ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017 The Sygnia Itrix Collective Investment Scheme Sygnia Itrix MSCI World Exchange Traded Fund (The Fund) JSE code: SYGWD ISIN: ZAE000249553 A portfolio in the Sygnia Itrix Collective Investment Scheme (Sygnia Itrix), 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 2017 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 RESTATED 2017 2016 R R REVENUE Investment income 114 087 202 98 793 055 Net fair value gain on investments at fair value 802 017 418 198 739 857 through profit or loss 916 104 620 297 532 912 EXPENSES Foreign exchange loss on dividends (3 433 831) (11 689 477) Management and administrative expenses (27 445 717) (23 657 676) (30 879 548) (35 347 153) OPERATING PROFIT BEFORE DISTRIBUTION 885 225 072 262 185 759 Comprising: Income available for distribution before tax 83 207 654 63 445 902 Capital gain retained 802 017 418 198 739 857 Distributions (62 989 959) (54 221 803) Profit before tax 822 235 113 207 963 956 Withholding tax (15 524 738) (14 261 971) Profit for the year 806 710 375 193 701 985 Other comprehensive income not reclassified to profit or loss Translation of functional currency to ZAR (543 945 113) (455 444 009) Total comprehensive income and increase/(decrease) in net assets attributable to holders of redeemable 262 765 262 (261 742 024) securities 1 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 2017 2016 R R ASSETS Listed investments held at fair value through 5 489 364 489 3 660 082 970 profit or loss Trade and other receivables 5 281 286 4 034 254 Cash and cash equivalents 38 800 612 31 480 909 Total assets 5 533 446 387 3 695 598 133 LIABILITIES Net assets attributable to holders of redeemable 5 497 005 952 3 661 697 194 securities Trade and other payables 36 440 435 33 900 939 Total liabilities 5 533 446 387 3 695 598 133 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SECURITIES FOR THE YEAR ENDED 31 DECEMBER 2017 R BALANCE AT 1 JANUARY 2016 3 489 591 212 Profit for the year 193 701 985 Creation of redeemable securities 579 917 841 Redemption of redeemable securities (146 069 835) Foreign currency translation adjustments (455 444 009) BALANCE AT 31 DECEMBER 2016 3 661 697 194 Profit for the year 806 710 375 Creation of redeemable securities 1 725 831 979 Redemption of redeemable securities (153 288 483) Foreign currency translation adjustments (543 945 113) BALANCE AT 31 DECEMBER 2017 5 497 005 952 2 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017 2017 2016 R R Cash utilised by operations (11 415 296) (24 342 188) Dividends received 107 190 888 96 761 207 Management fees paid (33 364 795) (23 775 287) Interest received 10 315 71 456 Net cash inflow from operating activities 62 421 112 48 715 188 Cash outflow from investing activities (1 571 209 215) (432 521 460) Purchase of listed investments (1 571 209 215) (432 521 460) Cash inflow from financing activities 1 516 107 806 376 816 698 Proceeds on creation of securities 1 725 831 979 579 917 841 Payment on redemption of securities (153 288 483) (146 069 835) Distributions paid to investors (56 435 690) (57 031 308) Net increase/(decrease) in cash and cash 7 319 703 (6 989 574) equivalents Cash and cash equivalents at the beginning of 31 480 909 38 470 483 year Cash and cash equivalents at the end of year 38 800 612 31 480 909 SYGNIA ITRIX MSCI WORLD SECURITIES 2017 2016 Number Number Total redeemable securities in issue 211 800 000 153 000 000 In terms of the Trust Deed and CISCA, the Fund would be required to pay the net asset value attributable to investors on redemption of securities. Vested income beneficiaries include all holders of Sygnia Itrix MSCI World redeemable securities. CREATIONS AND REDEMPTIONS There were 64 800 000 (2016: 24 000 000) Index Securities created during the year, amounting to a value of R1 725 831 979 (2016: R579 917 841). There were 6 000 000 (2016: 6 000 000) Index securities redeemed during the year for a value of R153 288 483 (2016: R146 069 835). 