Wrap Text
LVLTRX - Abridged Results for CoreShares Ind Trx Collective Scheme and CoreShares Ind Trx Managers (RF) (Pty) Ltd
CoreShares Index Tracker Managers (RF) Proprietary Limited
CoreShares LowVolTrax
Share code: LVLTRX
ISIN: ZAE000190112
("LVLTRX")
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME AND CORESHARES INDEX TRACKER MANAGERS PROPRIETARY LIMITED
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME FOR THE YEAR ENDED 30 SEPTEMBER 2016
STATEMENT OF FINANCIAL POSITION
As at 30 September 2016
Notes 2016 2015
R R
ASSETS
Listed investments held at fair value 1 29,929,175 23,748,754
Distributions receivable 39,978 35,646
10,818
Securities sold receivable -
Cash and cash equivalents 373,162 -
TOTAL ASSETS 30,342,315 23,795,218
LIABILITIES
Net assets attributable to investors 30,157,225 23,404,473
CURRENT LIABILITIES
Trade and other payables 4 185,090 153,867
Bank overdraft 1 - 236,878
TOTAL LIABILITIES 30,342,315 23,795,218
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 30 September 2016
Notes 2016 2015
R R
Distribution income 1,067,486 715,711
Investment income 8,781 5,140
Total Revenue 1,076,267 720,851
Management and administration expenses (153,099) (80,735)
Income before taxation 923,168 640,116
Taxation 7 - -
Income before distributions 3 923,168 640,116
Distributions paid (890,612) (546,765)
Income after distributions 32,556 93,351
Realised gains on financial instruments designated at fair
value through profit or loss 525,615 668,995
Unrealised (losses)/gains on financial instruments
designated at fair value through profit or loss
(1,024,302) 908,999
Total fair value adjustments (498,686) 1,577,994
Other comprehensive income - -
Increase in net assets attributable to investors (466,130) 1,671,345
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
For the year ended 30 September 2016
Capital Accumulated
Notes Contributions Profit Total
R R R
Balance at 30 September 2014 15,933,256 64,425 15,997,681
Creation of 47 690 units on 07 July 2015 1,358,214 1,358,214
Creation of 50 000 units on 20 July 2015 1,471,891 1,471,891
Creation of 50 000 units on 12 August 2015 1,487,723 1,487,723
Creation of 50 000 units on 11 September 2015 1,417,619 1,417,619
Change in net assets attributable to investors 1,577,994 93,351 1,671,345
Balance at 30 September 2015 23,246,697 157,776 23,404,473
Creation of 50 000 units on 07 October2015 1,451,198 1,451,198
Creation of 50 000 units on 03 November 2015 1,490,019 1,490,019
Creation of 50 000 units on 03 December 2015 1,425,981 1,425,981
Creation of 50 000 units on 04 March 2016 1,373,315 1,373,315
Creation of 50 000 units on 29 June 2016 1,375,455 1,375,455
Creation of 50 000 units on 29 July 2016 1,449,803 1,449,803
Creation of 50 000 units on 18 August 2016 1,450,500 1,450,500
Liquidation of 100 000 units on 26 May 2016 (2,797,390) (2,797,390)
Change in net assets attributable to investors (498,686) 32,556 (466,130)
Balance at 30 September 2016 29,966,893 190,332 30,157,225
STATEMENT OF CASH FLOWS
For the year ended 30 September 2016
Notes 2016 2015
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations A 960,877 1,395,747
Distributions paid B (890,612) (546,765)
Net cash inflow from operating activities 70,265 848,982
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (33,820,574) (21,192,211)
Proceeds from sale of investments 27,137,610 14,257,865
Net cash outflow from investing activities (6,682,964) (6,934,346)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received 10,023,601 5,735,447
Contributions repaid (2,800,862)
Net cash inflow from financing activities 7,222,739 5,735,447
NET INCREASE/(DECREASE)IN CASH AND CASH
EQUIVALENTS 610,040 (349,917)
(BANK OVERDRAFT)/CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE YEAR (236,878) 113,039
CASH AND CASH EQUIVALENTS/(BANK OVERDRAFT) AT
END OF THE YEAR 373,162 (236,878)
ACCOUNTING POLICIES
For the year ended 30 September 2016
The financial statements have been prepared on the following principal accounting policies:
1. Basis of Preparation
The financial statements are prepared on a historic cost basis, except for financial instruments, which are
accounted for as set out below.
The financial statements are prepared in accordance with International Financial Reporting Standards
(“IFRS’’), its interpretations adopted by the International Accounting Standards Board (“IASB”), the South
African Institute of Chatered Accountants Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, the requirements of the CoreShares Index Tracker
Collective Investment Scheme Deed and the Collective Investment Schemes Control Act, 45 of 2002 ("the
Act").
