Abridged Audited Results for the Year Ended 31 December 2018 THE SYGNIA ITRIX COLLECTIVE INVESTMENT SCHEME SYGNIA ITRIX MSCI JAPAN EXCHANGE TRADED FUND JSE CODE: SYGJP ISIN: ZAE000249538 A portfolio in the Sygnia Itrix Collective Investment Scheme (Sygnia Itrix), registered as such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (CISCA). ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2017 R R REVENUE Investment income 16 220 944 9 175 220 Net gain on financial assets at fair value through profit or loss - 73 970 799 EXPENSES Management and administrative expenses (4 242 283) (3 936 230) Net loss on financial assets at fair value through profit or loss (118 584 642) - OPERATING (LOSS)/PROFIT BEFORE DISTRIBUTION (106 605 981) 79 209 789 Comprising: Income available for distribution before tax 11 978 661 5 238 990 Capital (loss)/gain retained (118 584 642) 73 970 799 Distributions (9 724 515) (3 801 884) (Loss)/profit before tax (116 330 496) 75 407 905 Withholding tax (2 464 809) (1 404 779) (Loss)/profit for the year (118 795 305) 74 003 126 Other comprehensive income not reclassified to profit or loss Translation of functional currency to ZAR 125 734 512 (30 884 733) Total comprehensive income and increase in net assets attributable to holders of redeemable securities 6 939 207 43 118 393 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018 2018 2017 R R ASSETS Financial assets at fair value through profit or loss 710 761 226 371 937 093 Trade and other receivables 1 669 846 439 279 Cash and cash equivalents 4 909 249 3 197 247 Total assets 717 340 321 375 573 619 LIABILITIES Net assets attributable to holders of redeemable securities 711 723 784 372 319 132 Trade and other payables 5 616 537 3 254 487 Total liabilities 717 340 321 375 573 619 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SECURITIES FOR THE YEAR ENDED 31 DECEMBER 2018 R BALANCE AT 31 DECEMBER 2016 491 646 174 Profit for the year 74 003 126 Redemption of redeemable securities (162 445 435) Foreign currency translation adjustments (30 884 733) BALANCE AT 31 DECEMBER 2017 372 319 132 Loss for the year (118 795 305) Creation of redeemable securities 369 055 137 Redemption of redeemable securities (36 589 692) Foreign currency translation adjustments 125 734 512 BALANCE AT 31 DECEMBER 2018 711 723 784 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2017 R R Cash utilised in operations (1 387 682) (1 982 229) Dividends received 15 591 400 9 347 627 Management fees paid (6 581 075) (4 002 725) Interest paid (9 442) (2 049) Net cash inflow from operating activities 7 613 201 3 360 624 Cash (outflow)/inflow from investing activities (331 674 264) 162 090 697 (Purchase)/sale of listed investments (331 674 264) 162 090 697 Cash inflow/(outflow) from financing activities 325 773 065 (166 834 248) Creation of securities 369 055 137 - Redemption of securities (36 589 692) (162 445 435) Distributions paid to investors (6 692 380) (4 388 813) Net increase/(decrease) in cash and cash equivalents 1 712 002 (1 382 927) Cash and cash equivalents at the beginning of year 3 197 247 4 580 174 Cash and cash equivalents at the end of year 4 909 249 3 197 247 SYGNIA ITRIX MSCI JAPAN REDEEMABLE SECURITIES 2018 2017 Number Number Total redeemable securities in issue 60 800 000 31 600 000 In terms of the Trust Deed and CISCA, the Trust would be required to pay the net asset value attributable to investors on redemption of securities. Vested income beneficiaries include all holders of Sygnia Itrix MSCI Japan redeemable securities. CREATIONS AND REDEMPTIONS There were 3 000 000 (2017: 14 400 000) redemptions during the current year amounting to a value of R36 589 692 (2017: R162 445 435). There were 32 200 000 (2017: Nil) creations during the current year amounting to a value of R369 055 137 (2017: Rnil). DISTRIBUTIONS The Fund effects semi–annual distributions. All distributions are made from the income of the Fund. The rebates represent an investor’s partial reduction of the 86 basis points management fee charged (2017: 85.5 basis points management fee charged). The rebate is calculated using a sliding scale depending on the size of the investor’s investment. During the year under review the following distributions were effected by the Fund: 2018 2017 R R Declared distributions (8 244 010) (3 607 549) 0.06755 Rand per security declared June 2018 and paid July 2018 (3 829 958) 0.05659 rand per security declared June 2017 and paid July 2017 (2,150,259) 0.07261 rand per security declared December 2018 and paid January 2019 (4,414,052) 0.04663 rand per security declared December 2017 and paid January 2018 (1,457,290) Management fees refunded during the year as