an
      impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked
      objectively to an event occurring after the write-down the impairment loss is reversed through profit or loss.

10.   Distributions

      Distributions payable on redeemable securities are recognised in profit or loss as distributions.

      In accordance with the Coreshares Index Tracker Collective Investment Scheme Deed, the Portfolio distributes its
      distributable income and any other amounts determined by the Manager as defined on page 4, to security
      investors in cash. The distributions are payable shortly after the end of each quarter and recognised in the
      statement of comprehensive income and as distributions.

11.   Creations and redemptions


      Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the current
      market price of the securities plus a brokerage fee that is negotiable with the broker and any additional transaction
      costs applicable to such a trade.

      The cash subscription price and number of the Scheme's securities to be issued to an investor for cash will be
      determined by the amount which the investor invests (net of transaction costs) and will be a function of the pro
      rata cost to the portfolio of acquiring the underlying basket of securities.

      Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
      securities, are obliged to deliver securities with a perfect match to the index.

      Investors may sell securities by trading on the JSE.

      Securities prices are determined by reference to the net assets of the Portfolio divided by the number of securities
      in issue. For unit pricing purposes, net assets are determined using the last reported trade price for securities.
      These prices may differ from the market price quoted on the JSE.

12.   Redeemable securities
      All redeemable securities issued by the Scheme provide investors with the right to require redemption for cash or
      in specie at the value proportionate to the investors’ share. Such instruments give rise to a financial liability for
      the net asset value of the redemption amount in the Scheme’s net assets at redemption date. In accordance with
      the Coreshares Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is contractually
      obliged to redeem securities at the net asset value. A redemption fee, depending on the size of the recall, would be
      payable by the investor making the redemption.

13.   Net assets attributable to security investors
      Securities are redeemable at the security investor’s option and are therefore classified as financial liabilities. The
      securities may be sold back to the Portfolio at anytime. The fair value of redeemable securities is measured at the
      redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and
      vested interest in the assets as a whole, subject to liabilities, as defined by the Coreshares Index Tracker
      Collective Investment Scheme Deed) at the reporting date if security investors exercise their right to put the
      securities back to the Scheme.
   14.   Increase/decrease in net assets attributable to security investors
         Income not distributed is included in net assets attributable to security investors.

ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY
LIMITED FOR THE PERIOD ENDED 30 SEPTEMBER 2015

STATEMENT OF FINANCIAL POSITION
as at 30 September 2015

                                                                             30 September       30 September

                                                               Notes                  2015             2014
                                                                                         R                R

ASSETS

NON-CURRENT ASSETS


Loan to holding company                                           7              7,300,000         7,300,000

CURRENT ASSETS


Other assets                                                      1                975,407           617,546


Cash and cash equivalents                                                          530,025           520,278


TOTAL ASSETS                                                                     8,805,432         8,437,824

EQUITY AND LIABILITIES


Share capital                                                     2                    100               100

Accumulated profit / (loss)                                                              -                 -
 
Equity                                                                                 100               100
 
CURRENT LIABILITIES


Loans                                                             3              7,300,000         7,300,000



                                                                                 1,505,332
Other liabilities                                                 4                                1,137,724


TOTAL EQUITY AND LIABILITIES                                                     8,805,432         8,437,824
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2015

                                                                                          15 Months
                                                                     30 September      30 September
                                                   Notes                     2015              2014
                                                                                R                 R



 Revenue                                                                2,615,416          2,411,802

 Operating expenditure                                                (2,652,960)         (2,435,402)

 Operating Loss                                                          (37,544)            (23,600)

 Finance income                                                            37,544             23,600

 NET PROFIT BEFORE TAXATION                         5                            -                 -

 Taxation                                                                        -                 -

 NET PROFIT AFTER TAXATION                                                       -                 -

 Other comprehensive income                                                      -                 -
 TOTAL COMPREHENSIVE INCOME FOR THE
 YEAR                                                                            -                 -




STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2015

                                                            Share        Accumulated
                                           Notes           Capital       Profit/ (Loss)                 Total
                                                                R                    R                     R


 Balance at 30 June 2013                                       100                     -                  100


 Total comprehensive income for the year                         -                     -                    -


 Balance at 30 September 2014                                  100                     -                  100


 Total comprehensive income for the year                         -                     -                    -


