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Abridged Audited Results for the Year Ended 31 December 2018
THE SYGNIA ITRIX COLLECTIVE INVESTMENT SCHEME
SYGNIA ITRIX DJ EURO STOXX 50 EXCHANGE TRADED FUND
JSE CODE: SYGEU
ISIN: ZAE000249512
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 87 246 521 63 551 324
Net gain on financial assets at fair value
through profit or loss - 118 139 421
EXPENSES
Net loss on financial assets at fair value
through profit or loss (320 345 805) -
Management and administrative expenses (18 699 455) (15 900 180)
Finance costs (81 615) (114 565)
OPERATING (LOSS)/PROFIT BEFORE DISTRIBUTION (251 880 354) 165 676 000
Comprising:
Income available for distribution before tax 68 465 451 47 536 579
Capital (loss)/gain retained (320 345 805) 118 139 421
Distributions (48 253 877) (33 139 530)
(Loss)/Profit before tax (300 134 231) 132 536 470
Withholding tax (21 978 186) (15 878 248)
(Loss)/Profit for the year (322 112 417) 116 658 222
Other comprehensive income not reclassified
to profit or loss
Translation of functional currency to ZAR 248 473 037 20 153 671
Total comprehensive (loss)/income and
(decrease)/increase in net assets attributable
to holders of redeemable securities (73 639 380) 136 811 893
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
R R
ASSETS
Financial assets at fair value
through profit or loss 1 850 699 411 2 387 639 116
Trade and other receivables 1 021 840 1 080 486
Cash and cash equivalents 2 973 510 10 750 184
Total assets 1 854 694 761 2 399 469 786
LIABILITIES
Net assets attributable to holders
of redeemable securities 1 852 935 832 2 387 977 562
Trade and other payables 1 758 929 11 492 224
Total liabilities 1 854 694 761 2 399 469 786
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 1 722 335 876
Profit for the year 116 658 222
Redemption of redeemable securities (92 839 996)
Creation of redeemable securities 621 669 789
Foreign currency translation adjustments 20 153 671
BALANCE AT 31 DECEMBER 2017 2 387 977 562
Loss for the year (322 112 417)
Redemption of redeemable securities (577 441 109)
Creation of redeemable securities 116 038 759
Foreign currency translation adjustments 248 473 037
BALANCE AT 31 DECEMBER 2018 1 852 935 832
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017
R R
Cash utilised in operations (22 424 831) (14,913,901)
Dividends received 87 305 165 62 905 129
Management fees paid (26 383 348) (14 597 121)
Interest paid (81 615) (114 565)
Net cash inflow from operating activities 38 415 371 33 279 542
Cash inflow/(outflow) from investing activities 465 066 938 (529 139 295)
Sale/(Purchase) of listed investments 465 066 938 (529 139 295)
Cash (outflow)/inflow from financing activities (511 258 983) 494 276 803
(Redemption)/creation of securities (461 402 350) 528 829 792
Distributions paid to investors (49 856 633) (34 552 989)
Net decrease in cash and cash equivalents (7 776 674) (1 582 950)
Cash and cash equivalents at the beginning of year 10 750 184 12 333 134
Cash and cash equivalents at the end of year 2 973 510 10 750 184
SYGNIA ITRIX DJ EURO STOXX 50 REDEEMABLE SECURITIES
2018 2017
Number Number
Total redeemable securities in issue 37 255 202 45 700 000
In terms of the Trust Deed and CISCA, the Fund 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 DJ Euro Stoxx 50 redeemable
securities.
CREATIONS AND REDEMPTIONS
There were 2 200 000 (2017: 11 700 000) Index Securities created during the year
amounting to R 116 038 759 (2017: R621 669 789).
There were 10 644 798 (2017: 2 000 000) Index Securities redeemed during the year
amounting to R577 441 109 (2017 : R92 839 996).
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 (46 296 642) (31 588 879)
0.95875 rand per security
declared June 2018 and paid July 2018 (45 923 818)
0.82250 rand per security
declared June 2017 and paid July 2017 (29 609 872)
0.0100024 rand per security
declared December 2018 and paid January 2019 (372 824)
0.04362 rand per security
declared December 2017 and paid January 2018 (1 979 007)
Management fees refunded during the year as
a rebate distribution (1 957 235) (1 550 651)
Total distribution expense for the year (48 253 877) (33 139 530)
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 TER disclosed is calculated based on the highest management fee scale applicable.
The actual management fee scale is a sliding scale with significant fee reductions
applied for larger investment amounts. 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').
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