| Fri 29 Jun 2012, 7:09 | | RAFRES - NEWFUNDS eRAFITrade Mark SA Resources 20 Index ETF Portfolio - |
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JSE RAFRES
NFS
RAFRES - NEWFUNDS eRAFITrade Mark SA Resources 20 Index ETF Portfolio -
Summarised audited results for the year ended 31 March 2012
NEWFUNDS eRAFITrade Mark SA RESOURCES 20 INDEX ETF PORTFOLIO
Share code: RAFRES
ISIN: ZAE000135166
("eRAFITrade Mark 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
SUMMARISED AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2012
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2012
2012 2011
R R
ASSETS
Non-current assets
Investments: eRAFITrade Mark 7 842 631 35 860 875
Resources Portfolio
Current assets 179 554 368 451
Trade and other receivables 22 303 59 752
Cash and cash equivalents 157 251 308 699
Total assets 8 022 185 36 229 326
LIABILITIES
Current liabilities
Trade and other payables 1 310 122 615
Net assets attributable to investors 8 020 875 36 106 711
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2012
2012 2011
R R
Revenue 530 148 722 092
Dividend income 522 835 712 596
Interest income 7 313 9 496
Realised gains on financial 86 579 878 011
instruments designated at fair value
through profit or loss
Unrealised (Loss) / gains on (5 992 475) 2 822 862
financial instruments designated at
fair value through profit or loss
Other operating expenditure
Management and administration (116 354) (414 353)
expenses
(Decrease) /Increase in net assets (5 492 102) 4 008 612
attributable to investors before tax
Income tax expense - -
(Decrease) /Increase in net assets (5 492 102) 4 008 612
attributable to investors before
distribution
Income distribution (154 507) -
(Decrease) / Increase in net assets (5 646 610) 4 008 612
attributable to investors after
distribution
Represented by:
Income attributable to investors 259 286 307 739
Capital (loss)/ gain (5 905 896) 3 700 873
attributable to investors
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO INVESTORS FOR THE YEAR ENDED
31 MARCH 2012
Capital Income Net assets
attributable attributable attributable
to investors to investors to investors
R R R
Balance at 1 April 2010 32 249 652 (151 553) 32 098 099
Increase in net assets
attributable to
investors 3 700 873 307 739 4 008 612
Balance at 31 March 2011 35 950 525 156 186 36 106 711
Redemption of eRAFITrade (22 190 697) - (22 190 697)
Mark Resources
Securities
Decrease in net assets (5 905 896) 259 286 (5 646 610)
attributable to
investors
Cash portion paid on (248 429) (248 429)
redemption of eRAFITrade
Mark Resources
securities
Balance at 31 March 2012 7 605 403 415 472 8 020 875
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2012
2012 2011
R R
Net cash generated from 97 081 40 602
operating activities
Cash utilised from (198 419) (447 237)
operations
Purchases of securities (1 146 610) (5 051 614)
Proceeds from sale of 1 066 470 4 815 568
securities
Dividend income 522 835 712 596
Interest income 7 313 9 496
Dividend paid (154 508)
Net cash utilised in (248 529) -
financing activities
Cash portion paid on (248 529) -
redemption of eRAFITrade
Mark Resources securities
Net movement in cash and (151 448) 40 602
cash equivalents
Cash and cash equivalents at 308 699 268 097
the beginning of year
Cash and cash equivalents at 157 251 308 699
the end of year
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR ALL PORTFOLIOS ("funds") FOR
THE YEAR ENDED 31 MARCH 2012
General information
The NewFunds Collective Investment Scheme ETF Portfolios ("the Scheme")
are open-ended investment scheme incorporated under the Collective Investment
Scheme Control Act of South Africa of 2002. The Scheme is domiciled in the
Republic of South Africa and has a March year end.
The Scheme`s objective is to track the eRAFITrade Mark Resources 20 price index
calculated daily by the independent investment consulting firm Riscura. The ETF
invests in 20 companies that fall within the resource sector based on their
underlying value indicators as opposed to market capitalisation.
eRAFITrade Mark Resources 20 ETF Portfolio was consolidated into Absa Capital.
The parent company of Absa Capital is Absa Bank Limited whose ultimate parent
company is Barclays PLC.
The scheme is mainly managed by Absa Capital, a division of Absa Bank Limited.
Accounting policies
The significant accounting policies applied in the preparation of these
financial statements are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated.
