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Abridged Audited Results For The Year Ended 31 December 2016 - 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 2016
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
2016 2015
R R
Revenue 297 532 912 75 894 958
Investment income 98 793 055 75 894 958
Net fair value gain on investments at fair
value through profit or loss 198 739 857 -
Expenses (35 347 153) (108 353 579)
Foreign exchange loss on dividends (11 689 477) (11 209 028)
Management and administrative expenses (23 578 279) (19 207 250)
Net fair value loss on investments at fair
value through profit or loss - (77 142 175)
Equalisation on expropriations (79 397) (774 096)
Finance costs - (21 030)
Operating profit/(loss) before distribution 262 185 759 (32 458 621)
Comprising:
Income available for distribution before tax 63 445 902 44 683 554
Capital profit/(loss) retained 198 739 857 (77 142 175)
Distributions (54 221 803) (47 196 386)
Increase/(decrease) in net assets attributable
to holders of redeemable securities before tax 207 963 956 (79 655 007)
Withholding tax (14 261 971) (11 651 697)
Increase/(decrease)in net assets attributable 193 701 985 (91 306 704)
to holders of redeemable securities
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STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
Assets
Listed investments held at fair value through
profit or loss 3 660 082 970 3 484 265 662
Trade and other receivables 4 034 254 3 922 983
Cash and cash equivalents 31 480 909 38 470 483
Total assets 3 695 598 133 3 526 659 128
Liabilities
Net assets attributable to holders of
redeemable securities 3 661 697 194 3 489 591 212
Trade and other payables 33 900 939 37 067 916
Total liabilities 3 695 598 133 3 526 659 128
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE
SECURITIES
for the year ended 31 December 2016
Total
R
Balance at 1 January 2015 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
Creation of redeemable securities 579 917 841
Increase in net assets attributable to holders of
193 701 985
redeemable securities
Redemption of redeemable securities (146 069 835)
Foreign currency translation adjustments attributable
to redeemable securities (455 444 009)
Balance at 31 December 2016 3 661 697 194
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STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Cash utilised by operations (24 342 188) (22 541 012)
Dividends received 96 761 207 73 815 708
Management fees paid (23 775 287) (14 997 327)
Interest received/(paid) 71 456 (21 030)
Net cash inflow from operating activities 48 715 188 36 256 339
Net cash outflow from investing activities (432 521 460) (110 814 523)
Purchase of listed investments (432 521 460) (110 814 523)
Net cash inflow from financing activities 376 816 698 92 218 784
Proceeds on creation of securities 579 917 841 269 985 388
Payment on redemption of securities (146 069 835) (143 740 128)
Distributions paid to investors (57 031 308) (34 026 476)
Net (decrease)/increase in cash and cash
equivalents (6 989 574) 17 660 600
Cash and cash equivalents at the beginning
of year 38 470 483 20 809 883
Cash and cash equivalents at the end of
year 31 480 909 38 470 483
2016 2015
Number Number
db x-trackers MSCI World redeemable
securities in issue 153 000 000 135 000 000
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 24 000 000 (2015: 12 000 000) Index Securities created during
the year amounting to a value of R579 917 841 (2015: R269 985 388). There
were 6 000 000 (2015: 6 000 000) Index securities redeemed during the
year for a value of R146 069 835 (2015: R143 740 128).
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 (2015:
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 –
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2016 2015
R R
Declared distributions (53 761 719) (46 443 216)
0.22676 Rand per security
Declared June 2016 and paid July 2016 (32 653 702)
0.17065 Rand per security
Declared June 2015 and paid July 2015 (22 525 690)
0.13625 Rand per security
Declared December 2016 and paid January (21 108 017)
2017
0.17717 Rand per security
Declared December 2015 and paid January (23 917 526)
2016
Management fees refunded during the year
as a rebate distribution (460 084) (753 170)
Total distribution expense for the year (54 221 803) (47 196 386)
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 (2015:
0.684% of the assets under management).
The Trust had a TER of 68.4 basis points (2015: 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.
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These financial statements were authorised for issue by the board of
directors of the Manager on 27 March 2017.
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 2016:
IFRS 9 Financial Instruments – IFRS 9 will be effective for the Trust’s
annual reporting period starting 1 January 2018. IFRS 9 will replace the
current classification, recognition and measurement requirements of IAS 39
Financial Instruments: Recognition and Measurement. Management expects
that the impact of the application of IFRS 9 in the financial statements
would be minimal, due to the following reasons:
- The Trust’s largest financial instruments are listed equity
instruments. These instruments are currently measured at fair value
through profit or loss. IFRS 9 requires that all equity instruments
be measured at fair value with changes in profit or loss, except for
those equity instruments not held for trading and the entity has
elected to present the changes in fair value in other comprehensive
income. The Trust is not making this alternative accounting election.
- Trade and other receivables comprise of short term receivables with
established rights and low risk of default. These instruments would
continue to be measured at amortised cost in accordance with IFRS 9.
It is expected that any associated expected credit losses on these
receivables will be minimal.
- The financial liabilities comprise mostly of redeemable securities
which is designated at fair value through profit or loss. The Trust
will continue to designate the liabilities at fair value through
profit or loss in accordance with IFRS 9. This is because the
liabilities are managed and the performance evaluated on a fair value
basis.
- Trade and other payables that are financial instruments would continue
to be measured at amortised cost. These payables comprise of short
term payables.
- Fair value changes, dividend income and equalisation on investment
appropriations would be recognised in accordance with IFRS 9. The
recognition and measurement of these items will remain consistent
with the current accounting policy.
IFRS 15 Revenue from Contracts with Customers - IFRS 15 will be effective
for the Trust’s annual reporting period starting 1 January 2018. IFRS 15
replaces the current effective standards on recognition and measurement of
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revenues, including IAS 18 Revenue. Management expects that there will be
no impact on the application of IFRS 15 due to the following:
- IFRS 15 excludes those contractual rights and obligations within the
scope of IFRS 9. As noted above, all investment returns will be
accounted for in accordance with IFRS 9.
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 2016 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
30 March 2017
Date: 30/03/2017 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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