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Abridged Results as at 31 December 2017 - DIVTRX
CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES DIVTRAX
ABBREVIATED NAME: DIVTRAX
SHARE CODE: DIVTRX
ISIN CODE: ZAE000190104
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME
("CORESHARES S&P SOUTH AFRICA DIVIDEND ARISTOCRATS EXCHANGE TRADED FUND")
AS AT 31 DECEMBER 2017
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017
31 December 30 September
2017 2016
R R
ASSETS
CURRENT ASSETS
Listed investments held at fair value through 258 258 481 101 060 334
profit or loss
Distributions receivable 98 136 177 054
Contributions receivable - 2 846 265
Cash and cash equivalents 1 265 822 979 988
TOTAL ASSETS 259 622 439 105 063 641
LIABILITIES
Net assets attributable to investors 259 527 650 102 064 775
CURRENT LIABILITIES
Trade and other payables 94 789 156 515
Securities purchased payable - 2 842 351
TOTAL LIABILITIES 259 622 439 105 063 641
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
15 months 12 months
31 December 30 September
2017 2016
R R
Distribution income 7 570 044 2 740 965
Interest income 118 245 53 513
Total Revenue 7 688 289 2 794 478
Management and administration expenses (1 162 030) (162 561)
Income before taxation 6 526 259 2 631 917
Taxation - -
Income before distributions 6 526 259 2 631 917
Distributions paid (5 804 369) (2 243 579)
Income after distributions 721 890 388 338
Realised (losses)/gains on financial instruments (1 758 082) 7 011 771
designated at fair value through profit or loss
Unrealised gains/(losses) on financial instruments 16 810 551 (1 317 662)
designated at fair value through profit or loss
Total fair value adjustments - gains 15 052 469 5 694 109
Other comprehensive income - -
Increase in net assets attributable to investors 15 774 359 6 082 447
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
Accumulate
d
Capital Profit Total
R R R
Balance at 30 September 2015 48 028 137 430 365 48 458 502
Creation of 100 000 units on 19 October 2015 2 730 789 2 730 789
Creation of 100 000 units on 04 November 2 801 615 2 801 615
2015
Creation of 100 000 units on 16 November 2 642 182 2 642 182
2015
Creation of 100 000 units on 03 December 2 578 743 2 578 743
2015
Creation of 400 000 units on 08 February 9 990 629 9 990 629
2016
Creation of 50 000 units on 04 March 2016 1 361 993 1 361 993
Creation of 125 000 units on 22 March 2016 3 483 561 3 483 561
Creation of 100 000 units on 08 April 2016 2 757 313 2 757 313
Creation of 50 000 units on 26 May 2016 1 399 735 1 399 735
Creation of 50 000 units on 07 June 2016 1 451 224 1 451 224
Creation of 150 000 units on 21 June 2016 4 236 872 4 236 872
Creation of 100 000 units on 24 June 2016 2 888 460 2 888 460
Creation of 100 000 units on 05 July 2016 2 845 748 2 845 748
Creation of 75 000 units on 01 September 2 095 873 2 095 873
2016
Creation of 50 000 units on 26 September 1 412 826 1 412 826
2016
Creation of 100 000 units on 30 September 2 846 263 2 846 263
2016
Change in net assets attributable to investors 5 694 109 388 338 6 082 447
Balance at 30 September 2016 101 246 072 818 703 102 064 775
Creation of 50 000 units on 13 October 2016 1 400 101 1 400 101
Creation of 100 000 units on 31 October 2016 2 778 243 2 778 243
Creation of 50 000 units on 03 November 1 402 068 1 402 068
2016
Creation of 50 000 units on 18 November 1 371 329 1 371 329
2016
Creation of 330 000 units on 29 November 9 168 942 9 168 942
2016
Creation of 50 000 units on 12 December 1 392 290 1 392 290
2016
Creation of 65 000 units on 22 December 1 837 583 1 837 583
2016
Creation of 65 000 units on 22 December 1 826 395 1 826 395
2016
Creation of 25 000 units on 05 January 2017 714 002 714 002
Creation of 75 000 units on 27 January 2017 2 173 391 2 173 391
