| Wed 30 Jun 2010, 16:58 | | RAFFIN - Newfunds eRAFI(TM)SA Financial 15 Index ETF - Audited provisional |
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JSE RAFFIN
NFS
RAFFIN - Newfunds eRAFI(TM)SA Financial 15 Index ETF - Audited provisional
summarised annual financial statements for the year ended 31 March 2010
NEWFUNDS eRAFI(TM)SA FINANCIAL 15 INDEX ETF
Share code: RAFFIN
ISIN: ZAE000134979
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
AUDITED PROVISIONAL SUMMARISED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31
MARCH 2010
Statement Of Financial Position As At 31 March 2010
2010
R
ASSETS
Non-current assets
Investments: eRAFI(TM) Financials Portfolio 24 392 019
Current assets 356 327
Trade and other receivables 63 172
Cash and cash equivalents 293 155
TOTAL ASSETS 24 748 346
LIABILITIES
Trade and other payables 141 536
NET ASSETS ATTRIBUTABLE TO INVESTORS 24 606 810
Statement Of Comprehensive Income For The 10 Months Ended
31 March 2010
2010
R
Revenue 436 113
Dividend income 432 331
Interest income 3 782
Other operating income
Realised gains on financial instruments designated at 326 907
fair value through profit or loss
Unrealised gains on financial instruments designated at 6 491 776
fair value through profit or loss
Operating Expenses
Management and administration expenses (407 826)
Profit before taxation 6 846 970
Income tax expense -
Operating profit for the year 6 846 970
Income distribution -
Increase in net assets attributable to investors 6 846 970
Statement Of Changes In Net Assets Attributable To Investors For The 10 Months
Ended 31 March 2010
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
New creation of eRAFI(TM) 17 759 840 - 17 759 840
Financial Securities
Increase in net assets - 6 846 970 6 846 970
attributable to investors
Balance at 31 March 2010 17 759 840 6 846 970 24 606 810
Statement Of Cash Flows For The 10 Months Ended
31 March 2010
2010
R
Net cash generated from operating activities 293 155
Cash utilised from operations (329 462)
Purchases of equity securities (2 975 077)
Proceeds from sale of equity securities 3 161 581
Interest received 3 782
Dividend received 432 331
Cash inflow/(outflow) from investing activities -
Cash inflow/(outflow) from financing activities -
Cash and cash equivalents at the end of year 293 155
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR ALL PORTFOLIOS ("funds") FOR
THE YEAR ENDED 31 MARCH 2010
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 mainly managed by Absa Capital, a division
of Absa Bank Limited.
Basis of preparation for the complete financial statements
We have prepared the financial statements in accordance with International
Financial Reporting Standards, in the manner required by the Collective
Investment Scheme Act of South Africa and the Trust Deed.
The financial information incorporates the principal accounting policies
set out below which have been applied consistently by NewFunds Collective
Investment Scheme for all periods presented.
The accounting policies and methods of computation are consistent with the
prior year except for the first time implementation of IFRS 8: Operating
Segments.
KPMG Inc, the appointed auditor, expressed an unqualified opinion on the
audited financial statements.
The complete set of financial statements are available for inspection at
the registered offices of the NewFunds Collective Investment Scheme in
Securities.
Basis of preparation for the summarised financial statements
We have prepared the summarised set of financial statements in the SENS
announcement in accordance with:
- the recognition and measurement requirements of International
Financial Reporting Standards, and
- the presentation and disclosure of IAS 34: Interim Financial
Reporting,
- the JSE listing requirements,
- the Collective Investment Scheme Control Act of South Africa,
- the Trust Deed and
- the AC 500 series issued by SAICA.
The financial statements as summarised have been extracted from the
complete set of audited financial statements.
KPMG Inc, the appointed auditor, expressed an unqualified opinion on the
summarised financial statements. The unqualified audit opinions on both the
complete and the summarised sets of financials are available for inspection
at the registered offices of the NewFunds Collective Investment Scheme in
Securities.
The accounting policies and methods of computation are consistent with the
complete set of audited financial statements.
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 the manner required by the Collective
Investment Schemes Control Act, the Trust Deed and the AC 500 series.
The complete set of financial statements were authorised for issue by the
Board of Directors on 18 June 2010.
The summarised financial statements were authorised for issue by the Board
of Directors on 30 June 2010.
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 funds are measured using
the currency of the primary economic environment in which the entity
operates (the functional currency). The funds financial statements are
presented in South African rand, which is the fund`s functional and
presentation currency.
