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FNB CIS MANCO (RF) (PROPRIETARY) LIMITED - FNBMID - Abridged Audited Results for the Year Ended 30 June 2023

Release Date: 31/10/2023 17:30
Code(s): FNBMID     PDF:  
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FNBMID - Abridged Audited Results for the Year Ended 30 June 2023

FNB MIDCAP EXCHANGE TRADED FUND
A portfolio in the FNB Funds Collective Investment Scheme in Securities Exchange Traded Funds registered in
terms of the Collective Investment Schemes Control Act, 45 of 2002 ("CISCA")
(Incorporated in the Republic of South Africa)
Share Code: FNBMID
ISIN: ZAE000303111

ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2023

The FNB Funds Collective Investment Scheme (the "Scheme") was established in accordance with the provisions
of the Collective Investment Schemes Control Act 45 of 2002 with effect from 12 April 2008. The FNB MidCap
Exchange Traded Fund (the "Portfolio") was established as a portfolio of the Scheme in accordance with paragraph
A of the deed of the Scheme on 26 June 2012.

The Portfolio is a passive investment fund with the aim of providing returns linked to the performance of the
FTSE/JSE Mid Cap Index (the "index") in terms of both price and performance.

The Portfolio was initially listed on the JSE Limited ("JSE") on 15 August 2012.


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023

Rand                                                                                       2023             2022
ASSETS
Investments designated at fair value through profit or loss                         470 250 131      492 690 618
Financial assets at fair value through profit and loss – securities lent            101 145 365       75 858 524
Trade and other receivables                                                             160 297        5 587 881
Cash and cash equivalents                                                             6 862 544        6 483 225

Total assets                                                                        578 418 337      580 620 248
LIABILITIES
Net assets attributable to participatory interest holders                           577 569 092      575 326 079
Trade and other payables                                                                849 245        5 294 169


Total equity and liabilities                                                        578 418 337      580 620 248



STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2023

Rand                                                                                       2023             2022
Interest income                                                                         318 165          106 847
Fair value gains / (loss)                                                            47 930 390       21 930 723
Investment income/(loss)                                                             48 248 555       22 037 570
Other income                                                                            199 264          180 843
Operating expenses                                                                   (3 543 432)      (3 419 293)
Profit/(loss) before tax                                                             44 904 387       18 799 120
Taxation                                                                                      -                -
Profit/(loss) before amounts attributable to participatory interest holders          44 904 387       18 799 120
Decrease/(Increase) in net assets attributable to participatory interest holders    (44 904 387)     (18 799 120)
Total comprehensive income for the year                                                       -                -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Rand                                                                                             2023              2022
Cash flows from operating activities
Cash utilised by operations                                                                (3 287 632)       (3 180 384)
Dividends received                                                                         32 921 425        25 587 552
Interest received                                                                             279 558            99 171
Sales of investments designated at fair value through profit or loss                      278 713 720       206 418 996
Purchase of investments designated at fair value through profit or loss                  (265 642 787)     (236 164 049)
Net cash inflow/(outflow) from operating activities                                        42 984 284        (7 238 714)
Cash flows from financing activities
Redemption of portfolio participatory interests                                          (123 687 309)      (79 310 871)
Creation of portfolio participatory interests                                             109 073 398       107 255 045
Distributions paid to participatory interest holders                                      (28 047 463)      (19 661 574)
Net cash inflow/(outflow) from financing activities                                       (42 661 374)        8 282 600
Net increase/(decrease) in cash and cash equivalents                                          322 910         1 043 886
Cash and cash equivalents at the beginning of the year                                      6 483 225         5 439 339
Cash and cash equivalents at the end of the year                                            6 806 135         6 483 225


SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2023

Basis of presentation
The annual financial statements have been prepared in accordance with IFRS issued by the International
Accounting Standards Board (the "IASB"), including interpretations issued by the IFRS Interpretations Committee,
the Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the South
African Institute of Chartered Accountants ("SAICA") Financial Reporting Guides as issued by the Accounting
Practices Committee and the provisions of CISCA, the JSE Listings Requirements and the Companies Act.

Standards, interpretations and amendments effective 1 July 2022
There were no new or amended IFRS standards which became effective for the year ended 30 June 2023 that
impacted the Portfolio's reported earnings, financial position or reserves, or the accounting policies.

Financial instruments: Classification
The Portfolio has classified all its investments as financial assets or financial liabilities at amortised cost or at fair
value through profit or loss ("FVPL").

Financial assets at amortised cost include other receivables, dividends and interest receivable and cash and cash
equivalents.

Financial assets at FVPL
All financial assets not measured at amortised cost are subsequently measured at FVPL, except for investments
in equities and rights which are mandatorily held at FVPL.

Financial liabilities at amortised cost
Financial liabilities that are not held-for-trading or designated as at FVPL are measured at amortised cost. This
category includes fees payable and other payables.

Financial instruments: Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of
changes in value. All balances, except for physical cash which is held at call, included in cash and cash
equivalents have a maturity date of less than three months from the acquisition date and are measured at
amortised cost.

Participatory interest
The Portfolio issues one class of participatory interests which is redeemable at the holder's option. Participatory
interests can be put back to the Portfolio at any dealing date for cash equal to a proportionate share of the
Portfolio's net asset value attributable to the participatory interest class.

The participatory interests are measured at the redemption amount that is payable at the reporting date if the
holder exercises the right to put the participatory interests back to the Portfolio.

