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FNBWGB - Abridged Audited Results for the Year Ended 30 June 2023
FNB WORLD GOVERNMENT BOND EXCHANGE TRADED FUND
(the "Portfolio")
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: FNBWGB
ISIN: ZAE000303137
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2023
The FNB Funds Collective Investment Scheme in Securities Exchange Traded Funds (the "Scheme") was
established in accordance with the provisions of CISCA with effect from 12 April 2008. The Portfolio was
established as a portfolio of the Scheme in accordance with paragraph A of the Deed of the Scheme on 13
December 2017.
The Portfolio is a passively managed investment fund with the aim of providing compounded annual returns
which tracks the economic performance of the FTSE World Government Bond Index (the "Index").
The Portfolio was initially listed on the JSE Limited ("JSE") on 13 March 2018.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
Rand 2023 2022
ASSETS
Investments designated at fair value through profit or loss 319 478 532 120 333 166
Trade and other receivables 17 741 533 217
Cash and cash equivalents 3 269 202 1 876 297
Total assets 340 489 267 122 209 680
LIABILITIES
Net assets attributable to participatory interest holders 322 387 169 122 091 740
Trade and other payables 18 102 098 117 940
Total equity and liabilities 340 489 267 122 209 680
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2023
Rand 2023 2022
Interest income 31 312 3 760
Fair value gains 27 670 082 7 545 762
Investment income 27 701 394 7 542 002
Operating expenses (1 251 529) (610 724)
Interest expense (15 771) -
Profit before tax 26 434 094 (8 152 726)
Taxation - -
Profit before amounts attributable to participatory interest holders 26 434 094 (8 152 726)
Increase in net assets attributable to participatory interest holders (26 434 094) 8 152 726
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 (1 008 687) (614 139)
Dividends received 2 872 610 -
Interest received (15 771) 2 555 586
Interest paid - -
Sale of investments at fair value through profit or loss 47 936 366 29 405 463
Purchase of investments at fair value through profit or loss (222 237 177) (35 794 183)
Net cash outflow from operating activities (172 452 659) (4 447 273)
Cash flows from financing activities
Creation of portfolio participatory interests 176 698 686 7 392 411
Distributions paid to participatory interest holders (2 837 351) (2 001 979)
Net cash inflow from financing activities 173 861 335 5 390 432
Net increase in cash and cash equivalents 1 408 676 943 159
Cash and cash equivalents at the beginning of the year 1 876 297 933 138
Cash and cash equivalents at the end of the year 3 284 973 1 876 297
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 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 a 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. 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.
Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions.
Monetary items are translated using the closing exchange rates prevailing at the reporting date. The realised and
unrealized differences on translation are recognised in the statement of comprehensive income in the period in
which they arise.
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 122 091 740 124 854 034
Participatory interests created during the year 176 698 686 7 392 411
Participatory interests redeemed during the year - -
Increase/(decrease) in net assets attributable to participatory interest holders 26 434 094 (8 152 726)
Distributions paid (2 837 351) (2 001 979)
Balance at the end of the year 322 387 169 122 091 740
Distributions
Number of Distribution Number of Distribution
participatory participatory
interests interests
Rand 2023 2023 2022 2022
Declared 21 August 2022 and paid 26 August 2022
(Declared 21 August 2021 and paid 26 August 2021)
Class A: 2.8 cents per participatory interest
(2021: 2.86 cents per participatory interest) 18 134 683 508 344 17 134 683 490 505
Declared 20 November 2022 and paid 25 November 2022
(Declared 20 November 2021 and paid 25 November
2021)
Class A: 2.37 cents per participatory interest
(2022: 3.02 cents per participatory interest) 29 134 683 689 096 17 134 683 518 027
Declared 19 February 2023 and paid 24 February 2023
(Declared 19 February 2022 and paid 24 February 2022)
Class A: 2.27 cents per participatory interest
(2021: 5.48 cents per participatory interest) 31 134 683 705 932 18 134 683 993 447
Declared 13 May 2023 and paid 18 May 2023
(May 2022: No distribution declared)
Class A: 2.52 cents per participatory interest
(2022: nil cents per participatory interest) 37 134 683 933 979 18 134 683 -
2 837 351 2 001 979
The Portfolio effects quarterly distributions out of income received by the Portfolio.
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 World Government Bond 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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