| Tue 31 Mar 2009, 16:45 | | STXSWX - SATRIX SWIX TOP 40 - Abridged Audited Results For The Year Ended 31 |
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JSE STXSWX
STX
STXSWX - SATRIX SWIX TOP 40 - Abridged Audited Results For The Year Ended 31
December 2008
SATRIX SWIX TOP 40
A portfolio in the Satrix Collective Investment Scheme ("Satrix") registered as
such in terms of the Collective Investment Schemes Control Act, 45 of 2002 (the
"Act")
JSE Code: STXSWX
ISIN: ZAE000078580
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
INCOME STATEMENT
for the year ended 31 December 2008
2008 2007
R R
REVENUE
Dividend income 4 969 113 3 276 943
Fee income: Securities lending 111 242 148 266
Interest income 66 147 45 400
Withholding tax received 440 -
5 146 942 3 470 609
Fair value adjustment, net of (385 040) (18 128)
transaction costs
EXPENSES
Management and administrative (651 313) (592 995)
expenses
Income available for distribution 4 110 589 2 859 486
Distributions (4 149 912) (2 844 634)
Change in net assets attributable to (39 323) 14 852
investors before tax
Taxation - -
Change in net assets attributable to (39 323) 14 852
investors
BALANCE SHEET
as at 31 December 2008
2008 2007
R R
ASSETS
Listed investments held at fair value 107 461 036 120 204 596
through profit or loss
Trade and other receivables 160 691 1 606 682
Cash and cash equivalents 597 467 405 834
Total assets 108 219 194 122 217 111
LIABILITIES
Net assets attributable to investors 107 462 641 120 245 525
Trade and other payables 756 553 1 971 586
Total liabilities 108 219 194 122 217 111
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2008
Capital Income Total
attributable attributabl
to investors e to
investors
R R R
Balance at 1 January 2007 129 253 229 26 077 129 279 306
Change in net assets attributable - 14 852 14 852
to investors
Revaluation of securities 17 639 446 - 17 639 446
Net liquidation of securities (26 688 079) - (26 688 079)
Balance at 31 December 2007 120 204 596 40 929 120 245 525
Change in net assets attributable - (39 323) (39 323)
to investors
Revaluation of securities (43 311 683) - (43 311 683)
Net creation of securities 30 568 122 - 30 568 122
Balance at 31 December 2008 107 461 035 1 606 107 462 641
CASH FLOW STATEMENT
for the year ended 31 December 2008
2008 2007
R R
Cash utilised by operations (742 715) (515 922)
Dividend income 5 039 821 3 279 627
Fee income: Securities lending 120 156 140 964
Interest income 64 726 44 924
4 481 988 2 949 593
Net cash (outflow)/inflow from investing (30 953 161) 26 626 531
activities
Net cash inflow/(outflow) from financing 26 662 806 (29 650 290)
activities
Net creation/(liquidation) of securities 30 568 122 (26 688 079)
Cash distributed to security holders (3 905 316) (2 962 211)
Net increase/(decrease) in cash and cash 191 633 (74 166)
equivalents
Cash and cash equivalents at the beginning of 405 834 480 000
year
Cash and cash equivalents at the end of year 597 467 405 834
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2008
Basis of preparation
The financial statements are prepared on a historic cost
basis, except for financial instruments which are accounted
for as set out in note 1.1.
Statement of compliance
The financial statements are prepared in accordance with
International Financial Reporting Standards ("IFRS") issued
by the International Accounting Standards Board ("IASB"),
and in accordance with the requirements of the Standard
Exchange Traded Fund Trust Deed approved by the Financial
Services Board ("FSB") and the Collective Investment Schemes
Control Act No 45 of 2002 ("CISCA").
1. Accounting policies
The financial statements incorporate the principal
accounting policies set out below, which are consistent with
those adopted in the previous financial year.
