Abridged audited results for the year ended 31 December 2015 - BGREEN BettaBeta Be Green Exchange Traded Fund Collective Investment Scheme A portfolio in the BettaBeta Be Green Exchange Traded Fund Collective Investment Scheme (BGREEN) registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the “Act”) (the “portfolio”) JSE code: BGREEN ISIN: ZAE000162277 ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2015 2015 2014 R R Income Dividend income 4 311 350 3 892 965 Interest income 43 034 34 448 Total income 4 354 384 3 927 413 Fair value adjustment Realised net gains on financial instruments designated at fair value through profit or loss (4 455 531) 8 006 090 Unrealised net (loss)/gains on financial instruments designated at fair value through profit or loss (21 763 789) 16 909 Total fair value adjustment (26 219 320) 8 022 999 Expenses Management fee (227 036) (237 692) Trustee fees (80 000) (72 086) Investment fee (325 234) (313 387) Other (10 000) (5 714) Total operating expenses (642 270) (628 879) (Decrease) / increase in net assets attributable to investors before distributions (22 507 206) 11 321 533 Income distributions (3 829 994) (2 895 816) (Decrease) / increase in net assets attributable to investors after distributions (26 337 200) 8 425 717 STATEMENT OF FINANCIAL POSITION at 31 December 2015 2015 2014 R R ASSETS Listed equities designated at fair value through profit or loss 112 644 952 138 709 239 Cash and cash equivalents 824 924 2 368 223 Total assets 113 469 876 141 077 462 LIABILITIES Other payables 169 753 1 440 139 Total liabilities (excluding net assets attributable to investors) 169 753 1 440 139 Net assets attributable to investors 113 300 123 139 637 323 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS for the year ended 31 December 2015 Capital Income Net assets attributable attributable attributable to investors to investors to investors R R R Balance at 1 January 2014 131 035 362 176 244 131 211 606 Increase in net assets attributable to investors 8 022 999 402 718 8 425 717 Balance at 31 December 2014 139 058 361 578 962 139 637 323 Decrease in net assets attributable to investors (26 219 320) (117 880) (26 337 200) Balance at 31 December 2015 112 839 041 461 081 113 300 123 STATEMENT OF CASH FLOWS for the year ended 31 December 2015 2015 2014 R R Net cash generated from operating activities Cash (utilized) / generated by operations (1 912 656) 575 694 Dividends received 4 311 350 3 892 965 Interest received 43 034 34 448 Investment in listed investments (55 847 720) (53 393 794) Disposal of listed investments 55 692 687 53 375 691 Net cash inflow from operating activities 2 286 695 4 485 004 Distributions paid to fund security holders (3 829 994) (2 895 816) Net (decrease) / increase in cash and cash equivalents (1 543 299) 1 589 188 Cash and cash equivalents at the beginning of the year 2 368 223 779 035 Cash and cash equivalents at the end of the year 824 924 2 368 223 Distributions The Portfolio declares dividends quarterly. Distributions are made from the income of the BGreen Portfolio. 2015 2014 R R Distributions declared during the period were as follows: 5.41797 cents per share declared on 8 December 2014 and paid on 26 January 2015 (2014: 7.46 cents per share) 402 718 554 267 17.81072 cents per share declared on 6 March 2015 and paid on 28 April 2015 (2014: 10.17 cents per share) 1 323 873 756 285 13.95000 cents per share declared on 3 June 2015 and paid on 27 July 2015 (2014: 11.87 cents per 1 036 905 882 651 share) 9.4526 cents per share declared on 4 September 2014 and paid on 27 October 2014 (2013: 11.27 cents per share) 1 066 498 702 613 Total Expense Ratio ('TER') 48.27bps 45.25bps 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, bank charges, custodian fees, costs related to securities lending and taxes. The BGreen Portfolio had a TER of 48.27 basis points (“bps”) (2014: 45.25 bps) (annualised) for the period 1 January to 31 December 2015. 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 the Accounting Practices Committee 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. In the current year scheme has not applied any amendments to IFRS or any new Standards or Interpretations issued by the International Accounting Standards Board (IASB) as there were no such amendments, Interpretations or new Standards applicable to the scheme which became effective during this period 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 2015: IFRS 9 deals with classification and measurement of financial assets and financial liabilities has been amended to introduce a new expected loss impairment model as well as limited changes to the classification and measurement requirements for financial assets. The effective date of IFRS 9 is 1 January 2018. The impact of the above standard will be assessed once the standards become effective, and applied only at that stage. Subsequent Events Pursuant to the amalgamation agreement between Beta Solutions Proprietary Limited and Coreshares Index Tracker Managers (RF) Proprietary Limited (previously Grinrod Index Tracker Managers (RF) Proprietary limited), which was announced on SENS on 4 February 2015, a ballot of unit holders is being undertaken in order to vote on the proposed transaction. This process is expected to conclude during the course of April 2016. Audit report KPMG Inc, the entity’s independent auditors, has audited the annual financial statements of the Be Green 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. 24 March 2016 Sponsor Nedbank Corporate and Investment Banking Trustee FirstRand Bank Limited Manager Nedgroup Beta Solutions (Proprietary) Limited Date: 24/03/2016 10:00:00 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.