AL DANAH GCC EQUITY TRADING FUND An Open Ended Mutual ...
AL DANAH GCC EQUITY TRADING FUND An Open Ended Mutual Fund (MANAGED BY SAUDI FRANSI CAPITAL) Interim Condensed Financial Statements (Un-Audited)
For the six months period ended 30 June 2016 together with the Review Report to the Unitholders
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED BALANCE SHEET (UN-AUDITED) As at 30 June 2016 (Amounts in SAR) Note
2016
2015
7 9
1,842,754 24,523,818 573,327 26,939,899
4,405,331 34,138,880 4,117 38,548,328
6, 12 8
59,532 1,073,889 1,133,421
54,214 1,315,561 1,369,775
25,806,478
37,178,553
1,938,587
2,243,127
13.3120
16.5744
ASSETS Cash balances Investments held for trading Other receivable Total assets LIABILITIES Fund management fee payable Accrued expenses Total liabilities Net asset attributable to the Unitholders Units in issue (numbers) Net asset value - per unit
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 9 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF INCOME (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) Note
2016
2015
10
(350,962) 703,992 -353,030
1,290,345 1,007,452 275,061 2,572,858
6, 12 11
(217,821) (65,465) (283,286) 69,744
(235,404) (51,462) (286,866) 2,285,992
INCOME Trading (loss) / gain, net Dividend income Other income EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
2
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CASH FLOWS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period
2016
2015
69,744
2,285,992
(1,367,037) (1,297,293)
118,393 2,404,385
1,704,094 (573,327) 19,880 1,033,175 886,529
(3,204,273) (1,493) (122,384) 1,269,943 346,178
1,087,158 (2,433,759) (1,346,601)
4,337,389 (3,914,569) 422,820
(460,072) 2,302,826 1,842,754
768,998 3,636,333 4,405,331
Adjustment to reconcile net income to net cash generated from / (used in) operating activities: Unrealized (gain) / loss on investments held for trading Changes in operating assets and liabilities: Investments held for trading Other receivable Fund management fee payable Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payments for redemption of units Net cash (used in) / generated from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
3
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSET ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2016
2015
27,083,335
34,469,741
69,744
2,285,992
1,087,158 (2,433,759) (1,346,601) 25,806,478
4,337,389 (3,914,569) 422,820 37,178,553
Changes from unit transactions Proceeds from issuance of units Payments for redemption of units Net change from unit transactions Net asset attributable to the Unitholders at the end of the period Transactions in units for the period are summarized as follows: (In numbers) Units at the beginning of the period
2,060,259
2,221,115
Units issued Units redeemed Net change in units Units at the end of the period
90,734 (212,406) (121,672) 1,938,587
263,136 (241,124) 22,012 2,243,127
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
4
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES Al-Danah GCC Equity Trading Fund (the “Fund”) is an open ended investment fund based on an agreement between Saudi Fransi Capital (the “Fund Manager”) and the investors (the “Unitholders”). The Fund commenced its operations on 17 April 2006. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset value. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The Fund aims to provide medium to long term capital growth primarily by investing in Shari’ah compliant publicly listed companies in the GCC member countries that includes the Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman & the Kingdom of Bahrain. The Fund may also invest up to 20% of its total investments in other Arab countries in the Middle East and North Africa in Shari’ah compliant assets in accordance with the Shari’ah guidelines issued by the Shari’ah Board of the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund’s Terms and Conditions, the Fund Manager can delegate or assign its duties to another financial institution. Accordingly, pursuant to an agreement dated 15 July 2008, EFG Hermes UAE Limited acts as sub-fund manager and HSBC Middle East Bank Limited is the sub-custodian of the Fund. The Fund updated its terms and conditions which were approved by the Capital Market Authority (CMA) on 24 Sha’aban 1436H (corresponding to 11 June 2015). The Fund Manager and Custodian of the Fund is Saudi Fransi Capital.
2.
