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CORESHARES INDEX TRACKER MANAGERS (RF) PROPRIETARY LIMITED - Preliminary results for Coreshares Index racker collective investment scheme(Coreshares S&P South Africa dividend29 Mar 2019
DIVTRX 201903290086A
Preliminary results for Coreshares Index racker collective investment scheme
("Coreshares S&P South Africa dividend

CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES DIVTRAX
ABBREVIATED NAME: DIVTRAX
SHARE CODE: DIVTRX
ISIN CODE: ZAE000190104



PRELIMINARY RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
("CORESHARES S&P SOUTH AFRICA DIVIDEND ARISTOCRATS EXCHANGE TRADED FUND") AS AT 31
DECEMBER 2018

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018

                                                                2018                    2017
                                                                R                       R


 ASSETS


 Listed investments held at fair value through profit or loss          284 854 330             258 258 481
 Distributions receivable                                                  154 319                  98 136
 Cash and cash equivalents                                               2 272 732               1 265 822


 TOTAL ASSETS                                                          287 281 381             259 622 439


 LIABILITIES


 Net assets attributable to investors                                  287 136 047             259 527 650
 Trade and other payables                                                 145 334                  94 789


 TOTAL LIABILITIES                                                     287 281 381             259 622 439




STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018


                                                                              Represented
                                                                  12 months          15 months
                                                                    2018             2017
                                                                     R               R


 Distribution income                                                  9 757 949                7 570 044
 Interest income                                                         125 978                 118 245
 Total revenue                                                        9 883 927                7 688 289
 Management and administration expenses                              (1 495 982)              (1 162 030)
 Income before taxation                                               8 387 945                6 526 259
 Taxation                                                                       -                         -
 Income before distributions                                          8 387 945                6 526 259
 Distributions paid                                                  (8 921 297)              (5 804 369)
 (Loss)/income after distributions                                    (533 352)                  721 890


 Net fair value (losses)/gains on financial instruments at fair     (45 588 673)              15 052 469
 value through profit or loss

 (Loss)/income after net fair value (losses)/gains                  (46 122 025)              15 774 359

 Other comprehensive income                                                     -                         -
 (Decrease)/increase in net assets attributable to investors        (46 122 025)              15 774 359




STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018




                                                                                         Accumulated
                                                                           Capital               Profit              Total
                                                                                R                    R                  R


  Balance at 30 September 2016                                     101246071.81             818703.00         102064774.81