At the date of approval of the annual financial statements, the following new standards and amendments
that apply to the Scheme were in issue but not yet effective:
New standards
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018.
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1
January 2018.
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
The manager anticipates adopting the applicable standards once they become effective and that such
adoption will have no material impact on the financial statements of the entity or warrant any changes in
accounting policies.
New standards that became effective during the year
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January 2016.
Amendments to existing standards
IFRS 11 - Accounting for Acquisitions of Interests in Joint Operations - Applicable to annual periods
beginning on or after 1 January 2016.
IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation - Applicable to
annual periods beginning on or after 1 January 2016.
IAS 16 and IAS 41 - Agriculture: Bearer Plants - Applicable to annual periods beginning on or after 1
January 2016.
IAS 27 - Equity Method in Separate Financial Statements - Applicable to annual periods beginning on or
after 1 January 2016.
Annual Improvements 2012-2014 Cycle - Applicable to annual periods beginning on or after 1 January
2016.
IAS 1 - Disclosure Initiative - Effective for annual periods beginning on or after 1 January 2016.
IFRS 10, IFRS 12 and IAS 28 - Investment Entities: Applying the Consolidation Exception - Effective for
annual periods beginning on or after 1 January 2016.
The manager anticipates that the adoption of amendments to existing standards in future periods will have
no material impact on the financial statements of the entity.
The standards and amendments adopted in the current year have had no material impact on the financial
statements of the entity.
2. Functional and reporting currency
The financial statements are presented in South African Rand which is the functional currency of the
Scheme.
3. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical
estimates, judgements and assumptions that affect the reported amounts. It also requires management to
exercise its judgement in the Scheme’s process of applying the accounting policies. Actual results may
vary from these estimates. There are no areas involving a higher degree of judgement complexities or
areas where assumptions or estimates are significant.
4. Financial Instruments Measurement
Financial instruments are recognised when the Scheme becomes a party to the contractual provisions of
that particular instrument. Financial instruments are initially measured at fair value, which except for
financial instruments not at fair value through profit and loss, include direct attributable transaction costs.
Subsequent to initial recognition, these instruments are measured as set out below.
Investments
Listed investments are measured at fair value. Fair value is determined with reference to quoted market
prices at the reporting date, as published in the financial press at the reporting date.
Cash and cash equivalents
Cash and cash equivalents comprises of bank balances and are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit or loss, are measured at amortised
cost using the effective interest rate method. Financial liabilities arising from the securities issued by the
Scheme are carried at fair value representing the investor’s right to a residual interest in the Scheme’s net
assets, i.e. the net asset value of the Scheme. Changes in the fair value are included in net profit or loss in
the period in which the change arises.
Fair value against and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of financial instruments are included in
the statement of profit or loss and other comprehensive income.
Offset
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial
position when the Scheme has a legally enforceable right to set off the recognised amounts, and intends to
settle on a net basis, or to realise the asset and settle the liability simultaneously.
Derecognition of financial instruments
"The Scheme derecognises financial assets when:
- The contractual rights to the cash flows arising from the financial assets have expired or have been
forfeited by the Scheme; or
- It transfers the financial assets including substantially all the risks and rewards of ownership of the
assets; or
- It transfers the financial assets, neither retaining nor transferring substantially all the risks and rewards
of the ownership of the asset, but no longer retains control of the asset.
The difference between the carrying value of financial assets derecognised at the date of derecognition,
and proceeds, is recorded as a realised gain or loss in the statement of profit or loss and other
comprehensive income.
A financial liability is derecognised when the liability is extinguished. This is, when the obligation specified
in the contract is discharged, cancelled or has expired. The difference between the carrying amount of a
financial liability (or part thereof) extinguished or transferred to another party and consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss."
5. Revenue
Revenue comprises income from distribution income and interest income.
Interest income
Interest income is recognised in the statement of profit or loss and other comprehensive income, using the
effective rate method taking into account the expected timing and amount of cash flows.
Distribution income
Distribution income in the form of cash and manufactured dividends are recognised when the right to
receive payment is established. Manufactured dividends received are recognised as income in profit or
loss.
6. Income tax
Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income or
capital gains. Both income and capital gains are taxed in the hands of investors.
7. Securities lending
The portfolio engages in securities lending activities up to 50% of the assets under management.
Collateral is held by the relevant lending desks. There was no lending activity at period end.
8. Expenses
Expenses are recognised on the accrual basis.
9. Impairment
Financial assets that are stated at amortised cost are reviewed at each reporting date to determine
whether there is objective evidence of impairment. If any such indication exists, an impairment loss is
recognised in profit or loss as the difference between the asset’s carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original effective interest rate. If in a
subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised
cost decreases and the decrease can be linked objectively to an event occurring after the write-down the
impairment loss is reversed through profit or loss.