1.2.1 Statement of compliance
The audited financial statements have been prepared in accordance with the
International Financial Reporting Standards (IFRS), Interpretations issued by
the International Financial Reporting Interpretation Committee (IFRIC), and in
the manner required by the Collective Investment Schemes Control Act of 2002,
the Trust Deed and the AC 500 series.
The financial statements were authorised for issue by the Board of Directors on
26 June 2012.
1.2.2 Basis of measurement
The financial statements have been prepared on an accrual basis of accounting,
except for cash flow information. The measurement basis used is the historical
cost basis, except where specifically indicated in the accounting policies.
1.2.3 Functional and presentation currency
The financial statements are presented in South African Rand, which is the
Scheme`s functional and presentation currency. All financial information is
presented to the nearest Rand.
1.2.4 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. Management has determined that the
underlying assumptions are appropriate and the Scheme`s financial statements
therefore present the financial position fairly.
Information about significant areas of estimation uncertainty and critical
judgements in applying the accounting policies that have the most significant
effect on the amounts recognised in the financial statements are included in the
individual notes to the financial statements.
1.2.5 Recent accounting developments
New and amended standards adopted by the Scheme
There are no IFRS or IFRIC interpretations that are effective for the first time
for the financial year beginning on or after 1 April 2011 that have a material
impact on the Scheme.
New standards, amendments and interpretations issued but not effective for the
financial year beginning 1 April 2011 and not early adopted
IFRS 7, `Financial Instruments Disclosures` (amendments) require additional
quantitative and qualitative disclosures in respect of risk exposures arising
from transferred financial assets. The amendments include a requirement to
disclose by class of asset: the nature, carrying amount and a description of the
risks and rewards of financial assets that have been transferred to another
party yet remain on the Scheme`s statement of financial position. Disclosures
are also required to enable a user to understand the amount of any associated
liabilities, and the relationship between the financial assets and associated
liabilities. Comparative disclosures are not required for any period beginning
before the effective date. The amendments are effective for annual periods
beginning on or after 1 July 2011 and are required to be applied
retrospectively. The Scheme is yet to perform a detailed assessment of the
amended IFRS 7`s full impact. The Scheme does not expect any impact. The Scheme
intends to adopt the amended IFRS 7 no later than the accounting period
beginning on or after 1 July 2011.
IFRS 7, `Financial Instruments: Disclosures` was amended in December 2011. The
disclosures required were amended to include information that will enable users
of the Scheme`s financial statements to evaluate the effect or potential effect
of netting arrangements, including rights of set-off associated with the
Scheme`s recognised financial assets and recognised financial liabilities, on
the Scheme`s financial position. The amendments are effective for annual periods
beginning on or after 1 January 2013 and are required to be applied
retrospectively. The Scheme is yet to perform a detailed assessment of the
amended IFRS 7`s full impact. The Scheme does not expect a significant impact.
The Scheme intends to adopt the amended IFRS 7 no later than the accounting
period beginning on or after 1 January 2013.
IFRS 9, `Financial instruments`, addresses the classification, measurement and
recognition of financial assets and financial liabilities. IFRS 9 was issued in
November 2009 and October 2010. It replaces the parts of IAS 39 that relate to
the classification and measurement of financial instruments. IFRS 9 requires
financial assets to be classified into two measurement categories: those
measured as at fair value and those measured at amortised cost. The
determination is made at initial recognition. The classification depends on the
Scheme`s business model for managing its financial instruments and the
contractual cash flow characteristics of the instrument. For financial
liabilities, the standard retains most of the IAS 39 requirements. The main
change is that, in cases where the fair value option is taken for financial
liabilities, the part of a fair value change due to the Scheme`s own credit risk
is recorded in other comprehensive income rather than the statement of
comprehensive income, unless this creates an accounting mismatch. The Scheme is
yet to perform a detailed assessment of IFRS 9`s full impact. The Scheme does
not expect a significant impact. The Scheme intends to adopt IFRS 9 no later
than the accounting period beginning on or after 1 January 2015.
IFRS 10, Consolidated financial statements` builds on existing principles by
identifying the concept of control as the determining factor in whether the
Scheme should be included within the consolidated financial statements of the
parent company. The standard provides additional guidance to assist in the
determination of control where this is difficult to assess. The Scheme does
not expect any impact. The Scheme intends to adopt IFRS 10 no later than the
accounting period beginning on or after 1 January 2013.
