ASHINF Abridged Audited Results 30 June 2019:
Ashburton Inflation 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: ASHINF
ISIN: ZAE000215331
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 Inflation
Bond 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 5 March 2009.
The fund is a passive investment fund with the aim of providing returns linked to the performance of the Government
Inflation Linked Bond Index (the index) in terms of both price performance, as well as income from the component
securities in the index. The portfolio will aim to track the performance of the index.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
Rand 2019 2018
ASSETS
Investments designated at fair value through profit or loss 326 295 824 1 076 449 952
Trade and other receivables 12 758 33 908
Cash and cash equivalents 3 713 619 10 222 924
Total assets 330 022 201 1 086 706 784
LIABILITIES
Net assets attributable to participatory interest holders 329 653 486 1 085 646 964
Trade and other payables 368 715 1 059 820
Total equity and liabilities 330 022 201 1 086 706 784
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2019
Rand 2019 2018
Interest income 180 493 255 910
Fair value gains / (loss) 12 297 681 6 855 954
Investment income/(loss) 12 478 174 7 111 864
Operating expenses (1 743 841) (3 526 099)
Profit/(loss) before tax 10 734 333 3 585 765
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders 10 734 333 3 585 765
Decrease/ (Increase) in net assets attributable to participatory interest holders (10 734 333) (3 585 765)
Total comprehensive income for the year - -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019
Rand 2019 2018
Cash flows from operating activities
Cash utilised by operations (2 434 946) (3 067 220)
Interest received 13 124 404 31 639 008
Sales of investments designated at fair value through profit or loss 765 789 473 150 374 194
Purchase of investments designated at fair value through profit or loss (16 260 425) (653 742 397)
Net cash inflow from operating activities (760 218 506) (474 796 415)
Cash flows from financing activities
Redemption of fund participatory interests (752 178 864) (101 892 500)
Creation of fund participatory interests - 602 368 021
Distributions paid to participatory interest holders (14 548 947) (21 348 998)
Net cash outflow from financing activities (766 727 811) 479 126 523
Net increase/(decrease) in cash and cash equivalents (6 509 305) 4 330 108
Cash and cash equivalents at the beginning of the year 10 222 924 5 892 816
Cash and cash equivalents at the end of the year 3 713 619 10 222 924
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 1 085 646 964 602 934 676
Participatory interests created during the year - 602 368 021
Participatory interests redeemed during the year (752 178 864) (101 892 500)
Increase/(decrease) in net assets attributable to participatory interest holders 10 734 333 3 585 765
Distributions paid (14 548 947) (21 348 998)
Balance at the end of the year 329 653 486 1 085 646 964
Distributions
Number of Distribution Number of Distribution
paticipatory paticipatory
interests interests
Rand 2019 2019 2018 2018
Declared 28 September 2018 and paid 01 October 2018
(Declared 30 September 2017 and paid 03 October 2017)
7.63 cents per participatory interest (2018: 10.1 cents per
participatory interest) 16 034 948 1 224 079 30 200 000 3 050 001
Declared 31 December 2018 and paid 02 January 2019
(Declared 30 December 2017 and paid 03 January 2018)
16.07 cents per participatory interest (2018: 16.53 cents per
participatory interest) 16 034 948 2 576 547 50 200 000 8 299 998
Declared 31 March 2019 and paid 03 April 2019 (Declared
31 March 2018 and paid 01 April 2018)
11.69 cents per participatory interest (2018: 9.56 cents per
participatory interest) 16 034 948 1 874 286 50 200 000 4 799 002
Declared 30 June 2019 and paid 03 July 2019 (Declared
30 June 2018 and paid 03 July 2018)
16.7 cents per participatory interest (2018: 16.63 cents per
participatory interest) 16 034 948 2 678 487 53 348 554 8 874 036
8 353 399 25 023 037
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-inflation-etf/ZAE000215331
https://senspdf.jse.co.za/documents/2019/jse/isse/ASHF/FY2019ASHINF.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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