 Balance at 30 September 2015                                  100                     -                  100
STATEMENT OF CASH FLOWS
for the period ended 30 September 2015

                                                                                      15 Months
                                                                    30 September   30 September
                                                            Notes           2015           2014
                                                                               R              R



 NET PROFIT BEFORE TAXATION                                                    -              -

 Working capital changes:


 Increase in other assets                                              (357,861)       (172,154)

 Increase in other liabilities                                          367,608       1,012,980

 Net cash inflow from operating activities                                 9,747        840,826

 Net cash outflow from investing activities

 Increase in loans to holding company                                          -       (319,112)

 Net cash outflow from financing activities

 Decrease in loans from shareholders                                           -         (1,553)


 NET INCREASE IN CASH AND CASH EQUIVALENTS                                 9,747        520,161


 Cash and cash equivalents at the beginning of the period                520,278            117

 CASH AND CASH EQUIVALENTS AT THE END OF THE
 PERIOD                                                                  530,025        520,278
ACCOUNTING POLICIES
30 September 2015



The financial statements of the Company are prepared in accordance with International Financial Reporting
Standards("IFRS") and the Companies Act of South Africa and have been prepared on the historical cost basis except for
the revaluation of certain financial instruments.

At the date of approval of the annual financial statements, the following new standards, interpretations and amendments
that apply to the group were in issue but not yet effective:

     New standards
     IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016
     IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1 January
     2018

     Amendments to existing standards
     IAS 1 - Presentation of financial statements - Effective 1 January 2016
     IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018
     IFRS 11 - Accounting for acquisitions of interests in joint operations - Effective for annual period beginning on or
     after 1 January 2016
     IAS 38 - Clarification of acceptable methods of depreciation and amortisation - Effective for annual period
     beginning on or after 1 January 2016

The principal accounting policies adopted in the preparation of these financial statements are set out below:


1.   Revenue Recognition
     Income derived from services rendered is recognised where it is probable that economic benefits will flow to the
     entity and the stage of completion and the amount can be reliably measured.

     Interest income is recognised on a time proportion basis which takes into account the effective yield on the asset.
     Interest income includes the amount of amortisation of any discount or premium.

     Dividend revenue from investments is recognised when the shareholder has a right to receive payment.


2.   Loans and receivables
     Trade receivables, loans and other receivables that have fixed or determinable payments that are
     not quoted in an active market are classified as "loans and receivables". Loans and receivables
     are measured at amortised cost using the effective interest method less any impairment. Interest
     income is recognised by applying the effective interest rate, except for short term receivables
     where the recognition of interest would be immaterial.


3.   Related party transactions
     Parties are considered to be related if one party has the ability to control or exercise significant
     influence over the other party in making financial and operating decisions. The company enters
     into various related party transactions in the ordinary course of business. The terms and conditions
       of related party transactions are no more favourable than those granted to third parties in arm's
       length transactions.


  4.   Financial Liabilities
       Financial liabilities which include trade payables and shareholders' loans are measured at amortised cost using the
       effective interest rate method.


  5.   Use of estimates and judgements
       The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
       judgements and assumptions that affect the reported amounts. It also requires management to exercise its
       judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
       estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions or
       estimates are significant.


  6.   Taxation


       Income tax on profit or loss for the period comprises current and deferred tax. Income tax is recognised in profit or
       loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

       Current tax is the expected tax payable on the taxable income for the year, using the tax rates enacted or
       substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years.

       Deferred tax is provided using the comprehensive liability method, based on temporary differences. Temporary
       differences are differences between the carrying amounts of assets and liabilities for financial reporting purposes
       and their tax bases. The amount of deferred tax provided is based on the expected manner of realisation or
       settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the
       reporting date. The effect on deferred tax of any changes in the tax rate is recognised in profit or loss except to the
       extent that it relates to an item recognised in equity in which case it is recognised in equity.

       A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against
       which the associated unused tax losses and deductible temporary differences can be utilised. Deferred tax assets are
       reduced to the extent that it is no longer probable that the related tax benefit will be realised. A deferred tax asset is
       not recognised on initial recognition of an asset or liability in a transaction that at the time affects neither accounting
       nor taxable profit or loss.


Johannesburg
30 December 2015

Sponsor
Grindrod Bank Limited

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