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Abridged Audited Results for the Year Ended 31 December 2015 - STX40
SATRIX COLLECTIVE INVESTMENT SCHEME
SATRIX SATRIX 40
JSE code: STX40
ISIN: ZAE000027108
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 243 169 231 235 519 002
Fee income: Securities lending 2 305 970 1 839 653
REIT income 6 249 314 4 735 748
Other income 864 734 -
Interest income 1 920 001 1 439 287
Total income 254 509 250 243 533 690
Expenses
Management fee (34 017 717) (37 111 796)
Transaction costs (310 955) (354 020)
Trustee and custodian fees (2 430 388) (2 927 338)
Total operating expenses (36 759 060) (40 393 154)
Income attributable to investors before
distribution 217 750 190 203 140 536
Income distributions (212 860 123) (203 452 247)
Income attributable to investors after
distributions 4 890 067 (311 711)
Realised gains on financial instruments
designated at fair value through profit or
loss 830 498 267 1 219 592 224
Unrealised losses on financial instruments
designated at fair value through profit or
loss (551 952 416) (745 310 212)
Total fair value adjustments 278 545 851 474 282 012
Increase in net assets attributable to
investors after distributions 283 435 918 473 970 301
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 6 983 761 566 7 804 308 063
Interest receivable 202 621 157 539
Securities lending fee receivable - 126 023
Other receivables 379 286 264 711
Cash and cash equivalents 44 203 976 38 985 424
Total assets 7 028 547 449 7 843 841 760
LIABILITIES
Distributions payable to investors 39 480 177 37 646 051
Other payables 2 462 995 3 935 002
Total liabilities (excluding net assets
attributable to investors) 41 943 172 41 581 053
Net assets attributable to investors 6 986 604 277 7 802 260 707
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2015
Capital Income Net assets
attributable to attributable attributable
investors to investors to investors
R R R
Balance at 1 January 2014 8 856 199 379 (1 735 645) 8 854 463 734
Creation of Satrix 40
securities 488 193 458 - 488 193 458
Redemption of Satrix 40
Securities (2 014 366 786) - (2 014 366 786)
Increase/(decrease) in net
assets attributable to
investors after
distributions 474 282 012 (311 711) 473 970 301
Balance at 31 December 2014 7 804 308 063 (2 047 356) 7 802 260 707
Creations of Satrix 40
Securities 374 055 561 - 374 055 561
Redemption of Satrix 40
Securities (1 473 147 909) - (1 473 147 909)
Increase in net assets
attributable to investors
after distributions 278 545 851 4 890 067 283 435 918
Balance at 31 December 2015 6 983 761 566 2 842 711 6 986 604 277
STATEMENT OF CASH FLOWS
for the year ended 31 December 2015
2015 2014
R R
Net cash generated from operating
activities 216 244 549 202 530 179
Cash utilised by operations (37 480 908) (40 837 811)
Fee income: Securities lending 2 431 993 1 820 188
Interest received 1 874 919 1 293 052
REIT received 6 248 314 4 735 748
Dividend received 243 169 231 235 519 002
Cash inflow from investing activities 1 099 092 348 1 526 173 328
Purchase of underlying constituents (1 272 825 091) (899 625 971)
Sale of underlying constituents 2 371 917 439 2 425 799 299
Cash outflow from financing activities (1 310 118 345) (1 719 946 975)
Creation of Satrix 40 Securities 374 055 561 488 193 548
Redemption of Satrix 40 Securities (1 473 147 909) (2 014 366 786)
Cash distributed to security holders (211 025 997) (193 773 647)
Net movement in cash and cash equivalents 5 218 552 8 756 532
Cash and cash equivalents at the beginning
of the year 38 985 424 30 228 892
Cash and cash equivalents at the end of
the year 44 203 976 38 985 424
SATRIX 40 SECURITIES
During the year, 8 000 000 (2014: 11 000 00) Satrix 40 securities were
created at a value of R374 055 561 (2014: R488 193 458) and 33 000 000
(2014: 47 000 000) Satrix 40 securities were redeemed at a value of R1 473
147 909 (2014: R2 014 366 786). All creations and liquidations were in
specie.
Distributions
The Portfolio effects quarterly distributions. All distributions were made
out of income of the Satrix 40 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 40 Security.
2015 2014
R R
21.48 cents per security
Declared 27 March 2015 and
paid 29 April 2015 37 695 680
20.84 cents per security
Declared 28 March 2014 and
paid 10 April 2014 41 157 331
32.00 cents per security
Declared 26 June 2015 and paid
23 July 2015 54 877 437
27.94 cents per security
Declared 27 June 2014 and
paid 18 July 2014 50 429 462
45.21 cents per security
Declared 25 September 2015 and
Paid 22 October 2015 74 818 929
38.68 cents per security
Declared 26 September 2014 and
paid 16 October 2014 69 427 502
25.89 cents per security
Declared 31 December 2015 and
paid 26 January 2016 39 480 177
21.21 cents per security
Declared 24 December 2014 and
paid 23 January 2015 37 646 051
Accrued income portion of NAV paid
redemption/(creation) of securities 5 987 900 4 791 900
Total distributions 212 860 123 203 452 247
Operating Segments
The Satrix 40 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 6 903 764 566 – –
Net assets attributable to
investors - (6 986 604 277) –
Total 6 903 764 566 (6 986 604 277) –
31 December 2014
Financial instruments
designated at fair value
through profit or loss:
Listed equities 7 804 308 063 – –
Net assets attributable to
investors – (7 802 260 707) –
Total 7 804 308 063 (7 802 260 707) –
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 – 202 621 –
Other receivables – – 379 286
Cash and cash equivalents – 44 203 976 –
Total – 44 406 597 379 286
31 December 2015 R R R
Liabilities
Distributions payable to
investors – – 39 480 177
Other payables – – 2 462 995
Total – – 41 943 172
Level 1 Level 2 Level 3
31 December 2014 R R R
Assets
Interest receivable – 157 539 –
Securities lending fee
receivable – – 126 023
Other receivables – – 264 711
Cash and cash equivalents – 38 985 424 –
Total – 39 142 963 390 734
31 December 2014 R R R
Liabilities
Distributions payable to
37 646 051
investors – –
Other payables – – 3 935 002
Total – – 41 581 053
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 35 068 999 37 795 426
Management fee payable at 31 December
Satrix Managers (RF) Proprietary Limited 2 462 995 2 962 942
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 40 Portfolio had a TER of 45.08 (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, and 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 40 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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