ASHGEQ Abridged Financial Statements 30 June 2019
Ashburton Global 1200 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: ASHGEQ
ISIN: ZAE000249967
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 Collective Investment Schemes Control Act (CISCA) with effect from 12 April 2008. The Ashburton Global
1200 Exchange Traded Fund (the fund) was established as a portfolio of the Scheme in accordance with
paragraph A of the deed of the Scheme on 19 September 2017.
The fund is a passive investment fund with the aim of providing returns linked to the performance of the S&P
Global 1200 Index (the index) on the New York Stock Exchange in terms of both price and performance.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
Rand 2019 2018
ASSETS
Investments designated at fair value through profit or loss 527 019 925 179 851 489
Trade and other receivables 1 177 993 120 259
Cash and cash equivalents 3 359 450 1 430 264
Total assets 531 557 368 181 402 012
LIABILITIES
Net assets attributable to participatory interest holders 530 938 033 181 220 762
Trade and other payables 619 335 181 250
Total equity and liabilities 531 557 368 181 402 012
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2019
8 months
ended 30
Rand 2019 June 2018
Interest income 76 636 240 420
Fair value gains / (loss) 23 402 541 4 716 837
Investment income/(loss) 23 479 177 4 957 257
Operating expenses (1 928 758) (589 680)
Interest expense (493 079) -
Profit/(loss) before tax 21 057 340 4 367 577
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders 21 057 340 4 367 577
Decrease/ (Increase) in net assets attributable to participatory interest holders (21 057 340) (4 367 577)
Total comprehensive income for the year - -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019
8 months
ended 30 June
Rand 2019 2018
Cash flows from operating activities
Cash utilised by operations (2 070 890) (408 430)
Dividends received 8 715 110 2 046 427
Interest received 74 511 239 372
Interest paid (493 025) -
Sales of investments designated at fair value through profit or loss 306 449 817 3 500 850
Purchase of investments designated at fair value through profit or loss (639 406 269) 180 801 140
Net cash inflow from operating activities (326 730 745) (175 422 921)
Cash flows from financing activities
Redemption of fund participatory interests (1 536) -
Creation of fund participatory interests 334 744 868 177 783 896
Distributions paid to participatory interest holders (6 083 401) (930 711)
Net cash outflow from financing activities 328 659 931 176 853 185
Net increase/(decrease) in cash and cash equivalents 1 929 186 1 430 264
Cash and cash equivalents at the beginning of the year 1 430 264 -
Cash and cash equivalents at the end of the year 3 359 450 1 430 264
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 181 220 762 -
Participatory interests created during the year 334 744 868 177 783 896
Participatory interests redeemed during the year (1 536) -
Increase/(decrease) in net assets attributable to participatory interest holders 21 057 340 4 367 577
Distributions paid (6 083 401) (930 711)
Balance at the end of the year 530 938 033 181 220 762
Distributions
Number of Distribution Number of Distribution
paticipatory paticipatory
interests interests
Rand 2019 2019 2018 2018
Declared 31 August 2018 and paid on 03 September 2018
Class A: 12.51 cents per participatory interest 6 860 000 858 251 - -
Declared 05 December 2018 and paid on 10 December
2018 (Declared 29 December 2017 and paid on 02
January 2018)
Class A: 10.38 cents per participatory interest (2018: 14.02
cents per participatory interest) 10 719 000 1 112 602 4 300 000 602 964
Declared 27 February 2019 and paid 4 March 2019
(Declared 31 March 2018 and paid 1 April 2018)
Class A: 18.31 cents per participatory interest (2018: 7.62
cents per participatory interest) 11 849 000 2 170 125 4 300 000 327 747
Declared 29 May 2019 and paid on 3 June 2019 (Declared
30 June 2018 and paid on 02 July 2018)
Class A: 16.39 cents per participatory interest (2018: nil cents
per participatory interest) 11 849 000 1 942 423 4 300 000 -
6 083 401 930 711
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-global-1200-etf/zae00249967
https://senspdf.jse.co.za/documents/2019/jse/isse/ASHF/FY2019ASHGEQ.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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