AL FURSAN BRIC EQUITY TRADING FUND An Open Ended Mutual ...
AL FURSAN BRIC 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
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AL FURSAN BRIC 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 US Dollar)
2016
2015
28,586 8,831,654 671 8,860,911
10,254 9,290,044 -9,300,298
10,896 7,400 5,688 23,984
-8,130 5,210 13,340
8,836,927
9,286,958
Units in issue (numbers)
692,758
701,651
Net asset value - per unit
12.7562
13.2359
Note ASSETS Cash and cash equivalents Investments held for trading Prepaid Expenses Total assets
7
LIABILITIES Redemption payable Fund management fee payable Accrued expenses Total liabilities
6, 10
Net asset attributable to the Unitholders
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 8 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL FURSAN BRIC 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 US Dollar)
2016
2015
8
1,040,097 1,040,097
520,974 520,974
10 9
(42,292) (6,408) (48,700) 991,397
(48,587) (5,210) (53,797) 467,177
Note INCOME Trading gain, net EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements.
2
AL FURSAN BRIC 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 US Dollar)
2016
2015
991,397
467,177
86,796 (1,126,893) (48,700)
85,175 (606,149) (53,797)
(112,254) 308,149 (671) 183 (7,078) 139,629
(170,280) 425,494 -6 (4,200) 197,223
172,695 (314,028) (141,333)
255,631 (452,792) (197,161)
(1,704) 30,290 28,586
62 10,192 10,254
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustment to reconcile net income to net cash generated from operating activities:
Realized loss on investments held for trading Unrealized gain on investments held for trading Changes in operating assets and liabilities: Additions to Investments held for trading Proceeds from disposal of Investments held for trading Prepaid expenses Fund management fee payable Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payment for redemption of units Net cash used in financing activities Net 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 13 form an integral part of these interim condensed financial statements.
3
AL FURSAN BRIC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in US Dollar)
Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2016
2015
7,997,759
9,015,808
991,397
467,177
172,695 (324,924) (152,229) 8,836,927
255,631 (451,658) (196,027) 9,286,958
Changes from unit transactions Proceeds from issuance of units Payment 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
704,380
716,261
Units issued Units redeemed Net change in units Units at the end of the period
15,071 (26,693) (11,622) 692,758
19,250 (33,860) (14,610) 701,651
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements.
4
AL FURSAN BRIC 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 Fursan BRIC 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 “Unit holders”). The Fund commenced its operations on 18 July 2006.The Fund is a feeder fund which maintains all of its investments in the Sub Fund of Amundi Islamic BRIC Quant (“the Master-Fund”), established in Luxembourg. Amundi Luxembourg is the fund manager of the Master fund. The Fund invested in the I2 share class of the Master Fund specifically issued to facilitate the conversion. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset attributable to the Unitholders. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The objective of the Fund is to provide long term capital growth primarily by investing in Shari’ah compliant publicly listed companies in Brazil, Russia, India & China in accordance with Shari’ah guidelines determined by the Shari’ah Board of the Fund. The Fund has updated their terms and condition which have been approved by the 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 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 of units with a cut off time of 12:00 pm on Monday, Tuesday and Wednesday. The net asset attributable to the Unitholders of the Fund is determined on Wednesday, Thursday and Sunday (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 available for redemption 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 do 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 FURSAN BRIC 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 US Dollar) 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 United States Dollars (USD), which is the functional currency of the Fund. All financial information presented in United States Dollars has been rounded to the nearest United States Dollars (USD).
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 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 AND OTHER CHARGES The management of the Fund is the responsibility of the Fund Manager. The Fund pays a management fee calculated at an annual rate of 1.04 percent of the net asset attributable to the Unitholders. This is accrued daily and paid on a monthly basis. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as audit fee, board 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. Amundi Luxembourg charges a management fee at the rate of 0.31 percent per annum of the Fund's net asset value. This is accrued daily and paid on a monthly basis.
