| Fri 29 Jun 2012, 7:10 | | RAFISA - NewFunds eRAFITrade Mark Overall SA Index Etf Portfolio - |
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JSE RAFISA
NFS
RAFISA - NewFunds eRAFITrade Mark Overall SA Index Etf Portfolio -
Summarised audited results for the year ended 31 March 2012
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 2012
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2012
2012 2011
R R
ASSETS
Non-current assets
Investments: eRAFITrade Mark 98 888 467 158 292 120
Portfolio
Current assets 1 555 761 920 380
Trade and other receivables 434 179 403 949
Cash and cash equivalents 1 121 582 516 431
total assets 100 444 228 159 212 500
LIABILITIES
Current liabilities
Trade and other payables 434 774 187 517
net assets attributable to investors 100 009 454 159 024 983
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2011
2012 2011
R R
Revenue 5 019 334 4 126 203
Dividend income 4 943 692 4 076 602
Interest income 67 425 49 601
Scrip lending Income 8217 -
Realised gains on financial 4 946 070 7 660 121
instruments designated at fair value
through profit or loss
Unrealised gains on financial 2 692 940 6 064 622
instruments designated at fair value
through profit or loss
Other operating expenditure
Management and administration (668 608) (1 085 723)
expenses
Redemption related expense (364 932) -
Increase in net assets attributable 11 624 804 16 765 223
to investors before tax
Income tax expense - -
Increase in net assets attributable 11 624 804 16 765 223
to investors before distribution
Income distribution - -
Increase in net assets attributable 11 624 804 16 765 223
to investors after distribution
Represented by:
Income attributable to investors 3 985 794 3 040 480
Capital gain attributable to 7 639 010 13 724 743
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 145 659 939 (6 878 145) 138 781 794
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
Redemptions of (70 640 333) - (70 640 333)
eRAFITrade Mark Overall
securities
Increase in net assets
attributable to
investors 7 639 010 3 985 794 11 624 804
Balance at 31 March 2011 99 861 325 148 129 100 009 454
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2012
2012 2011
R R
Net cash 605 151 (396 534)
generated/(utilised) by
operating activities
Cash utilised from (816 514) (1 956 968)
operations
Purchases of equity (41 988 556) (81 522 869)
securities
Proceeds from sale of equity 38 241 071 78 927 187
securities
Interest received 67 425 49 601
Scrip lending income 8 217 -
Dividend income 4 943 692 4 076 602
Capital distributions re- 149 816 29 913
invested
Net movement in cash and 605 151 (396 534)
cash equivalents
Cash and cash equivalents at 516 431 912 965
the beginning of year
Cash and cash equivalents at 1 121 582 516 431
the end of year
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR ALL PORTFOLIOS ("funds")
FOR THE YEAR ENDED 31 MARCH 2012
1.1 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 performance of the eRAFITrade Mark
Overall SA price index. The index comprises of the 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.
1.2 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.
eRAFITrade Mark Overall SA 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 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:
(a) 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.
(b) 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.
(c.) 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 Overall SA 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 07:10:01 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.
