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FNBT40 - Abridged Audited Results for the Year Ended 30 June 2023
FNB TOP 40 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
(Incorporated in the Republic of South Africa)
Share Code: FNBT40
ISIN: ZAE000303129
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 ("CISCA") with effect from 12 April 2008. The FNB
Top 40 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 12 April 2008.
The Portfolio is a passive investment fund with the aim of providing returns linked to the price and performance of
the FTSE/JSE Top 40 Companies Index (the "index") on the JSE Limited ("JSE").
The Portfolio was initially listed on the JSE on 16 October 2008.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
Rand 2023 2022
ASSETS
Investments designated at fair value through profit or loss 2 164 037 838 1 760 570 788
Financial assets at fair value through profit and loss – securities lent 293 101 847 317 375 994
Trade and other receivables 1 751 170 25 534 519
Cash and cash equivalents 17 860 610 19 770 744
Total assets 2 476 751 465 2 123 252 045
LIABILITIES
Net assets attributable to participatory interest holders 2 475 968 368 2 097 946 072
Trade and other payables 783 097 25 305 973
Total equity and liabilities 2 476 751 465 2 123 252 045
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2023
Rand 2023 2022
Interest income 772 656 361 246
Fair value gains / (loss) 453 197 045 92 573 475
Investment income/(loss) 453 969 701 92 934 721
Operating expenses 417 869 520 478
Other income (3 029 160) (2 674 497)
Profit/(loss) before tax 451 358 410 90 780 702
Taxation - -
Profit/(loss) before amounts attributable to participatory interest holders 451 358 410 90 780 702
Decrease/ (Increase) in net assets attributable to participatory interest holders (451 358 410) (90 780 702)
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 (3 466 430) (2 275 882)
Dividends received 93 639 505 115 258 469
Interest received 772 656 331 929
Sales of investments designated at fair value through profit or loss 1 314 940 229 1 280 358 288
Purchase of investments designated at fair value through profit or loss (1 334 575 593) (1 536 714 548)
Net cash inflow/(outflow) from operating activities 71 310 367 548)
(143 041 744)
Cash flows from financing activities
Redemption of portfolio participatory interests (378 020 101) (184 425 053)
Creation of portfolio participatory interests 390 423 185 423 916 675
Distributions paid to participatory interest holders (85 739 198) (88 039 042)
Net cash (outflow)/inflow from financing activities (73 336 114) 151 452 580
Net increase/(decrease) in cash and cash equivalents (2 025 747) 8 410 836
Cash and cash equivalents at the beginning of the year 19 770 744 11 359 908
Cash and cash equivalents at the end of the year 17 744 997 19 770 744
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 unit holder 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 held 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 2 097 946 072 1 855 712 790
Participatory interests created during the year 390 423 185 423 916 675
Participatory interests redeemed during the year (378 020 101) (184 425 053)
Increase/(decrease) in net assets attributable to participatory interest holders 451 358 410 90 780 702
Distributions paid (85 739 198) (88 039 042)
Balance at the end of the year 2 475 968 368 2 097 946 072
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 (No
distribution declared)
Class A: 57.93 cents per participatory interest
(2022: nil cents per participatory interest) 35 851 693 20 767 986 34 551 693 -
Declared 30 September 2022 and paid 1 October 2022
(Declared 30 September 2021 and paid 1 October 2021)
Class A: 111.25 cents per participatory interest
(2022: 133.22 cents per participatory interest) 34 751 693 38 660 181 33 951 693 45 229 002
Declared 31 December 2022 and paid 2 January 2023
(Declared 31 December 2021 and paid 2 January 2022)
Class A: 21.90 cents per participatory interest
(2022: 18.63 cents per participatory interest) 34 151 693 7 478 376 35 151 693 6 549 080
Declared 31 March 2023 and paid 1 April 2023
(Declared 31 March 2022 and paid 1 April 2022)
Class A: 55.63 cents per participatory interest
(2022: 73.00 cents per participatory interest) 33 851 770 18 832 655 35 351 693 25 806 208
85 739 198 77 584 290
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 Top40 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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