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JSE NEWFSA
NFS
NEWFSA - Newfunds Newsa Index Portfolio - Summarised annual financial statements
for the year ended 31 March 2009
NEWFUNDS NEWSA INDEX PORTFOLIO
Share code: NEWFSA
ISIN: ZAE000104055
("NewFunds NewSA")
A Portfolio in the NewFunds Collective Investment Scheme in Securities
registered as such in terms of the Collective Investment Schemes Control Act, 45
of 2002
SUMMARISED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2009
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2009
2009
R
Revenue 497 876
Dividend income 495 006
Interest income 2 870
Other operating income
Realised gains on financial instruments at fair value 749 940
through profit or loss
Unrealised gains on financial instruments designated at fair 3 809 499
value through profit or loss
Operating expenses
Management and administration expenses (337 271)
Finance cost -
Profit before taxation 4 720 044
Income tax expense -
Profit for the year 4 720 044
Other comprehensive income for the year, net of tax -
Total comprehensive income for the year 4 720 044
STATEMENT OF FINANCIAL POSITION
as at 31 March 2009
2009
R
Assets
Non current assets
Investments: NewFunds NewSA Portfolio 43 929 743
Current assets 682 093
Trade and other receivables 331 035
Cash and cash equivalents 351 058
Total assets 44 611 836
Equity and liabilities
Equity
Net assets attributable to investors 44 225 760
Current liabilities
Trade and other payables 386 076
Total equity and liabilities 44 611 836
STATEMENT OF CASH FLOWS
for the year ended 31 March 2009
2009
R
Net cash generated from operating activities 215 646
Cash utilised from operations (160 536)
Interest received 1 598
Dividends received 374 584
Taxation -
Net Cash outflow from investing activities (39 370 304)
Purchases of securities (39 370 304)
Proceeds from sale of securities -
Net cash inflow from financing activities 39 505 716
Redemptions of NewFunds NewSA securities -
New issues of NewFunds NewSA securities 39 505 716
Net increase in cash and cash equivalents 351 058
Cash and cash equivalents at the beginning of year -
Cash and cash equivalents at the end of year 351 058
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
for the year ended 31 March 2009
Capital Income
attributable to attributable to
investors investors Total
R R R
New creation of NewFunds 39 505 716 - 39 505 716
NewSA Securities
Creation of securities - - -
Redemptions - - -
Total comprehensive income - 4 720 044 4 720 044
for the year
Income distribution - - -
Balance at 31 March 2009 39 505 716 4 720 044 44 225 760
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2009
1. Accounting policies
The NewFunds Collective Investment Scheme ("the Scheme") is an open-
ended investment scheme incorporated under the Collective Investment
Scheme Control Act of South Africa.
The Scheme`s objectives are detailed as part of the Financial Risk
Management below. The scheme is managed by NewFunds (Proprietary)
Limited which outsources most of its main functions to Absa Capital,
a division of Absa Bank Limited.
The financial information incorporates the principle accounting
policies set out below which have been applied consistently by the
Scheme.
1.1 Statement of compliance
The complete set of financial statements are prepared in accordance
with International Financial Reporting Standards (IFRS) issued by
the International Accounting Standards Board (IASB) and in the
manner required by the Collective Investment Scheme Control Act of
South Africa.
This summary has been prepared in accordance with the recognition
and measurement requirements of IFRS and the presentation and
disclosure requirements of IAS34 - Interim Financial Reporting.
1.2 Basis of measurement
The financial statements have been prepared on a historical cost
basis, except where specifically indicated otherwise in the
accounting policies.
1.3 Functional and presentation currency
Items included in the financial statements of the Scheme are
measured using the currency of the primary economic environment in
which the entity operates (the functional currency). The Scheme`s
financial statements are presented in South African rand, which is
the Scheme`s functional and presentation currency.
1.4 Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity
and debt securities, trade and other receivables, cash and cash
equivalents and trade and other payables.
Initial recognition and measurement
Financial instruments are initially measured at fair value plus any
directly attributable transaction costs. Directly attributable
transaction costs are only included in the initial carrying amount
of financial instruments that are not designated through profit and
loss. Regular way purchases and sales of financial instruments are
accounted for on trade date. All other financial instruments are
recognised when the entity first becomes a party to the contractual
provisions of the instrument. Subsequent measurement of non-
derivative financial instruments is described below.
Classification and subsequent measurement
The classification of financial instruments at initial recognition
depends on the purpose for which the financial instruments were
acquired and their characteristics.