REGULATORY AUTHORITY The Fund is governed by the Investment Fund Regulations (“the Regulations”) published by the Capital Market Authority (CMA) on 3 Dhul Hijja 1427H (corresponding to 24 December 2006), detailing requirements for all investment funds within the Kingdom of Saudi Arabia.
3.
SUBSCRIPTION/REDEMPTION OF UNITS The Fund is open for subscriptions /redemptions with a cutoff time of 12:00 pm on Sunday and Tuesday. The net asset attributable to the Unitholders of the Fund’s portfolio is determined on Tuesday and Thursday (each a “Dealing day”). The net asset attributable to the Unitholders of the Fund for the purpose of subscription/ redemption of units is determined by dividing the net asset attributable to the Unitholders of the Fund (fair value of the Fund’s assets minus the Fund’s liabilities) by the total number of the Fund’s units outstanding on the relevant Dealing day.
4.
BASIS OF PREPARATION
4.1
Statement of compliance These interim condensed financial statements have been presented in accordance with the requirements of the accounting standards on financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). These interim condensed financial statements have been presented in condensed form and did not include all the information presented in annual financial statements of the Fund; therefore, these interim condensed financial statements should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. These interim condensed financial statements does not necessarily constitute an indication of the year-end financial results. Certain prior period figures have been reclassified to conform with the current period presentation. 5
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 4.
BASIS OF PREPARATION (CONTINUED)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for the investments held for trading which are measured at fair value.
4.3
Functional and presentation currency These interim condensed financial statements have been presented in Saudi Arabian Riyals (SAR), which is also the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR.
4.4
Use of estimates and judgment In the ordinary course of business, the preparation of the interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and on a prospective basis.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements and the risk management policies are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2015.
6.
MANAGEMENT FEE, CUSTODIAN FEE AND OTHER CHARGES The Fund pays a management fee calculated at an annual rate of 1.75% of the net asset attributable to the Unitholders. This is accrued daily and paid monthly. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as custodian fee, audit fee, Board members compensation and other similar charges. Subscription fee up to 3 percent of the invested amount is adjusted by deduction from the gross subscription hence, it does not impact or reflect in the interim condensed financial statements of the Fund.
7.
CASH BALANCES 2016 442,386 1,400,368 1,842,754
Cash at banks Cash at brokerage investment account
2015 4,034,774 370,557 4,405,331
The geographical breakdown of cash balances is summarized as follows: 2016 434,647 2,528 1,400,368 5,211 1,842,754
GCC Egypt Kingdom of Saudi Arabia Others 6
2015 2,678,966 1,352,697 369,426 4,242 4,405,331
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 8.
ACCRUED EXPENSES
Payable for Investment (Note 8.1) Other accrued expenses
2016
2015
1,048,754 25,135 1,073,889
1,292,283 23,278 1,315,561
Note 8.1:
2016: This represent amount payable in respect of purchase of investments held for trading for to Dubai Islamic Bank. 2015: This represent amount payable in respect of purchase of investments held for trading for to Emaar Misr for Development Company. 9.
INVESTMENTS HELD FOR TRADING The Fund invests primarily in listed equity securities of GCC, Arab countries and Saudi companies. The geographical breakdown of investments is summarized as follows: 30 June 2016 Market Cost value Quoted shares: Kingdom of Saudi Arabia United Arab Emirates Egypt Qatar Kuwait Oman
10.
30 June 2015 Market Cost Value
14,114,112 6,902,992
14,975,381 7,424,015
-
-
1,295,611 844,066
1,224,935 899,487
23,156,781
24,523,818
20,582,992 6,614,933 4,050,914 2,890,041
-34,247,293
-34,138,880
TRADING GAIN, NET
Realised (loss) / gain on disposal of investments held for trading Unrealised gain / (loss) on revaluation of investments held for trading
11.