1.1 Financial instruments
Measurement
Financial instruments are recognised when, and only when,
the Portfolio becomes a party to the contractual provisions
of that particular instrument. Financial instruments are
initially measured at their fair value plus, in the case of
instruments not at fair value through profit and loss,
transaction costs that are directly attributable to the
acquisition or issue of the instruments. Subsequent to
initial recognition these instruments are measured as set
out below.
Investments
Listed investments are measured at fair value through profit
or loss. Fair value is determined with reference to quoted
market prices at the balance sheet date, as published in the
financial press at reporting date.
Trade and other receivables
Trade and other receivables are measured at amortised cost
using the effective interest rate method, less impairment
losses. Trade and other receivables are short term in nature
and are not discounted.
Cash and cash equivalents
Cash and cash equivalents are measured at amortised cost.
Financial liabilities
Financial liabilities, other than those held at fair value
through profit or loss, are measured at amortised cost.
Financial liabilities arising from the securities issued by
the Portfolio are measured at the fair value representing
the investor`s right to an interest in the Portfolio`s net
assets, i.e. the Net Asset Value ("NAV") of the Portfolio.
Changes in the fair value are included in net profit or loss
in the period in which the change arises and is designated
as at fair value through profit or loss.
1.1
Offset
Financial assets and financial liabilities are offset and
the net amount reported in the balance sheet when the
Portfolio has a legally enforceable right to set off the
recognised amounts, and intends either to settle on a net
basis, or to realise the asset and settle the liability
simultaneously.
Derecognition of financial instruments
The Portfolio derecognises financial assets when and only
when:
The contractual rights to the cash flows arising from the
financial assets have expired or have been forfeited by the
Portfolio; or
It transfers the financial assets including substantially
all the risks and rewards of ownership of the assets; or
It transfers the financial assets, neither retaining nor
transferring substantially all the risks and rewards of
ownership of the asset, but no longer retains control of the
assets.
A financial liability is derecognised when and only when the
liability is extinguished, i.e. when the obligation
specified in the contract is discharged, cancelled or has
expired.
On derecognition of a financial instrument in its entirety
(or part thereof), the difference between the carrying
amount and the sum of the consideration received (including
any new asset obtained less any new liability assumed) is
recognised in profit or loss.
1.2 Trade and other payables
Trade payables and other accounts payable are recognised
when the Portfolio becomes obligated to make future payments
resulting from the purchase of goods and services.
1.3 Revenue
Revenue comprises income from securities lending activities
and investment income.
1.4 Securities lending fee income
The fees earned for the administration of securities lending
activities are accounted for on an accrual basis in the
period in which the service is rendered. Assets subject to
securities lending are not derecognised.
1.5 Investment income
Interest income is recognised in the income statement, using
the effective rate method taking into account the expected
timing and amount of cash flows.
Dividends in the form of cash and manufactured dividends are
recognised when the right to receive the expected payment is
established.
Manufactured dividends received are recognised as income in
the income statement.
1.6 Cash and cash equivalents
Cash and cash equivalents comprise bank balances.
1.7 Taxation
Under the current system of taxation in South Africa, the
Portfolio is exempt from paying tax on income or capital
gains that are distributed to investors. Both income and
capital gains are taxed in the hands of the investor.
1.8 Securities lending
The Portfolio engages in securities lending activities for
up to 70% of the market value of assets under management
which is permitted by the Portfolio Trust Deed and approved
by the Trustee. Collateral is held by the lending desk of
the relevant financial institutions.
1.9 Expenses
Expenses are recognised as incurred.
1.10 Impairment
Financial assets that are measured at amortised cost are
reviewed at each balance sheet date to determine whether
there is objective evidence of impairment. An impairment
loss is recognised in the income statement as the difference
between the asset`s carrying amount and the present value of
estimated future cash flows discounted at the financial
asset`s original effective interest rate.
If in a subsequent period the amount of an impairment loss
recognised on a financial asset carried at amortised cost
decreases and the decrease can be linked objectively to an
event occurring after the write down, the write down is
reversed through the income statement.
1.11 Distributions
Distributions payable on redeemable securities are
recognised in the income statement as distributions.
