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Abridged audited results for the year ended 31 December 2015 - 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 2015
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2015
2015 2014
R R
Income
Dividend income 11 946 446 6 523 408
Interest income 104 780 50 069
Total income 12 051 226 6 573 477
Fair value adjustment
Realised net gains on financial
instruments designated at fair
value through profit or loss
(5 726 717) 676 839
Unrealised net gains on financial
instruments designated at fair
value through profit or loss
(6 705 373) 6 123 177
Total fair value adjustment (12 432 090) 6 800 016
Management fee written off - -
Expenses
Management fee (329 231) (157 842)
Other (10 000) (7 539)
Trustee and custodian fees (89 500) (88 943)
Investment fee (772 432) (384 058)
Total operating expenses (1 201 163) (638 382)
(Decrease) / increase in net assets
attributable to investors before
distributions (1 582 027) 12 735 111
Income distributions (9 540 564) (4 671 272)
(Decrease) / increase in net assets
attributable to investors after
distributions (11 122 591) 8 063 839
STATEMENT OF FINANCIAL POSITION
at 31 December 2015
2015 2014
R R
ASSETS
Listed equities designated at fair
value through profit or loss 440 469 193 298 682 164
Cash and cash equivalents 3 096 871 2 347 492
Total assets 443 566 064 301 029 656
LIABILITIES
Other payables 354 159 386 594
Total liabilities (excluding net
assets attributable to investors)
354 159 386 594
Net assets attributable to
investors 443 211 905 300 643 062
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 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
Creation of BBET40
Securities 153 691 434 - 153 691 434
(Decrease) / increase in
net assets attributable to
investors (12 432 090) 1 309 499 (11 122 591)
Balance at 31 December 2015 440 921 045 2 290 860 443 211 905
STATEMENT OF CASH FLOWS
for the year ended 31 December 2015
2015 2014
R R
Cash flow from operating activities
Cash utilised by operations (1 233 598) (219 947)
Dividends received 11 330 285 6 523 408
Interest incurred on creation of
units - (24)
Interest received 104 780 50 069
Investment in listed investments (122 052 641) (59 659 285)
Disposal of listed investments 122 141 117 59 498 631
Cash inflow from operating
activities 10 289 943 6 192 852
Cash flow from financing activities
Creation of fund
Securities - 205 299
Distributions paid to fund
security holders (9 540 564) (4 671 272)
Net cash decrease from financing
activities (9 540 564) (4 465 973)
Net increase in cash and cash
equivalents 749 379 1 726 879
Cash and cash equivalents at the
beginning of the year 2 347 492 620 613
Cash and cash equivalents at the end
of the year 3 096 871 2 347 492
During the year, 3 000 000 BBET40 securities were created at a value of R153
691 434 (2014: 3 000 000 at a value of R152 479 047). Zero BBET40 securities
were redeemed during the period (2014: Zero)
Distributions
The Portfolio declares dividends quarterly. Distributions are made from the
income of the BBET40 Portfolio.
2015 2014
R R
Distributions declared during the
period were as follows:
20.98778 cents per share declared on
8 December 2014 and paid on 26
January 2015 (2014: 21.92505 cents
per share) 545 569 612 439
Botswana: 20.98778 cents per share
declared on 8 December 2014 and paid
on 26 January 2015 (2014: 21.92505
cents per share) 713 698 45 302
34.69806 cents per share declared on
6 March 2015 and paid on 28 April
2015 (2014: 30.05061 cents per
share) 884 801 839 412
Botswana: 34.69806 cents per share
declared on 6 March 2015 and paid on
28 April 2015 (2014: 30.05061 cents
per share) 1 197 083 62 106
37.63125 cents per share declared on
3 June 2015 and paid on
27 July 2015 (2014: 42.44826 cents
per share) 959 597 1 185 720
Botswana: 37.63125 cents per share
declared on 3 June 2015 and paid on
27 July 2015 (2014: 42.44826 cents
per share) 1 298 278 87 728
43.79487 cents per share declared on
8 September 2014 and paid on 26
October 2015 (2014: 30.64258 cents
per share) 1 116 742 781 386
Botswana: 43.79487 cents per share
declared on 8 September 2014 and
paid on 26 October 2015 (2014:
30.64258 cents per share) 2 824 796 1 057 169
Total Expense Ratio ('TER') 31.20bps 29.89bps
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 31.20 basis points per share (“bps”) (2014
29.89bps) (annualised) for the period 1 January 2015 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 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.
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').
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