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ASHWGB Abridged Audited Results 30 June 20194 Nov 2019
ASHWGB Abridged Audited Results 30 June 2019: 
Ashburton World Government Bond Exchange Traded Fund
A portfolio in the Ashburton Collective Investment Scheme (the portfolio) registered in terms of the Collective
Investment Schemes Control Act, 45 of 2002
(Incorporated in the Republic of South Africa)
Share Code: ASHWGB
ISIN: ZAE000254413

ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2019
The Ashburton Collective Investment Scheme (the "Scheme") was established in accordance with the provisions
of the CISCA with effect from 12 April 2008. The Fund was established as a portfolio of the Scheme in
accordance with paragraph A of the Deed of the Scheme on 13 December 2017.

The Fund is a passively managed investment fund with the aim of providing portfolio compounded annual returns
which tracks the economic performance of the Citi World Government Bond Index (the "Index"). The Fund is the
first global bond ETF listed on the JSE that tracks an international bond exposure index and offers access to a
diversified pool of issuers with highly rated credit quality. The Index provides exposure to global bond markets
with investment graded bonds that ensure lower default risk. The Fund pays an annual management fee of
0.39% for Class A participatory interest to the Manager.

The Fund was initially listed on the JSE on 13 March 2018.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019

Rand                                                                                  2019                2018
ASSETS
Investments designated at fair value through profit or loss                        113 216 663           65 342 583
Trade and other receivables                                                                775                1 168
Cash and cash equivalents                                                            2 159 510            1 163 749

Total assets                                                                        115 376 948          66 507 500
LIABILITIES
Net assets attributable to participatory interest holders                           115 265 218          66 447 321
Trade and other payables                                                                111 730              60 179


Total equity and liabilities                                                        115 376 948          66 507 500


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2019


                                                                                                       4 months ended 30
Rand                                                                                 2019
                                                                                                           June 2018
Interest income                                                                            26 565                   38 219
Fair value gains                                                                        6 526 903                7 906 497
Investment income                                                                       6 553 468                7 944 716
Operating expenses                                                                      (495 141)                (117 500)
Interest expense                                                                             (1 007)              (92 895)
Profit before tax                                                                       6 057 320                7 734 321
Taxation                                                                                        -                        -
Profit before amounts attributable to participatory interest holders                     6 057 320              7 734 321
Increase in net assets attributable to participatory interest holders                  (6 057 320)            (7 734 321)
Total comprehensive income for the year                                                          -                      -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019

                                                                                                  4 months ended
Rand                                                                               2019
                                                                                                    30 June 2018
Cash flows from operating activities
Cash utilised by operations                                                         (443 590)             (57 321)
Dividends received                                                                        2 642                   -
Interest received                                                                   2 135 142             802 992
Interest paid                                                                          (1 007)                    -
Sale of investments at fair value through profit or loss                           32 103 486           4 085 490
Purchase of investments at fair value through profit or loss                     (75 561 489)         (62 380 412)
Net cash outflow from operating activities                                       (41 764 815)         (57 549 251)
Cash flows from financing activities
Redemption of fund participatory interests                                                  -                 (58)
Creation of fund participatory interests                                           43 697 500          58 713 058
Distributions paid to participatory interest holders                                (936 923)                     -
Net cash inflow from financing activities                                          42 760 577          58 713 000
Net increase in cash and cash equivalents                                             995 762           1 163 749
Cash and cash equivalents at the beginning of the year                              1 163 749                     -
Cash and cash equivalents at the end of the year                                    2 159 510           1 163 749



SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2019

Basis of presentation

The annual financial statements have been prepared in accordance with IFRS issued by the International
Accounting Standards Board (the "IASB"), and the provisions of CISCA. The Fund has assessed all new and
revised Standards and Interpretations issued by the IASB that are relevant to its operations and effective for the
accounting year ended 30 June 2019.

Standards, interpretations and amendments effective 1 July 2018
IFRS 9 Financial Instruments became effective for annual periods beginning on or after 1 January 2018. It
addresses the classification, measurement and derecognition of financial assets and liabilities and replaced the
multiple classification and measurement models in IAS 39.

Classification and measurement of debt assets is driven by the entity's business model for managing the financial
assets and the contractual cash flow characteristics of the financial assets. A debt instrument is measured at
amortised cost if the objective of the business model is to hold the financial asset for the collection of the
contractual cash flows and the contractual cash flows under the instrument solely represent payments of principal
and interest ("SPPI"). A debt instrument is measured at fair value through other comprehensive income if the
objective of the business model is to hold the financial asset both to collect contractual cash flows from SPPI and
to sell. All other debt instruments must be recognised at fair value through profit or loss. Any entity may however,
at initial recognition, irrevocably designate a financial asset as measured at fair value through profit or loss if
doing so eliminates or significantly reduces a measurement or recognition inconsistency. Equity instruments are
measured fair value through profit or loss unless, for equity instruments not held for trading, an irrevocable option
is taken to measure at fair value through other comprehensive income. IFRS 9 also introduces a new expected
credit loss ("ECL") impairment model.

The classification and measurement requirements of IFRS 9 have been adopted retrospectively as of the date of
initial application on 1 July 2018, however, the Fund has chosen to take advantage of the option not to restate
comparative figures.

