GLODIV 201903290108A
Preliminary results for coreshares index tracker collective investment scheme ("GLODIV") as at 31 December 2018
CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
INSTRUMENT: CORESHARES GLOBAL DIVIDEND ARISTOCRATS EXCHANGE TRADED FUND
ABBREVIATED NAME: GLODIV
SHARE CODE: GLODIV
ISIN CODE: ZAE000254249
PRELIMINARY RESULTS FOR CORESHARES INDEX TRACKER COLLECTIVE INVESTMENT SCHEME
("CORESHARES GLOBAL DIVIDEND ARISTOCRATS EXCHANGE TRADED FUND") AS AT 31 DECEMBER
2018
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018
2018
R
ASSETS
Listed investments held at fair value through profit or loss 278 047 238
Distributions receivable 332 105
Cash and cash equivalents 2 081 075
TOTAL ASSETS 280 460 418
LIABILITIES
Net assets attributable to investors 280 349 504
Trade and other payables 110 914
TOTAL LIABILITIES 280 460 418
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
11 months
2018
R
Distribution income 3 276 941
Interest income 99 226
Total revenue 3 376 167
Management and administration expenses (1 673 030)
Income before taxation 1 703 137
Taxation -
Income before distributions 1 703 137
Distributions paid (686 097)
Income after distributions 1 017 040
Net fair value gains on financial instruments at fair value through 9 945 979
profit or loss
Income after net fair value gains 10 963 019
Other comprehensive income -
Increase in net assets attributable to investors 10 963 019
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
Accumulated
Capital Profit Total
R R R
Creation of 5 782 240 units on 21 55 969 800 55 969 800
February 2018
Creation of 1 050 000 units on 23 9 999 403 9 999 403
February 2018
Creation of 1 021 364 units on 14 March 9 994 302 9 994 302
2018
Creation of 1 100 000 units on 26 March 10 170 377 10 170 377
2018
Creation of 1 144 500 units on 28 March 10 771 382 10 771 382
2018
Creation of 1 100 000 units on 17 April 10 850 815 10 850 815
2018
Creation of 1 000 000 units on 11 May 9 998 639 9 998 639
2018
Creation of 1 000 000 units on 30 May 10 224 551 10 224 551
2018
Creation of 1 000 000 units on 20 June 11 107 892 11 107 892
2018
Creation of 1 000 000 units on 28 June 11 193 231 11 193 231
2018
Creation of 1 000 000 units on 10 July 11 012 093 11 012 093
2018
Creation of 1 000 000 units on 19 July 11 065 907 11 065 907
2018
Creation of 1 000 000 units on 08 August 11 149 314 11 149 314
2018
Creation of 1 000 000 units on 14 August 11 758 050 11 758 050
2018
Creation of 800 000 units on 17 August 9 457 118 9 457 118
2018
Creation of 1 000 000 units on 18 12 978 854 12 978 854
September 2018
Creation of 750 000 units on 17 October 8 911 476 8 911 476
2018
Creation of 500 000 units on 07 5 663 911 5 663 911
November 2018
Creation of 600 000 units on 13 7 017 767 7 017 767
November 2018
Creation of 650 000 units on 26 7 156 557 7 156 557
November 2018
Creation of 1 400 000 units on 29 15 597 030 15 597 030
November 2018
Creation of 650 000 units on 04 7 338 016 7 338 016
December 2018
Change in net assets attributable to 9 945 979 1 017 040 10 963 019
investors
Balance at 31 December 2018 279 332 464 1 017 040 280 349 504
STATEMENT OF CASH FLOWS
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
11 months
2018
R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 1 481 946
Distributions paid (686 097)
Net cash inflow from operating activities 795 849
CASH FLOWS FROM INVESTING ACTIVITIES
Net purchase of financial investments (268 730 653)
Net cash outflow from investing activities (268 730 653)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions received for new units created 270 015 879
Net cash inflow from financing activities 270 015 879
NET INCREASE IN CASH AND CASH EQUIVALENTS 2 081 075
CASH AND CASH EQUIVALENTS AT BEGINNING OF -
THE YEAR
CASH AND CASH EQUIVALENTS AT END OF THE 2 081 075
YEAR
ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 DECEMBER 2018
The financial statements have been prepared based on the following principal accounting policies :
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 period:
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 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 Measurement
IFRS 9 classification
classification changes
Financial Assets
Financial asset
Financial asset at
Receivables at amortised None
amortised cost
cost
Designated at
Investments FVTPL None
FVTPL
Financial asset
Financial asset at
Cash and cash equivalents at amortised None
amortised cost
cost
Financial Liabilities
Financial liability
Financial liability at
Payables at amortised None
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
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.
Distribution income is presented net of withholding taxes.
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.
Foreign currency
Foreign investments are translated at spot rate at year end. Foreign currency movements are recognised in profit
or loss.
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 04:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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