Financial instruments designated at fair value through profit or
loss
Financial instruments are classified in this category if they meet
one or more of the criteria set out below, at initial recognition
and are so designated by management. The Scheme may only designate
financial instruments at fair value through profit or loss when the
designation results in more relevant information; because either:
- It eliminates or significantly reduces measurement or recognition
inconsistencies that would arise from measuring financial assets or
financial liabilities, or recognising gains or losses on them, on
different bases; or
- Groups of financial assets, financial liabilities or combinations
thereof are managed, and their performance evaluated, on a fair
value basis in accordance with a documented risk management or
investment strategy, and information about the Scheme`s financial
instruments is reported to management on that basis. The Scheme has
documented risk management and investment strategies designed to
manage such assets at fair value, taking into consideration the
relationship of assets to liabilities in a way that mitigates market
risks.
The Scheme can also designate at fair value through profit or loss
if it relates to a contract containing one or more embedded
derivatives that significantly modify the cash flows resulting from
that contract.
The fair value designation, once made, is irrevocable. Measurement
is initially at fair value, with directly attributable transaction
costs taken directly to profit or loss. Subsequently, the fair value
is measured, and gains or losses from changes therein are recognised
in the profit or loss.
Financial instruments designated at fair value through profit or
loss are done as this will result in more relevant information
because it significantly reduces a measurement or recognition
inconsistency and is managed on a fair value basis.
Cash and cash equivalents comprise cash balances and call deposits
with an original maturity of three months or less measured at
amortised cost at balance sheet date.
Trade and other receivables are measured at amortised cost using the
effective interest method, less any impairment losses.
Trade and other payables are measured at amortised cost using the
effective interest method.
Other non-derivative financial instruments are measured at amortised
cost using the effective interest method, less any impairment
losses.
Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees and costs that are an integral part
of the effective interest rate. The amortisation is included in
"Interest income" in the statement of comprehensive income. The
carrying amount of impaired loans on the statement of financial
position is reduced through the use of identified or unidentified
impairment.
1.5 Derecognition of financial instruments
The Scheme derecognises a financial asset when and only when:
- The contractual rights to the cash flows arising from the
financial assets have expired or been forfeited by the Scheme; or
- It transfers the financial asset including substantially all the
risks and rewards of ownership of the assets; or
- It transfers the financial asset, neither retaining nor
transferring substantially all the risks and rewards of ownership of
the asset, but no longer retains control of the asset.
A financial liability is derecognised when and only when the
liability is extinguished, that is, when the obligation specified in
the contract is discharged, cancelled or has expired.
On derecognition of a financial asset in its entirety, 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.
The difference between the carrying amount of a financial liability
(or part thereof) extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
1.6 Impairments
A financial asset is assessed at each reporting date to determine
whether there is any objective evidence that it is impaired. A
financial asset is considered to be impaired if objective evidence
indicates that one or more events have had a negative effect on the
estimated future cash flows of that asset.
Objective evidence that a financial asset is impaired includes
observable data that comes to the attention of the Scheme and may
include the following loss event:
- The disappearance of an active market for that financial asset
because of financial difficulties.
Only financial assets that are not designated at fair value through
profit and loss are considered for impairment.
An impairment loss in respect of a financial asset measured at
amortised cost is calculated 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.
All impairment losses are recognised in profit or loss.
An impairment loss is reversed if the reversal can be related
objectively to an event occurring after the impairment loss was
recognised. For financial assets measured at amortised cost, the
reversal is recognised in profit or loss.
1.7 Offsetting
Financial assets and liabilities are offset and the net amount
reported in the statement of financial position when the entity
holds a current legally enforceable right to set off the recognised
amounts or has an intention to either settle on a net basis, or
realise the asset and settle the liability simultaneously.
1.8 Fair value
Some of the Scheme`s financial instruments are measured at fair
value through profit or loss, namely those designated by management
under the fair value option.
The fair value of a financial instrument is the amount at which the
instrument can be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.
The method of determining the fair value of financial instruments
can be analysed into the following categories:
(a) Unadjusted quoted prices in active markets where the quoted
price is readily available and the price represents actual and
regularly occurring market transactions on an arm`s length basis.
(b) Valuation techniques using market observable inputs.
