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FNBMID - Abridged Audited Results for the Year Ended 30 June 2024
FNB MIDCAP 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: FNBMID
ISIN: ZAE000303111
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 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 2024
Rand 2024 2023
ASSETS
Investments at fair value through profit or loss 648 846 339 470 250 131
Investments at fair value through profit and loss – securities lent 66 293 752 101 145 365
Trade and other receivables 24 584 483 160 297
Cash and cash equivalents 11 144 739 6 862 544
Total assets 750 869 313 578 418 337
LIABILITIES
Trade and other payables 24 862 056 849 245
Total liabilities excluding net assets attributable to participatory interest 24 862 056 849 245
holders
Net assets attributable to participatory interest holders 726 007 257 577 569 092
Total liabilities including net assets attributable to participatory interest
holders 750 869 313 578 418 337
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED
30 JUNE 2024
Rand 2024 2023
Restated
Interest income 350 002 318 165
Fair value gain 98 677 020 47 930 390
Investment income 99 027 022 48 248 555
Other income 196 313 199 264
Other operating expenses (3 255 364) (3 543 432)
Profit before tax 95 967 971 44 904 387
Taxation - -
Profit before distributions to participatory interest holders 95 967 971 44 904 387
Distributions paid (21 944 809) (28 047 463)
Profit before amounts attributable to participatory interest holders 74 023 162 16 856 924
(Increase) in net assets attributable to participatory interest holders (74 023 162) (16 856 924)
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 (3 339 026) (3 287 632)
Dividends received 27 663 889 32 921 425
Interest received 343 386 279 558
Sales of investments at fair value through profit or loss 238 540 993 278 713 720
Purchase of investments at fair value through profit or loss (311 403 857) (265 642 787)
Net cash inflow/(outflow) from operating activities (48 194 615) 42 984 284
Cash flows from financing activities
Redemption of portfolio participatory interests (159 195 119) (123 687 309)
Creation of portfolio participatory interests 233 610 122 109 073 398
Distributions paid to participatory interest holders (21 944 809) (28 047 463)
Net cash inflow/(outflow) from financing activities 52 470 194 (42 661 374)
Net increase/(decrease) in cash and cash equivalents 4 275 579 322 910
Cash and cash equivalents at the beginning of the year 6 806 135 6 483 225
Cash and cash equivalents at the end of the year 11 081 714 6 806 135
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 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 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, 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 2024
Net assets attributable to participatory interest holders
Rand 2024 2023
Restated
Balance at the beginning of the year 577 569 092 575 326 079
Participatory interests created during the year 233 610 122 109 073 398
Participatory interests redeemed during the year (159 195 119) (123 687 309)
Increase in net assets attributable to participatory interest holders 74 023 162 16 856 924
Balance at the end of the year 726 007 257 577 569 092
Distributions
Number of Distribution Number of Distribution
participatory participatory
Rand interests interests
2024 2024 2023 2023
Declared 26 July 2023 and paid 31 July 2023
(2023: Declared 27 July 2022 and paid 1 August 2022)
Class A: 8.72 cents per participatory interest
(2023: 9.04 cents per participatory interest) 77 252 103 6 739 975 78 452 103 7 092 409
Declared 25 October 2023 and paid 30 October 2023
(2023: Declared 26 October 2022 and paid 31 October
2022)
Class A: 11.57 cents per participatory interest
(2023: 15.21 cents per participatory interest) 71 552 103 8 280 067 80 352 103 12 220 253
Declared 24 January 2024 and paid 29 January 2024
(2023: Declared 25 January 2023 and paid 30 January
2023)
Class A: 6.51 cents per participatory interest
(2023: 4.81 cents per participatory interest) 68 152 103 4 434 201 81 352 103 3 916 214
Declared 24 April 2024 and paid 29 April 2024
(2023: Declared 25 April 2023 and paid 5 May 2023)
Class A: 3.78 cents per participatory interest
(2023: 6.57 cents per participatory interest) 65 852 103 2 490 566 73 352 103 4 818 587
21 944 809 28 047 463
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 2024.
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 - (28 047 463) (28 047 463)
Profit before amounts attributable to participatory interest
holders 44 904 387 (28 047 463) 16 856 924
(Increase) in net assets attributable to participatory interest
holders (44 904 387) 28 047 463 (16 856 924)
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 Midcap 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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