PTXTEN 201903290101A
Preliminary results for coreshares index tracker collective investment scheme ("PROPTRAX TEN") at 31 December 2018
CORESHAREAS INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES PROPTRAX TEN
ABBREVIATED NAME: PROPTRAX TEN
SHARE CODE: PTXTEN
ISIN CODE: ZAE000155362
PRELIMINARY RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
("CORESHARES PROPERTY TOP TEN 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 243 537 412 303 994 191
profit or loss
Distributions receivable 23 603 15 601
Cash and cash equivalents 6 258 501 3 410 727
TOTAL ASSETS 249 819 516 307 420 519
LIABILITIES
Net assets attributable to investors 249 650 406 307 254 234
Trade and other payables 169 110 166 285
TOTAL LIABILITIES 249 819 516 307 420 519
STATEMENT OF PROFIT OR LOSS OR OTHER COMPREHENSIVE INCOME
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
Represented
12 months 15 months
2018 2017
R R
Distribution income 20 855 763 20 327 723
Interest income 117 637 199 286
Total revenue 20 973 400 20 527 009
Management and administration expenses (1 437 103) (1 989 117)
Income before taxation 19 536 297 18 537 892
Taxation - -
Income before distributions 19 536 297 18 537 892
Distributions paid (20 491 466) (16 056 450)
(Loss)/income after distributions (955 169) 2 481 442
Net fair value (losses)/gains on financial (98 817 371) 22 372 986
instruments at fair value through profit or loss
(Loss)/income after net fair value (losses)/gains (99 772 540) 24 854 428
Other comprehensive income - -
(Decrease)/increase in net assets attributable to (99 772 540) 24 854 428
investors
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 281 538 484 4 209 941 285 748 430
Creation of 100 000 units on 24 October 2 111 922 2 111 922
2016
Creation of 150 000 units on 07 3 076 781 3 076 781
November 2016
Creation of 150 000 units on 07 2 984 180 2 984 180
December 2016
Creation of 100 000 units on 05 January 2 084 620 2 084 620
2017
Creation of 150 000 units on 11 January 3 173 925 3 173 925
2017
Creation of 100 000 units on 22 2 151 031 2 151 031
February 2017
Creation of 100 000 units on 28 2 125 738 2 125 738
February 2017
Creation of 100 000 units on 06 March 2 124 988 2 124 988
2017
Creation of 100 000 units on 29 March 2 084 341 2 084 341
2017
Creation of 150 000 units on 04 April 3 076 711 3 076 711
2017
Creation of 150 000 units on 06 April 3 020 928 3 020 928
2017
Creation of 100 000 units on 15 May 2 113 821 2 113 821
2017
Creation of 100 000 units on 19 May 2 066 592 2 066 592
2017
Creation of 125 000 units on 02 June 2 625 854 2 625 854
2017
Creation of 150 000 units on 27 June 3 160 035 3 160 035
2017
Creation of 100 000 units on 15 August 2 191 700 2 191 700
2017
Creation of 150 000 units on 04 October 3 225 983 3 225 983
2017
Creation of 150 000 units on 09 October 3 235 277 3 235 277
2017
Creation of 100 000 units on 05 2 177 890 2 177 890
December 2017
Liquidation of 550 000 units on 16 (11 767 450) (11 767 450)
March 2017
Liquidation of 736 500 units on 20 June (15 351 890) (15 351 890)
2017
Liquidation of 50 000 units on 06 (1 089 496) (1 089 496)
September 2017
Liquidation of 800 000 units on 25 (17 424 699) (17 424 699)
October 2017
Liquidation of 200 000 units on 03 (4 388 002) (4 388 002)
November 2017
Liquidation of 100 000 units on 21 (2 139 405) (2 139 405)
November 2017
Change in net assets attributable to 22 372 987 2 481 442 24 854 429
investors
Balance at 31 December 2017 300 562 844 6 691 380 307 254 234
Creation of 100 000 units on 17 January 2 139 460 2 139 460
2018
Creation of 100 000 units on 25 January 2 123 113 2 123 113
2018
Creation of 200 000 units on 13 3 716 379 3 716 379
February 2018
Creation of 200 000 units on 13 3 875 783 3 875 783
February 2018
Creation of 100 000 units on 27 1 881 686 1 881 686
February 2018
Creation of 100 000 units on 01 March 1 837 969 1 837 969
2018
Creation of 100 000 units on 12 March 1 877 959 1 877 959
2018
Creation of 370 000 units on 03 April 6 630 942 6 630 942
2018
Creation of 200 000 units on 12 April 3 692 177 3 692 177
2018
Creation of 100 000 units on 08 May 1 851 018 1 851 018
2018
Creation of 100 000 units on 17 May 1 801 937 1 801 937
2018
Creation of 100 000 units on 19 June 1 711 366 1 711 366
2018
Creation of 100 000 units on 04 July 1 698 655 1 698 655
2018
Creation of 116 368 units on 05 July 1 986 501 1 986 501
2018
Creation of 150 000 units on 13 July 2 511 081 2 511 081
2018
Creation of 200 000 units on 08 August 3 392 597 3 392 597
2018
Creation of 150 000 units on 07 2 523 839 2 523 839
September 2018
Liquidation of 200 000 units on 18 (3 083 750) (3 083 750)
December 2018
Change in net assets attributable to (98 817 371) (955 169) (99 772 540)
investors
Balance at 31 December 2018 243 914 185 5 736 211 249 650 406
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 19 531 120 20 639 419
Distributions paid (20 491 466) (16 056 450)
Net cash (outflow)/inflow from operating activities (960 346) 4 582 969
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (172 222 763) (455 650 587)
Proceeds from sale of investments 133 616 943 455 688 222
Net cash (outflow)/inflow from investing activities (38 605 820) 37 635
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 45 555 610 48 947 978
Contributions repaid for units liquidated (3 141 670) (52 576 615)
Net cash inflow/(outflow) from financing activities 42 413 940 (3 628 637)
NET INCREASE IN CASH AND CASH EQUIVALENTS 2 847 774 991 967
CASH AND CASH EQUIVALENTS AT BEGINNING OF 3 410 727 2 418 760
THE YEAR
CASH AND CASH EQUIVALENTS AT END OF THE 6 258 501 3 410 727
YEAR
ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
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:
Basis of Preparation
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:
New standards and amendments to standards and interpretations not yet adopted
IFRS16 – Leases - Applicable to annual reporting periods beginning on or after 1 January 2019.
IFRS17 – Insurance contracts - Applicable to annual reporting periods beginning on or after 1 January 2021.
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.
Amendments to References to the Conceptual Framework in IFRS Standards - Annual periods beginning on or
after 1 January 2020.
Definition of Material (Amendments to IAS 1 and IAS 8) - Annual reporting periods beginning on or after 1
January 2020.
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.
IFRS16 – Leases - is not applicable to the Scheme as no items are leased.
IFRS17 – Insurance contracts - is not applicable to the Manager and the Scheme as there are no insurance
contracts.
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)
Basis of Preparation (continued)
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 in
accordance 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
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.
Functional and reporting currency
The annual financial statements are presented in South African Rands which is the functional currency of the
Scheme.
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.
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 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.
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.
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.
Management and administration expenses
Expenses are recognised in profit or loss on the accrual basis.
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."
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."
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.
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.
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 04:28:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
Back to SENS list
