SYGJP 201903290043A
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').
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