Creation of 50 000 units on 06 February 2017 1 414 949 1 414 949
Creation of 50 000 units on 09 February 2017 1 430 096 1 430 096
Creation of 100 000 units on 23 February 2 924 211 2 924 211
2017
Creation of 50 000 units on 27 February 2017 1 453 556 1 453 556
Creation of 75 000 units on 03 March 2017 2 189 365 2 189 365
Creation of 100 000 units on 09 March 2017 2 914 574 2 914 574
Creation of 50 000 units on 29 March 2017 1 473 176 1 473 176
Creation of 50 000 units on 04 April 2017 1 406 855 1 406 855
Creation of 50 000 units on 05 April 2017 1 403 435 1 403 435
Creation of 100 000 units on 07 April 2017 2 763 935 2 763 935
Creation of 50 000 units on 24 April 2017 1 425 350 1 425 350
Creation of 1 798 517 units on 25 April 2017 51 544 776 51 544 776
Creation of 100 000 units on 02 May 2017 3 021 515 3 021 515
Creation of 100 000 units on 03 May 2017 2 916 285 2 916 285
Creation of 100 000 units on 19 May 2017 2 833 278 2 833 278
Creation of 50 000 units on 24 May 2017 1 427 157 1 427 157
Creation of 100 000 units on 05 June 2017 2 834 163 2 834 163
Creation of 50 000 units on 26 June 2017 1 363 581 1 363 581
Creation of 100 000 units on 29 June 2017 2 742 465 2 742 465
Creation of 100 000 units on 05 July 2017 2 741 557 2 741 557
Creation of 340 000 units on 14 July 2017 9 497 431 9 497 431
Creation of 150 000 units on 20 July 2017 4 249 080 4 249 080
Creation of 50 000 units on 07 August 2017 1 426 768 1 426 768
Creation of 150 000 units on 23 August 2017 4 369 254 4 369 254
Creation of 225 000 units on 29 September 6 170 756 6 170 756
2017
Creation of 100 000 units on 04 October 2017 2 755 455 2 755 455
Creation of 75 000 units on 13 October 2017 2 153 198 2 153 198
Creation of 75 000 units on 17 October 2017 2 130 579 2 130 579
Creation of 75 000 units on 18 October 2017 2 145 390 2 145 390
Creation of 150 000 units on 26 October 2017 4 176 539 4 176 539
Creation of 150 000 units on 31 October 2017 4 221 058 4 221 058
Creation of 100 000 units on 07 November 2 839 131 2 839 131
2017
Creation of 225 000 units on 05 December 6 543 498 6 543 498
2017
Creation of 100 000 units on 20 December 2 969 200 2 969 200
2017
Liqiudation of 909 000 units on 20 June 2017 (24 623 943) (24 623 943)
Liqiudation of 200 000 units on 09 November (5 623 503) (5 623 503)
2017
Change in net assets attributable to investors 15 052 469 721 890 15 774 359
Balance at 31 December 2017 257 987 055 1 540 593 259 527 650
STATEMENT OF CASH FLOWS
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
15 months 12 months
31 December 30 September
2017 2016
R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 6 543 451 2 635 272
Distributions paid (5 804 369) (2 243 579)
Net cash inflow from operating activities 739 082 391 693
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (259 299 589) (95 188 954)
Proceeds from sale of investments 113 918 824 50 509 107
Net cash outflow from investing activities (145 380 765) (44 679 847)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 175 300 151 44 776 684
Contributions repaid for units liquidated (30 372 634) -
Net cash inflow from financing activities 144 927 517 44 776 684
NET INCREASE IN CASH AND CASH EQUIVALENTS 285 834 488 530
CASH AND CASH EQUIVALENTS AT BEGINNING 979 988 491 457
OF THE PERIOD
CASH AND CASH EQUIVALENTS AT END OF THE 1 265 822 979 988
PERIOD
ACCOUNTING POLICIES
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017
The financial statements have been prepared consistently based on the following principal accounting policies
which are consistent with those applied in the previous period:
1. Basis of Preparation
The financial statements are prepared on a historic cost basis, except for certain financial instruments, which are
accounted for at fair value.
The financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS’’),
its interpretations adopted by the International Accounting Standards Board (“IASB”), the South African Institute of
Chartered Accountants Financial Reporting Guides as issued by the Accounting Practices Committee and
Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings
Requirements, the requirements of the Coreshares Index Tracker Collective Investment Scheme Deed and the
Collective Investment Schemes Control Act, 45 of 2002 ("the Act").
At the date of approval of the annual financial statements, the following new standards and amendments that
apply to the Scheme were in issue but not yet effective:
New standards and amendments to standards and interpretations not yet adopted
IFRS 9 - Financial Instruments: Finalised version, incorporating requirements for classification and measurement,
impairment, general hedge accounting and derecognition - Applies to annual periods beginning on or after 1
January 2018.
IFRS 15 - Revenue from contracts with customers - Applies to annual periods beginning on or after 1 January
2018.
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
IFRS17 – Insurance contracts - Applicable to annual reporting periods beginning on or after 1 January 2021.
IFRIC 23 Uncertainty over Income Tax Treatments. Effective for annual periods beginning on or after 1 January
2019.
Prepayment Features with Negative Compensation (Amendments to IFRS 9). Effective for annual periods
beginning on or after 1 January 2019.
Annual Improvements to IFRS Standards 2015–2017 Cycle. Effective for annual periods beginning on or after 1
January 2019.
The entity plans to adopt these standards when they become effective.
The manager anticipates that the adoption of applicable standards and interpretations in future periods will have
the following impact on the financial statements of the Scheme.
IFRS 9 - Financial Instruments: - under the current business model investments are held at fair value through profit
or loss, receivables are measured at amortised cost and cash and cash equivalents are measured at fair value.
Financial liabilities are held at fair value through profit or loss. No change is anticipated for initial recognition of
either financial assets or financial liabilities.
IFRS 15 - Revenue from contracts with customers - due to the nature of the Scheme's revenue, being income
from investments, no change is anticipated for recognition and measurement of revenue.
IFRS16 – Leases - is not applicable to the Scheme as no items are leased.
IFRS17 – Insurance contracts - is not applicable to the manager and the Scheme.
The manager anticipates that the adoption of amendments to existing standards in future periods will have no
material impact on the financial statements of the Scheme.
Amendments to existing standards that became effective during the period
IAS 12 - Recognition of Deferred Tax Assets for Unrealised Losses. Effective for annual periods beginning on or
after 1 January 2017
IAS 7 - Disclosure Initiative. Effective for annual periods beginning on or after 1 January 2017.
Annual Improvements to IFRS Standards 2014–2016 Cycle. The amendments to IFRS 1 and IAS 28 are effective
for annual periods beginning on or after 1 January 2018, the amendment to IFRS 12 for annual periods beginning
on or after 1 January 2017
The standards and amendments adopted in the current period have had no material impact on the financial
statements of the Scheme.
2. Functional and reporting currency
The annual financial statements are presented in South African Rands which is the functional currency of the
Scheme.
3. Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical estimates,
judgements and assumptions that affect the reported amounts. It also requires management to exercise its
judgement in the Scheme’s process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions or
estimates are significant.
4. Financial Instruments
Measurement
Financial instruments are recognised when the Scheme becomes a party to the contractual provisions of that
particular instrument. Financial instruments are initially measured at fair value, which except for financial
instruments at fair value through profit or loss, includes direct attributable transaction costs. Subsequent to initial
recognition, these instruments are measured as set out below.
Investments
Listed investments are designated as held at fair value through profit or loss. Fair value is determined with
reference to quoted market prices at the reporting date, as published in the financial press at the reporting date.
Receivables
Receivables comprise of contributions receivable and distributions receivable, and are measured at amortised cost
using the effective interest rate method.
Cash and cash equivalents
Cash and cash equivalents comprises of bank balances and are measured at fair value.
