Wrap Text
Abridged Audited Results For The Year Ended 31 December 2016 - STXRAF
SATRIX COLLECTIVE INVESTMENT SCHEME
SATRIX RAFI 40
JSE code: STXRAF
ISIN: ZAE000126033
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 2016
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2016
2016 2015
R R
Income
Dividend income 27 820 467 37 635 349
REIT income 1 137 660 441 625
Interest income 207 293 183 745
Total income 29 165 420 38 260 719
Expenses
Management fee (4 397 090) (5 081 568)
Transaction costs (1 206 232) (674 177)
Trustee and custodian fees (96 714) (99 171)
Total operating expenses (5 700 036) (5 854 916)
Income attributable to investors before
distribution 23 465 384 32 405 803
Income distributions (23 172 149) (32 105 126)
Income attributable to investors after
distributions 293 235 300 677
Realised gains on financial instruments
designated at fair value through profit or
loss 74 620 168 78 889 402
Unrealised gains/(losses) on financial
instruments designated at fair value through
profit or loss 50 980 207 (188 226 477)
Total fair value adjustments 125 600 375 (109 337 075)
Increase/(decrease) in net assets
attributable to investors after
distributions 125 893 610 (109 036 398)
STATEMENT OF FINANCIAL POSITION
at 31 December 2016
2016 2015
R R
ASSETS
Listed equities designated as held at fair
value through profit or loss 892 779 778 857 523 064
Interest receivable 12 139 10 208
Cash and cash equivalents 2 276 800 2 411 718
Total assets 895 068 717 859 944 990
LIABILITIES
Other payables 342 072 768 294
Total liabilities (excluding net assets
attributable to investors) 342 072 768 294
Net assets attributable to investors 894 726 645 859 176 696
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2016
Capital Income Net assets
attributable attributable to attributable
to investors investors to investors
R R R
Balance at 1 January 2015 971 608 663 1 352 955 972 961 618
Redemption of Satrix RAFI 40
Securities (32 205 275) - (32 205 275)
Decrease in net assets
attributable to investors
after distributions (109 337 075) 32 405 803 (76 931 272)
Dividends reinvested 27 456 751 - 27 456 751
Distributions to investors - (32 105 126) (32 105 126)
Balance at 31 December 2015 857 523 064 1 653 632 859 176 696
Redemption of Satrix RAFI 40
Securities (110 106 885) - (110 106 885)
Increase in net assets
attributable to investors
after distributions 125 600 375 23 465 384 149 065 759
Dividends reinvested 19 763 224 - 19 763 224
Distributions to investors - (23 172 149) (23 172 149)
Balance at 31 December 2016 892 779 778 1 946 867 894 726 645
STATEMENT OF CASH FLOWS
for the year ended 31 December 2016
2016 2015
R R
Net cash generated from operating activities 23 037 231 32 405 803
Cash utilised by operations (6 126 258) (5 854 916)
Interest received 205 362 183 745
REIT received 1 137 660 441 625
Dividend received 27 820 467 37 635 349
Cash inflow from investing activities 86 934 736 100 149
Purchase of underlying constituents (294 040 808) (201 042 610)
Sale of underlying constituents 380 975 544 201 142 759
Cash outflow from financing activities (110 106 885) (32 205 275)
Redemption of Satrix RAFI 40 Securities (110 106 885) (32 205 275)
Net movement in cash and cash equivalents (134 918) 644 933
Cash and cash equivalents at the beginning
of the year 2 411 718 1 766 785
Cash and cash equivalents at the end of the
year 2 276 800 2 411 718
SATRIX RAFI 40 SECURITIES
During the year, nil (2015: nil) Satrix RAFI 40 securities were created at a
value of R nil (2015: R nil) and 10 000 000 (2015: 3 000 000) Satrix RAFI 40
securities were redeemed at a value of R110 106 885 (2015: R32 205 275). All
creations and liquidations were in specie.
Distributions
The Portfolio announces dividends monthly. All distributions that were made
out of income of the Satrix RAFI 40 Portfolio were reinvested back into the
Portfolio net of withholding tax. During the year under review the following
distributions were effected per Satrix RAFI 40 Security.
2016 2015
R R
0.96 cents per security
Declared 01 April 2016 and
re-invested 12 April 2016 757 222
2.92 cents per security
Declared 27 March 2015 and
re-invested 10 April 2015 2 507 616
15.69 cents per security
Declared 29 April 2016 and
re-invested 12 May 2016 12 375 844
12.03 cents per security
Declared 24 April 2015 and
re-invested 12 May 2015 10 331 036
0.00 cents per security
Declared 27 May 2016 -
2.93 cents per security
Declared 29 May 2015 and
re-invested 11 June 2015 2 516 204
0.00 cents per security
Declared 29 July 2016 -
0.11 cents per security
Declared 24 July 2015 and
re-invested 07 August 2015 94 465
0.99 cents per security
Declared 26 August 2016 and
re-invested 14 September 2016 731 385
4.26 cents per security
Declared 28 August 2015 and
re-invested 08 September 2015 3 658 372
8.73 cents per security
Declared 30 September 2016 and
re-invested 12 October 2016 6 362 186
8.33 cents per security
Declared 25 September 2015 and
re-invested 16 October 2015 7 153 577
3.07 cents per security
Declared 28 October 2016 and
re-invested 9 November 2016 2 237 332
5.42 cents per security
Declared 30 October 2015 and
re-invested 13 November 2015 4 654 548
0.00 cents per security
Declared 25 November 2016
0.49 cents per security
Declared 27 November 2015 and
re-invested 9 December 2015 420 799
0.83 cents per security
Declared 30 December 2016 and
re-invested 12 January 2017 604 881
0.75 cents per security
Declared 31 December 2015 and
re-invested 19 January 2016 621 580
Accrued income portion of NAV paid
redemption/(creation)of securities 86 600 4 200
Total distributions 23 155 450 31 962 397
Operating Segments
The Satrix RAFI 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 2016 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 892 779 778 – –
Net assets attributable to
investors – (894 726 645) –
Total 892 779 778 (894 726 645) –
Level 1 Level 2 Level 3
31 December 2015 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 857 523 064 – –
Net assets attributable to
investors – (859 176 696) –
Total 857 523 064 (859 176 696) –
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 2016 R R R
Assets
Interest receivable – 12 139 –
Cash and cash equivalents – 2 276 800 –
Total – 2 288 939 –
Liabilities
Distributions payable to
investors – – 342 072
Total – – 342 072
Level 1 Level 2 Level 3
31 December 2015 R R R
Assets
Interest receivable – 10 208 –
Cash and cash equivalents – 2 411 718 –
Total – 2 421 926 –
Liabilities
Other payables – – 768 294
Total – – 768 294
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.
