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Abridged Audited Results for the Year Ended 31 December 2015 - STXIND
SATRIX COLLECTIVE INVESTMENT SCHEME
SATRIX INDI
JSE code: STXIND
ISIN: ZAE000036364
A portfolio in the Satrix Collective Investment Scheme (“Satrix”),
registered as such in terms of the Collective Investment Schemes Control
Act, 45 of 2002 (the “Act”)
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 48 656 571 36 894 069
Fee income: Securities lending 602 320 324 521
Other income 81 656 -
Interest income 447 181 238 845
Total income 49 787 728 37 457 435
Expenses
Management fee (8 801 417) (7 107 583)
Transaction costs (1 658 731) (266 535)
Trustee and custodian fees (125 585) (119 503)
Total operating expenses (10 585 733) (7 493 621)
Income attributable to investors before
distribution 39 201 995 29 963 814
Income distributions (38 600 923) -
Income attributable to investors after
distributions 601 072 (29 642 274)
Realised gains on financial instruments
designated at fair value through profit or
loss 160 612 065 34 222 852
Unrealised gains on financial instruments
designated at fair value through profit or
loss 121 659 139 182 794 712
Total fair value adjustments 282 271 204 217 017 564
Increase in net assets attributable to
investors after distributions 282 872 276 217 339 104
STATEMENT OF FINANCIAL POSITION
at 31 December 2015
2015 2014
R R
ASSETS
Listed equities designated as held at fair
value through profit or loss 2 209 277 809 1 795 090 868
Interest receivable 57 709 30 868
Securities lending fee receivable - 20 972
Other receivables 46 122 327 723
Cash and cash equivalents 12 328 798 7 520 686
Total assets 2 221 710 438 1 802 991 117
LIABILITIES
Distributions payable to investors 10 806 748 6 868 926
Other payables 752 500 759 014
Total liabilities (excluding net assets
attributable to investors) 11 559 248 7 627 940
Net assets attributable to investors 2 210 151 190 1 795 363 177
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 1 459 807 264 (49 231) 1 459 758 033
Creation of Satrix INDI
securities 118 266 040 - 118 266 040
Increase in net assets
attributable to investors
after distributions 217 017 564 321 540 217 339 104
Balance at 31 December 2014 1 795 090 868 272 309 1 795 363 177
Creations of Satrix INDI
Securities 131 915 737 - 131 915 737
Increase in net assets
attributable to investors
after distributions 282 271 204 601 072 282 872 276
Balance at 31 December 2015 2 209 277 809 873 381 2 210 151 190
STATEMENT OF CASH FLOWS
for the year ended 31 December 2015
2015 2014
R R
Net cash generated from operating activities 39 471 213 38 442 949
Cash utilised by operations (10 228 990) 1 016 136
Fee income: Securities lending 623 292 323 641
Interest received 420 340 209 103
Dividend received 48 656 571 36 894 069
Cash outflow from investing activities (131 915 737) (118 266 040)
Purchase of underlying constituents (596 221 275) (188 691 410)
Sale of underlying constituents 464 305 538 70 425 370
Cash inflow from financing activities 97 252 636 92 945 110
Creation of Satrix INDI Securities 131 915 737 118 266 040
Cash distributed to security holders (34 663 101) (25 320 930)
Net movement in cash and cash equivalents 4 808 112 13 122 019
Cash and cash equivalents at the beginning
of the year 7 520 686 (5 601 333)
Cash and cash equivalents at the end of the
year 12 328 798 7 520 686
SATRIX INDI SECURITIES
During the year, 2 000 000 (2014: 2 000 000) Satrix INDI securities were
created at a value of R 131 915 737(2014: R118 266 040) and nil (2014: nil)
Satrix INDI securities were redeemed at a value of R nil (2014: R nil). All
creations and liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix INDI Portfolio. The record dates were 27 March
2015, 26 June 2015, 25 September 2015 and 31 December 2015 respectively.
During the year under review the following distributions were effected per
Satrix INDI Security.
2015 2014
R R
12.33 cents per security
Declared 27 March 2015 and
paid 29 April 2015 3 549 617
14.06 cents per security
Declared 28 March 2014 and
paid 10 April 2014 3 766 457
34.70 cents per security
Declared 26 June 2015 and paid
23 July 2015 10 336 594
25.20 cents per security
Declared 27 June 2014 and
paid 18 July 2014 6 750 691
46.06 cents per security
Declared 25 September 2015 and
Paid 22 October 2015 14 181 164
44.53 cents per security
Declared 26 September 2014 and
paid 16 October 2014 12 374 200
35.10 cents per security
Declared 31 December 2015 and
paid 26 January 2016 10 806 748
23.86 cents per security
Declared 24 December 2014 and
paid 23 January 2015 6 868 926
Accrued income portion of NAV paid
redemption/(creation) of securities (273 200) (118 000)
Total distributions 38 600 923 29 642 274
Operating Segments
The Satrix INDI Portfolio offers only one product, being the specific
exchange traded fund, tracking the specific identified index.
Information regarding the results of the reportable segment is disclosed in
Financials statements as currently set out, thus no further IFRS 8
disclosure is required.
Fair value estimation
The fair value of financial assets and liabilities traded in active markets
(such as publicly traded derivatives and trading securities) are based on
quoted market prices at the close of trading at the year-end date.