10. Distributions
Distributions payable on redeemable securities are recognised in profit or loss as distributions.
In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed, the Portfolio
distributes its distributable income and any other amounts determined by the Manager, to security
investors in cash. The distributions are payable shortly after the end of each quarter and recognised in the
statement of profit or loss and other comprehensive income and as distributions."
11. Creations and redemptions
Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the
current market price of the securities plus a brokerage fee that is negotiable with the broker and any
additional transaction costs applicable to such a trade.
The cash subscription price and number of the Scheme's securities to be issued to an investor for cash will
be determined by the amount which the investor invests (net of transaction costs) and will be a function of
the pro rata cost to the portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE.
Securities prices are determined by reference to the net assets of the Portfolio divided by the number of
securities in issue. For unit pricing purposes, net assets are determined using the last reported trade price
for securities. These prices may differ from the market price quoted on the JSE.
12. Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require redemption for
cash or in specie at the value proportionate to the investors’ share. Such instruments give rise to a
financial liability for the net asset value of the redemption amount in the Scheme’s net assets at redemption
date. In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed and the Act,
the Scheme is contractually obliged to redeem securities at the net asset value. A redemption fee,
depending on the size of the recall, would be payable by the investor making the redemption.
13. Net assets attributable to security holders
Securities are redeemable at the security investor’s option and are therefore classified as financial
liabilities. The securities may be sold back to the Portfolio at anytime. The fair value of redeemable
securities is measured at the redemption amount that is payable (in cash and securities representing each
investor’s equal, undivided and vested interest in the assets as a whole, subject to liabilities, as defined by
the CoreShares Index Tracker Collective Investment Scheme Deed) at the reporting date if security
investors exercise their right to put the securities back to the Scheme.
14. Increase/decrease in net assets attributable to security investors
Income not distributed is included in net assets attributable to security investors.
15. Comparative information
No comparative information has been shown due to 2016 being the Scheme's first year of
operation.
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY
LIMITED FOR THE YEAR ENDED 30 SEPTEMBER 2016
STATEMENT OF FINANCIAL POSITION
as at 30 September 2016
Notes 2016 2015
R R
ASSETS
NON-CURRENT ASSETS
Deferred taxation asset 2 561,746 -
CURRENT ASSETS
Loan to shareholder 6 7,300,000 7,300,000
Investment in unit trusts 3 3,995,136 -
Receivables 4 2,107,196 975,407
Cash and cash equivalents 169,833 530,025
TOTAL ASSETS 14,133,911 8,805,432
EQUITY AND LIABILITIES
Share capital 5 100 100
Accumulated loss (2,059,571) -
Equity (2,059,471) 100
CURRENT LIABILITIES
Subordinated Shareholder Loan 6 7,300,000 7,300,000
Loans from holding company 7 6,686,941 -
Payables 8 2,206,441 1,505,332
TOTAL EQUITY AND LIABILITIES 14,133,911 8,805,432
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 September 2016
Notes 2016 2015
R R
Revenue 3,557,907 2,615,416
Operating expenditure (5,853,191) (2,652,960)
Operating Loss (2,295,284) (37,544)
Fair value losses 3 (4,864) -
Interest income 215,771 37,544
Interest expense (536,940) -
NET LOSS BEFORE TAXATION 9 (2,621,317) -
Taxation 1 561,746 -
NET LOSS AFTER TAXATION (2,059,571) -
Other comprehensive income - -
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (2,059,571) -
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 September 2016
Share Accumulated
Notes Capital Profit/ (Loss) Total
R R R
Balance at 30 September 2014 100 - 100
Total comprehensive income for the year - - -
Balance at 30 September 2015 100 - 100
Total comprehensive loss for the year - (2,059,571) (2,059,571)
Balance at 30 September 2016 100 (2,059,571) (2,059,471)
STATEMENT OF CASH FLOWS
for the year ended 30 September 2016
Notes 2016 2015
R R
NET LOSS BEFORE TAXATION (2,621,317) -
Non-cash items:
Fair value losses 4,864 -
Working capital changes:
Increase in receivables (1,131,789) (357,861)
Increase in payables 701,109 367,608
Net cash (outflow)/inflow from operating activities (3,047,133) 9,747
Net cash outflow from investing activities
Increase in investment in unit trusts (4,000,000) -
Net cash inflow from financing activities
Increase in loans from holding company 6,686,941 -
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (360,192) 9,747
Cash and cash equivalents at the beginning of the period 530,025 520,278
CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD 169,833 530,025
ACCOUNTING POLICIES
30 September 2016
The financial statements of the Company are prepared in accordance with International Financial
Reporting Standards ("IFRS") and the Companies Act of South Africa and have been prepared on the
historical cost basis except for the revaluation of certain financial instruments.
