| Fri 30 Sep 2011, 8:42 | | PTXSPY - Proptrax Sapy - Financial statements for the year ended 30 June 2011 |
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PTXSPY - Proptrax Sapy - Financial statements for the year ended 30 June 2011
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 2011
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2011
2011 2010
R R
Revenue
Distribution income 23 883 373 22 405 376
Interest income 95 697 124 593
Investment income 23 979 070 22 529 969
Other income - 251 049
Fee income 124 292 192 859
Total income 24 103 362 22 973 877
Management and administration expenses (3 418 233) (2 971 411)
Income available for distribution 20 685 129 20 002 466
Distributions paid (20 442 820) (19 802 073)
Change in net assets attributable to 242 309 200 393
investors
STATEMENT OF CHANGES IN NET ASSET VALUE ATTRIBUTABLE TO INVESTORS
for the year ended 30 June 2011
Capital Income
attributable attributable
to investors to investors Total
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
Change in net assets 31 350 873 242 309 31 593 182
attributable to investors
100 000 units created on 17 May 3 699 174 3 699 174
2011
Balance at 30 June 2011 314 968 986 2 871 335 317 840 321
STATEMENT OF CASH FLOWS
for the year ended 30 June 2011
2011 2010
R R
Cash flows from operating activities
Cash utilised by operations (3 115 866) (1 958 223)
Distribution income 22 910 969 22 405 376
Interest income 95 697 124 593
Cash distributed to unitholders (20 442 820) (19 802 073)
Cash (outflow)/inflow from operating (552 020) 769 673
activities
Cash flows from investing activities
Purchase of equities (46 177 079) (72 798 572)
Proceeds from sale of equities 42 365 681 72 594 597
Cash outflow from investing (3 811 398) (203 975)
activities
Cash flows from financing activities
Creation of securities 3 699 174 -
Cash inflow from financing 3 699 174 -
activities
Net (decrease)/increase in cash and (664 244) 565 698
cash equivalents
Cash and cash equivalents at 3 445 186 2 879 488
beginning of year
Cash and cash equivalents at end of 2 780 942 3 445 186
year
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 30 June 2011
1. ACCOUNTING POLICIES AND AUDIT OPINION
Deloitte & Touche 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 Collective
Investment Schemes Control Act 45 of 2002.
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 AC 500 standards as issued by the
Accounting Practices Board, the JSE Listings Requirements, the requirements of
the Trust Deed and the 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 applied 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. 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 cost 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 statement of net assets attributable to investors.
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 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.
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 2011
Sponsor
Java Capital
Auditors
Deloitte & Touche
Trustees
Absa Bank Limited
Date: 30/09/2011 08:42:01 Produced by the JSE SENS Department.
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