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Abridged Audited Results For The Year Ended 31 December 2016 - DBXUK
The db X-trackers Collective Investment Scheme
db x-trackers FTSE 100 Trust
JSE code: DBXUK
ISIN: ZAE000115929
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 173 358 439 38 383 535
Investment income 41 552 293 38 311 853
Net fair value gain on investments at
131 728 430 -
fair value through profit or loss
Foreign exchange profit on dividends 77 716 71 682
Expenses (7 320 710) (60 033 607)
Net fair value loss on the investments at
- (53 686 047)
fair value through profit and loss
Management and administrative expenses (7 320 710) (6 347 560)
Operating profit/(loss) before
166 037 729 (21 650 072)
distribution
Comprising:
Income available for distribution before
34 309 299 32 035 975
tax
Capital gain/(loss) retained 131 728 430 (53 686 047)
Distributions (27 919 490) (29 655 094)
Increase/(decrease) in net assets
attributable to holders of redeemable
securities before tax 138 118 239 (51 305 166)
Withholding tax (1 213 751) (3 628 975)
Increase/(decrease) in net assets
attributable to holders of redeemable 136 904 488 (54 934 141)
securities
2
STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
Assets
Listed investments held at fair value
through profit or loss 964 078 411 1 013 365 675
Trade and other receivables 2 132 376 2 447 989
Cash and cash equivalents 17 062 587 17 879 321
Total assets 983 273 374 1 033 692 985
Liabilities
Net assets attributable to holders of
redeemable securities 967 377 620 1 015 578 957
Trade and other payables 15 895 754 18 114 028
Total liabilities 983 273 374 1 033 692 985
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 716 630 343
Decrease in net assets attributable to
(54 934 141)
holders of redeemable securities
Creation of redeemable securities 130 531 379
Foreign currency translation adjustments 223 351 376
attributable to redeemable securities
Balance at 31 December 2015 1 015 578 957
Increase in net assets attributable to
holders of redeemable securities 136 904 488
Creations of redeemable securities 122 913 756
Foreign currency translation adjustments
attributable to redeemable securities (308 019 581)
Balance at 31 December 2016 967 377 620
3
STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Cash utilised by operations (1 214 234) (1 365 508)
Dividends received 41 813 545 35 493 778
Interest received 34 385 1 704
Management fees paid (7 854 520) (5 141 122)
Net cash inflow from operating
activities 32 779 176 28 988 852
Cash outflow from investing activities (127 003 887) (127 879 994)
Purchase of listed investments (127 003 887) (127 879 994)
Cash inflow from financing activities 93 407 977 106 300 328
Distributions paid to investors (29 505 779) (24 231 051)
Creation of redeemable securities 122 913 756 130 531 379
Net (decrease)/increase in cash and cash
equivalents (816 734) 7 409 186
Cash and cash equivalents at the
beginning of year 17 879 321 10 470 135
Cash and cash equivalents at the end of
year 17 062 587 17 879 321
2016 2015
Number Number
db x-trackers FTSE 100 redeemable
securities in issue 8 100 000 7 100 000
In terms of the Trust Deed and CISCA, the Trust is required to pay the
net asset value attributable to investors on redemption of securities.
Vested income beneficiaries include all holders of db x-trackers FTSE 100
redeemable securities.
Creations and redemptions
There were 1 000 000 (2015: 1 000 000) Index Securities created during
the year for a value of R122 913 756 (2015: R130 531 379). There were no
redemptions during the current and 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 point management fee
charged (2015: 85.5 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 FTSE 100 Index
4
Redeemable Security:
2016 2015
R R
Declared distributions (27 017 121) (28 730 373)
2.1431 Rand per security
Declared June 2016 and paid July 2016 (15 216 208)
2.16093 Rand per security
Declared June 2015 and paid July 2015 (15 342 598)
1.43944 Rand per security
Declared December 2016 and paid January
2017 (11 800 913)
1.88560 Rand per security
Declared December 2015 and paid January
2016 (13 387 775)
Management fees refunded during the year
(902 369) (924 721)
as a rebate distribution
Total distribution expense for the year (27 919 490) (29 655 094)
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 the assets under management on a daily basis
(2015: 0.855% of assets under management).
The Trust had a TER of 85.5 basis points (2015: 85.5 basis points).
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
5
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 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
6
replaces the current effective standards on recognition and measurement of
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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