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Abridged Results for the Year Ended 31 December 2017- STXILB
SATRIX ILBI
JSE code: STXILBI
ISIN: ZAE000240123
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 RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2017
2017
R
Income
Interest income 542 556
Total income 542 556
Expenses
Management fee (26 948)
Trustee and custodian fees (24 717)
Transaction costs (295 554)
Total operating expenses (347 219)
Income attributable to investors before
distribution 195 337
Income distributions (650 128)
Income attributable to investors after
distributions (454 791)
Realised loss on financial instruments
designated at fair value through profit or
loss (27 459)
Unrealised gains/(losses) on financial
instruments designated at fair value through
profit or loss (629 625)
Total fair value adjustments (657 084)
Decrease in net assets attributable to
investors after distributions (1 111 875)
STATEMENT OF FINANCIAL POSITION
at 31 December 2017
2017
R
ASSETS
Interest bearing investments 22 527 452
Interest receivable 119 041
Cash and cash equivalents 76 624
Total assets 22 723 117
LIABILITIES
Other payables 328
Total liabilities (excluding net assets
attributable to investors) 328
Net assets attributable to investors 22 722 789
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2017
Capital Income Net assets
attributable to attributable attributable
investors to investors to investors
R R R
Balance at 31 December 2016 - - -
Creations of Satrix 40
Securities 22 653 084 - 22 653 084
Increase in net assets
attributable to investors
after distributions (657 084) 195 337 (461 747)
Dividends reinvested 650 128 - 650 128
Distributions to investors - (650 128) (650 128)
Balance at 31 December 2017 22 646 128 (454 791) 22 191 337
STATEMENT OF CASH FLOWS
for the year ended 31 December 2017
2017
R
Net cash generated from operating
activities 76 624
Cash utilised by operations (346 891)
Interest received 423 515
Cash outflow from investing activities (22 653 084)
Purchase of underlying constituents (23 993 781)
Sale of underlying constituents 1 340 697
Cash inflow from financing activities 22 653 084
Creation of Satrix ILBI Securities 22 653 084
Net increase in cash and cash equivalents 76 624
Cash and cash equivalents at the beginning
of the year -
Cash and cash equivalents at the end of
the year 76 624
SATRIX ILBI SECURITIES
During the year, 4 015 615 Satrix ILBI securities were created at a value of
R22 653 084. All creations were in specie.
Distributions
The Portfolio announces dividends bi-annually. All distributions that are
made out of income of the Satrix ILBI Portfolio are reinvested back into the
Portfolio net of dividends withholdings tax. The record dates are 30 June
2017 and 12 January 2018.
During the year under review the following distributions were effected per
Satrix ILBI Security.
2017
R
8.48 cents per security
Declared 30 June 2017 and
paid 6 July 2017 340,524
7.71 cents per security
Declared 12 January 2018 and
paid 15 January 2018 309,604
Total distributions 650 128
Operating Segments
The Satrix ILBI 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 2017 R R R
Financial instruments
designated at fair value
through profit or loss:
Interest bearing investments 22 527 452 –
Net assets attributable to
investors - (22 722 789) –
Total - (195 337) –
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 2017 R R R
Assets
Interest receivable – 119 041 –
Cash and cash equivalents – 76 624 –
Total – 195 665 -
31 December 2017 R R R
Liabilities
Distributions payable to
investors – – -
Other payables – – 328
Total – – 328
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.
2017
R
Management fee paid
Satrix Managers (RF) Proprietary Limited 26 620
Management fee payable at 31 December
Satrix Managers (RF) Proprietary Limited 328
Participatory Interest Held
Satrix Managers (RF) Proprietary Limited 1 001 690
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, taxes and underlying fund costs.
The Satrix ILBI Portfolio was launched on 24 February 2017. As the fund is
not older than 1 year, the annualised TER cannot be calculated.
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.
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 2017 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 2017, and have not been applied in
preparing these financial statements. All standards and interpretations
issued but not effective for the year ended 31 December 2017, 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
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.
Hedge accounting
The entity does not apply hedge accounting.
New standards and interpretation
The following new standards, interpretations and amendments were adopted to
existing standards. There has been no significant effect on the financial
statements of the Portfolio.
IAS 7 Disclosure Initiative - Annual periods beginning
Amendments to IAS 7 on or after 1 January 2017
Preparer of Abridged annual financial statements for the year ended 31
December 2017
These Abridged annual financial statements have been prepared by I Ismail
(Professional Accountant) (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.
29 March 2018
Sponsor
Vunani Corporate Finance
Trustee
Standard Chartered Bank
Manager
Satrix Managers (RF) Proprietary Limited
Date: 29/03/2018 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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