20,372,601 6,161,153 4,295,543 3,417,996
2016
2015
(1,717,999)
1,408,738
1,367,037 (350,962)
(118,393) 1,290,345
2016
2015
30,023 17,405 437 17,600
23,556 18,898 906 8,102 51,462
OTHER EXPENSES
Custody fee Professional fee Fund board fee Other expenses
65,465
7
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 12.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the “Fund Manager”), Banque Saudi Fransi (the “Bank” and the shareholder of the Fund Manager), Unitholders and affiliates of the Fund manager are related parties. In the ordinary course of its activities, the Fund transacts business with related parties. The related party transactions are governed by limits set by the regulations issued by the CMA. All the related party transactions are approved by the Fund Board. Related party transactions for the period ended 30 June and balances resulting from such transactions are as follows:
Name of related party
Saudi Fransi Capital Board of Directors
Nature of transactions
Amount of transactions during the period 2015 2016
Fund management fee Brokerage fee Annual remuneration
217,821 68,584 437
235,404 50,958 906
Closing balance 2015 2016 59,532 273
54,214 -906
The units in issue at 30 June 2016 includes 10,733 units held by the employees of the Saudi Fransi Capital and its affiliates (30 June 2015: 2,992 units). The units in issue at 30 June 2016 include 262,306 units held by Allianz Saudi Fransi, an affiliate (30 June 2015: 222,037 units). 13.
FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets mainly comprises of bank balances, investments held for trading, and its financial liabilities comprise of fund management fee payable and accrued expenses. Investments held for trading are carried at fair values. The fair values of other financial instruments are not materially different from their carrying values. Investments held for trading comprise of listed equities, fluctuation in the stock market may cause changes in fair value of the investments portfolio.
14.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to SAR 872,735 (30 June 2015: SAR 880) after the cutoff time and hence issued units subsequent to period end.
15.
LAST VALUATION DATE In accordance with the terms and conditions of the Fund, the last valuation day of the period was 30 June 2016 (30 June 2015: 30 June 2015). The last valuation date for the purpose of preparation of these interim condensed financial statements was 30 June 2016 (30 June 2015: 30 June 2015).
8
For the six months period ended 30 June 2016 together with the Review Report to the Unitholders
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED BALANCE SHEET (UN-AUDITED) As at 30 June 2016 (Amounts in SAR) Note
2016
2015
7 9
1,842,754 24,523,818 573,327 26,939,899
4,405,331 34,138,880 4,117 38,548,328
6, 12 8
59,532 1,073,889 1,133,421
54,214 1,315,561 1,369,775
25,806,478
37,178,553
1,938,587
2,243,127
13.3120
16.5744
ASSETS Cash balances Investments held for trading Other receivable Total assets LIABILITIES Fund management fee payable Accrued expenses Total liabilities Net asset attributable to the Unitholders Units in issue (numbers) Net asset value - per unit
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 9 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF INCOME (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) Note
2016
2015
10
(350,962) 703,992 -353,030
1,290,345 1,007,452 275,061 2,572,858
6, 12 11
(217,821) (65,465) (283,286) 69,744
(235,404) (51,462) (286,866) 2,285,992
INCOME Trading (loss) / gain, net Dividend income Other income EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
2
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CASH FLOWS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period
2016
2015
69,744
2,285,992
(1,367,037) (1,297,293)
118,393 2,404,385
1,704,094 (573,327) 19,880 1,033,175 886,529
(3,204,273) (1,493) (122,384) 1,269,943 346,178
1,087,158 (2,433,759) (1,346,601)
4,337,389 (3,914,569) 422,820
(460,072) 2,302,826 1,842,754
768,998 3,636,333 4,405,331
Adjustment to reconcile net income to net cash generated from / (used in) operating activities: Unrealized (gain) / loss on investments held for trading Changes in operating assets and liabilities: Investments held for trading Other receivable Fund management fee payable Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payments for redemption of units Net cash (used in) / generated from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
3
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSET ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2016
2015
27,083,335
34,469,741
69,744
2,285,992
1,087,158 (2,433,759) (1,346,601) 25,806,478
4,337,389 (3,914,569) 422,820 37,178,553
Changes from unit transactions Proceeds from issuance of units Payments for redemption of units Net change from unit transactions Net asset attributable to the Unitholders at the end of the period Transactions in units for the period are summarized as follows: (In numbers) Units at the beginning of the period
2,060,259
2,221,115
Units issued Units redeemed Net change in units Units at the end of the period
90,734 (212,406) (121,672) 1,938,587
263,136 (241,124) 22,012 2,243,127
The accompanying notes 1 to 15 form an integral part of these interim condensed financial statements.
