| Wed 29 Jun 2011, 17:09 | | RAFISA - NewFunds eRAFITrade Mark Overall SA Index ETF Portfolio - Summarised |
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JSE RAFISA
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RAFISA - NewFunds eRAFITrade Mark Overall SA Index ETF Portfolio - Summarised
audited results for the year ended 31 march 2011
NewFunds eRAFITrade Mark Overall SA Index ETF Portfolio
Share code: RAFISA
ISIN: ZAE000117149
("eRAFITrade Mark Overall 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
SUMMARISED AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2011
Statement of financial position as at 31 March 2011
2011 2010
R R
ASSETS
Non-current assets
Investments: eRAFITrade Mark Overall 158 292 120 138 523 641
Portfolio
Current assets 920 380 998 580
Trade and other receivables 403 949 85 614
Cash and cash equivalents 516 431 912 966
TOTAL ASSETS 159 212 500 139 522 221
LIABILITIES
Trade and other payables 187 517 740 427
NET ASSETS ATTRIBUTABLE TO INVESTORS 159 024 983 138 781 794
Statement of comprehensive income for the year ended 31 March 2011
2011 2010
R R
Income 4 126 203 4 722 806
Dividend income 4 076 602 4 649 711
Interest income 49 601 73 095
- 14 109 295
Cash portion received on redemption
Realised gains on financial 7 660 121 10 678 368
instruments designated at fair value
through profit or loss
Unrealised gains on financial 6 064 622 66 600 787
instruments designated at fair value
through profit or loss
Expenses
Management and administration (1 085 723) (2 725 705)
expenses
Increase in net assets attributable 16 765 223 93 385 551
to investors before tax
Income tax expense - -
Increase in net assets attributable 16 765 223 93 385 551
to investors before distribution
Income distribution - -
Increase in net assets attributable 16 765 223 93 385 551
to investors after distribution
Represented by:
Income attributable to investors 3 040 480 1 997 101
Capital gain attributable to 13 724 743 91 388 450
investors
Statement of changes in net assets attributable to investors for the year ended
31 March 2011
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 01 April 2009 258 566 706 (8 875 246) 249 691 460
Redemptions of (204 295 217) - (204 295 217)
eRAFITrade Mark Overall
securities
Increase in net assets 91 388 450 1 997 101 93 385 551
attributable to
investors
Balance at 31 March 2010 145 659 939 (6 878 145) 138 781 794
Redemptions of - - -
eRAFITrade Mark Overall
securities
Increase in net assets
attributable to
investors 13 724 743 3 040 480 16 765 223
Capital dividends 3 477 966 - 3 477 966
received
Balance at 31 March 2011 162 862 648 (3 837 665) 159 024 983
Statement of cash flows for the year ended 31 March 2011
2011 2010
R R
Net cash utilised by (426 447) ( 372 462)
operating activities
Cash utilised from (1 956 968) (4 520 097)
operations
Purchases of securities (81 522 869) (97 122 834)
Proceeds from sale of 78 927 187 96 547 663
securities
Interest received 49 601 73 095
Dividend received 4 076 602 4 649 711
Cash outflow from investing 29 913 -
activities
Capital distributions re- 29 913 -
invested
Net movement in cash and (396 534) (372 462)
cash equivalents
Cash and cash equivalents at 912 965 1 285 427
the beginning of year
Cash and cash equivalents at 516 431 912 965
the end of year
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011
1. Accounting policies
The NewFunds Collective Investment Scheme ("the Scheme") is an open-ended
investment scheme incorporated under the Collective Investment Scheme Control
Act, 45 of 2002.
The Scheme`s objective is to track the performance of the eRAFITrade Mark
Overall SA index. The index comprises of 40 largest listed companies ranked by
fundamental/economic value with the companies selected from the top 100 JSE
listed companies by market capitalisation.
The scheme is mainly managed by Absa Capital, a division of Absa Bank Limited.
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.
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), the AC500 standards as issued by the Accounting Practices Board,
IAS 34 Interim Financial Reporting and in the manner required by the Collective
Investment Schemes Control Act and Trust Deed.
The financial statements were authorised for issue by the Board of Directors on
24 June 2011.
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
Recognition and measurement
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.
Financial instruments are recognised initially at fair value plus directly
attributable transaction costs which are only included in the initial carrying
amount of financial instruments that are not designated through profit or loss.
Subsequent to initial recognition, these instruments are measured as set out
below.
Investments
Investments are designated at fair value through profit or loss at inception and
are financial instruments that are not classified as held for trading but are
managed, and their performance is evaluated on a fair value basis in accordance
with the Fund`s documented investment strategy. Fair value is determined with
reference to quoted market prices as published in the financial press, at
reporting date. All changes in fair value, other than dividend income, are
recognised in profit or loss as a net gain/(loss) from financial instruments at
fair value through profit or loss.