  Creation of 50 000 units on 13 October 2016                        1400101.18                                 1400101.18
  Creation of 100 000 units on 31 October 2016                       2778242.92                                 2778242.92
  Creation of 50 000 units on 03 November 2016                       1402067.69                                 1402067.69
  Creation of 50 000 units on 18 November 2016                       1371328.51                                 1371328.51
  Creation of 330 000 units on 29 November 2016                      9168942.49                                 9168942.49
  Creation of 50 000 units on 12 December 2016                       1392289.85                                 1392289.85
  Creation of 65 000 units on 22 December 2016                       1837583.19                                 1837583.19
  Creation of 65 000 units on 22 December 2016                       1826394.77                                 1826394.77
  Creation of 25 000 units on 05 January 2017                         714001.84                                  714001.84
  Creation of 75 000 units on 27 January 2017                        2173390.71                                 2173390.71
  Creation of 50 000 units on 06 February 2017                       1414949.15                                 1414949.15
  Creation of 50 000 units on 09 February 2017                       1430096.20                                 1430096.20
  Creation of 100 000 units on 23 February 2017                      2924211.46                                 2924211.46
  Creation of 50 000 units on 27 February 2017                       1453555.59                                 1453555.59
Creation of 75 000 units on 03 March 2017            2189364.73                  2189364.73
Creation of 100 000 units on 09 March 2017           2914573.75                  2914573.75
Creation of 50 000 units on 29 March 2017            1473175.86                  1473175.86
Creation of 50 000 units on 04 April 2017            1406855.30                  1406855.30
Creation of 50 000 units on 05 April 2017            1403434.52                  1403434.52
Creation of 100 000 units on 07 April 2017           2763935.16                  2763935.16
Creation of 50 000 units on 24 April 2017            1425350.14                  1425350.14
Creation of 1 798 517 units on 25 April 2017        51544776.46                 51544776.46
Creation of 100 000 units on 02 May 2017             3021515.37                  3021515.37
Creation of 100 000 units on 03 May 2017             2916284.84                  2916284.84
Creation of 100 000 units on 19 May 2017             2833278.30                  2833278.30
Creation of 50 000 units on 24 May 2017              1427157.37                  1427157.37
Creation of 100 000 units on 05 June 2017            2834162.91                  2834162.91
Creation of 50 000 units on 26 June 2017             1363580.50                  1363580.50
Creation of 100 000 units on 29 June 2017            2742465.18                  2742465.18
Creation of 100 000 units on 05 July 2017            2741556.86                  2741556.86
Creation of 340 000 units on 14 July 2017            9497431.13                  9497431.13
Creation of 150 000 units on 20 July 2017            4249080.16                  4249080.16
Creation of 50 000 units on 07 August 2017           1426768.08                  1426768.08
Creation of 150 000 units on 23 August 2017          4369254.44                  4369254.44
Creation of 225 000 units on 29 September 2017       6170755.87                  6170755.87
Creation of 100 000 units on 04 October 2017         2755455.34                  2755455.34
Creation of 75 000 units on 13 October 2017          2153197.69                  2153197.69
Creation of 75 000 units on 17 October 2017          2130578.64                  2130578.64
Creation of 75 000 units on 18 October 2017          2145390.27                  2145390.27
Creation of 150 000 units on 26 October 2017         4176538.71                  4176538.71
Creation of 150 000 units on 31 October 2017         4221058.11                  4221058.11
Creation of 100 000 units on 07 November 2017        2839130.75                  2839130.75
Creation of 225 000 units on 05 December 2017        6543498.35                  6543498.35
Creation of 100 000 units on 20 December 2017        2969200.40                  2969200.40
Liqiudation of 909 000 units on 20 June 2017       -24623942.91                -24623942.91
Liqiudation of 200 000 units on 09 November 2017    -5623503.43                 -5623503.43
Change in net assets attributable to investors      15052468.79    721890.00    15774358.79


Balance at 31 December 2017                        257987055.00   1540593.00   259527650.00


Creation of 125 000 units on 09 January 2018         3736317.97                  3736317.97
Creation of 50 000 units on 01 February 2018         1535911.47                  1535911.47
Creation of 50 000 units on 19 February 2018         1558475.22                  1558475.22
Creation of 50 000 units on 27 February 2018         1582993.92                  1582993.92
Creation of 75 000 units on 01 March 2018            2367670.15                  2367670.15
Creation of 400 000 units on 07 March 2018          12657432.79                 12657432.79
Creation of 150 000 units on 13 March 2018           4733542.75                  4733542.75
Creation of 627 000 units on 29 March 2018          18758518.22                 18758518.22
Creation of 75 000 units on 10 April 2018            2230315.90                  2230315.90
  Creation of 50 000 units on 17 April 2018                   1476020.76                    1476020.76
  Creation of 75 000 units on 08 May 2018                     2226555.56                    2226555.56
  Creation of 100 000 units on 18 May 2018                    2861420.27                    2861420.27
  Creation of 75 000 units on 15 June 2018                    2068918.32                    2068918.32
  Creation of 100 000 units on 02 July 2018                   2715957.32                    2715957.32
  Creation of 100 000 units on 12 July 2018                   2782379.98                    2782379.98
  Creation of 100 000 units on 03 August 2018                 2772307.95                    2772307.95
  Creation of 150 000 units on 13 August 2018                 4191861.20                    4191861.20
  Creation of 50 000 units on 05 October 2018                 1305929.30                    1305929.30
  Creation of 100 000 units on 06 November 2018               2685888.94                    2685888.94
  Creation of 75 000 units on 08 November 2018                2042934.11                    2042934.11
  Creation of 100 000 units on 04 December 2018               2647440.45                    2647440.45
  Liqiudation of 100 000 units on 17 October 2018            -2591060.37                   -2591060.37
  Liqiudation of 100 000 units on 19 November 2018           -2617309.16                   -2617309.16
  Change in net assets attributable to investors            -45588673.00   -533352.00     -46122025.00


  Balance at 31 December 2018                               286128806.02   1007241.00     287136047.02




STATEMENT OF CASH FLOWS
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018

                                                     12 months                15 months
                                                     2018                     2017
                                                     R                        R