IFRS 12, `Disclosures of interests in other entities` includes the disclosure
requirements for all forms of interests in other entities, including joint
arrangements, associates, special purpose vehicles and other off balance sheet
vehicles. The Scheme is yet to perform a detailed assessment of IFRS 12`s full
impact. The Scheme does not expect a significant impact. The Scheme intends to
adopt IFRS 12 no later than the accounting period beginning on or after 1
January 2013.
IFRS 13, `Fair value measurement`, aims to improve consistency and reduce
complexity by providing a precise definition of fair value and a single source
of fair value measurement and disclosure requirements for use across IFRSs. The
requirements, which are largely aligned between IFRSs and US GAAP, do not extend
the use of fair value accounting but provide guidance on how it should be
applied where its use is already required or permitted by other standards within
IFRSs or US GAAP. The Scheme is yet to perform a detailed assessment of IFRS
13`s full impact. The Scheme does not expect a significant impact. The Scheme
intends to adopt IFRS 13 no later than the accounting period beginning on or
after 1 January 2013.
IAS 1 (amendments) Presentation of Items of Other Comprehensive Income revises
the way other comprehensive income is presented by; preserving the amendments
made to IAS 1 in 2007 to require profit or loss and other comprehensive income
to be presented together or a separate `statement of profit or loss` and a
`statement of comprehensive income`; requires entities to group items presented
in other comprehensive income based on whether they are potentially re-
classifiable to profit or loss subsequently, i.e. those that might be
reclassified and those that will not be reclassified; and requires the tax
associated with items presented before tax to be shown separately for each of
the two groups of other comprehensive income items (without changing the option
to present items of other comprehensive income either before tax or net of tax).
The amendments are effective for annual periods beginning on or after 1 July
2012 and are required to be applied retrospectively. The Scheme is yet to
perform a detailed assessment of the amended IAS 1`s full impact. The Scheme
does not expect any impact. The Scheme intends to adopt the amended IAS 1 no
later than the accounting period beginning on or after 1 July 2012.
IAS 32 `Financial Instruments: Presentation` was amended in December 2011. The
amendments address inconsistencies in current practice when applying the
offsetting criteria in IAS 32, the amendments clarify:
* the meaning of `currently has a legally enforceable right of set-off`; and
* that some gross settlement systems may be considered equivalent to net
settlement.
The amendments are effective for annual periods beginning on or after 1 January
2014 and are required to be applied retrospectively. The Scheme is yet to
perform a detailed assessment of the amended IAS 32`s full impact. The Scheme
does not expect any impact. The Scheme intends to adopt the amended IAS 32 no
later than the accounting period beginning on or after 1 January 2014.
There are no other IFRSs or IFRIC interpretations that have been issued but are
not yet effective that would be applicable at year end, specifically to the
Scheme.
1.2.6 Financial instruments
Financial instruments are initially measured at fair value and are subsequently
measured on the basis as set out below. Transaction costs of instruments carried
at fair value through profit and loss are recognised immediately through the
profit and loss component of the statement of comprehensive income. For other
categories of financial instruments, transaction costs (which includes
incremental costs) and transaction income (i.e. initiation fees) are capitalised
to the initial carrying amount.
Financial instruments are recognised on the date when the entity enters into
contractual arrangements with counterparties to purchase or sell the financial
instruments.
The Scheme is required to group instruments into classes that are appropriate to
the nature of the information disclosed and take into account the
characteristics of those financial instruments. Classes of financial instruments
have been determined by referring to the nature and extent of risks arising from
the financial instruments and how these are managed.
1.2.6.1 Financial instruments at fair value through profit or loss
This category includes investments in portfolios and net assets attributable to
investors (redeemable securities).
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 entity may only designate financial instruments at fair value
through profit and loss when the designation results in more relevant
information, as follows:
* It eliminates or significantly reduces valuation or recognition
inconsistencies that would arise from measuring financial assets or financial
liabilities, or recognising gains or losses on them, on different bases.
* When 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 where
information about the entity`s financial instruments is reported to management
on that basis. The entity 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 entity 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 transaction costs taken directly to the profit and loss
component of the statement of comprehensive income. Subsequent to initial
recognition, the fair value is remeasured, and gains and losses from changes
therein are recognised in the statement of comprehensive income.
Interest income from financial assets at fair value through profit or loss is
recognised in the statement of comprehensive income, within interest. Dividend
income from financial assets at fair value through profit or loss is recognised
in the statement of comprehensive income within dividend income when the
Scheme`s right to receive payments is established.
Investment in portfolio
The Scheme comprises of thirteen portfolios.