The Fund has assessed the classification of financial instruments as at the date of initial application and has
applied such classification retrospectively.
IFRS 9 requires that the Fund records ECLs on all of its financial assets at amortised cost, either on a 12 month
or lifetime basis. Given the limited exposure of the Fund to credit risk, this amendment has not had a material
impact on the financial statements. The Fund only holds trade receivables with no financing component and
which have maturities of less than 12 months at amortised cost. The Fund has therefore adopted the simplified
approach to ECLs.

Financial Instruments

Classification

Policy effective after 1 July 2018 (IFRS 9)
The Fund has classified all its investments as financial assets or financial liabilities at amortised cost or at FVPL.

Participatory interest
The Fund issues one class of participatory interests which is redeemable at the holder's option. Participatory
interests can be put back to the Fund at any dealing date for cash equal to a proportionate share of the Fund's
net asset value attributable to the participatory interest class.
The participatory interests are measured at the redemption amount that is payable at the reporting date if the
holder exercises the right to put the participatory interests back to the Fund.
The participatory interests are issued and redeemed at the holder's option at prices based on the Fund's net
asset value per participatory interest at the time of issue or redemption. The Fund's net asset value per
participatory interest is calculated by dividing the net assets attributable to the holders of the participatory interest
by the total number of outstanding participatory interests, in accordance with the provisions of the Fund's
supplemental trust deed.

Net assets attributable to participatory interest holders, evidence a residual interest in the assets of a fund after
deducting all of its liabilities.

The value of the net assets attributable to participatory interest holders will vary with the changes in the
underlying value of the investments, net of receivables and payables. The total movement in the statement of
comprehensive income is transferred to the net assets attributable to participatory interest holders.
Creations and redemptions are recorded on trade date using the previous day's closing price.
In accordance with the Fund's supplemental trust deed, the Fund distributes its distributable income and any
other amounts determined by the Manager of the Fund to participatory interest holders. For this reason, the
participatory interest does not meet the requirements to be classified as equity in terms of IAS 32 and is thus
classified as a liability. Distributions are automatically reinvested in additional participatory interests, other than
distributions that are paid in cash.

Net income adjustment on creation and redemption of units

An adjustment to income arises on the creation and cancellation of units since the price of a unit includes
accrued income and expenses. The income adjustment on creation or cancellation of units is recognised as part
of the creation or redemption of unitholder interests and disclosed within the note of net assets attributable to
participatory interest holders, when units on which it arises are either purchased or sold as these form part of the
cash flow on unit transactions.

Investment income

Fair value gains and losses
Gains and losses arising from a change in the fair value of investments, interest income on interest-bearing
investments and dividend income, are included in the statement of comprehensive income under fair value gains
/ losses in the year in which the changes arise.

Interest income
Interest income on cash and cash equivalents is recognised in the statement of comprehensive income as part of
interest income on the effective interest method.

Tax
The Fund has no current or deferred tax liability as all realised gains and losses are considered to be of a capital
nature and disregarded in the tax calculation of this collective investment scheme portfolio in accordance with
paragraph 61 of the Eighth schedule to the Income Tax Act No 58 of 1962. All investment income is distributed
within the time frames specified by section 25BA of the Income Tax Act and is therefore taxed in the hands of the
participatory interest holders.

Critical accounting estimates and judgements in applying accounting policies
No significant accounting estimates and judgements have been applied in the annual financial statements of the
Fund.
SUMMARISED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2019

Net assets attributable to participatory interest holders
Rand                                                                                          2019                   2018
Balance at the beginning of the year                                                          66 447 321                      -
Participatory interests created during the year                                               43 697 500            58 713 058
Participatory interests redeemed during the year                                                       -                   (58)
Increase/(decrease) in net assets attributable to participatory interest holders               6 057 320             7 734 321
Distributions paid                                                                              (936 923)                    -
Balance at the end of the year                                                              115 265 218             66 447 321


Distributions

                                                                    Number of Distribution Number of                Distribution
                                                                   paticipatory            paticipatory
                                                                     interests              interests

Rand                                                                    2019           2019              2018          2018



Declared 30 September 2018 and paid 03 October 2018

Class A: 1.63 cents per participatory interest                      15 134 683         246 789                  -              -



Declared 30 December 2018 and paid 03 January 2019

Class A: 1.13 cents per participatory interest                      16 134 683         182 435                  -              -



Declared 31 March 2019 and paid 3 April 2019


Class A: 3.15 cents per participatory interest                      16 134 683         507 699                  -              -
                                                                                       936 923                                 -

Included in the liability to participatory interest holders is the distribution payable as at 30 June.
These summarised financial statements have been not been audited but the full sets, available at the website
mentioned below, have been audited by the independent auditors, PricewaterhouseCoopers Incorporated, and
their unqualified audit opinion is available for inspection at the company's registered head office.

A full copy of the financial statements is available on the Ashburton and JSE websites:

https://www.ashburtoninvestments.com/za/individual-investor/fund/ashburton-world-government-bond-
etf/zae000254413

https://senspdf.jse.co.za/documents/2019/jse/isse/ASHF/FY2019ASHWGB.pdf



4 November 2019

Sponsor
Bridge Capital Advisors Proprietary Limited

Trustee
Standard Chartered Bank, Johannesburg Branch

Manager
Ashburton Management Company RF Proprietary Limited

Auditors
PricewaterhouseCoopers Incorporated

Date: 04/11/2019 04:00:00
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