4
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES Al-Danah GCC Equity Trading Fund (the “Fund”) is an open ended investment fund based on an agreement between Saudi Fransi Capital (the “Fund Manager”) and the investors (the “Unitholders”). The Fund commenced its operations on 17 April 2006. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset value. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The Fund aims to provide medium to long term capital growth primarily by investing in Shari’ah compliant publicly listed companies in the GCC member countries that includes the Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman & the Kingdom of Bahrain. The Fund may also invest up to 20% of its total investments in other Arab countries in the Middle East and North Africa in Shari’ah compliant assets in accordance with the Shari’ah guidelines issued by the Shari’ah Board of the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund’s Terms and Conditions, the Fund Manager can delegate or assign its duties to another financial institution. Accordingly, pursuant to an agreement dated 15 July 2008, EFG Hermes UAE Limited acts as sub-fund manager and HSBC Middle East Bank Limited is the sub-custodian of the Fund. The Fund updated its terms and conditions which were approved by the Capital Market Authority (CMA) on 24 Sha’aban 1436H (corresponding to 11 June 2015). The Fund Manager and Custodian of the Fund is Saudi Fransi Capital.
2.
REGULATORY AUTHORITY The Fund is governed by the Investment Fund Regulations (“the Regulations”) published by the Capital Market Authority (CMA) on 3 Dhul Hijja 1427H (corresponding to 24 December 2006), detailing requirements for all investment funds within the Kingdom of Saudi Arabia.
3.
SUBSCRIPTION/REDEMPTION OF UNITS The Fund is open for subscriptions /redemptions with a cutoff time of 12:00 pm on Sunday and Tuesday. The net asset attributable to the Unitholders of the Fund’s portfolio is determined on Tuesday and Thursday (each a “Dealing day”). The net asset attributable to the Unitholders of the Fund for the purpose of subscription/ redemption of units is determined by dividing the net asset attributable to the Unitholders of the Fund (fair value of the Fund’s assets minus the Fund’s liabilities) by the total number of the Fund’s units outstanding on the relevant Dealing day.
4.
BASIS OF PREPARATION
4.1
Statement of compliance These interim condensed financial statements have been presented in accordance with the requirements of the accounting standards on financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). These interim condensed financial statements have been presented in condensed form and did not include all the information presented in annual financial statements of the Fund; therefore, these interim condensed financial statements should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. These interim condensed financial statements does not necessarily constitute an indication of the year-end financial results. Certain prior period figures have been reclassified to conform with the current period presentation. 5
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 4.
BASIS OF PREPARATION (CONTINUED)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for the investments held for trading which are measured at fair value.
4.3
Functional and presentation currency These interim condensed financial statements have been presented in Saudi Arabian Riyals (SAR), which is also the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR.
4.4
Use of estimates and judgment In the ordinary course of business, the preparation of the interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and on a prospective basis.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements and the risk management policies are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2015.
6.
MANAGEMENT FEE, CUSTODIAN FEE AND OTHER CHARGES The Fund pays a management fee calculated at an annual rate of 1.75% of the net asset attributable to the Unitholders. This is accrued daily and paid monthly. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as custodian fee, audit fee, Board members compensation and other similar charges. Subscription fee up to 3 percent of the invested amount is adjusted by deduction from the gross subscription hence, it does not impact or reflect in the interim condensed financial statements of the Fund.