Creation and redemption
Creation and redemption are recorded on trade date using historic cost being the
previous day closing index price.
Net assets attributable to investors (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.
1.2.6.2 Financial instruments at amortised cost.
The effective interest method is a method of calculating the amortised cost of
financial instruments and of allocating the interest income or 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 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.
1.2.6.2.1 Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Loans and
receivables comprises of trade & other receivables. Trade & other receivables
includes interest income receivable and dividend receivable.
After initial measurement, loans and receivables are subsequently measured at
amortised cost using the effective interest rate method, less allowance for
impairment. 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 interest is included in the profit and loss
component of the statement of comprehensive income. The carrying amount of
impaired loans on the statement of financial position is reduced through the use
of identified or unidentified impairment. The carrying amounts approximates the
fair value.
Once a loan has been written down as a result of an impairment loss, interest
income is thereafter recognised using the rate of interest used to discount the
future cash flows for the purpose of measuring the impairment loss.
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. The carrying value
approximates the fair value.
1.2.6.3 Financial liabilities at amortised cost
Financial liabilities are measured at amortised cost except for liabilities
designated at fair value which are held at fair value through profit and loss.
Financial liabilities comprise of trade & other payables.
Trade & other payables comprise of management and trustee fee payables and are
measured at amortised cost using the effective interest method. The carrying
value approximates the fair value.
1.2.6.4 Impairment of financial assets at amortised cost
An impairment assessment of financial assets at amortised cost is performed at
each reporting date.
Amortised cost instruments are 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.
An impairment loss in respect of an amortised cost investment is calculated as
the difference between its carrying amount and the present value of the
estimated future cash flows, discounted at the original effective interest rate.
Loans and receivables are stated net of identified and unidentified impairments.
A financial asset or group of financial assets is considered impaired if, and
only if, there is objective evidence of impairment as a result of one or more
events that occurred after the initial recognition of the asset (known as the
loss event) and that loss event (or events) has an impact on the estimated
future cash flows of the financial asset or group of financial assets and can be
reliably measured. In determining whether a loss event has occurred, advances
are subjected to regular evaluations that take cognisance of, inter alia, past
experience of the economic climate similar to the current economic climate,
overall customer risk profile and payment record and the realisable value of any
collateral.
Objective evidence that a financial asset or group of assets is impaired
includes observable data that comes to the attention of the entity and may
include the following loss events:
* A breach of contract, such as a default or delinquency in interest or
principal payments;
* The disappearance of an active market for that financial asset because of
financial difficulties;
* Observable data indicating that there is a measurable decrease in the
estimated future cash flows from a group of financial assets since the initial
recognition of those assets, although the decrease cannot yet be identified with
the individual financial assets in the group, including:
- adverse changes in the payment status of borrowers in the group; or
- national or local economic conditions that correlate with defaults on the
assets in the group.
The entity first assesses whether objective evidence of impairment exists
individually for financial assets that are individually significant, and
individually or collectively for financial assets that are not individually
significant. If the entity determines that no objective evidence of impairment
exists for an individually assessed financial asset, whether significant or not,
it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses that group for impairment. Assets that
are individually assessed for impairment and for which an impairment loss is or
continues to be recognised, are not included in a collective assessment of
impairment.
The amount of impairment loss is measured as the difference between the asset`s
carrying amount and the present value of estimated future cash flows (excluding
future credit losses) discounted at the financial asset`s original effective
interest rate. The carrying amount of the asset is reduced through the use of a
provision account and the amount of the impairment loss is recognised in the
profit and loss component of the statement of comprehensive income. If a loan
receivable or held-to-maturity investment has a variable interest rate, the
discount rate for measuring any impairment loss is the current effective
interest rate determined under the contract.
The calculation of the present value of the estimated future cash flows of
collateralised financial assets reflects the cash flows that may result from
foreclosure, less cost of obtaining and selling the collateral, whether or not
foreclosure is probable.
For the purposes of a collective evaluation of impairment, financial assets are
grouped on the basis of similar credit risk characteristics (i.e. on the basis
of the entity`s grading process that considers asset type, industry,
geographical location, collateral type, past-due status and other relevant
factors). These characteristics are relevant to the estimation of the cash flows
for groups of such assets by being indicative of the debtors` ability to pay all
amounts due according to the contractual terms of the assets being evaluated.
