Abridged Audited Results for the Year Ended 31 December 2015 - DBXWD The db X-trackers Collective Investment Scheme db x-trackers MSCI World Trust JSE code: DBXWD ISIN: ZAE000115184 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 (CISCA) 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 Revenue 75 894 958 111 668 429 Investment income 75 894 958 55 298 046 Net fair value gain on investments at fair value through profit or loss - 56 370 383 Expenses (108 353 579) (14 349 382) Foreign exchange loss on dividends (11 209 028) (452 155) Management and administrative expenses (19 207 250) (13 897 090) Net fair value loss on investments at fair value through profit or loss (77 142 175) - Equalisation on expropriations (774 096) - Finance costs (21 030) (137) Operating (loss)/profit before distribution (32 458 621) 97 319 047 Comprising: Income available for distribution before tax 44 683 554 40 948 664 Capital (loss)/profit retained (77 142 175) 56 370 383 Distributions (47 196 386) (31 499 207) (Decrease)/increase in net assets attributable to holders of redeemable securities before tax (79 655 007) 65 819 840 Withholding tax (11 651 697) (7 752 577) (Decrease)/increase in net assets attributable (91 306 704) 58 067 263 to holders of redeemable securities STATEMENT OF FINANCIAL POSITION at 31 December 2015 2015 2014 R R Assets Listed investments held at fair value through profit or loss 3 484 265 662 2 537 344 149 Trade and other receivables 3 922 983 2 805 999 Cash and cash equivalents 38 470 483 20 809 883 Total assets 3 526 659 128 2 560 960 031 Liabilities Net assets attributable to holders of redeemable securities 3 489 591 212 2 541 403 491 Trade and other payables 37 067 916 19 556 540 Total liabilities 3 526 659 128 2 560 960 031 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SECURITIES for the year ended 31 December 2015 Total R Balance at 1 January 2014 1 675 325 479 Creation of redeemable securities 590 168 799 Increase in net assets attributable to holders of 58 067 263 redeemable securities Foreign currency translation adjustments attributable to redeemable securities 217 841 950 Balance at 31 December 2014 2 541 403 491 Creation of redeemable securities 269 985 388 Decrease in net assets attributable to holders of (91 306 704) redeemable securities Redemption of redeemable securities (143,740,128) Foreign currency translation adjustments attributable to redeemable securities 913 249 165 Balance at 31 December 2015 3 489 591 212 STATEMENT OF CASH FLOWS for the year ended 31 December 2015 2015 2014 R R Cash utilised by operations (22 541 012) (8 027 174) Dividends received 73 815 708 54 250 871 Management fees paid (14 997 327) (10 135 415) Finance costs (21 030) (137) Net cash inflow from operating activities 36 256 339 36 088 145 Cash outflow from investing activities (110 814 523) (589 448 656) Purchase of listed investments (110 814 523) (589 448 656) Net cash inflow from financing activities 92 218 784 560 059 357 Proceeds on creation of securities 269 985 388 590 168 799 Payment on redemption of securities (143 740 128) - Distributions paid to investors (34 026 476) (30 109 442) Net increase in cash and cash equivalents 17 660 600 6 698 846 Cash and cash equivalents at the beginning of year 20 809 883 14 111 037 Cash and cash equivalents at the end of year 38 470 483 20 809 883 2015 2014 Number Number db x-trackers MSCI World redeemable securities in issue 135 000 000 129 000 000 In terms of the Trust Deed and CISCA, the Trust is required to pay the net asset value attributable to investors on redeemable securities on redemption of the securities. Vested income beneficiaries include all holders of db x-trackers MSCI World redeemable securities. Creations and redemptions There were 12 000 000 (2014: 33 000 000) Index Securities created during the year for a value of R269 985 388 (2014: R590 168 799). There were 6 000 000 (2014: nil) Index securities redeemed during the year for a value of R143 740 128 (2014: nil). Distributions The Trust effects semi–annual distributions. All distributions are made out of the income of the Trust. The rebates represent an investor’s partial reduction of the 68.4 basis points management fee charged (2014: 68.4 basis point management fee charged). The rebate is calculated using a sliding scale depending on the size of the investor’s investment. During the year under review the following distributions were effected per db x-trackers MSCI World Security – 2015 2014 R R Declared distributions (46 443 216) (31 026 119) 0.17065 Rand per security Declared June 2015 and paid July 2015 (22 525 690) 0.17293 Rand per security Declared June 2014 and paid July 2014 (20 233 192) 0.17717 Rand per security Declared December 2015 and paid January (23 917 526) 2016 0.08367 Rand per security Declared December 2014 and paid January (10 792 927) 2015 Management fees refunded during the year as a rebate distribution (753 170) (473 088) Total distribution expense for the year (47 196 386) (31 499 207) Total Expense Ratio (TER) The TER represents the total expense to the Trust. The only expense of the Trust is the management fee payable to the Manager which is calculated at 0.684% of assets under management on a daily basis (2014: 0.684% of the assets under management). The Trust had a TER of 68.4 basis points (2014: 68.4 basis). 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 Portfolio under their management. This is a requirement in terms of the Association for Savings and Investments South Africa (ASISA) standard on the calculation and publication of total expense ratios. Statement of compliance The information in the summarised report has been extracted from the audited annual financial statements which have been prepared in accordance with the requirements of the JSE Listing Requirements for abridged reports, and the requirements of CISCA in order to meet the requirements of the Trust Deed approved by the Financial Services Board. The listing requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition of 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 to also, as a minimum contain the information required by IAS 34 Interim Financial Reporting. This announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34. The full report is available on the issuer’s website, at the issuer’s registered offices and upon request. These financial statements were authorised for issue by the board of directors of the Manager on 23 March 2016. Accounting policies The accounting policies applied in the preparation of the financial statements from which the summary financial statements were derived are in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in the preparation of the previous annual financial statements. New standards and interpretations not yet adopted 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 reporting periods beginning on or after 1 January 2015: IAS 1: Disclosure Initiative - The amendments provide additional guidance on the application of materiality and aggregation when preparing financial statements. IAS 1 is effective for reporting periods beginning on or after 1 January 2016 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. IFRS 9: Financial Instruments - IFRS 9 deals with classification and measurement of financial assets and financial liabilities. IFRS 9 is effective for reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard 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 reporting periods beginning on or after 1 January 2018 and the impact of this standard will be assessed once the standard becomes effective. The Trust will only apply the standard once the standard becomes effective. 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) - dividends from listed equities 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 payment is established. This is usually the ex-dividend date for quoted equities. Audit report This summarised report is itself not reviewed or audited but is extracted from the underlying audited information. The audited annual financial statements for the year ended 31 December 2015 from which the summarised report has been extracted were audited by KPMG Inc, who expressed an unmodified opinion thereon. A copy of the auditor’s report on the audited annual financial statements is available for inspection at the company’s registered office together with the annual financial statements identified in the respective auditor’s reports. 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 confirm that 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 2016 Date: 31/03/2016 12:00:00 Produced by the JSE SENS Department. 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