 CASH FLOWS FROM OPERATING ACTIVITIES
  Cash generated from operations                                            8 382 307.00                       6 543 451.00
  Distributions paid                                                       (8 921 297.00)                     (5 804 369.00)

  Net cash (outflow)/inflow from operating activities                        (538 990.00)                        739 082.00

  CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of investments                                                (193 876 778.29)                   (259 299 589.06)
  Proceeds from sale of investments                                       121 385 268.47                     113 918 823.83


  Net cash outflow from investing activities                              (72 491 509.82)                   (145 380 765.23)


  CASH FLOWS FROM FINANCING ACTIVITIES


  Contributions received for new units created                            79 268 249.85                     175 300 150.81
  Contributions repaid for units liquidated                                (5 230 839.53)                    (30 372 634.12)


  Net cash inflow from financing activities                               74 037 410.32                     144 927 516.69


  NET INCREASE IN CASH AND CASH EQUIVALENTS                                 1 006 909.50                         285 834.46


 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE                              1 265 822.23                         979 987.77
 YEAR

  CASH AND CASH EQUIVALENTS AT END OF THE YEAR                              2 272 731.73                       1 265 822.23




ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018

Basis of Preparation

New standards and amendments to standards and interpretations not yet adopted
The financial statements are prepared on a historic cost basis, except for certain financial instruments, which are
accounted for at fair value.

The financial statements are prepared in accordance with and contain the information required by International
Financial Reporting Standards ("IFRS''), its interpretations adopted by the International Accounting Standards
Board ("IASB"), the South African Institute of Chartered Accountants Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting
Standards Council, the JSE Listings Requirements, the requirements of the Coreshares Index Tracker Collective
Investment Scheme Deed and the Collective Investment Schemes Control Act, 45 of 2002 ("the Act").
At the date of approval of the annual financial statements, the following new standards and amendments that apply
to the Scheme were in issue but not yet effective:
IFRS17 – Insurance contracts - Applicable to annual reporting periods beginning on or after 1 January 2021.
IFRS17 – Insurance contracts - is not applicable to the Manager and the Scheme as there are no insurance
contracts.

The financial statements have been prepared consistently based on the following principal accounting policies
which are consistent with those applied in the previous period, except for IFRS 9:

The Manager anticipates that the adoption of amendments to existing standards in future periods will have no
material impact on the financial statements of the Scheme.

Amendments to existing standards that became effective during the period
IFRS 15 Revenue from Contracts with Customers (refer to 1.2 below)
The Manager has concluded that the standards and amendments adopted in the current period have had no
material impact on the financial statements of the Scheme.
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
IFRS16 – Leases - is not applicable to the Scheme as no items are leased.
IFRIC 23 Uncertainty over Income Tax Treatments. Effective for annual periods beginning on or after 1 January
2019.
Prepayment Features with Negative Compensation (Amendments to IFRS 9). Effective for annual periods
beginning on or after 1 January 2019.

Annual Improvements to IFRS Standards 2015–2017 Cycle. Effective for annual periods beginning on or after 1
January 2019.

The entity plans to adopt these standards when they become effective.

The Manager anticipates that the adoption of applicable standards and interpretations in future periods will have
the following impact on the financial statements of the Scheme.

Annual Improvements to IFRS Standards 2014–2016 Cycle. The amendments to IFRS 1 and IAS 28 are effective
for annual periods beginning on or after 1 January 2018.
Amendments to References to the Conceptual Framework in IFRS Standards - Annual periods beginning on or
after 1 January 2020.
The following new standards were adopted by the Scheme for the 2018 financial year:
IFRS 9 Financial Instruments (refer to 1.1 below)
Definition of Material (Amendments to IAS 1 and IAS 8) - Annual reporting periods beginning on or after 1 January
2020.
IFRIC 23 - Uncertainty over Income Tax Treatments - is not applicable as the Scheme is not taxed.

The Manager anticipates that the adoption of amendments to existing standards in future periods will have no
material impact on the financial statements of the Scheme.

Amendments to existing standards that became effective during the period
Annual Improvements to IFRS Standards 2014–2016 Cycle. The amendments to IFRS 1 and IAS 28 are effective
for annual periods beginning on or after 1 January 2018.

