NOTES TO THE FINANCIAL STATEMENTS
2015 2014 Gearing ratio:
Debt 10 234 -
Equity 2 660 901 2 063 521 Debt to equity ratio 0,4% 0,0%
46 Interest in unconsolidated structured entities
The table below describes the structured entities ("SEs") in which the group holds an interest but has not consolidated the entity at reporting date. The group considers entities set up with a narrow and well defined objective that provide investment opportunities for investors as SEs. The SEs described below are all investment funds in which the group holds an insignificant interest.
Name of SE 2015 Peregrine Pure Hedge en Commandite Partnership Peregrine Performance en Commandite Partnership Type of SE Hedge fund Hedge fund
Nature and purpose of SE
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Reason the SE is a structured entity
Peregrine Capital established the hedge fund and has been managing the assets in this fund in accordance with its mandate for the past 16 years and holds an insignificant interest in the fund.
Peregrine Capital established the hedge fund and has been managing the assets in this fund in accordance with its mandate for the past 16 years and holds an insignificant interest in the fund.
AUM R '000 887 357 293 802 Interests held by the Group* R '000 3 3 Amount of maximum exposure to loss R '000 3 3
91
1 1 26 234 2014 Peregrine Pure Hedge en Commandite Partnership Peregrine Performance en Commandite Partnership Unconsolidated structured Citadel House funds Hedge fund Hedge fund Discretionary investment fundsGenerate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Peregrine Capital established the hedge fund and has been managing the assets in this fund in accordance with its mandate for the past 15 years and holds an insignificant interest in the fund.
Peregrine Capital established the hedge fund and has been managing the assets in this fund in accordance with its mandate for the past 15 years and holds an insignificant interest in the fund. Citadel has established these funds to act as in an agent capacity on behalf of external clients and holds an insignificant interest in order to maintain the performance track record.
424 272 225 356 19 283 257 1 1 26 234 Name of SE 2015 Peregrine Dynamic Alpha en Commandite Partnership Unconsolidated structured Citadel House funds Type of SE Hedge fund Discretionary investment funds
Nature and purpose of SE
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Generate fees from managing assets on behalf of third-party investors. These vehicles are financed through the issue of units to investors.
Reason the SE is a structured entity
Peregrine Capital established the hedge fund in the current year and has been managing the assets in this fund in accordance with its mandate and holds an insignificant interest in the fund. Citadel has established these funds to act as in an agent capacity on behalf of external clients and holds an insignificant interest in order to maintain the performance track record.
AUM R '000 114 768 22 481 718 Interests held by the Group* R '000 2 166 931 Amount of maximum exposure to loss R '000 2 166 931
46 Interest in unconsolidated structured entities (continued)
During the year the group did not provide financial support to these entities and has no intention of providing financial or other support. * The interest held in these entities are included in the financial investments line item per the Statement of Financial Position.
Peregrine Securities Proprietary Limited South Africa Broking and Structuring 35% 35% Peregrine Capital Proprietary Limited South Africa Asset Management # 34% 34% Stenham Limited United Kingdom Stenham 19% 29% Peregrine SA Holdings Proprietary
Limited and its subsidiaries South Africa Group * 14% 14% The following is the summarised financial information of the subsidiaries within the Peregrine group which have significant NCI, prepared in accordance with IFRS. The information is before inter-company eliminations with other companies in the group.