Future cash flows for a group of financial assets that are collectively
evaluated for impairment are estimated on the basis of the contractual cash
flows of the assets in the group and historical loss experienced for assets with
credit risk characteristics similar to those in the group. Historical loss
experience is adjusted on the basis of current observable data to reflect the
effects of current conditions and to remove the effects of conditions in the
historical period that do not currently exist.
Estimates of changes in future cash flows for groups of assets should reflect
and be directionally consistent with changes in related observable data from
period to period (i.e. changes in unemployment rates, property prices, payment
status, or other factors indicative of changes in the probability of losses in
the group and their magnitude). The methodology and assumptions used for
estimating future cash flows are reviewed regularly by the entity to reduce any
differences between loss estimates and actual loss experience.
Loans or other receivables, together with the associated allowance, are written
off when there are no realistic prospects of future recovery and all collateral
has been realised or has been transferred to the entity.
1.2.6.5 Derecognition of financial assets
A financial asset (or, where applicable a part of a financial asset or part of a
group of similar financial assets) is derecognised when:
* The contractual rights to the cash flows arising from the financial assets
have expired or being forfeited by the entity; or
* The entity retains the rights to receive cash flows from the asset but has
assumed an obligation to pay for them in full without material delay to a third
party under a pass-through arrangement; 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.
Where the entity has transferred its rights to receive cash flows from an asset
and has neither transferred nor retained substantially all the risks and rewards
of the asset nor transferred control of the asset, the asset is recognised to
the extent of the entity`s continuing involvement in the asset. Continuing
involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the
maximum amount of the consideration that the entity could be required to repay.
1.2.6.6 Derecognition of financial liabilities
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.
Where an existing financial liability is replaced by another from the same
tender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognised in the
profit and loss component of the statement of comprehensive income.
1.2.6.7 Fair value
The listed underlying investments are carried at fair value through profit or
loss such as those designated by management under the fair value option.
The fair value of a financial instrument is the amount at which the instrument
could 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:
Level 1 - 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.
Level 2 - 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.
Level 3 - Valuation techniques, as described in (b) above, for which not 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, although the value obtained from the relevant valuation model may
differ. The difference between the transaction price and the model value,
commonly referred to as `day one profit and loss`, 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, 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.
All changes in fair value, other than dividend and interest income, is
recognised in the statement of comprehensive income as a net gain/ (loss) from
financial instruments at fair value through profit or loss.
1.2.7 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.
1.2.8 Revenue
Income comprises of interest income, coupon interest income, dividend income and
scrip lending income. 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 in the statement of comprehensive income
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 reflect a realisation
of the underlying investments.
Securities lending fee income are fees earned for the administration of
securities lending activities are accounted for on the accrual basis in the
period in which the service is rendered. Revenue from lending securities is
recognised in profit or loss in proportion to the stage of completion of the
transaction at the reporting date. The stage of completion is assessed by
reference to amount of scrip lent out.
1.2.9 Distributions
In accordance with the Scheme`s Trust Deed, the price index portfolios
distribute their distributable income and any other amounts determined by the
management scheme to security holders in cash.
As per the Scheme`s Trust Deed, the total return index portfolios re-invest the
distributions on behalf of investors through the purchase of additional
Constituent securities in the weightings of the specific index.
1.2.10 Fair value gains and losses
Realised profits or losses on the disposal of investments are the differences
between the fair value of the consideration received less any directly
attributable costs, on the sale of equity investments, 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.
1.2.11 Taxation
Income is taxed in the hands of the investor if the portfolio distributes within
12 months of having received income, failing which income will be deemed to be
received by and accrued to the portfolio and will be taxed in its hands. Capital
gains and losses are taxed in the investors hands.
1.2.12 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.
1.2.13 Operating Segments
The portfolio, eRAFITrade Mark Resources 20 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
requirements of such standards. The application of the standard only impacts the
presentation and disclosure aspect of the financial statements.
1.2.14 Scrip lending
Securities lent are retained in the statement of financial position when
substantially all the risks and rewards of ownership remain with the Scheme.
Securities will only be repurchased when the lender defaults. This collateral
(as a form of guarantee) is only deposited with the lender if required in terms
of the Global Master Securities Lending Arrangement.
Audit report
KPMG Inc, the NewFunds Collective Investment Scheme`s independent auditor, has
audited the annual financial statements of the NewFunds eRAFITrade Mark SA
Financial 15 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).
29 June 2012
Sponsor
Absa Capital
(the investment banking division of Absa Bank Limited,affiliated with Barclays)
Date: 29/06/2012 07:09:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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.