1.12 Creations and redemptions
Investors can acquire Satrix securities by trading on the
JSE. These purchases will be made at the current market
price of the securities plus a brokerage fee that is
negotiable with the broker and any additional transaction
costs applicable to such a trade.
The cash subscription price and the number of Satrix
securities to be issued to an investor for cash will be
determined by the amount which the investor invests (net of
transaction costs) and will be a function of the pro rata
cost to the Portfolio of acquiring the underlying basket of
securities.
Investors subscribing for Satrix SWIX Top 40 securities, by
the delivery of one or more full baskets of constituents
securities, are obligated to subscribe for securities in
blocks of 1 million Satrix securities.
Investors may sell securities by trading on the JSE.
Security prices are determined by reference to the net
assets of the Portfolio divided by the number of securities
in issue. For unit pricing purposes, net assets are
determined using the last reported trade price for
securities. These prices may differ from the market price
quoted on the JSE.
1.13 Redeemable securities
All redeemable securities issued by the scheme provide
investors with the right to require redemption for cash or
in specie at the value proportionate to investor`s share.
Such instruments give rise to a financial liability for the
net asset value of the redemption amount in the Portfolio`s
net assets at redemption date. In accordance with the
Portfolio`s Trust Deed and CISCA, the Portfolio is
contractually obliged to redeem securities at the net asset
value.
These securities have been designated as at fair value
through profit or loss as they eliminate an accounting
mismatch due to the underlying investments being classified
as fair value through profit or loss.
1.14 Distributions
In accordance with the Portfolio`s Trust Deed, the Portfolio
distributes its distributable income and any other amounts
determined by the Management Company, to security holders in
cash. The distributions are payable at the end of each
quarter and recognised in the income statement as
distributions.
1.15 Net assets attributable to security holders
Securities are redeemable at the security holder`s option
and are therefore classified as financial liablitities. The
securities may be sold back to the Portfolio at anytime. The
fair value of redeemable securities is measured at the
redemption amount that is payable (in cash and securities
representing each investor`s equal, undivided and vested
interest in the assets as a whole, subject to liabilities,
as defined by the Portfolio`s Trust Deed) at the balance
sheet date if security holders exercised their right to sell
the securities back to the Portfolio.
1.16 Increase/decrease in net assets attributable to security
holders
Income not distributed is included in net assets
attributable to security holders.
1.17 Forthcoming requirements
Future amendments not early adopted in the 2008 annual
financial statements
The following standards, amendments to standards, and
interpretations, effective for the first time in the future
accounting period, and which are relevant to the Portfolio,
have not been adopted for the year ended 31 December 2008:
IAS 1 `Presentation of Financial Statements` (effective 1
January 2009)
The changes include a requirement to introduce a statement
of comprehensive income. There will be some limited
presentational changes as a result of the introduction of
this standard but no changes in the measurement and
recognition.
IAS 32 `Financial Instruments: Presentation - Puttable
Financial Instruments and Obligations arising on
Liquidation`
The amendments to IAS 32 address this and require entities
to classify the following types of financial instruments as
equity, provided they have particular features and meet
specific conditions:
(i) Puttable financial instruments (for example, some
shares issued by co-operative entities); and
(ii) Instruments, or components of instruments, that
impose on the entity an obligation to deliver to
another party a pro rata share of the net assets of the
entity only on liquidation (for example, some partnership
interests and some shares issued by limited life entities).
Additional disclosures are required for the instruments
affected by the amendments. The amendments will apply for
annual periods beginning on or after 1 January 2009, with
earlier application permitted.
These financial statements have been audited by the independent auditors,
KPMG Inc., and their unqualified audit opinion is available for inspection
at the company`s registered office. A full copy of these annual financial
statements is available on the Satrix website www.satrix.co.za.
31 March 2009
Sponsor
Java Capital (Proprietary) Limited
Trustee
ABSA Bank Limited
Date: 31/03/2009 16:45:01 Produced by the JSE SENS Department.
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