| Thu 30 Sep 2010, 13:14 | | PTXSPY - Proptrax Sapy - Financial statements for the year ended 30 June 2010 |
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JSE PTXSPY
PTXSPY
PTXSPY - Proptrax Sapy - Financial statements for the year ended 30 June 2010
PROPTRAX SAPY
Share code: PTXSPY ISIN: ZAE000101911
("PropTrax SAPY" or "the ETF")
A portfolio in the Property Index Tracker Collective Investment Scheme
registered as such in terms of the Collective Investment Schemes Control Act, 45
of 2002, managed by Property Index Tracker Managers (Proprietary) Limited ("the
manager")
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
STATEMENT OF FINANCIAL POSITION
At 30 June 2010
2010 2009
R R
Assets
Listed investments held at fair value 279 716 126 235 978 004
through profit and loss
Trade and other receivables 48 184 57 678
Cash and cash equivalents 3 445 186 2 879 488
Total assets 283 209 496 238 915 170
Liabilities
Net assets attributable to investors 282 547 965 238 660 509
Trade and other payables 661 531 254 661
Total liabilities 283 209 496 238 915 170
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2010
2010 2009
R R
Revenue
Investment income 22 529 969 21 343 321
Distribution income 22 405 376 21 131 527
Interest income 124 593 211 794
Other income 251 049 -
Fee income 192 859 1 105 735
Total income 22 973 877 22 449 056
Fair value adjustment, net of - (135 376)
transaction costs
Expenses
Management and administrative expenses (2 971 411) (3 117 821)
Income available for distribution 20 002 466 19 195 859
Distributions paid (19 802 073) (20 785 829)
Change in net assets attributable to 200 393 (1 589 970)
investors
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS
For the year ended 30 June 2010
Capital Income Total
attributable attributable
to investors to investors
R R R
Balance at 30 June 2008 190 721 984 4 018 603 194 740 587
Additional creation of 300 8 688 000 - 8 688 000
000 securities
Change in net assets - (1 589 970) (1 589 970)
attributable to investors
Revaluation of securities 36 821 892 - 36 821 892
Balance at 30 June 2009 236 231 876 2 428 633 238 660 509
Change in net assets 43 687 063 200 393 43 887 456
attributable to investors
Balance at 30 June 2010 279 918 939 2 629 026 282 547 965
STATEMENT OF CASH FLOWS
For the year ended 30 June 2010
2010 2009
R R
Cash flows from operating activities 769 673 (1 465 398)
Cash utilised by operations (1 958 223) (2 022 890)
Distribution income 22 405 376 21 131 527
Interest income 124 593 211 794
Cash distributed to unitholders (19 802 073) (20 785 829)
Cash flows from investing activities (203 975) (8 505 867)
Purchase of equities (72 798 572) (18 744 616)
Proceeds from sale of equities 72 594 597 10 238 749
Cash flows from financing activities
Creation of securities - 8 688 000
Net increase/(decrease) in cash and cash 565 698 (1 283 265)
equivalents
Cash and cash equivalents at beginning of 2 879 488 4 162 753
year
Cash and cash equivalents at end of year 3 445 186 2 879 488
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
For the year ended 30 June 2010
1. Accounting policies and audit opinion
PKF (Jhb) Inc. has audited the financial information set out in this
report. Their unmodified audit report is available for inspection at the
Manager`s registered address.
1.1 Reporting entity
Property Index Tracker Collective Investment Scheme is a collective
investment scheme in securities established in South Africa in terms of the
Act.
1.2 Basis of preparation
Basis of measurements
The financial statements are prepared on a historic cost basis, except for
financial instruments, which are accounted for as set out in note 1.5.
Statement of compliance
The financial statements are prepared in accordance with International Financial
Reporting Standards (IFRS), its interpretations adopted by the International
Accounting Standards Board ("IASB"), the AC500 standards as issued by the
Accounting Practices Board, the JSE Listings Requirements, the requirements of
the Trust Deed and Collective Investment Schemes Control Act, 45 of 2002.
1.3 Functional and reporting currency
The financial statements are presented in Rands which is the functional
currency of the Scheme.
1.4 Use of estimates and judgements
The preparation of financial statements in conformity with IFRS requires
the use of certain critical accounting estimates, judgements and
assumptions that affect the reported amounts. It also requires management
to exercise its judgement in the company`s process of applying the
accounting policies. Actual results may vary from these estimates. There
are no areas involving a higher degree of judgement of complexities or
areas where assumptions or estimates are significant.