1.4 Financial instruments
Non - derivative financial instruments
Non-derivative financial instruments comprise investments, in trade and
other receivables, cash and cash equivalents, shareholders loans and trade
and other payables.
Initial recognition and measurement
Financial instruments are recognised initially 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 or 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:
1. 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
2. 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 a financial instrument 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 profit or loss.
Financial instruments designated at fair value through profit or loss are
done as this will results 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 of cash balances and call deposits with an original maturity of
three months or less measured at amortised cost at reporting date.
Trade and other payables
Measured at amortised cost using the effective interest method.
Other non-derivative financial instruments
Measured at amortised cost using the effective interest method, less any
impairment losses.
Creation and redemption
Creation and redemption are recorded on trade date using historic cost
being the previous day closing index price.
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
impairment.
1.5 Derecognition of financial instruments
Derecognition of financial assets
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 assets.
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 Impairment of financial assets
A financial asset not carried at fair value through profit or loss 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.
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 company and may include the
following loss event:
- The disappearance of an active market for that financial asset because
of financial difficulties.
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 to an event
occurring after the impairment loss was recognised. For financial assets
measured at cost and available-for-sale financial assets that are debt
securities, 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 and intends 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, 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. Such techniques
may include:
- using recent arm`s length market transactions;
- reference to the current fair value of similar instruments; and
- discounted cash flow analysis, pricing models or other techniques
commonly used by market participants.
(c) On initial recognition of financial instruments measured using the
above techniques the transaction price is deemed to provide the best
evidence of fair value for accounting purposes. As such, profits or
losses are recognised upon trade inception only when such profits can
be measured solely by reference to observable market data. The
difference between the model valuation and the initial transaction
price is either amortised over the life of the transaction, deferred
until the instrument`s fair value can be determined using market
observable inputs, or realised through settlement.
The valuation techniques in (b) and (c) use inputs such as interest rate
yield curves, equity prices, commodity and currency prices/yields,
volatilities of the underlying and correlations between inputs. The models
used in these valuation techniques are calibrated against industry
standards, economic models and to observed transaction prices where
available.
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 except to the extent that dividends, clearly reflects a
realisation of the underlying investments.
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 full reporting 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 related to
decrease in an assets or an increase of a liability has arisen that can be
measured reliably.
It is recognised based on the matching concept where expenses are matched
with income.
1.12 Taxation
Income tax on 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.
Current tax is the expected tax payable on the taxable income for the
period, using tax rates enacted or substantively enacted at the reporting
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 reporting 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. Deferred taxation is not
recognised for temporary differences arising on initial recognition of
assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss.
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 adopted by management:
IFRS 7- Improving Disclosures about Financial Instruments:
Amendments require disclosures of financial instruments measured at fair
value to be based on a three-level fair value hierarchy that reflects the
significance of the inputs in such fair value measurements. Amendments
require additional qualitative and quantitative disclosures of liquidity
risk. Amendments are effective for annual periods beginning on or after 1
January 2009. The amendment might affect the disclosure of NewFunds CIS
financial instruments on the financial statements.
1.16 New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations
issued are not yet effective for the year ended 31 March 2010 and have not
been applied in preparing these financial statements:
IAS 24 Related Party Disclosures
The revised IAS 24 Related Party Disclosure amends the definition of a
related party and modifies certain related party disclosure requirements
for government-related entities. Amendments are effective for annual
periods beginning on or after 1 January 2011. The amendment might affect
the disclosure of the fund`s related party in the financial statements.
1.17 Operating Segments
The portfolios, eRAFI(TM) Overall, NewSA, Shariah, eRAFI(TM) Financial,
eRAFI(TM) Industrial, eRAFI(TM) Resources, that trade under the umbrella of
the NewFunds Collective Investment Schemes (CIS) as separate exchange
traded funds. Each of the mentioned funds is separately listed and trades
on the JSE. Thus each of the separate portfolios fall within the scope of
IFRS 8:
Operating Segments.
Comparative segment information has been presented in conformity with the
transitional requirements of this standard. The application of the standard
only impacts the presentation and disclosure aspect of the financial
statements.
The above listed investment vehicle offers only one product, being the
specific portfolio, tracking the specific identified index.
Information regarding the results of the reportable
segment is disclosed in the Financial statements as
currently set, thus no further IFRS8 disclosure is required.
The complete set of financial statements are available on Absa Capital`s website
(www.absacapitaletfs.com).
Date: 30 June 2010
Sponsor:
J.P. Morgan Equities Limited
Date: 30/06/2010 16:58:01 Produced by the JSE SENS Department.
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JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
