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JSE STXFIN
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STXFIN - Satrix Fini - Abridged Audited Results for the Year Ended
31 December 2008
SATRIX FINI
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: STXFIN
ISIN CODE: ZAE000036356
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 47 189 535 37 646 943
Fee income: Securities lending 1 610 061 2 049 251
Interest income 629 786 559 503
49 429 382 40 255 697
Fair value adjustment, net of transaction costs (1 551 783) (98 302)
EXPENSES
Management and administrative expenses (3 800 584) (3 443 032)
Income available for distribution 44 077 015 36 714 363
Distributions (44 403 716) (36 804
789)
Change in net assets attributable to investors (326 701) (90 426)
before tax
Taxation - -
Change in net assets attributable to investors (326 701) (90 426)
BALANCE SHEET
as at 31 December 2008
2008 2007
R R
ASSETS
Listed investments held at fair value through 810 979 918 940 507 827
profit or loss
Trade and other receivables 3 404 709 2 141 562
Cash and cash equivalents 10 920 413 8 907 884
Total assets 825 305 040 951 557 273
LIABILITIES
Net assets attributable to investors 810 908 608 940 763 219
Trade and other payables 14 396 432 10 794 054
Total liabilities 825 305 040 951 557 273
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 December 2008
Capital Income Total
attributable to attributab
investors le to
investors
R R R
Balance at 1 January 2007 1 154 623 338 345 818 1 154 969 156
Change in net assets - (90 426) (90 426)
attributable to investors
Revaluation of securities (9 296 837) - (9 296 837)
Net liquidation of securities (204 818 674) - (204 818 674)
Balance at 31 December 2007 940 507 827 255 392 940 763 219
Change in net assets - (326 701) (326 701)
attributable to investors
Revaluation of securities (302 459 196) - (302 459 196)
Net creation of securities 172 931 286 - 172 931 286
Balance at 31 December 2008 810 979 917 (71 309) 810 908 608
CASH FLOW STATEMENT
for the year ended 31 December 2008
2008 2007
R R
Cash utilised by operations (4 115 915) (2 888 859)
Dividend income 47 189 535 37 827 167
Fee income: Securities lending 1 738 023 2 079 918
Interest income 611 175 539 922
45 422 818 37 558 148
Net cash (outflow)/inflow from investing (174 483 070) 204 717 562
activities
Net cash inflow/(outflow) from financing 131 072 781 (241 016 387)
activities
Net creation/(liquidation) of securities 172 931 286 (204 818 674)
Cash distributed to security holders (41 858 505) (36 197 713)
Net increase in cash and cash equivalents 2 012 529 1 259 322
Cash and cash equivalents at the beginning 8 907 884 7 648 562
of year
Cash and cash equivalents at the end of year 10 920 413 8 907 884
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").
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.
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 FINI 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 Limted.
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 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 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 17:18:01 Produced by the JSE SENS Department.
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