a rebate distribution (1 480 505) (194 335) Total distribution expense for the year (9 724 515) (3 801 884) TOTAL EXPENSE RATIO (TER) The TER represents the total expense to the Fund. The only expense of the Fund is the management fee payable to the Manager which is calculated at 0.86% per annum of the assets under management on a daily basis (2017: 0.855% of assets under management). The Fund had a TER of 86 basis points (2017: 85.5 basis points). Increased consumer demand for greater transparency in financial services and the recognition thereof by the collective investment industry requires Collective Investment Scheme (CIS) managers to calculate and publish a total expense ratio for each Fund under their management. This is a requirement in terms of the Association for Savings and Investments South Africa (ASISA) standard on the calculation and publication of total expense ratios. STATEMENT OF COMPLIANCE The information in this summarised report has been extracted from the audited annual financial statements, which were prepared in accordance with the JSE Listing Requirements for abridged reports, and the requirements of CISCA, in order to meet the requirements of the Trust Deed approved by the Financial Services Conduct Authority. The listing requirements require abridged reports to be prepared in accordance with the framework concepts and the measurement and recognition of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, and the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. This announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34. The full report is available on the issuer’s website, at the issuer’s registered offices and upon request. These financial statements were authorised for issue by the board of directors of the Manager on 28 March 2019. ACCOUNTING POLICIES The accounting policies applied in the preparation of the financial statements from which the summary financial statements were derived are in terms of International Financial Reporting Standards and are consistent with those accounting policies applied in the preparation of the previous annual financial statements except for the adoption of the IFRS 9 Financial Instruments which replaces the previously adopted IAS 39. NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED The following standards, amendments to standards and interpretations effective for the first time in future accounting periods and which are relevant to the Fund have not been early adopted. Amendment to IFRS 9: Prepayment Features with Negative Compensation Effective for annual periods beginning on or after 1 January 2019 Under the current IFRS 9 requirements, the SPPI (solely payments of principal and interest) condition is not met if the lender has to make a settlement payment in the event of termination by the borrower (also referred to as early repayment gain). Prepayment Features with Negative Compensation amends the existing requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. INVESTMENT INCOME Investment income comprises: • Interest income earned on cash and cash equivalents; • Cash equalisation component on creations (at the time of creation it represents the income portion attributable to the net asset value at the time that is payable by the creating party); and • Dividends from listed equities held at fair value through profit or loss. 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. DIVIDEND INCOME Dividend income is recognised when the right to receive the payment is established. This is usually the ex-dividend date for quoted equities. AUDIT REPORT This summarised report is itself not reviewed or audited, but is extracted from the underlying audited information. The audited annual financial statements for the year ended 31 December 2018 from which the summarised report has been extracted were audited by Deloitte and Touche, who expressed an unmodified opinion thereon. A copy of the auditor’s report on the audited annual financial statements is available for inspection at the company’s registered office together with the annual financial statements identified in the respective auditor’s reports. A full copy of these financial statements is available on the Sygnia website: https://www.sygnia.co.za/etfs/documents. DIRECTORS’ RESPONSIBILITY The directors take full responsibility for the preparation of the abridged report and confirm that the financial information was correctly extracted from the underlying annual financial statements. Sponsor Vunani Corporate Finance Trustee Standard Bank of SA Limited Manager Sygnia Itrix (RF) Proprietary Limited 29 March 2019 Date: 29/03/2019 01:00:00 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.