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FNBEQF - Abridged Audited Results for the Year Ended 30 June 2024
FNB GLOBAL 1200 EQUITY FUND OF FUNDS 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: FNBEQF
ISIN: ZAE000303145
ABRIDGED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2024
The FNB Funds Collective Investment Scheme (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 19 September 2017.
The Portfolio is a passive investment fund with the aim of providing returns linked to the performance of the S&P
Global 1200 Index (the "Index") in terms of both price and performance.
The Portfolio was initially listed on the JSE Limited ("JSE") on 6 October 2017.
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
Rand 2024 2023
ASSETS
Investments at fair value through profit or loss 1 993 143 663 1 682 451 855
Trade and other receivables 360 720 281 653
Cash and cash equivalents 13 763 096 13 859 638
Total assets 2 007 267 479 1 696 593 146
LIABILITIES
Trade and other payables 1 581 618 1 300 976
Total liabilities excluding net assets attributable to participatory interest 1 581 618 1 300 976
holders
Net assets attributable to participatory interest holders 2 005 685 861 1 695 292 170
Total liabilities including net assets attributable to participatory interest
holders 2 007 267 479 1 696 593 146
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2024
Rand 2024 2023
Restated
Interest income 200 371 80 026
Fair value gain 283 799 713 469 476 624
Investment income 284 000 084 469 556 650
Other operating expenses (5 810 977) (4 891 346)
Interest expense - (19 379)
Other income 14 952 -
Profit before tax 278 204 059 464 645 925
Taxation - -
Profit before distributions to participatory interest holders 278 204 059 464 645 925
Distributions paid (25 048 341) (23 011 437)
Profit before amounts attributable to participatory interest holders 253 155 718 441 634 488
(Increase) in net assets attributable to participatory interest holders (253 155 718) (441 634 488)
Total comprehensive income for the year - -
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024
Rand 2024 2023
Cash flows from operating activities
Cash utilised by operations (5 387 940) (4 642 471)
Dividends received 30 377 432 29 107 476
Interest received 200 371 80 026
Interest paid - (19 379)
Proceeds from sales of investments at fair value through profit or loss 370 051 025 137 338 796
Purchase of investments at fair value through profit or loss (427 399 619) (54 656 267)
Net cash (outflow)/(inflow) from operating activities (32 158 731) 107 208 181
Cash flows from financing activities
Redemption of portfolio participatory interests (26 780 729) (129 188 354)
Creation of portfolio participatory interests 84 018 702 47 091 170
Distributions paid to participatory interest holders (25 048 341) (23 011 437)
Net cash (inflow)/outflow from financing activities 32 189 632 (105 108 621)
Net (decrease)/increase in cash and cash equivalents 30 901 2 099 560
Cash and cash equivalents at the beginning of the year 13 879 017 11 779 457
Effect of foreign exchange rate changes on cash and cash equivalents (150 549) -
Cash and cash equivalents at the end of the year 13 759 369 13 879 017
SUMMARISED ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2024
Basis of presentation
The financial statements have been prepared in accordance with IFRS issued by the International Accounting
Standards Board ("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 No. 71 of 2008.
Standards, interpretations and amendments effective 1 July 2023
There were no new or amended IFRS standards which became effective for the year ended 30 June 2024 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 trade and other receivable and cash and cash equivalents.
Financial assets at FVPL
All financial assets not measured at amortised cost are subsequently designated as measured 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 trade 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 interest 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 FNB CIS Manco (RF) Proprietary Limited (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 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 2024
Net assets attributable to participatory interest holders
Rand 2024 2023
Restated
Balance at the beginning of the year 1 695 292 170 1 335 754 866
Participatory interests created during the year 84 018 702 47 091 170
Participatory interests redeemed during the year (26 780 729) (129 188 354)
Increase in net assets attributable to participatory interest holders 253 155 718 441 634 488
Balance at the end of the year 2 005 685 861 1 695 292 170
Distributions
Number of Distribution Number of Distribution
participatory participatory
Rand interests interests
2024 2024 2023 2023
Declared 23 August 2023 and paid on 28 August 2023
(Declared 17 August 2022 and paid on 22 August 2022)
Class A: 33.98 cents per participatory interest (2023: 29.11
cents per participatory interest) 21 310 000 7 241 048 22 460 000 6 537 996
Declared 22 November 2023 and paid on 27 November
2023
(Declared 23 November 2022 and paid on 28 November
2022)
Class A: 34.46 cents per participatory interest (2023: 30.09
cents per participatory interest) 21 310 000 7 343 842 22 460 000 6 757 909
Declared 21 February 2024 and paid 26 February 2024
(Declared 22 February 2023 and paid 27 February 2023)
Class A: 25.29 cents per participatory interest (2023: 23.68
cents per participatory interest) 21 810 000 5 516 267 21 260 000 5 033 416
Declared 22 May 2024 and paid on 27 May 2024
(Declared 24 May 2023 and paid on 29 May 2023)
Class A: 23 cents per participatory interest (2023: 22.02
cents per participatory interest) 21 510 000 4 947 184 21 260 000 4 682 116
25 048 341 23 011 437
The Portfolio effects quarterly distributions made out of income received by the Portfolio.
Prior year disclosure misstatement
Distribution paid to participatory interest holders was incorrectly classified under the net assets attributable to
participatory interest holders note in the financial statements as a deduction from net assets attributable to
participatory interest holders. Participatory interest does not meet the requirements to be classified as equity in
terms of IAS32 and is thus classified as a liability. Interest, distributions, losses and gains relating to a financial
instrument classified as a liability should be recognized as income or expense in the statement of comprehensive
income. The error has been corrected by restating each of the affected financial statement lines items for the prior
periods. This error did not result in a change to profit before tax, net assets attributable to participatory interest
holders in the statement of financial position, statement of cash flow, related notes and tax as previously reported
in the prior year. The following table summarises the impact on the financial statements:
For the year ended 30 June 2023 Impact of correction of error
As previously
Rand reported Adjustments As restated
Distribution paid - (23 011 437) (23 011 437)
Profit before amounts attributable to participatory interest
holders 464 645 925 (23 011 437) 441 634 488
(Increase) in net assets attributable to participatory interest
holders (464 645 925) 23 011 437 (441 634 488)
Total comprehensive income for the year - - -
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, KPMG
Incorporated, and their unqualified audit opinion is available through a secure electronic manner at the election of
the person requesting inspection.
A full copy of the audited annual financial statements, including the audit report issued thereon, 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 Global 1200 Equity Fund of Funds ETF – ETF documents – Annual
Financial Statements".
10 October 2024
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
KPMG Incorporated
Date: 10-10-2024 08:00:00
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