The principal accounting policies in the preparation of these financial
statements are set out below.
1.5 Financial instruments
Measurement
Financial instruments are recognised when, and only when, the PropTrax Fund
becomes a party to the contractual provisions of that particular instrument.
Financial instruments are initially measured at fair value, which except for
financial instruments not at fair value through profit and loss, include direct
attributable transaction costs. 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 reporting
date, as published in the financial press at the reporting date.
Trade and other receivables
Trade and other receivables originated by the PropTrax Fund are measured at
amortised cost using the effective interest method, less impairment losses.
Trade and other receivables are short term in nature.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Financial liabilities
Financial liabilities, other than those held at fair value through profit or
loss, are measured at amortised costs using the effective interest rate method.
Financial liabilities arising from the securities issued by the PropTrax Fund
are carried at the fair value representing the investor`s right to a residual
interest in the PropTrax Fund`s net assets, i.e. the net asset value of the
Scheme. Changes in the fair value are included in net profit or loss in the
year in which the change arises.
Fair value gains and losses on subsequent measurement
Unrealised gains and losses arising from a change in the fair value of financial
instruments are included in net profit or loss in the year in which the change
arises.
Offset
Financial assets and financial liabilities are offset and the net amount
reported in the statement of financial position when the PropTrax Fund has a
legally enforceable right to set off the recognised amounts, and intends to
settle on a net basis, or to realise the asset and settle the liability
simultaneously.
Derecognition of financial instruments
The PropTrax Fund 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 PropTrax Fund; 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 the 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, this is, when the obligation specified in the contract is
discharged, cancelled or has expired.
The difference between the carrying amount of a financial liability (or
part thereof) extinguished or transferred to another party and
consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss.
1.6 Revenue
Revenue comprises income from securities lending activities and investment
income.
Securities lending fee income
The fees earned for the administration of securities lending activities are
accounted for on an accrual basis in the year in which the service is
rendered. Assets subject to securities lending are not derecognised.
Investment income
Interest income is recognised in the statement of comprehensive income,
using the effective rate method taking into account the expected timing and
amount of cash flows.
Distribution income in the form of cash and manufactured dividends are
recognised when the right to receive payment is established. Manufactured
dividends received are recognised as income in profit or loss.
1.7 Income tax
Under the current system of taxation in South Africa, the PropTrax Fund is
exempt from paying tax on income or capital gains. Both income and capital
gains are taxed in the hands of investors.
1.8 Securities lending
The portfolio engages in securities lending activities up to 50% of the
assets under management. Collateral is held by the relevant lending desks.
1.9 Expenses
Expenses are recognised on the accrual basis.
1.10 Impairment
Financial assets that are stated at amortised cost are reviewed at each
reporting date to determine whether there is objective evidence of
impairment. If any such indication exists, an impairment loss is
recognised in profit or loss 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 impairment loss
is reversed through profit or loss.
1.11 Distributions
Distributions payable on redeemable units are recognised in profit or loss
as distributions.
In accordance with the PropTrax Deed, the Portfolio distributes its
distributable income and any other amounts determined by the PropTrax
Managers, to security holders in cash. The distributions are payable
shortly after the end of each quarter and recognised in the statement of
comprehensive income as distributions.
1.12 Creations and redemptions
Investors can acquire PropTrax SAPY 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 PropTrax 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 PropTrax SAPY securities, by the delivery of one
or more full baskets of constituent securities, are obliged to deliver
securities with a perfect match to the SAPY Index.
Investors may sell securities by trading on the JSE.
Securities 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 the investors` share. Such instruments give rise to a
financial liability for the net asset value of the redemption amount in the
PropTrax Fund`s net assets at redemption date. In accordance with the
PropTrax Deed and the Act, the PropTrax Fund is contractually obliged to
redeem securities at the net asset value. A redemption fee, depending on
the size of the recall, would be payable by the investor making the
redemption.
These securities have been designated 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 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 reporting date if security holders exercise their right
to put the securities back to the Portfolio.
1.15 Increase/decrease in net assets attributable to security holders
Income not distributed is included in net assets attributable to security
holders.
30 September 2010
Sponsor
Java Capital
Auditors
PKF (Jhb) Inc.
Trustees
ABSA Bank Limited
Date: 30/09/2010 13:14:01 Produced by the JSE SENS Department.
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