2016 2015
R R
Management fee paid
Satrix Managers (RF) Proprietary Limited 4 823 312 4 735 107
Management fee payable at 31 December
Satrix Managers (RF) Proprietary Limited 342 072 768 294
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 RAFI 40 Portfolio had a TER of 52.2 (2015: 52.7) basis points for
the period 1 January 2014 to 31 December 2016. 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 2016 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 2016, and have not been applied in
preparing these financial statements. All standards and interpretations
issued but not effective for the year ended 31 December 2016, 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 15 Revenue from contracts with Annual periods beginning
customers on or after 1 January 2018
IFRS 16 Leases Annual periods beginning
on or after 1 January 2019
IAS 7 amendment Disclosure initiative Annual periods beginning
on or after 1 January 2017
IAS 12 amendment Recognition of Deferred Tax Annual periods beginning
on or after 1 January 2017
Assets for Unrealised
Losses
IFRS 2 amendment Share based payments’, on Annual periods beginning
on or after 1 January 2018
clarifying how to account
for certain types of share-
based payment transactions
IFRS 4 amendment ‘Insurance contracts’ Annual periods beginning
regarding the on or after 1 January 2018
implementation of IFRS 9,
’Financial instruments’
IAS 40 amendment Transfer of investment Annual periods beginning
property on or after 1 January 2018
IAS 10 and IAS 28 Sale or contribution of Deferred until IASB has
amendment Asset between an Investor finalised research project
and its Associate or Joint
Venture
The following standards may have a significant effect on the recognition and
measurement of the amounts recognised in the financial statements of the
Portfolio.
IFRS 9 Financial Instruments Annual periods beginning
on or after 1 January 2018
Impact assessment
The IASB issued the final version of IFRS 9 Financial Instruments that
replaces IAS 39 Financial Instruments: Recognition and Measurement and all
previous versions of IFRS 9. IFRS 9 brings together all three aspects of the
accounting for the financial instruments project: classification and
measurement; impairment; and hedge accounting.
The Portfolio plans to adopt the new standard on the required effective
date. The Portfolio has performed a high-level impact assessment of all
three aspects of IFRS 9. This preliminary assessment is based on currently
available information and may be subject to changes arising from further
detailed analyses or additional reasonable and supportable information being
made available in the future. Overall, no significant impact on its balance
sheet and equity are expected.
Classification and measurement
The Portfolio does not expect a significant impact on its balance sheet or
equity on applying the classification measurement requirements for IFRS 9.
It expects to continue measuring at fair value all financial assets
currently held at fair value.
Trade and other receivables are held to collect contractual cash flows and
are expected to give rise to cash flows representing solely payments of
principal and interest. Thus, the Portfolio expects that these will continue
to be measured at amortised cost under IFRS 9. However, the Portfolio will
analyse the contractual cash flow characteristics of those instruments in
more detail before concluding whether all those instruments meet the
criteria for amortised cost measurement under IFRS 9.
Impairment
IFRS 9 requires the portfolio to record expected credit losses on all of its
debt securities, loans and trade receivables, either on a 12-month or
lifetime basis. The Portfolio expects to apply the simplified approach and
record lifetime expected losses on all trade receivables. The Portfolio does
not expect a significant impact on its equity due to the short term nature
of the receivables but it will need to perform a more detailed analysis
which considers all reasonable and supportable information, including
forward-looking elements to determine the extent of the impact.
Hedge accounting
As IFRS 9 does not change the general principles of how an entity accounts
for effective hedges, the Portfolio does not expect a significant impact as
a result of applying IFRS 9. The Portfolio will assess possible changes
related to the accounting for the time value of options, forward points or
the currency basis spread in more detail in the future.
Preparer of Abridged annual financial statements for the year ended 31
December 2016
These Abridged annual financial statements have been prepared by T du
Plessis CA (SA), the Financial Manager. The financial information has been
correctly extracted from the underlying annual financial statements. The
directors take full responsibility for the preparation of the abridged
annual financial statements.
The abridged annual financial statements are extracted from audited
information, but are not itself audited. The annual financial statements
have been audited by Ernst & Young Inc. The audited annual financial
statements and the audit report are 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 2017
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) Proprietary Limited
Date: 31/03/2017 08:30:00 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 