3 DISTRIBUTIONS The Fund effects semi–annual distributions. All distributions are made out of the income of the Fund. The rebates represent an investor’s partial reduction of the 68.4 basis points management fee charged (2016: 68.4 basis points management fee charged). The rebate is calculated using a sliding scale that is dependent on the size of the investor’s investment. During the year under review the following distributions were effected per Sygnia Itrix MSCI World Security: 2017 2016 R R Declared distributions (60 464 459) (53 761 719) 0.20630 rand per security Declared June 2017 and paid July 2017 (32 802 172) 0.22676 rand per security Declared June 2016 and paid July 2016 (32 653 702) 0.13188 rand per security Declared December 2017 and paid January 2018 (27 662 287) 0.13625 rand per security Declared December 2016 and paid January 2017 (21 108 017) Management fees refunded during the year as a rebate (2 525 500) (460 084) distribution Total distribution expense for the year (62 989 959) (54 221 803) TOTAL EXPENSE RATIO (TER) The TER represents the total expense to the Fund. The only expense of the Fund is the management fee payable to the Manager, which is calculated at 0.684% of assets under management on a daily basis (2016: 0.684% of assets under management). The Fund had a TER of 68.4 basis points (2016: 68.4 basis points). The TER disclosed is calculated based on the highest management fee scale applicable. The actual management fee scale is a sliding scale with significant fee reductions applied for larger investment amounts. 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 4 each fund 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 this summarised report has been extracted from the audited annual financial statements, which were prepared in accordance with 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. These financial statements were authorised for issue by the board of directors of the Manager on 27 March 2018. 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 except for the correction of the foreign currency to presentation currency translation which has been reflected in other comprehensive income. The correction hereof had no impact on the amounts reflected in the Statement of Financial Position, Statement of Cash flows or the Profit/(loss) Before Tax presented in 2016. 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 Fund have not been early adopted. IFRS 9 Financial Instruments IFRS 9 will be effective for the Fund’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 will be minimal for the following reasons: • The Fund’s largest financial instruments are listed equity instruments. These 5 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 for which the entity has elected to present the changes in fair value in other comprehensive income. The Fund is not making use of this alternative accounting option. • Trade and other receivables are comprised of short-term receivables with established rights and low risk of default. These instruments will continue to be measured at amortised cost in accordance with IFRS 9. It is expected that any associated credit losses on these receivables will be minimal. • The financial liabilities are comprised mostly of redeemable securities, which are designated at fair value through profit or loss. The Fund 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 will continue to be measured at amortised cost. These payables are comprised of short-term payables. • Fair value changes, dividend income and equalisation on investment appropriations will 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 Fund’s annual reporting period starting 1 January 2018. IFRS 15 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. IFRS 16 Leases - IFRS 16 will be effective for the Fund’s annual reporting period starting 1 January 2019. IFRS 16 provides a single-lessee accounting model, specifying how leases will be recognised, measured and disclosed. Management expects that there will be no impact on the application of IFRS 16 in the current reporting period. IFRS 17 Insurance Contracts - IFRS 17 will be effective for the Fund's annual reporting period starting 1 January 2021. IFRS 17 provides a single accounting model that measures insurance contracts using current estimates. Management expects that there will be no impact on the application of IFRS 17 in the current reporting period. 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); and • Dividends from listed equities held at fair value through profit or loss. 6 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 2017 from which the summarised report has been extracted were audited by Deloitte and Touche, 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 Sygnia website: https://www.sygnia.co.za/etfs/documents. DIRECTORS’ RESPONSIBILITY The directors take full responsibility for the preparation of the abridged report and confirm that the financial information was correctly extracted from the underlying annual financial statements. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager Sygnia Itrix (RF) Proprietary Limited 28 March 2018 7 Date: 28/03/2018 05:45:00 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.