| Wed 30 Jun 2010, 17:49 | | RAFRES - Newfunds Erafi(Tm) SA Resources 20 Index ETF - Audited summarised |
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RAFRES - Newfunds Erafi(Tm) SA Resources 20 Index ETF - Audited summarised
annual financial statements for the year ended 31 March 2010
NEWFUNDS eRAFI(TM) SA RESOURCES 20 INDEX ETF
Share code: RAFRES
ISIN: ZAE000135166
("eRAFI(TM) Resources 20 ETF" or "the ETF")
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 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) Resources 31 925 746
Portfolio
Current assets 269 888
Trade and other receivables 1 791
Cash and cash equivalents 268 097
TOTAL ASSETS 32 195 634
LIABILITIES
Trade and other payables 97 535
NET ASSETS ATTRIBUTABLE TO 32 098 099
INVESTORS
Statement Of Comprehensive Income For The 10 Months Ended At
31 March 2010
2010
R
Revenue 457 111
Dividend income 455 312
Interest income 1 799
Other operating income
Realised gains on financial 1 310 249
instruments designated at fair value
through profit or loss
Unrealised gains on financial 5 581 382
instruments designated at fair value
through profit or loss
Operating Expenses
Management and administration (608 664)
expenses
Profit before taxation 6 740 078
Income tax expense -
Operating profit for the year 6 740 078
Income distribution -
Increase in net assets attributable 6 740 078
to investors
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) 25 358 021 - 25 358 021
Resources Securities
Increase in net assets - 6 740 078 6 740 078
attributable to investors
Balance at 31 March 2010 25 358 021 6 740 078 32 098 099
Statement Of Cash Flows For The 10 Months Ended At
31 March 2010
2010
R
Net cash generated from 268 097
operating activities
Cash utilised from operations (512 920)
Purchases of equity securities (6 343 064)
Proceeds from sale of equity 6 666 970
securities
Dividend received 455 312
Interest received 1 799
Cash inflow/(outflow) from -
investing activities
Cash inflow/(outflow) from -
financing activities
Cash and cash equivalents at 268 097
the end of year
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 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 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.
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).
Sponsor:
J.P. Morgan Equities Limited
Date: 30/06/2010 17:49:03 Produced by the JSE SENS Department.
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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.
