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Abridged Results as at 31 December 2017 - PTXSPY
CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES PROPTRAX SAPY
ABBREVIATED NAME: PROPTRAX SAPY
SHARE CODE: PTXSPY
ISIN CODE: ZAE000101911
ABRIDGED RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT
SCHEME
(“CORESHARES PROPERTY SAPY 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 167 341 004 151 219 395
Dividends receivable 5 174 836 142
Contributions receivable - 3 231 158
Cash and cash equivalents 571 527 2 171 647
TOTAL ASSETS 167 917 705 157 458 342
LIABILITIES
Net assets attributable to investors 167 790 251 153 944 699
CURRENT LIABILITIES
Trade and other payables 127 454 232 028
Securities purchased payable - 3 281 615
TOTAL LIABILITIES 167 917 705 157 458 342
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 11 419 463 8 480 653
Interest income 82 457 58 608
Investment income 11 501 920 8 539 261
Other income - -
Total Revenue 11 501 920 8 539 261
Management and administration expenses (1 117 321) (923 234)
Income before taxation 10 384 599 7 616 027
Taxation - -
Income before distributions 10 384 599 7 616 027
Distributions paid (9 416 548) (7 556 929)
Income after distributions 968 051 59 098
Realised gains on financial instruments designated at fair 15 600 340 10 639 228
value through profit or loss
Unrealised losses on financial instruments designated at fair (320 878) (12 358 570)
value through profit or loss
Total fair value adjustments - gains/(losses) 15 279 462 (1 719 342)
Other comprehensive income - -
Increase/(decrease) in net assets attributable to investors 16 247 513 (1 660 244)
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 181 204 720 2 340 601 183 545 321
Creation of 50 000 units on 18 December 3 032 769 3 032 769
2015
Creation of 25 000 units on 13 April 2016 1 707 061 1 707 061
Creation of 35 000 units on 13 June 2016 2 333 406 2 333 406
Creation of 30 000 units on 07 July 2016 1 999 921 1 999 921
Creation of 50 000 units on 30 September 3 231 158 3 231 158
2016
Liquidation of 50 000 units on 12 February (3 071 356) (3 071 356)
2016
Liquidation of 550 000 units on 22 February (34 492 690) (34 492 690)
2016
Liquidation of 40 000 units on 18 July 2016 (2 680 647) (2 680 647)
Change in net assets attributable to investors (1 719 342) 59 098 (1 660 244)
Balance at 30 September 2016 151 545 000 2 399 699 153 944 699
Creation of 225 000 units on 13 October 14 327 251 14 327 251
2016
Creation of 160 000 units on 15 November 9 992 899 9 992 899
2016
Creation of 150 000 units on 27 October 10 084 926 10 084 926
2017
Liquidation of 40 000 units on 24 November (2 490 397) (2 490 397)
2016
Liquidation of 60 000 units on 28 November (3 739 892) (3 739 892)
2016
Liquidation of 45 000 units on 06 December (2 774 046) (2 774 046)
2016
Liquidation of 65 000 units on 08 December (4 023 588) (4 023 588)
2016
Liquidation of 50 000 units on 06 January (3 254 513) (3 254 513)
2017
Liquidation of 50 000 units on 30 January (3 318 561) (3 318 561)
2017
Liquidation of 40 000 units on 24 February (2 675 189) (2 675 189)
2017
Liquidation of 140 000 units on 06 April 2017 (8 810 785) (8 810 785)
Liquidation of 50 000 units on 20 July 2017 (3 338 629) (3 338 629)
Liquidation of 35 000 units on 21 November (2 381 438) (2 381 438)
2017
Change in net assets attributable to investors 15 279 462 968 051 16 247 513
Balance at 31 December 2017 164 422 501 3 367 750 167 790 251
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 11 110 993 6 744 914
Distributions paid (9 416 548) (7 556 929)
Net cash inflow/(outflow) from operating activities 1 694 445 (812 015)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (172 978 286) (36 315 059)
Proceeds from sale of investments 168 850 833 67 537 964
Net cash (outflow)/inflow from investing activities (4 127 453) 31 222 905
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 37 903 878 9 116 129
Contributions repaid for units liquidated (37 070 990) (40 217 990)
Net cash outflow from financing activities 832 888 (31 101 861)
NET DECREASE IN CASH AND CASH EQUIVALENTS (1 600 120) (690 971)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE 2 171 647 2 862 618
PERIOD
CASH AND CASH EQUIVALENTS AT END OF THE 571 527 2 171 647
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
Date: 03/04/2018 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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