The participatory interests are issued and redeemed at the holder's option at prices based on the Portfolio's net
asset value per participatory interest at the time of issue or redemption. The Portfolio's net asset value per
participatory interest is calculated by dividing the net assets attributable to the holders of the participatory interest
by the total number of outstanding participatory interests, in accordance with the provisions of the Portfolio's
supplemental trust deed.

Net assets attributable to participatory interest holders, evidence a residual interest in the assets of the Portfolio
after deducting all of its liabilities.

The value of the net assets attributable to participatory interest holders will vary with the changes in the
underlying value of the investments, net of receivables and payables. The total movement in the statement of
comprehensive income is transferred to the net assets attributable to participatory interest holders.

Creations and redemptions are recorded on trade date using the previous day's closing price.

In accordance with the Portfolio's supplemental trust deed, the Portfolio distributes its distributable income and any
other amounts determined by the Manager of the Portfolio to participatory interest holders. The portfolio does not
have an unconditional right to avoid delivering cash or another financial asset to settle the contractual obligation
should a holder exercise the right to put the participatory interests back to the portfolio. For this reason, the
participatory interest does not meet the requirements to be classified as equity in terms of IAS 32 and is thus
classified as a liability. Distributions are automatically reinvested in additional participatory interests, other than
distributions that are paid in cash.

Net income adjustment on creation and redemption of units
An adjustment to income arises on the creation and cancellation of units since the price of a unit includes
accrued income and expenses. The income adjustment on creation or cancellation of units is recognised as part
of the creation or redemption of unitholder interests and disclosed within the note of net assets attributable to
participatory interest holders, when units on which it arises are either purchased or sold as these form part of the
cash flow on unit transactions.

Investment income
Fair value gains and losses
Gains and losses arising from a change in the fair value of investments, interest income on interest-bearing
investments and dividend income, are included in the statement of comprehensive income under fair value gains
/ losses in the year in which the changes arise.

Dividend income
Dividend income in respect of investments is recognised when the right to receive payment is established. This is
on the "last-day-to-trade" for listed investments and on the "date-of-declaration" for unlisted investments. Dividend
income is recognised in the statement of comprehensive income as part of fair value gains and losses.

Interest income
Interest income on cash and cash equivalents is recognised in the statement of comprehensive income as part of
interest income on the effective interest method.

Taxation
The Portfolio has no current or deferred tax liability as all realised gains and losses are considered to be of a capital
nature and disregarded in the tax calculation of this Collective Investment Scheme portfolio in accordance with
paragraph 61 of the Eighth schedule to the Income Tax Act No 58 of 1962. All investment income is distributed
within the time frames specified by section 25BA of the Income Tax Act and is therefore taxed in the hands of the
participatory interest holders.

Critical accounting estimates and judgements in applying accounting policies
No significant accounting estimates and judgements have been applied in the annual financial statements of the
Portfolio.

All investments at FVPL are measured at fair value based on quoted prices in active markets and do not require
the use of judgement or estimates.

SUMMARISED NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2023

Net assets attributable to participatory interest holders
Rand                                                                                                2023             2022
Balance at the beginning of the year                                                         575 326 079      548 244 359
Participatory interests created during the year                                              109 073 398      107 255 045
Participatory interests redeemed during the year                                            (123 687 309)     (79 310 871)
Increase/(decrease) in net assets attributable to participatory interest holders              44 904 387       18 799 120
Distributions paid                                                                           (28 047 463)     (19 661 574)
Balance at the end of the year                                                               577 569 092      575 326 079


Distributions

                                                                    Number of    Distribution       Number of   Distribution
                                                                participatory                   participatory
                                                                    interests                       interests

Rand                                                                     2023            2023          2022             2022


Declared 27 July 2022 and paid 1 August 2022 (2022: No
distribution declared)
Class A: 9.04 cents per participatory interest
(2022: nil cents per participatory interest)                       78 452 103       7 092 409    78 452 103                -

Declared 26 October 2022 and paid 31 October 2022
(2022: Declared 30 September 2021 and paid October
2021)
Class A: 15.21 cents per participatory interest (2022:
10.22 cents per participatory interest)                            80 352 103      12 220 253    78 252 103        7 999 858

Declared 25 January 2023 and paid 30 January 2023
(2022: Declared 31 December 2021 and paid 2 January
2022)
Class A: 4.81 cents per participatory interest (2022:
5.49 cents per participatory interest)                             81 352 103       3 916 214    70 152 103        3 849 971


Declared 25 April 2023 and paid 5 May 2023 (2022:
Declared 31 March 2022 and paid 1 April 2022)
Class A: 6.57 cents per participatory interest (2022:
4.52 cents per participatory interest)                             73 352 103       4 818 587    73 652 103        3 326 589
                                                                                   28 047 463                     15 176 418

The portfolio effects quarterly distributions made out of income received by the portfolio

Included in the liability to participatory interest holders is the distribution payable as at 30 June 2023.
These summarised annual financial statements have not been audited by the independent auditors, but the full
sets, available at the website mentioned below, have been audited by the independent auditors,
PricewaterhouseCoopers Incorporated, and their unqualified audit opinion is available for inspection at the
company's registered office.

A full copy of the audited annual financial statements is available on the FNB website:
https://www.fnb.co.za/share-investing/exchange-traded-funds.html through the route "ETFs available to
you from FNB - Available ETFs – FNB Midcap ETF – ETF documents – Annual Financial Statements".

31 October 2023

Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Trustee
Standard Chartered Bank, Johannesburg Branch

Manager
FNB CIS Manco (RF) Proprietary Limited


Auditors
PricewaterhouseCoopers Incorporated

Date: 31-10-2023 05:30:00
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