The following tables analyse, within the fair value hierarchy, the
Portfolio's financial assets and liabilities (by class) measured at fair
value at 31 December:
Level 1 Level 2 Level 3
31 December 2015 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 2 209 277 809 – –
Net assets attributable to
investors - (2 210 151 190) –
Total 2 209 277 809 (2 210 151 190) –
Level 1 Level 2 Level 3
31 December 2014 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 1 795 090 868 – –
Net assets attributable to
investors – (1 795 363 177) –
Total 1 795 090 868 (1 795 363 177) –
The following table analyses, within the fair value hierarchy, the
Portfolio’s assets and liabilities (by class) not measured at fair value at
31 December but for which fair value is disclosed:
Level 1 Level 2 Level 3
31 December 2015 R R R
Assets
Interest receivable – 57 709 –
Other receivables – – 46 122
Cash and cash equivalents – 12 328 798 –
Total – 12 386 507 46 122
Level 1 Level 2 Level 3
31 December 2015 R R R
Liabilities
Distributions payable to
investors – – 10 806 748
Other payables – – 752 500
Total – – 11 559 248
Level 1 Level 2 Level 3
31 December 2014 R R R
Assets
Interest receivable – 30 868 –
Securities lending fee
receivable – – 20 972
Other receivables – – 327 723
Cash and cash equivalents – 7 520 686 –
Total – 7 551 554 348 695
Level 1 Level 2 Level 3
31 December 2014 R R R
Liabilities
Distributions payable to
6 868 926
investors – –
Other payables – – 759 014
Total – – 7 627 940
Related parties
Related parties include Satrix Managers (RF) (Proprietary) Limited in its
capacity as the management company of the Portfolio. The following related
party balances and transactions occurred during the year.
2015 2014
R R
Management fee paid
Satrix Managers (RF) Proprietary Limited 8 850 080 7 031 221
Management fee payable at 31 December
Satrix Managers (RF) Proprietary Limited 752 500 677 359
All related party transactions are conducted at arm’s length on normal
commercial terms and conditions. Outstanding balances will be settled in the
ordinary course of business.
Total Expense Ratio ('TER')
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 Satrix INDI Portfolio had a TER of 45.10 (2014: 45.60) basis points for
the period 1 January 2013 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’) issued by the International
Accounting Standards Board (‘IASB’) and SAICA Financial Reporting Guides as
issued by the Accounting Practices, the Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council and in accordance
with the requirements of the Collective Investment Schemes Control Act of
South Africa(‘CISCA’), in order to meet the requirements of the Trust Deed
approved by the Financial Services Board.
The abridged financial results have been prepared in accordance with the
framework concepts and the recognition and measurement requirements of
International Financial Reporting Standards (IFRS) and the SAICA Financial
Reporting Guides as issued by the Accounting Practices Board. The
disclosures comply with International Accounting Standards (IAS) 34.
Functional and presentation currency
These financial statements are presented in South African Rand, which is the
Portfolio’s functional currency.
Accounting policies
The financial statements incorporate the principal accounting policies that
are consistent with those adopted in the previous financial year. The new
pronouncements applicable for the financial year ending 31 December 2015 for
the first time, was assessed and did not have a significant impact to the
financial position or performance of the Portfolio.
Forthcoming requirements
New standards, amendments to standards and interpretations not yet adopted
A number of standards, amendments to standards and interpretations are not
effective for the year ended 31 December 2015, and have not been applied in
preparing these financial statements. All standards and interpretations
issued but not effective for the year ended 31 December 2015 have been
considered. None of these are expected to have a significant effect on the
recognition and measurement of the amounts recognised in the financial
statements of the Portfolio.
Standard/Interpretation Effective date
IFRS 14 Regulatory deferral Annual periods beginning
accounts on or after 1 January 2016
IAS 27 amendment Equity Method in Separate Annual periods beginning
Financial Statements on or after 1 January 2016
IFRS 11 amendment Accounting for acquisition Annual periods beginning
of interest in joint on or after 1 January 2016
operations
IAS 10 and IAS 28 Sale or contribution of Annual periods beginning
amendment Asset between an Investor on or after 1 January 2016
and its Associate or Joint
Venture
IAS 16 and IAS 38 Clarification of acceptable Annual periods beginning
amendment methods of depreciation and on or after 1 January 2016
amortisation
IFRS 10, IFRS 12 Investment Entities: Annual periods beginning
and IAS 28 Applying the Consolidation on or after 1 January 2016
amendment Exception
IAS 16 and IAS 41 Agricultural: Bearer plants Annual periods beginning
amendment on or after 1 January 2016
IAS 1 amendment Disclosure Initiative Annual periods beginning
on or after 1 January 2016
IFRS 15 Revenue from contracts with Annual periods beginning
customers on or after 1 January 2018
IFRS 9 Financial Instruments Annual periods beginning
on or after 1 January 2018
Preparer of Abridged annual financial statements for the year ended 31
December 2015
These Abridged annual financial statements have been prepared by T du
Plessis CA (SA), the Financial Manager.
Audit report
Ernst & Young Inc, the entity’s independent auditors, has audited the
abridged results of the Satrix INDI Portfolio for the year ended 31 December
2015 and has expressed an unmodified audit opinion thereon. The auditor
also expressed an unmodified opinion on the annual financial statements from
which these abridged results were derived. Their audit report and the
abridged results is available for inspection at the registered office of
Satrix Managers (RF) (Pty) Limited, 4th Floor, Building 2, 11 Alice Lane,
Sandton.
A full copy of these financial statements is available on the Satrix website
www.satrix.co.za.
31 March 2016
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) Proprietary Limited
Date: 31/03/2016 12:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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