Securities Peregrine Capital
2015 2014 2015 2014 R'000 R'000 R'000 R'000
Statement of comprehensive income:
Revenue 627 937 518 689 313 734 152 604 Profit 156 175 117 878 151 835 67 126
Profit attributable to non-controlling interests 54 661 37 245 51 282 22 672
Statement of financial position:
Non-current assets 50 950 49 230 9 864 6 010 Current assets 19 353 226 12 498 162 110 827 38 150 Non-current liabilities (276) (370) (10 799) - Current liabilities (18 993 813) (12 220 677) (58 896) (25 397) Net assets 410 087 326 345 50 996 18 763
Net assets attributable to non-controlling interests 127 925 107 528 17 224 12 481
Statement of cash flow:
Cash flow from operating activities 458 979 957 765 (19 818) 6 812 Cash flow from investing activities (197 255) (99 726) 107 (554) Cash flow from financing activities 214 447 59 814 10 000 (1 999) Net increase/(decrease) in cash and cash equivalents 476 171 917 853 (9 711) 4 259
47 Non-controlling interests ("NCI") (continued)
Stenham Peregrine SA Holdings
2015 2014 2015 2014
R'000 R'000 R'000 R'000
Statement of comprehensive income:
Revenue 633 002 561 909 1 895 175 1 491 298 Profit 246 968 362 468 538 656 398 644
Profit attributable to non-controlling interests 62 022 131 066 75 412 56 096
Statement of financial position:
Non-current assets 887 352 697 978 6 642 953 5 564 213 Current assets 665 871 797 468 20 378 177 13 251 695 Non-current liabilities - - (5 962 263) (5 131 125) Current liabilities (270 084) (212 012) (19 679 572) (12 521 879) Net assets 1 283 139 1 283 434 1 379 295 1 162 904
Net assets attributable to non-controlling interests 256 620 358 287 157 712 144 129
Statement of cash flow:
Cash flow from operating activities 131 663 134 789 621 738 1 048 762 Cash flow from investing activities 62 301 (86 006) (413 294) (135 545) Cash flow from financing activities (173 288) (92 849) 290 860 120 075 Net increase/(decrease) in cash and cash equivalents 20 676 (44 066) 499 304 1 033 292
Dividends paid to non-controlling interests during the year 9 713 - 62 000 54 600 # The effective economic control that Peregrine SA Holdings Proprietary Limited has over Peregrine Capital Proprietary Limited is 50% and takes into account profit participation. The 33.775% disclosed here is the non-controlling percentage of the equity shareholding.
* Nala Empowerment Investment Company Proprietary Limited holds 20% of the ordinary shares of Peregrine SA Holdings Proprietary Limited. Peregrine Holdings Limited holds 30% of the ordinary shares of Nala Empowerment Investment Company Proprietary Limited and thus the non- controlling interest percentage held in Peregrine SA Holdings Proprietary Limited is 14%.
93
R’000 R’000 R’000 R’000
Companies:
Directly held
Peregrine Financial Services Holdings Limited Holding company 100 100 7 195 7 195 9 970 9 884 Peregrine SA Holdings Proprietary Limited Investment holding company
and investment and trading 80 80 470 845 470 845 67 676 63 865 Sandown Capital Proprietary Limited Investment holding company
and investment and trading 100 100 127 453 127 453 - -
Indirectly held
Citadel Holdings Limited and its subsidiaries Wealth management 100 100 Peregrine Capital Proprietary Limited Asset management 50 50 Peregrine Direct Limited Financial broking 65 65 Peregrine Derivatives Proprietary Limited Financial broking 65 65 Peregrine Equities Proprietary Limited Financial broking 65 65 Peregrine Financial Products Proprietary Limited Financial structuring 65 65 Peregrine Fund Platform Proprietary Limited Asset management 65 65 Peregrine Management Services Proprietary Limited Management services 100 100 Peregrine Securities Proprietary Limited Financial services 65 65 Peregrine International Holdings Limited Investment holding company 100 100 Stenham Limited and its subsidiaries Asset and Property management & Trust
and Corporate administrative services 80,91 70,78 Stenham Investments Proprietary Limited Investment holding company 100 100 TWF Investments Proprietary Limited Investment banking 70 70 Cannon Asset Managers Proprietary Limited Asset management 65 65
Share Trusts: Directly held
Peregrine Share Incentive Trust 100 100
Indirectly held
Citadel Holdings Limited Employee Share Participation Scheme 100 100 Deloitte Private Clients Employee Share Trust 100 100
Partnership: Indirectly held
Firefly Investments 61 Investment banking 50 50
Hedge Funds:
PNF Peregrine Fund En Commandite Partnership 100 100 Peregrine Partners Fund En Commandite Partnership 100 100 Peregrine Worldwide Flexible Fund En Commandite Partnership 100 - G3 Market Neutral En Commandite Partnership 72,27 73,00 All Weather En Commandite Partnership 40,02 - Peregrine High Growth En Commandite Partnership 22,83 29,76 Java Capital Special Opportunities Fund En Commandite Partnership 50 - Stenham Real Estate Equity Fund 1
- 27,04
605 493 605 493 77 646 73 749