SYGUK 201903290071A
Abridged Audited Results for the Year Ended 31 December 2018
THE SYGNIA ITRIX COLLECTIVE INVESTMENT SCHEME
SYGNIA ITRIX FTSE 100 EXCHANGE TRADED FUND
JSE CODE: SYGUK
ISIN: ZAE000249520
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 37 174 397 42 685 440
Net gains on financial assets at fair value
through profit or loss - 67 896 481
EXPENSES
Net loss on financial assets at fair value
through profit or loss (114 105 692) -
Management and administrative expenses (6 724 966) (10 054 403)
OPERATING (LOSS)/PROFIT BEFORE DISTRIBUTION (83 656 261) 100 527 518
Comprising:
Income available for distribution before tax 30 449 431 32 631 037
Capital (loss)/gain retained (114 105 692) 67 896 481
Distributions (29 549 117) (28 476 911)
(Loss)/Profit before tax (113 205 378) 72 050 607
Withholding tax (663 005) (763 236)
(Loss)/Profit for the year (113 868 383) 71 287 371
Other comprehensive income not reclassified
to profit or loss
Translation of functional currency to ZAR 80 016 157 (7 553 157)
Total comprehensive (loss)/income and
(decrease)/increase in net assets attributable
to holders of redeemable securities (33 852 226) 63 734 214
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
2018 2017
R R
ASSETS
Financial assets at fair value
through profit or loss 826 191 478 835 171 945
Trade and other receivables 2 632 890 2 354 229
Cash and cash equivalents 20 897 131 18 698 889
Total assets 849 721 499 56 225 063
LIABILITIES
Net assets attributable to holders
of redeemable securities 833 856 638 842 009 549
Trade and other payables 15 864 861 14 215 514
Total liabilities 849 721 499 856 225 063
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 967 377 620
Redemption of redeemable securities (189 102 285)
Profit for the year 71 287 371
Foreign currency translation adjustments (7 553 157)
BALANCE AT 31 DECEMBER 2017 842 009 549
Creation of redeemable securities 25 699 315
Loss for the year (113 868 383)
Foreign currency translation adjustments 80 016 157
BALANCE AT 31 DECEMBER 2018 833 856 638
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018 2017
R R
Cash utilised in operations (647 767) (3 081 884)
Dividends received 36 878 263 42 461 789
Interest received 3 356 1 798
Management fees paid (10 417 830) (7 493 957)
Net cash inflow from operating activities 25 816 022 31 887 746
Cash (outflow)/inflow from investing activities (25 078 501) 189 190 707
(Purchase)/Sale of listed investments (25 078 501) 189 190 707
Cash inflow/(outflow) from financing activities 1 460 721 (219 442 151)
Distributions paid to investors (24 238 594) (30 339 867)
Creation/(redemption) of redeemable securities 25 699 315 (189 102 284)
Net increase in cash and cash equivalents 2 198 242 1 636 302
Cash and cash equivalents at the beginning of year 18 698 889 17 062 587
Cash and cash equivalents at the end of year 20 897 131 18 698 889
SYGNIA ITRIX FTSE 100 REDEEMABLE SECURITIES
2018 2017
Number Number
Total redeemable securities in issue 6 810 000 6 610 000
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 FTSE 100 redeemable securities.
CREATIONS AND REDEMPTIONS
There were 200 000 (2017: nil) Index Securities created during the year amounting to
R25 699 315 (2017: Rnil).
There were no (2017: 1 490 000) redemptions during the year (2017: R189 102 285).
DISTRIBUTIONS
The Fund effects semi–annual distributions. All distributions are made out of the
income of the Fund.
The rebates represent an investor's partial reduction of the 86 basis point
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 the following distributions were effected by the Fund:
2018 2017
R R
Declared distributions (28,707,692) (27,635,457)
2.00650 Rand per security
declared June 2018 and paid July 2018 (13,664,304)
2.18481 Rand per security
declared June 2017 and paid July 2017 (17,696,929)
2.20901 Rand per security
declared December 2018 and paid January 2019 (15,043,388)
1.50166 Rand per security
declared December 2017 and paid January 2018 (9,938,528)
Management fees refunded during the year as
a rebate distribution (841,425) (841,454)
Total distribution expense for the year (29,549,117) (28,476,911)
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% per annum 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 02:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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