(c) The best evidence of fair value at initial recognition is the
transaction price (i.e. the fair value of the consideration given or
received), unless the fair value of that instrument is evidenced by
comparison with other observable current market transactions in the
same instrument (i.e. without modification or repackaging) or based
on a valuation technique whose variables include only data from
observable markets. The Scheme has entered into transactions, some
of which will mature within one year, where fair value is determined
using valuation models for which all inputs are market observable
prices or rates. Such a financial instrument is initially recognised
at the transaction price, which is the best indicator of fair value,
this does not substantially differ from the relevant valuation
model.
1.9 Revenue
Revenue comprises interest income and dividend income.
Investment income is that income that is directly related to the
return from individual investments. It is recognised to the extent
that it is probable that there will be an inflow of economic
benefits and the income can be reliably measured.
Interest income is recognised on a time-proportionate basis using
the effective interest method and includes interest income from debt
securities.
Dividends from equity investments are recognised in the statement of
comprehensive income when the shareholders` rights to receive
payment have been established.
1.10 Fair value gains and losses
Realised profits or losses on the disposal of investments are the
difference between the fair value of the consideration received less
any directly attributable costs, on the sale of equity investments
and the repayment of loans and receivables, and its carrying value
at the start of the accounting period.
Unrealised profits or losses on the revaluation of investments are
the movements in the carrying value of investments between the start
and end of the accounting period.
1.11 Management and administration expenses
Management and administration expenses are recognised in the
statement of comprehensive income when a decrease in future economic
benefits relating to a decrease in an asset or an increase in a
liability arose that can be measured reliably.
1.12 Taxation
Income tax on the profit or loss for the period comprises current
and deferred tax. Income tax is recognised in profit or loss except
to the extent that it relates to items recognised directly in other
comprehensive income or recognised directly in equity, in which case
it is recognised in other comprehensive income or equity.
Current tax is the expected tax payable on the taxable income for
the period, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustment to tax payable in respect of
previous periods.
Deferred taxation is provided using the balance sheet method based
on temporary differences. Temporary differences are differences
between the carrying amount of assets and liabilities for financial
reporting purposes and their tax base. The amount of deferred
taxation provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities using
tax rates enacted or substantively enacted at the balance sheet
date. Deferred taxation is charged to profit or loss except to the
extent that it relates to a transaction that is recognised in other
comprehensive income or directly in equity, or a business
combination that is an acquisition. The effect on deferred taxation
of any changes in tax rates is recognised in profit or loss, except
to the extent that it relates to items previously charged or
credited directly to other comprehensive income or recognised
directly in equity.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the
same taxable entity.
A deferred tax asset is recognised to the extent that it is probable
that the future taxable income will be available, against which the
unutilised tax losses and deductible temporary differences can be
used. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the
related tax benefits will be realised.
1.13 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods
affected.
1.14 Provisions
Provisions are recognised when the scheme has a present legal or
constructive obligation as a result of past events, for which it is
probable that an outflow of economic benefits will occur, and where
a reliable estimate can be made of the amount of the obligation.
Where the effect of discounting is material, provisions are
determined by discounting the expected future cash flows at a pre-
tax rate that reflects current market assessments of the time value
of money and, where appropriate, the risks specific to the
liability.
Future operating costs or losses are not provided for.
1.15 New standards and interpretations adopted in the current year
The following standards, interpretations and amendments to standards
and interpretations are effective for annual periods on or after 1
January 2009 and early adopted by management in the current year:
IAS 1 - Presentation of Financial Statements
The amendment introduces the term `total comprehensive income`,
which represents changes in equity during a period other than those
changes resulting from transactions with owners in their capacity as
owners. Total comprehensive income may be presented in either a
single statement of comprehensive income (effectively combining both
the profit or loss and all non-owner changes in equity in a single
statement), or in an profit or loss and a separate statement of
other comprehensive income. The amendment also requires two sets of
comparative numbers to be provided for the financial position in any
year where there has been a restatement or reclassification of
balances.
IAS 32 - Financial Instruments: Presentation and IAS 1 Presentation
of Financial Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
The amendment requires puttable instruments, and 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, to
be classified as equity if certain conditions are met. The amendment
might have an impact on the financial statements on such
instruments.
ANNUAL FINANCIAL STATEMENTS
The complete set of annual financial statements have been audited by the
independent auditors, KPMG Inc. and their unqualified audit report is available
for inspection at the company`s registered office.
30 June 2009
Manager
NewFunds (Proprietary) Limited
Sponsor
Java Capital (Proprietary) Limited
Date: 30/06/2009 17:22:01 Produced by the JSE SENS Department.
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