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ASHINF - Abridged Audited Results for the year ended 30 June 202030 Oct 2020
ASHINF - Abridged Audited Results for the year ended 30 June 2020

Ashburton Inflation Bond Exchange Traded Fund
A portfolio in the Ashburton Collective Investment Scheme in Securities Exchange Traded Funds (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 2020
The Ashburton Collective Investment Scheme in Securities Exchange Traded Funds (the Scheme) was established
in accordance with the provisions of the Collective Investment Schemes Control Act 45 of 2002 (CISCA) with effect
from 12 April 2008. The Ashburton Inflation Bond Exchange Traded Fund (the portfolio) was established as a
portfolio of the Scheme in accordance with paragraph A of the deed of the Scheme on 5 March 2009.

The portfolio 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.

The Portfolio was initially listed on the JSE on 1 June 2009.


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

Rand                                                                                      2020             2019
ASSETS
Investments designated at fair value through profit or loss                          304 53 927      326 295 824
Trade and other receivables                                                              11 625           12 758
Cash and cash equivalents                                                             3 593 643        3 713 619

Total assets                                                                        308 559 195      330 022 201
LIABILITIES
Net assets attributable to participatory interest holders                           308 182 320      329 653 486
Trade and other payables                                                                376 875          368 715


Total equity and liabilities                                                        308 559 195      330 022 201


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2020

Rand                                                                                       2020             2019
Interest income                                                                         105 743          180 493
Fair value gains / (loss)                                                           (10 950 714)      12 297 681
Investment income/(loss)                                                            (10 844 971)      12 478 174
Operating expenses                                                                   (1 350 237)      (1 743 841)
Profit/(loss) before tax                                                            (12 195 208)      10 734 333
Taxation                                                                                      -                -
Profit/(loss) before amounts attributable to participatory interest holders         (12 195 208)      10 734 333
Decrease/(Increase) in net assets attributable to participatory interest holders     12 195 208      (10 734 333)
Total comprehensive income for the year                                                       -                -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020

Rand                                                                                       2020             2019
Cash flows from operating activities
Cash utilised by operations                                                          (1 347 980)      (2 434 946)
Interest received                                                                    10 549 133       13 124 404
Sales of investments designated at fair value through profit or loss                 16 404 362      765 789 473
Purchase of investments designated at fair value through profit or loss             (16 449 532)     (16 260 425)
Net cash inflow/(outflow) from operating activities                                   9 155 983     (760 218 506)
Cash flows from financing activities
Redemption of portfolio participatory interests                                               -     (752 178 864)
Creation of portfolio participatory interests                                                 -                -
Distributions paid to participatory interest holders                                 (9 275 958)     (14 548 947)
Net cash outflow from financing activities                                           (9 275 958)    (766 727 811)
Net increase/(decrease) in cash and cash equivalents                                   (119 975)      (6 509 305)
Cash and cash equivalents at the beginning of the year                                3 713 619       10 222 924
Cash and cash equivalents at the end of the year                                      3 593 643        3 713 619


SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2020

Basis of presentation
The annual financial statements have been prepared in accordance with IFRS issued by the International
Accounting Standards Board (the “IASB”), including interpretations issued by the IFRS Interpretations Committee,
the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the South
African Institute of Chartered Accountants (“SAICA”) Financial Reporting Guides as issued by the Accounting
Practices Committee and the provisions of CISCA.

Standards, interpretations and amendments effective 1 July 2019
A number of new and revised standards and interpretations became effective from 1 July 2019, but they had no
material impact on the Portfolio’s reported earnings, financial position, reserves or accounting policies.

Financial instruments: Classification
The Portfolio has classified all its investments as financial assets or financial liabilities at amortised cost or at fair
value through profit or loss (“FVPL”).

Financial assets at amortised cost include other receivables, dividends and interest receivable and cash and cash
equivalents.

Financial assets at FVPL
All financial assets not measured at amortised cost are subsequently measured at FVPL, except for investments
in equities and rights which are mandatorily held at FVPL.

Financial liabilities at amortised cost
Financial liabilities that are not held-for-trading or designated as at FVPL are measured at amortised cost. This
category includes fees payable and other payables.

Financial instruments: Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of
changes in value. All balances, except for physical cash which is held at call, included in cash and cash
equivalents have a maturity date of less than three months from the acquisition date and are measured at
amortised cost.

Participatory interest
The participatory interests are issued and redeemed at the holder’s option at prices based on the Portfolio’s net
asset value per participatory interest at the time of issue or redemption. The Portfolio’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 Portfolio’s
supplemental trust deed.

Net assets attributable to participatory interest holders, evidence a residual interest in the assets of a portfolio 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 Portfolio’s supplemental trust deed, the Portfolio distributes its distributable income and any
other amounts determined by the Manager of the Portfolio 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.

Taxation
The Portfolio 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
Portfolio.

All investments at FVPL are measured at fair value based on quoted prices in active markets and do not require
the use of judgement or estimates.

SUMMARISED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2020

Net assets attributable to participatory interest holders
Rand                                                                                       2020           2019
Balance at the beginning of the year                                                329 653 486  1 085 646 964
Participatory interests created during the year                                               -              -
Participatory interests redeemed during the year                                              -   (752 178 864)
Increase/(decrease) in net assets attributable to participatory interest holders    (12 195 208)    10 734 333
Distributions paid                                                                   (9 275 958)   (14 548 947)
Balance at the end of the year                                                      308 182 320    329 653 486


Distributions

                                                                    Number of        Distribution   Number of     Distribution
                                                                   participatory                   participatory
                                                                     interests                      interests

Rand                                                                    2020            2020             2019         2019


Declared 30 September 2019 and paid 1 October 2019
(Declared 28 September 2018 and paid 1 October 2018)
Class A: 12.33 cents per participatory interest (2019: 7.63
cents per participatory interest)                                     16 034 948       1 977 707    16 034 948      1 224 079


Declared 31 December 2019 and paid 2 January 2020
(Declared 31 December 2018 and paid 02 January 2019)
Class A: 16 cents per participatory interest (2019: 16.07
cents per participatory interest)                                     16 034 948       2 566 145    16 034 948      2 576 547


Declared 31 March 2020 and paid 1 April 2020
(Declared 31 March 2019 and paid 03 April 2019)
Class A: 12.81 cents per participatory interest (2019: 11.69
cents per participatory interest)                                     16 034 948       2 053 619    16 034 948      1 874 286


Declared 30 June 2020 and paid 1 July 2020
(Declared 30 June 2019 and paid 03 July 2019)
Class A: 15.78 cents per participatory interest (2019: 16.7
cents per participatory interest)                                     16 034 948       2 529 676    16 034 948      2 678 487
                                                                                       9 127 147                    8 353 399

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 website:

https://www.ashburtoninvestments.com/za/individual-investor/fund/ashburton-inflation-etf/zae000215331

30 October 2020

Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Trustee
Standard Chartered Bank, Johannesburg Branch

Manager
Ashburton Management Company (RF) Proprietary Limited

Auditors
PricewaterhouseCoopers Incorporated

Date: 30-10-2020 04:00:00
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