SYGUS 201903290053A
Abridged Audited Results for the Year Ended 31 December 2018
THE SYGNIA ITRIX COLLECTIVE INVESTMENT SCHEME
SYGNIA ITRIX MSCI USA EXCHANGE TRADED FUND
JSE CODE: SYGUS
ISIN: ZAE000249546
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 95 382 902 97 052 083
Foreign exchange gain on dividends 3 221 6 900
Net gain on financial assets at fair value
through profit or loss - 848 434 818
EXPENSES
Management and administrative expenses (43 337 487) (38 362 220)
Net loss on financial assets at fair value
through profit or loss (266 398 914) -
OPERATING (LOSS)/PROFIT BEFORE DISTRIBUTION (214 350 278) 907 131 581
Comprising:
Income available for distribution before tax 52 048 636 58 696 763
Capital (loss)/gain retained (266 398 914) 848 434 818
Distributions (41 336 335) (42 914 453)
(Loss)/profit before tax (255 686 613) 864 217 128
Withholding tax (14 326 206) (14 416 993)
(Loss)/profit for the year (270 012 819) 849 800 135
Other comprehensive income not reclassified
to profit or loss
Translation of functional currency to ZAR 705 352 135 (501 340 192)
Total comprehensive income and (decrease)/
Increase in net assets attributable to
Holders of redeemable securities 435 339 316 348 459 943
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
R R
ASSETS
Financial assets at fair value
through profit or loss 4 464 878 740 4 873 247 837
Trade and other receivables 4 490 180 4 289 649
Cash and cash equivalents 37 441 771 27 387 260
Total assets 4 506 810 691 4 904 924 746
LIABILITIES
Net assets attributable to holders
of redeemable securities 4 483 958 097 4 881 625 952
Trade and other payables 22 852 594 23 298 794
Total liabilities 4 506 810 691 4 904 924 746
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 4 442 721 575
Profit for the year 849 800 135
Creation of redeemable securities 90 444 434
Foreign currency translation adjustments (501 340 192)
BALANCE AT 31 DECEMBER 2017 4 881 625 952
Loss for the year (270 012 819)
Redemption of redeemable securities (833 007 171)
Foreign currency translation adjustments 705 352 135
BALANCE AT 31 DECEMBER 2018 4 483 958 097
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017
R R
Cash utilised in operations (17 875 477) (14 128 089)
Dividends received 95 092 814 97 364 173
Management fees paid (42 053 874) (54 107 382)
Interest received 90 291 4 813
Net cash inflow from operating activities 35 253 754 29 133 515
Cash inflow/(outflow) from investing activities 847 325 545 (84 622 858)
Sales/(Purchase) of listed investments 847 325 545 (84 622 858)
Cash (outflow)/inflow from financing activities (872 524 788) 45 634 811
Proceeds on creation of redeemable securities - 90 444 434
Redemption of securities (833 007 171) -
Distributions paid to investors (39 517 617) (44 809 623)
Net increase/(decrease) in cash and cash equivalents 10 054 511 (9 854 532)
Cash and cash equivalents at the beginning of year 27 387 260 37 241 792
Cash and cash equivalents at the end of year 37 441 771 27 387 260
SYGNIA ITRIX MSCI USA REDEEMABLE SECURITIES
2018 2017
Number Number
Total redeemable securities in issue 131 614 005 156 000 000
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 MSCI USA redeemable securities.
CREATIONS AND REDEMPTIONS
There were no (2017: 3 000 000) creations during the year (2017: R90 444 434).
There were 24 385 995 (2017: nil) redemptions during the year amounting to a value of
R833 007 171 (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). The rebate is calculated using a
sliding scale depending on the size of the investor's investment.
During the year the following distributions were effected by the Fund:
2018 2017
R R
Declared distributions (39 902 175) (40 481 579)
0.13544 rand per security
declared June 2018 and paid July 2018 (19 095 502)
0.13717 rand per security
declared June 2017 and paid July 2017 (21 398 520)
0.15809 rand per security
declared December 2018 and paid January 2019 (20 806 673)
0.12218 rand per security
declared December 2017 and paid January 2018 (19 083 059)
Management fees refunded during the year as
a rebate distribution (1 434 160) (2 432 874)
Total distribution expense for the year (41 336 335) (42 914 453)
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 01:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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