At the date of approval of the annual financial statements, the following new standards, interpretations
and amendments that apply to the company were in issue but not yet effective:
New standards
IFRS 9 - Financial Instruments - Effective for annual period beginning on or after 1 January 2018.
IFRS 15 - Revenue from contracts with customers - Effective for annual period beginning on or after 1
January 2018.
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
The directors anticipate that the adoption of applicable standards and interpretations in future periods
will have no material impact on the financial statements of the entity.
New standards that became effective during the year
IFRS 14 - Regulatory deferral accounts- Effective for annual period beginning on or after 1 January
2016.
Amendments to existing standards
IFRS 11 - Accounting for Acquisitions of Interests in Joint Operations - Applicable to annual periods
beginning on or after 1 January 2016.
IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation - Applicable
to annual periods beginning on or after 1 January 2016.
IAS 16 and IAS 41 - Agriculture: Bearer Plants - Applicable to annual periods beginning on or after 1
January 2016.
IAS 27 - Equity Method in Separate Financial Statements - Applicable to annual periods beginning on
or after 1 January 2016.
Annual Improvements 2012-2014 Cycle - Applicable to annual periods beginning on or after 1 January
2016.
IAS 1 - Disclosure Initiative - Effective for annual periods beginning on or after 1 January 2016.
IFRS 10, IFRS 12 and IAS 28 - Investment Entities: Applying the Consolidation Exception - Effective for
annual periods beginning on or after 1 January 2016.
The directors anticipate that the adoption of amendments to existing standards in future periods will
have no material impact on the financial statements of the entity.
The standards and amendments adopted in the current year have had no material impact on the
financial statements of the entity.
The principal accounting policies adopted in the preparation of these financial statements are set out
below:
1. Revenue Recognition
Income derived from services rendered is recognised where it is probable that economic benefits
will flow to the entity and the stage of completion and the amount can be reliably measured.
Interest income is recognised on a time proportion basis which takes into account the effective
yield on the asset. Interest income includes the amount of amortisation of any discount or
premium.
Dividend revenue from investments is recognised when the shareholder has a right to receive
payment.
2. Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as "loans and receivables". Loans and receivables
are measured at amortised cost using the effective interest method less any impairment. Interest
income is recognised by applying the effective interest rate, except for short term receivables
where the recognition of interest would be immaterial.
3. Investments
Investments are recognised on a settlement date basis and are initially measured at cost, including
transaction costs, and are remeasured to fair value through profit or loss using market closing prices at each
subsequent reporting date.
4. Related party transactions
Parties are considered to be related if one party has the ability to control or exercise significant
influence over the other party in making financial and operating decisions. The company enters
into various related party transactions in the ordinary course of business.
5. Financial liabilities
Financial liabilities which include trade payables and shareholders' loans are measured at
amortised cost using the effective interest rate method.
6. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical
estimates, judgements and assumptions that affect the reported amounts. It also requires
management to exercise its judgement in the Scheme’s process of applying the accounting
policies. Actual results may vary from these estimates. There are no areas involving a higher
degree of judgement complexities or areas where assumptions or estimates are significant.
7. Taxation
Income tax on profit or loss for the period comprises current and deferred tax. Income tax is
recognised in profit or loss except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using the tax rates
enacted or substantively enacted at the reporting date and any adjustment to tax payable in
respect of previous years.
Deferred tax is provided using the comprehensive liability method, based on temporary
differences. Temporary differences are differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases. The amount of deferred tax
provided is based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities using tax rates enacted or substantively enacted at the reporting date. The
effect on deferred tax of any changes in the tax rate is recognised in profit or loss except to the
extent that it relates to an item recognised in equity in which case it is recognised in equity.
A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the associated unused tax losses and deductible temporary differences
can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that
the related tax benefit will be realised. A deferred tax asset is not recognised on initial
recognition of an asset or liability in a transaction that at the time affects neither accounting nor
taxable profit or loss.
The abridged financial information set out in this announcement have been extracted from the annual
financial statements which have been audited by the auditors Deloitte & Touche. Their unmodified
audit report is available for inspection at the Manager’s registered address. The directors take full
responsibility for the preparation of the abridged financial information which have been extracted
correctly from the underlying audited annual financial statements.
The abridged financial information set out in this announcement is not in itself audited.
The full annual financial statements are available on www.coreshares.co.za.
30 December 2016
Sponsor
Grindrod Bank Limited
Date: 30/12/2016 08:34:00 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.
Sharenet Sites 