The Fund`s policy requires the Asset Managers and Investment Manager Committee
to evaluate the information about these investments on a fair value basis
together with other related financial information. These investments are
expected to be realised at any time at the option of the security holder.
Trade and other receivables
Trade and other receivables are measured at amortised cost using the effective
interest method, less impairment losses. Trade and other receivables are short
term in nature and are not discounted. The carrying value approximates the fair
value.
Cash and cash equivalents
Comprises of cash balances and call deposits with an original maturity of three
months or less measured at amortised cost at reporting date. The carrying value
approximates the fair value.
Trade and other payables
Measured at amortised cost using the effective interest method. The carrying
value approximates the fair value.
The effective interest method is a method of calculating the amortised cost of a
financial liability and of allocating the interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts
estimated future cash payments or receipts throughout the expected life of the
financial instrument, or, when appropriate, a shorter period, to the net
carrying amount of the financial instrument.
The calculation includes all fees and points paid or received between parties to
the contract that are an integral part of the effective interest rate,
transaction costs and all other premiums or discounts.
Issued securities
Financial liabilities arising from securities issued by each portfolio are
measured at fair value representing the investor`s right to an interest in the
portfolio`s net asset, i.e. the Net Asset Value ("NAV") of the portfolio. The
NAV is the total assets of the portfolio less trade and other payables. Changes
in the fair value are included in profit or loss in the period in which the
change arises and these financial liabilities are designated through profit or
loss.
The fair value of redeemable securities is measured at the redemption amount
that is payable (in cash and in securities, representing each investor`s
undivided and vested interest in their assets as a whole, subject to
liabilities, as defined by the Scheme`s Trust Deed).
In accordance with the Scheme`s Trust Deed, and CISCA, the portfolios are
contractually obliged to redeem securities at Net Asset Value.
Creations and redemptions
Creations and redemptions 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 profit and
loss. The carrying amount of impaired loans on the statement of financial
position is reduced through the use of impairment.
Redeemable securities
All redeemable securities provided by the portfolios provide investors with the
right to request redemption for cash or in specie at the value proportionate to
each investor`s share. The securities are redeemable at any time at the option
of the security holder and are therefore classified as financial liabilities.
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 Impairments
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.
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.
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 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. 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 Income
Income 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 Distributions
In accordance with the Scheme`s Trust Deed, the portfolios distribute their
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.
1.11 Fair value gains and losses
Realised profits or losses on the disposal of investments is 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
cumulative movements in the carrying value of investments for every month in the
reporting period.
1.12 Management and administration expenses
Management and administration expenses are recognised in profit or loss 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.
1.13 Taxation
Income is taxed in the hands of the investor if distributed within 12 months,
failing which revenue will be deemed to be received by and accrued to the
portfolio and will be taxed in its hands. Capital gains and losses are
disregarded.
1.14 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.
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.
1.16 New standards and interpretations adopted in the current year
There are no new standards adopted in the current year.
1.17New standards and interpretations not yet adopted
There are new standards, interpretations and amendments to standards and
interpretations relevant to the entity that are not yet effective for the year
ended 31 March 2011 and have not been applied in preparing the financial
statements. These include the following standards and interpretations that are
applicable to the business of the entity and may have an impact on the future
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 parties on the financial statements.
IFRS 9 Financial Instruments
IFRS 9 retains but simplifies the mixed measurement model and establishes two
primary measurement categories for financial assets: amortised cost and fair
value. The basis of classification depends on the entity`s business model and
contractual cash flow characteristics of the financial asset. The guidance in
IAS 39 on Impairment of financial assets and hedge accounting continues to
apply. Amendments are effective for the annual periods beginning on or after 1
January 2013. The Amendment might affect disclosure of NewFunds CIS financial
instruments in the financial statements.
1.18 Operating Segments
The portfolios, eRAFITrade Mark Overall, NewSA, Shariah, eRAFITrade Mark
Financial, eRAFITrade Mark Industrial, eRAFITrade Mark 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 such standards. The application of the standard
only impacts the presentation and disclosure aspect of the financial statements.
Audit report
KPMG Inc, the NewFunds Collective Investment Scheme`s independent auditor, has
audited the annual financial statements of the NewFunds eRAFITrade Mark OVERALL
SA Index ETF from which the summarised results contained in this announcement
have been derived, and has expressed an unmodified opinion on the annual
financial statements. Their audit report is available for inspection at the
CIS`s registered office.
The complete set of financial statements are available on Absa Capital`s website
(www.absacapitaletfs.com).
Sponsor:
J.P. Morgan Equities Limited
Date: 29/06/2011 17:09:01 Produced by the JSE SENS Department.
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