7.
CASH BALANCES 2016 442,386 1,400,368 1,842,754
Cash at banks Cash at brokerage investment account
2015 4,034,774 370,557 4,405,331
The geographical breakdown of cash balances is summarized as follows: 2016 434,647 2,528 1,400,368 5,211 1,842,754
GCC Egypt Kingdom of Saudi Arabia Others 6
2015 2,678,966 1,352,697 369,426 4,242 4,405,331
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 8.
ACCRUED EXPENSES
Payable for Investment (Note 8.1) Other accrued expenses
2016
2015
1,048,754 25,135 1,073,889
1,292,283 23,278 1,315,561
Note 8.1:
2016: This represent amount payable in respect of purchase of investments held for trading for to Dubai Islamic Bank. 2015: This represent amount payable in respect of purchase of investments held for trading for to Emaar Misr for Development Company. 9.
INVESTMENTS HELD FOR TRADING The Fund invests primarily in listed equity securities of GCC, Arab countries and Saudi companies. The geographical breakdown of investments is summarized as follows: 30 June 2016 Market Cost value Quoted shares: Kingdom of Saudi Arabia United Arab Emirates Egypt Qatar Kuwait Oman
10.
30 June 2015 Market Cost Value
14,114,112 6,902,992
14,975,381 7,424,015
-
-
1,295,611 844,066
1,224,935 899,487
23,156,781
24,523,818
20,582,992 6,614,933 4,050,914 2,890,041
-34,247,293
-34,138,880
TRADING GAIN, NET
Realised (loss) / gain on disposal of investments held for trading Unrealised gain / (loss) on revaluation of investments held for trading
11.
20,372,601 6,161,153 4,295,543 3,417,996
2016
2015
(1,717,999)
1,408,738
1,367,037 (350,962)
(118,393) 1,290,345
2016
2015
30,023 17,405 437 17,600
23,556 18,898 906 8,102 51,462
OTHER EXPENSES
Custody fee Professional fee Fund board fee Other expenses
65,465
7
AL DANAH GCC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 12.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the “Fund Manager”), Banque Saudi Fransi (the “Bank” and the shareholder of the Fund Manager), Unitholders and affiliates of the Fund manager are related parties. In the ordinary course of its activities, the Fund transacts business with related parties. The related party transactions are governed by limits set by the regulations issued by the CMA. All the related party transactions are approved by the Fund Board. Related party transactions for the period ended 30 June and balances resulting from such transactions are as follows:
Name of related party
Saudi Fransi Capital Board of Directors
Nature of transactions
Amount of transactions during the period 2015 2016
Fund management fee Brokerage fee Annual remuneration
217,821 68,584 437
235,404 50,958 906
Closing balance 2015 2016 59,532 273
54,214 -906
The units in issue at 30 June 2016 includes 10,733 units held by the employees of the Saudi Fransi Capital and its affiliates (30 June 2015: 2,992 units). The units in issue at 30 June 2016 include 262,306 units held by Allianz Saudi Fransi, an affiliate (30 June 2015: 222,037 units). 13.
FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets mainly comprises of bank balances, investments held for trading, and its financial liabilities comprise of fund management fee payable and accrued expenses. Investments held for trading are carried at fair values. The fair values of other financial instruments are not materially different from their carrying values. Investments held for trading comprise of listed equities, fluctuation in the stock market may cause changes in fair value of the investments portfolio.
14.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to SAR 872,735 (30 June 2015: SAR 880) after the cutoff time and hence issued units subsequent to period end.
15.
LAST VALUATION DATE In accordance with the terms and conditions of the Fund, the last valuation day of the period was 30 June 2016 (30 June 2015: 30 June 2015). The last valuation date for the purpose of preparation of these interim condensed financial statements was 30 June 2016 (30 June 2015: 30 June 2015).
8
