SYGWD 201903290061A
Abridged Results for the Year Ended 31 December 2018
THE SYGNIA ITRIX COLLECTIVE INVESTMENT SCHEME
SYGNIA ITRIX MSCI WORLD EXCHANGE TRADED FUND
JSE CODE: SYGWD
ISIN: ZAE000249553
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 176 289 395 114 087 202
Net gain on financial assets at fair value
through profit or loss - 802 017 418
EXPENSES
Foreign exchange loss on dividends (13 085 684) (3 433 831)
Management and administrative expenses (39 641 777) (27 445 717)
Net loss on financial assets at fair value
through profit or loss (725 400 611) -
OPERATING (LOSS)/PROFIT BEFORE DISTRIBUTION (601 838 677) 885 225 072
Comprising:
Income available for distribution before tax 123 561 934 83 207 654
Capital (loss)/gain retained (725 400 611) 802 017 418
Distributions (108 368 507) (62 989 959)
(Loss)/profit before tax (710 207 184) 822 235 113
Withholding tax (24 876 852) (15 524 738)
(Loss)/profit for the year (735 084 036) 806 710 375
Other comprehensive income not reclassified
to profit or loss
Translation of functional currency to ZAR 982 656 556 (543 945 113)
Total comprehensive income and increase
in net assets attributable to holders of
redeemable securities 247 572 520 262 765 262
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
R R
ASSETS
Financial assets at fair value
through profit or loss 7 221 701 545 5 489 364 489
Trade and other receivables 10 572 725 5 281 286
Cash and cash equivalents 74 155 314 38 800 612
Total assets 7 306 429 584 5 533 446 387
LIABILITIES
Net assets attributable to holders
of redeemable securities 7 249 241 027 5 497 005 952
Trade and other payables 57 188 557 36 440 435
Total liabilities 7 306 429 584 5 533 446 387
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 3 661 697 194
Profit for the year 806 710 375
Creation of redeemable securities 1 725 831 979
Redemption of redeemable securities (153 288 483)
Foreign currency translation adjustments (543 945 113)
BALANCE AT 31 DECEMBER 2017 5 497 005 952
Loss for the year (735 084 036)
Creation of redeemable securities 1 867 750 421
Redemption of redeemable securities (363 087 866)
Foreign currency translation adjustments 982 656 556
BALANCE AT 31 DECEMBER 2018 7 249 241 027
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017
R R
Cash utilised in operations (24 035 867) (11 415 296)
Dividends received 164 926 885 107 190 888
Management fees paid (48 467 622) (33 364 795)
Interest received 151 597 10 315
Net cash inflow from operating activities 92 574 993 62 421 112
Cash outflow from investing activities (1 475 081 110) (1 571 209 215)
Purchase of listed investments (1 475 081 110) (1 571 209 215)
Cash inflow from financing activities 1 417 860 819 1 516 107 806
Proceeds on creation of securities 1 867 750 421 1 725 831 979
Payment on redemption of securities (363 087 866) (153 288 483)
Distributions paid to investors (86 801 736) (56 435 690)
Net increase in cash and cash equivalents 35 354 702 7 319 703
Cash and cash equivalents at the beginning of year 38 800 612 31 480 909
Cash and cash equivalents at the end of year 74 155 314 38 800 612
SYGNIA ITRIX MSCI WORLD REDEEMABLE SECURITIES
2018 2017
Number Number
Total redeemable securities in issue 266 854 946 211 800 000
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 World redeemable securities.
CREATIONS AND REDEMPTIONS
There were 67 400 000 (2017: 64 800 000) Index Securities created during the year
amounting to the value of R1 867 750 421 (2017: R1 725 831 979).
There were 12 345 054 (2017: 6 000 000) Index securities redeemed during the year to
the value of R363 087 866 (2017: R153 288 483).
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 69 basis points
management fee charged (2017: 68.4 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 (100 727 424) (60 464 459)
0.21399 rand per security
declared June 2018 and paid July 2018 (51 722 360)
0.20630 rand per security
declared June 2017 and paid July 2017 (32 802 172)
0.1836446 rand per security
declared December 2018 and paid January 2019 (49 005 064)
0.13188 rand per security
declared December 2017 and paid January 2018 (27 662 287)
Management fees refunded during the year as
a rebate distribution (7 641 083) (2 525 500)
Total distribution expense for the year (108 368 507) (62 989 959)
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 0.69% per annum of
assets under management on a daily basis (2017: 0.684% of assets under management).
The Fund had a TER of 69 basis points (2017: 68.4 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 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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