Abridged Audited Results for the Year Ended 31 December 2015 - 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 (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 76 444 652 248 812 832 Investment income 76 442 060 41 898 720 Foreign exchange gain on dividends 2 592 1 134 Net fair value gain on investments at fair value through profit or loss - 206 912 978 Expenses (52 250 091) (14 051 935) Management and administrative expenses (26 704 732) (14 051 935) Net fair value loss on investments at fair value through profit or loss (25 519 431) - Finance costs (25 928) - Operating profit before distribution 24 194 561 234 760 897 Comprising: Income available for distribution before tax 49 713 992 27 847 919 Capital (loss)/gain retained (25 519 431) 206 912 978 Distributions (48 674 345) (22 269 950) (Decrease)/increase in net assets attributable to holders of redeemable securities before tax (24 479 784) 212 490 947 Withholding tax (11 155 997) (5 848 438) (Decrease)/increase in net assets attributable to holders of redeemable securities (35 635 781) 206 642 509 STATEMENT OF FINANCIAL POSITION at 31 December 2015 2015 2014 R R Assets Listed investments held at fair value through profit or loss 4 800 100 756 2 713 418 895 Trade and other receivables 5 403 497 3 033 642 Cash and cash equivalents 53 831 820 21 998 457 Total assets 4 859 336 073 2 738 450 994 Liabilities Net assets attributable to holders of redeemable securities 4 808 933 486 2 715 129 369 Trade and other payables 50 402 587 23 321 625 Total liabilities 4 859 336 073 2 738 450 994 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 1 337 790 821 Increase in net assets attributable to holders of redeemable securities 206 642 509 Creations of redeemable securities 864 620 474 Foreign currency translation adjustments 306 075 565 attributable to redeemable securities Balance at 31 December 2014 2 715 129 369 Creation of redeemable securities 964 682 934 Decrease in net assets attributable to holders of redeemable securities (35 635 781) Foreign currency translation adjustments 1 164 756 964 attributable to redeemable securities 4 808 933 486 Balance at 31 December 2015 STATEMENT OF CASH FLOWS for the year ended 31 December 2015 2015 2014 R R Cash utilised by operations (9 845 669) (452 175) Dividends received 72 094 808 37 516 034 Management fees paid (17 387 630) (9 380 352) Interest paid (25 928) - Net cash inflow from operating activities 44 835 581 27 683 507 Cash outflow from investing activities (947 441 737) (863 273 926) Purchase of listed investments (947 441 737) (863 273 926) Cash inflow from financing activities 934 439 519 848 284 993 Proceeds on creation of redeemable securities 964 682 934 864 620 474 Distributions paid to investors (30 243 415) (16 335 481) Net increase in cash and cash equivalents 31 833 363 12 694 574 Cash and cash equivalents at the beginning of year 21 998 457 9 303 883 Cash and cash equivalents at the end of year 53 831 820 21 998 457 2015 2014 Number Number db x-Trackers MSCI USA redeemable securities in issue 159 000 000 120 000 000 In terms of the Trust Deed and CISCA, the Trust is 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 dbx- trackers MSCI USA redeemable securities. Creations and redemptions There were 39 000 000 (2014: 48 000 000) Index Securities created during the year for a value of R964 682 934 (2014: R864 620 474). There were no redemptions during the current or prior year. 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 85.5 basis points management fee charged (2014: 85.5 basis points 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 USA Redeemable Security – 2015 2014 R R Declared distributions (45 093 364) (20 084 622) 0.11022 Rand per security Declared June 2015 and paid July 2015 (15 210 964) 0.08672 Rand per security (8 584 872) Declared June 2014 and paid July 2014 0.18794 Rand per security Declared December 2015 and paid January 2016 (29 882 400) 0.09583 Rand per security Declared December 2014 and paid January (11 499 750) 2015 Management fees refunded during the year as (3 580 981) (2 185 328) a rebate distribution Total distribution expense for the year (48 674 345) (22 269 950) 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 0.855% of assets under management on a daily basis (2014: 0.855% of the assets under management). The Trust had a TER of 85.5 basis points (2014: 85.5 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 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. 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.