ASHMID - Abridged Audited Results for the year ended 30 June 2020
Ashburton MidCap 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 (CISCA)
(Incorporated in the Republic of South Africa)
Share Code: ASHMID
ISIN: ZAE000215349
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2020
The Ashburton Collective Investment Scheme (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
MidCap 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 26 June 2012.
The portfolio is a passive investment fund with the aim of providing returns linked to the performance of the
FTSE/JSE Mid Cap Index (the index) in terms of both price and performance.
The Portfolio was initially listed on the JSE on 15 August 2012.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020
Rand 2020 2019
ASSETS
Investments designated at fair value through profit or loss 325 143 538 360 780 774
Trade and other receivables 176 207 210 677
Cash and cash equivalents 2 351 779 3 532 524
Total assets 327 671 524 364 523 975
LIABILITIES
Net assets attributable to participatory interest holders 327 199 623 363 992 667
Trade and other payables 471 901 531 308
Total equity and liabilities 327 671 524 364 523 975
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020
Rand 2020 2019
Interest income 128 406 160 417
Fair value gains / (loss) (67 132 423) 17 575 303
Investment income/(loss) (67 004 017) 17 735 720
Other income 255 813 367 112
Operating expenses (2 032 737) (2 198 729)
Profit/(loss) before tax (68 780 941) 15 904 103
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders (68 780 941) 15 904 103
Decrease/(Increase) in net assets attributable to participatory interest holders 68 780 941 (15 904 103)
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 (1 856 926) (1 702 202)
Dividends received 14 211 796 14 830 392
Interest received 135 756 153 250
Sales of investments designated at fair value through profit or loss 163 351 856 161 781 623
Purchase of investments designated at fair value through profit or loss (209 011 124) (128 390 396)
Net cash inflow/(outflow) from operating activities (33 168 642) 46 672 667
Cash flows from financing activities
Redemption of portfolio participatory interests (5 036 424) (34 576 000)
Creation of portfolio participatory interests 49 456 427 -
Distributions paid to participatory interest holders (12 432 106) (10 880 025)
Net cash inflow/(outflow) from financing activities 31 987 897 (45 456 025)
Net increase/(decrease) in cash and cash equivalents (1 180 745) 1 216 642
Cash and cash equivalents at the beginning of the year 3 532 524 2 315 882
Cash and cash equivalents at the end of the year 2 351 779 3 532 524
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.
Dividend income
Dividend income in respect of investments is recognised when the right to receive payment is established. This is
on the “last-day-to-trade” for listed investments and on the “date-of-declaration” for unlisted investments. Dividend
income is recognised in the statement of comprehensive income as part of fair value gains and losses.
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 363 992 667 393 544 589
Participatory interests created during the year 49 456 427 -
Participatory interests redeemed during the year (5 036 424) (34 576 000)
Increase/(decrease) in net assets attributable to participatory interest holders (68 780 941) 15 904 103
Distributions paid (12 432 106) (10 880 025)
Balance at the end of the year 327 199 623 363 992 667
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: 5.7 cents per participatory interest (2019: 5.04
cents per participatory interest) 51 000 000 2 905 973 56 000 000 2 821 711
Declared 31 December 2019 and paid 2 January 2020
(Declared 31 December 2018 and paid 2 January 2019)
Class A: 6.67 cents per participatory interest (2019: 4.67
cents per participatory interest) 54 500 000 3 633 520 51 000 000 2 379 986
Declared 31 March 2020 and paid 1 April 2020 (Declared
29 March 2019 and paid 1 April 2019)
Class A: 5.29 cents per participatory interest (2019: 7.03
cents per participatory interest) 54 500 000 2 882 081 51 000 000 3 583 079
Declared 30 June 2020 and paid 1 July 2020 (Declared 30
June 2019 and paid 03 July 2019)
Class A: 3.2 cents per participatory interest (2019: 5.9
cents per participatory interest) 58 000 000 1 856 848 51 000 000 3 010 535
11 278 423 11 795 312
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-midcap-etf/zae000215349
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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