The Manager has concluded that the standards and amendments adopted in the current period have had no
material impact on the financial statements of the Scheme.

The following new standards were adopted by the Scheme for the 2018 financial year:

IFRS 9 Financial Instruments (refer to 1.1 below)
IFRS 15 Revenue from Contracts with Customers (refer to 1.2 below)

IFRS 9 Financial Instruments
IFRS 9 replaces IAS 39 – ‘Financial Instruments' ("IAS 39") and introduces new requirements for recognition,
classification, measurement and derecognition of financial assets and financial liabilities, and the impairment of
financial assets. The Scheme elected not to early adopt any of the provisions of IFRS 9 in previous financial
reporting periods. The classification and measurement requirements of IFRS 9 have been adopted prospectively
as at the date of initial application on 1 January 2018. The following table shows the original measurement
categories inaccordance with IAS 39 and the new categories in accordance with IFRS 9:
                                                      IAS          39     IFRS           9      Measurement
                                                      classification      classification        changes
    Financial Assets
    Receivables                                       Financial asset     Financial asset       None
                                                      at   amortised      at    amortised
                                                      cost                cost
    Investments                                       Designated at       FVTPL                 None
                                                      FVTPL
    Cash and cash equivalents                         Financial asset     Financial asset       None
                                                      at   amortised      at    amortised
                                                      cost                cost
    Financial Liabilities
    Payables                                          Financial           Financial liability   None
                                                      liability    at     at    amortised
                                                      amortised cost      cost
    Net assets attributable to investors              FVTPL               FVTPL                 None

1.2        Revenue from Contracts with Customers
           The Scheme has adopted IFRS 15: ‘Revenue from Contracts with Customers' ("IFRS 15") from 1
January 2018. The adoption of the new standard did not result in any changes to accounting policies relating to
revenue recognition.

2.         Functional and reporting currency
           The annual financial statements are presented in South African Rands which is the functional currency
of the Scheme.


3.          Use of estimates and judgements
            The preparation of financial statements in conformity with IFRS requires the use of certain critical
estimates, judgements and assumptions that affect the reported amounts. It also requires management to exercise
its judgement in the Scheme's process of applying the accounting policies. Actual results may vary from these
estimates. There are no areas involving a higher degree of judgement complexities or areas where assumptions
or estimates are significant.


4.        Financial Instruments
          Financial assets and financial liabilities are recognised in the Scheme's balance sheet when the
Scheme becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are
measured at fair value on initial recognition.

              Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit and loss ("FVTPL")) are
added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at
FVTPL are recognised immediately in profit or loss.

            Financial assets
            All financial assets are recognised on the trade date, and are initially measured at fair value, plus
transaction costs, except for those financial assets classified as at FVTPL.


              Financial assets at amortised cost
              "Financial assets are classified and measured at amortised cost if:
•              these assets are held to collect contractual cash flows; and
•              the asset's contractual cash flows represent solely payments of principal and interest            (""SPPI").

Financial assets included within this category are initially recognized at fair value and are subsequently measured
at amortised cost using the effective interest method."

              Financial assets at FVTPL
              "Financial assets classified and measured at FVTPL are:
•              assets with contractual cash flows that are not SPPI; or
•              assets that are held in a business model other than to collect contractual cash flows or to collect and
sell.
The financial assets have been classified into the following categories:"


             Investments
             "Listed investments are held at FVTPL. Fair value is determined with reference to quoted market prices
at the reporting date, as published in the financial press at the reporting date. The investments are measured at
fair value, with any gains/losses arising on subsequent measurement recognised in profit or loss.

Distribution income earned on these instruments are recorded separately in the statement of profit or loss and other
comprehensive income."

            Receivables
            Receivables comprise of contributions receivable and distributions receivable. The receivable balance
recognised represents the fair value at initial recognition. The objective of the Scheme is to "hold to collect"
contractual cash flows, and these receivables are subsequently measured at amortised cost using the effective
interest method.

           Cash and cash equivalents
           The objective of the Scheme is to "hold to collect" contractual cash flows. The principal amount
represents the fair value of the cash balance at initial recognition. Cash and cash equivalents are subsequently
measured at amortised cost, using the effective interest method.


          Impairment of financial assets
          "The Scheme holds short term receivables with no financing component, which have maturities of less
than 3 months at amortised cost. The Scheme has adopted a simplified approach for expected credit losses (ECL)
under IFRS 9.