Financial liabilities
Financial liabilities, trade payable, distributions payable and securities purchases payable are initially measured at
fair value through profit or loss and are subsequently measured at amortised cost using the effective interest rate
method. Financial liabilities arising from the securities issued by the Scheme are carried at fair value representing
the investor’s right to a residual interest in the Scheme’s net assets, i.e. the net asset value of the Scheme.
Changes in the fair value are included in profit or loss in the period in which the change arises.
Derecognition of financial instruments
The Scheme derecognises financial assets when:
- The contractual rights to the cash flows arising from the financial assets have expired or have been
forfeited by the Scheme; or
- It transfers the financial assets including substantially all the risks and rewards of ownership of the
assets; or
- It transfers the financial assets, neither retaining nor transferring substantially all the risks and rewards
of the ownership of the asset, but no longer retains control of the asset.
The difference between the carrying value of financial assets derecognised at the date of derecognition and
proceeds, is recorded as a realised gain or loss in profit or loss.
A financial liability is derecognised when the liability is extinguished. This is, when the obligation specified in the
contract is discharged, cancelled or has expired. The difference between the carrying amount of a financial liability
(or part thereof) extinguished or transferred to another party and consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in profit or loss.
5. Revenue
Revenue comprises distribution income and interest income.
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.
Distribution income
Distribution income in the form of cash is recognised when the right to receive payment is established.
6. Income tax
Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income if
distributed within twelve months and exempt from paying tax on capital gains. Both income and capital gains are
taxed in the hands of investors.
7. Expenses
Expenses are recognised in profit or loss on the accrual basis.
8. Distributions
Distributions payable on redeemable securities are recognised in profit or loss as distributions.
In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed, the Scheme distributes its
distributable income and any other amounts determined by the Manager, to security investors in cash. The
distributions are payable shortly after the end of each quarter and recognised in profit or loss as distributions.
9. Creations and redemptions
Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made at the current
market price of the securities plus a brokerage fee that is negotiable with the broker and any additional transaction
costs applicable to such a trade.
Investors can also acquire the Scheme's securities by subscribing for them directly from the Scheme. The cash
subscription price and number of the Scheme's securities to be issued to an investor for cash will be determined
by the amount which the investor invests (net of transaction costs) and will be a function of the pro rata cost to the
portfolio of acquiring the underlying basket of securities.
Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.
Investors may sell securities by trading on the JSE, at the current market price quoted on the JSE. Investors may
also redeem securities directly with the Scheme.
Securities prices are determined by reference to the net assets of the Scheme divided by the number of securities
in issue. For unit pricing purposes, net assets are determined using the last reported trade price for securities.
These prices may differ from the market price quoted on the JSE.
10. Redeemable securities
All redeemable securities issued by the Scheme provide investors with the right to require redemption for cash or
in specie at the value proportionate to the investors’ share. Such instruments give rise to a financial liability for the
net asset value of the redemption amount in the Scheme’s net assets at redemption date. In accordance with the
CoreShares Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is contractually obliged
to redeem securities at the net asset value. A redemption fee, depending on the size of the recall, would be
payable by the investor making the redemption.
Net assets attributable to security
11. investors
Securities are redeemable at the security investor’s option and are therefore classified as financial liabilities. The
securities may be sold back to the Scheme at any time. The fair value of redeemable securities is measured at
the redemption amount that is payable (in cash and securities representing each investor’s equal, undivided and
vested interest in the assets as a whole, subject to liabilities, as defined by the CoreShares Index Tracker
Collective Investment Scheme Deed) at the reporting date if security investors exercise their right to put the
securities back to the Scheme.
12. Increase/decrease in net assets attributable to security investors
Income not distributed is included in net assets attributable to security investors.
The financial information set out in this announcement is based on the financial statements which have been
audited by the auditors Deloitte & Touche. Their unmodified audit report is available for inspection at the
Manager’s registered address.
The directors take full responsibility for the preparation of the abridged financial information which have been
extracted correctly from the underlying audited annual financial statements.
The full financial statements are available on www.coreshares.co.za
03 April 2018
Date: 03/04/2018 03:50:00 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
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