| Tue 31 Mar 2009, 16:46 | | STX40 - Satrix 40 - Abridged Audited Results For The Year Ended |
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JSE STX40
STX2
STX40 - Satrix 40 - Abridged Audited Results For The Year Ended
31 December 2008
SATRIX 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: STX40
ISIN CODE: ZAE000027108
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 153 107 598 128 831 436
Fee income: Securities lending 8 018 250 10 188 028
Interest income 2 018 981 1 475 992
Withholding tax received 109 322 -
163 254 151 140 495 456
Fair value adjustments, net of (7 154 432) (1 570 330)
transaction costs
EXPENSES
Management and administrative (22 541 052) (18 016 261)
expenses
Income available for distribution 133 558 667 120 908 865
Distributions (136 514 (120 933 595)
106)
Change in net assets attributable to (2 955 439) (24 730)
investors before tax
Taxation - -
Change in net assets attributable to (2 955 439) (24 730)
investors
BALANCE SHEET
as at 31 December 2008
2008 2007
R R
ASSETS
Listed investments held at fair value 4 404 022 002 5 000 269 497
through profit or loss
Trade and other receivables 4 348 125 46 852 884
Cash and cash equivalents 22 549 386 14 862 381
Total assets 4 430 919 513 5 061 984 762
LIABILITIES
Net assets attributable to investors 4 403 437 866 5 002 640 800
Trade and other payables 27 481 647 59 343 962
Total liabilities 4 430 919 513 5 061 984 762
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2008
Capital Income Total
attributable attributable
to investors to investors
R R R
Balance at 1 January 2007 6 069 841 399 2 396 033 6 072 237 432
Change in net assets - (24 730) (24 730)
attributable to investors
Revaluation of securities 851 463 648 - 851 463 648
Net liquidation of (1 921 035 - (1 921 035 550)
securities 550)
Balance at 31 December 5 000 269 497 2 371 303 5 002 640 800
2007
Change in net assets - (2 955 439) (2 955 439)
attributable to investors
Revaluation of securities (1 293 309 - (1 293 309 721)
721)
Net creation of 697 062 226 - 697 062 226
securities
Balance at 31 December 4 404 022 002 (584 136) 4 403 437 866
2008
CASH FLOW STATEMENT
for the year ended 31 December 2008
2008 2007
R R
Cash utilised by operations (23 999 206) (16 318 097)
Dividend income 155 120 519 129 428 570
Fee income: Securities 8 650 720 10 505 582
lending
Interest income 1 941 169 1 477 850
141 713 202 125 093 905
Net cash (outflow)/inflow (704 216 658) 1 919 400 512
from investing activities
Net creation/(liquidation) of 697 062 226 (1 921 035 550)
securities
Cash distributed to security (126 871 765) (125 431 464)
holders
Net increase/(decrease) in 7 687 005 (1 972 597)
cash and cash equivalents
Cash and cash equivalents at 14 862 381 16 834 978
the beginning of year
Cash and cash equivalents at 22 549 386 14 862 381
the end of year
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. For more detail,
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 the 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 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 security 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 liabilities. 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 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 16:46:26 Produced by the JSE SENS Department.
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