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Abridged Results for the Year Ended 31 December 2017 - STXDIV
SATRIX DIVI
JSE code: STXDIV
ISIN: ZAE000102018
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 2016
R R
Income
Dividend income 58 329 464 56 964 426
Interest income 640 908 624 288
Total income 58 970 372 57 588 714
Expenses
Management fee (4 937 964) (5 251 078)
Transaction costs 24 877 (1 457 974)
Trustee and custodian fees (94 754) (88 552)
Total operating expenses (5 007 841) (6 797 604)
Income attributable to investors before
distribution 53 962 531 50 791 110
Income distributions (51 666 333) (49 614 539)
Income attributable to investors after
distributions 2 296 198 1 176 571
Realised gainson financial instruments
designated at fair value through profit or
loss 38 636 379 39 717 279
Unrealised gainson financial instruments
designated at fair value through profit or
loss 238 116 440 197 582 092
Total fair value adjustments 276 752 819 237 299 371
Increase in net assets attributable to
investors after distributions 279 049 017 238 475 942
STATEMENT OF FINANCIAL POSITION
at 31 December 2017
2017 2016
R R
ASSETS
Listed equities designated as held at fair
value through profit or loss 1 525 289 882 1 402 926 022
Interest receivable 62 371 56 441
Other receivables 330 114 -
Cash and cash equivalents 13 154 902 11 600 000
Total assets 1 538 837 269 1 414 582 463
LIABILITIES
Distributions payable to investors 9 478 237 9 832 969
Other payables 365 975 416 495
Total liabilities (excluding net assets
attributable to investors) 9 844 212 10 249 464
Net assets attributable to investors 1 528 993 057 1 404 332 999
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2017
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 1 January 2016 1 331 648 057 230 406 1 331 878 463
Redemption of Satrix DIVI
Securities (166 021 406) - (166 021 406)
Increase in net assets
attributable to investors
after distributions 237 299 371 1 176 571 238 475 942
Balance at 31 December 2016 1 402 926 022 1 406 977 1 404 332 999
Redemption of Satrix DIVI
Securities (154 388 959) - (154 388 959)
Increase in net assets
attributable to investors
after distributions 276 752 819 2 296 198 279 049 017
Balance at 31 December 2017 1 525 289 882 3 703 175 1 528 993 057
STATEMENT OF CASH FLOWS
for the year ended 31 December 2017
2017 2016
R R
Net cash generated from operating activities 53 575 967 50 778 002
Cash utilised by operations (5 388 475) (6 818 230)
Interest received 634 978 631 806
Dividend received 58 329 464 56 964 426
Cash inflow from investing activities 154 388 959 166 021 407
Purchase of underlying constituents (529 179 842) (730 986 473)
Sale of underlying constituents 683 568 801 897 007 880
Cash outflow from financing activities (206 410 024) (221 041 651)
Redemption of Satrix DIVI Securities (154 388 959) (166 021 407)
Cash distributed to security holders (52 021 065) (55 020 244)
Net increase/(decrease) in cash and cash
equivalents 1 554 902 (4 242 242)
Cash and cash equivalents at the beginning
of the year 11 600 000 15 842 242
Cash and cash equivalents at the end of the
year 13 154 902 11 600 000
SATRIX DIVI SECURITIES
During the year, nil (2017: nil) Satrix DIVI securities were created at a
value of R nil (2016: R nil) and 72 000 000 (2016: 90 000 000) Satrix DIVI
securities were redeemed at a value of R154 388 959(2016: R166 021 406). All
liquidations were in specie.
Distributions
The Portfolio effects quarterly distributions. All distributions are made
out of income of the Satrix DIVI Plus Portfolio. The record dates are 31
March 2017, 30 June 2017, 29 September 2017 and 12 January 2018.
During the year under review the following distributions were effected per
Satrix DIVI Security.
2017 2016
R R
1.47 cents per security
Declared 31 March 2017 and
paid 7 April 2017 9,399,030
0.69 cents per security
Declared 1 April 2016 and
paid 14 April 2016 4 846 490
2.73 cents per security
Declared 30 June 2017 and
paid 6 July 2017 16 909 342
3.11 cents per security
Declared 24 June 2016 and
paid 22 July 2016 20 849 123
1.99 cents per security
Declared 30 September 2016 and
Paid 12 October 2016 15 038 467
2.27 cents per security
Declared 25 September 2015 and
Paid 22 October 2015 13 221 357
1.60 cents per security
Declared 12 January 2018 and
paid 17 January 2018 9 478 237
1.48 cents per security
Declared 30 December 2016 and
paid 12 January 2017 9 832 969
Accrued income portion of NAV paid
redemption/(creation) of securities 841 257 864 600
Total distributions 51 666 333 49 614 539
Operating Segments
The Satrix DIVI 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:
Listed equities 1 525 289 882 – –
Net assets attributable to
investors – (1 528 993 057) –
Total 1 525 289 882 (1 528 993 057) –
Level 1 Level 2 Level 3
31 December 2016 R R R
Financial instruments
designated at fair value
through profit or loss:
Listed equities 1 402 926 022 – –
Net assets attributable to
investors – (1 404 332 999) –
Total 1 402 926 022 (1 404 332 999) –
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 – 62 371 –
Cash and cash equivalents – 13 154 902 –
Total – 13 217 273 –
31 December 2017
Liabilities
Distributions payable to
investors – – 9 478 237
Other payables – – 365 975
Total – – 9 844 212
Level 1 Level 2 Level 3
31 December 2016 R R R
Assets
Interest receivable – 56 441 –
Cash and cash equivalents – 11 600 000 –
Total – 11 656 441 –
31 December 2016
Liabilities
Distributions payable to
investors – – 9 832 969
Other payables – – 416 495
Total
– – 10 249 464
31 December 2016 R R R
Assets
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 2016
R R
Management fee paid
Satrix Managers (RF) Proprietary Limited 4 988 484 5 271 705
Management fee payable at 31 December
Satrix Managers (RF) Proprietary Limited 365 975 416 495
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 DIVI Plus Portfolio had a TER of 37.05 (2016: 39.06 (restated))
basis points (annualised) for the period 1 January 2017 to 31 December 2017.
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 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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