The Scheme uses the provision matrix as a practical expedient to measuring ECLs on receivables, based on days
past due for receivables with similar loss patterns. The provision matrix is based on historical observed loss rates
over the expected life of the receivables and is adjusted for forward-looking estimates."


            Financial liabilities
            Financial liabilities are classified as either financial liabilities ‘at FVTPL' or ‘other financial liabilities'.


             Financial liabilities at FVTPL
             "Financial liabilities are classified as at FVTPL when the financial liability is designated as such at initial
recognition.
Financial liabilities arising from securities issued by the Scheme are carried at fair value, representing the investor's
right to a residual interest in the Scheme's net assets, i.e. the net asset value of the Scheme. Changes in the fair
value are included in profit or loss in the period in which the change arises. "


           Other financial liabilities
           Other financial liabilities, including trade payables, distributions payable and securities purchases
payable by the Scheme, are initially measured at fair value, net of transaction costs. Other financial liabilities are
subsequently measured at amortised cost using the effective interest method.



5.          Revenue
            Revenue comprises distribution income and interest income.


            Distribution income
            Distribution income in the form of cash is recognised when the right to receive payment is established.


           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.

6.          Income tax
              Under the current system of taxation in South Africa, the Scheme is exempt from paying tax on income
if distributed within twelve months and exempt from paying tax on capital gains. Both income and capital gains are
taxed in the hands of investors.

7.          Management and administration expenses
            Expenses are recognised in profit or loss on the accrual basis.


8.          Distributions
            "Distributions payable on redeemable securities are recognised in profit or loss as distributions.

In accordance with the CoreShares Index Tracker Collective Investment Scheme Deed, the Scheme distributes its
distributable income and any other amounts determined by the Manager, to security investors in cash. The
distributions are payable shortly after the end of each quarter and recognised in profit or loss as distributions."


9.          Creations and redemptions
            "Investors can acquire the Scheme's securities by trading on the JSE. These purchases will be made
at the current market price of the securities plus a brokerage fee that is negotiable with the broker and any additional
transaction costs applicable to such a trade.

Investors can also acquire the Scheme's securities by subscribing for them directly from the Scheme. The cash
subscription price and number of the Scheme's securities to be issued to an investor for cash will be determined
by the amount which the investor invests (net of transaction costs) and will be a function of the pro rata cost to the
portfolio of acquiring the underlying basket of securities.

Investors subscribing for the Scheme's securities, by the delivery of one or more full baskets of constituent
securities, are obliged to deliver securities with a perfect match to the index.

Investors may sell securities by trading on the JSE, at the current market price quoted on the JSE. Investors may
also redeem securities directly with the Scheme.

Securities prices are determined by reference to the net assets of the Scheme divided by the number of securities
in issue. For unit pricing purposes, net assets are determined using the last reported trade price for securities.
These prices may differ from the market price quoted on the JSE."


10.           Redeemable securities
              All redeemable securities issued by the Scheme provide investors with the right to require redemption
for cash or in specie at the value proportionate to the investors' share. Such instruments give rise to a financial
liability for the net asset value of the redemption amount in the Scheme's net assets at redemption date. In
accordance with the CoreShares Index Tracker Collective Investment Scheme Deed and the Act, the Scheme is
contractually obliged to redeem securities at the net asset value. A redemption fee, depending on the size of the
recall, would be payable by the investor making the redemption.


11.           Net assets attributable to security investors
              Securities are redeemable at the security investor's option and are therefore classified as financial
liabilities. The securities may be sold back to the Scheme at anytime. The fair value of redeemable securities is
measured at the redemption amount that is payable (in cash and securities representing each investor's equal,
undivided and vested interest in the assets as a whole, subject to liabilities, as defined by the CoreShares Index
Tracker Collective Investment Scheme Deed) at the reporting date if security investors exercise their right to put
the securities back to the Scheme.

12.         Increase/decrease in net assets attributable to security investors

            Income not distributed is included in net assets attributable to security investors.



This preliminary report is extracted from audited information, but is not itself audited.

The Directors take full responsibility for the preparation of the preliminary report and that the financial information
has been correctly extracted from the underlying annual financial statements.

29 March 2019
Sponsor: Grindrod Bank Limited

Date: 29/03/2019 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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