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CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY LIMITED - Abridged Results as at 31 December 2017 - LVLTRX

Release Date: 03/04/2018 15:55
Code(s): LVLTRX     PDF:  
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Abridged Results as at 31 December 2017 - LVLTRX

CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT:     CORESHARES LOWVOL TRAX
ABBREVIATED NAME: LOWVOL TRAX
SHARE CODE: LVLTRX
ISIN CODE: ZAE000190112


ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENTS
SCHEME
(“CORESHARES S&P SOUTH AFRICA LOW VOLATILITY 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 profit or loss   20 787 245     29 929 175
Distributions receivable                                          5 294         39 978
Cash and cash equivalents                                        125 567       373 162


TOTAL ASSETS                                                   20 918 106     30 342 315


LIABILITIES


Net assets attributable to investors                           20 795 185     30 157 225


CURRENT LIABILITIES
Trade and other payables                                         122 921       185 090


TOTAL LIABILITIES                                              20 918 106     30 342 315

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 15TH MONTHS ENDED 31 DECEMBER 2017


                                                       15 months     12 months
                                                      31 December   30 September
                                                         2017           2016
                                                          R              R


 Distribution income                                   1 266 525     1 067 486
 Interest income                                        29 446         8 781
 Total Revenue                                         1 295 971     1 076 267
 Management and administration expenses                (257 487)     (153 099)
 Income before taxation                                1 038 484      923 168
 Taxation                                                  -              -
 Income before distributions                           1 038 484      923 168
 Distributions paid                                    (990 221)     (890 612)
 Income after distributions                             48 263         32 556


 Realised (losses)/gains on financial instruments     (1 032 156)     525 615
designated at fair value through profit or loss

 Unrealised gains /(losses) on financial                627 171      (1 024 302)
instruments designated at fair value through profit
or loss
 Total fair value adjustments - losses                 (404 986)     (498 686)
 Other comprehensive income                                -              -
 Decrease in net assets attributable to investors      (356 723)     (466 130)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017


                                                                Accumulated
                                                    Capital        Profit        Total
                                                      R              R            R


 Balance at 30 September 2015                     23 246 697      157 776     23 404 473


 Creation of 50 000 units on 07 October2015       1 451 198                   1 451 198
 Creation of 50 000 units on 03 November          1 490 019                   1 490 019
2015
 Creation of 50 000 units on 03 December          1 425 981                   1 425 981
2015
 Creation of 50 000 units on 04 March 2016        1 373 315                   1 373 315
 Creation of 50 000 units on 29 June 2016         1 375 455                   1 375 455
 Creation of 50 000 units on 29 July 2016         1 449 803                   1 449 803
 Creation of 50 000 units on 18 August 2016       1 450 500                   1 450 500
 Liquidation of 100 000 units on 26 May 2016      (2 797 390)                 (2 797 390)
 Change in net assets attributable to investors   (498 686)       32 556      (466 130)


 Balance at 30 September 2016                     29 966 893      190 332     30 157 225


 Creation of 50 000 units on 02 November          1 367 237                   1 367 237
2016
 Liquidation of 110 000 units on 02 June 2017     (2 966 337)                 (2 966 337)
 Liquidation of 100 000 units on 06 September     (2 694 102)                 (2 694 102)
2017
 Liquidation of 75 000 units on 07 November       (2 012 988)                 (2 012 988)
2017
 Liquidation of 100 000 units on 09 November      (2 699 127)                 (2 699 127)
2017
 Change in net assets attributable to investors   (404 986)       48 263      (356 723)


 Balance at 31 December 2017                      20 556 590      238 595     20 795 185
STATEMENT OF CASH FLOWS
FOR THE 15 MONTHS ENDED 31 DECEMBER 2017


                                                       15 months     12 months
                                                          31            30
                                                       December      September
                                                          2017          2016
                                                           R             R


CASH FLOWS FROM OPERATING ACTIVITIES


Cash generated from operations                         1 010 999      960 877
Distributions paid                                     (990 221)     (890 612)


Net cash inflow from operating activities                20 778        70 265


CASH FLOWS FROM INVESTING ACTIVITIES


Purchase of investments                                 (27 844       (33 820
                                                          346)          574)
Proceeds from sale of investments                      36 600 602    27 137 610


Net cash inflow/(outflow) from investing activities    8 756 256     (6 682 964)


CASH FLOWS FROM FINANCING ACTIVITIES


Contributions received for new units created           1 365 075     10 023 601
Contributions repaid for units liquidated               (10 389      (2 800 862)
                                                          704)


Net cash (outflow)/ inflow from financing activities   (9 024 629)   7 222 739


NET (DECREASE)/INCREASE IN CASH AND CASH               (247 595)      610 040
EQUIVALENTS


CASH AND CASH EQUIVALENTS/ (BANK OVERDRAFT)             373 162      (236 878)
AT BEGINNING OF THE PERIOD


CASH AND CASH EQUIVALENTS AT END OF THE                 125 567       373 162
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 anytime. 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

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