6
AL FURSAN BRIC 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 US Dollar) 7.
INVESTMENTS HELD FOR TRADING As at period end, the investment in the I2 class shares of Amundi Islamic BRIC Quant (“the Master Fund”) is summarised as follows: 2015 2016 Units in Amundi Islamic BRIC Quant I2 class shares Number of units 1,103,480 1,132,539 Price per unit 8.0035 8.20 Net Asset Value of Amundi Islamic BRIC Quant I2 class shares 8,831,654 9,290,044 Prices per unit have been rounded off to nearest two decimals. The carrying cost of these investments is as follow: Units in Amundi Islamic BRIC Quant I2 class shares Number of units Cost price per unit Cost of Amundi Islamic BRIC Quant I2 class shares
2016
2015
1,103,480 9.7339 10,741,185
1,132,539 9.80 11,101,358
Prices per unit have been rounded off to nearest two decimals. Geographical break down of investments made by Amundi Islamic BRIC Quant I2 class shares in term of percentage is as follows: Description by geographical segment Quoted shares: China Brazil India Russia Others
8.
2015 % of value
27.54 26.44 23.00 21.76 1.26 100.00
29.06 23.59 25.00 19.89 2.46 100.00
2016
2015
(86,796)
(85,175)
1,126,893 1,040,097
606,149 520,974
2016
2015
6,337 71 6,408
5,044 166 5,210
TRADING GAIN, NET
Realised loss on disposal of investments held for trading Unrealised gain on revaluation of investments held for trading
9.
2016 % of value
OTHER EXPENSES
Professional fee Fund board fee
7
AL FURSAN BRIC 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 month period ended 30 June 2016 (Amounts in US Dollar) 10.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the “Fund Manager”), Banque Saudi Fransi (the “Bank” and the Shareholder of the Fund Manager) and Allianz Saudi Fransi (“ASF”) 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. At the end of the period, cash balance with the Bank amounted to USD 28,586 (30 June 2015: USD 10,254). Related party transactions for the period ended 30 June 2016 and balances resulting from such transactions are as follows:
Name of related party
Nature of transactions
Saudi Fransi Capital Board of Directors
Fund management fee Annual remuneration
Amount of transactions during the period 2015 2016 48,587 42,292 166 71
Closing balance 2015 2016 8,130 7,400 166 22
The units in issue at 30 June 2016 include units held by the employees of the Banque Saudi Fransi and Saudi Fransi Capital was: 2,683 units (30 June 2015: Nil units). The units in issue at 30 June 2016 include units held by Allianz Saudi Fransi was: 103,387 units (30 June 2015: 84,764 units). 11.
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 financial assets and financial liabilities. The Fund’s financial assets consist of bank balance, investment account with the Fund Manager and investments held for trading, and its financial liabilities comprise of fund management fee payable, accrued expenses and redemption payable. 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.
12.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to USD 2,781 (30 June 2015: USD 6,165) after the cutoff time and hence issued units subsequent to period end.
13.
LAST VALUATION DATE In accordance with terms and conditions of the Fund, the last valuation date of the period was 30 June 2016 (30 June 2015: 29 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
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AL FURSAN BRIC 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 US Dollar)
2016
2015
28,586 8,831,654 671 8,860,911
10,254 9,290,044 -9,300,298
10,896 7,400 5,688 23,984
-8,130 5,210 13,340
8,836,927
9,286,958
Units in issue (numbers)
692,758
701,651
Net asset value - per unit
12.7562
13.2359
Note ASSETS Cash and cash equivalents Investments held for trading Prepaid Expenses Total assets
7
LIABILITIES Redemption payable Fund management fee payable Accrued expenses Total liabilities
6, 10
Net asset attributable to the Unitholders
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 8 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL FURSAN BRIC 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 US Dollar)
2016
2015
8
1,040,097 1,040,097
520,974 520,974
10 9
(42,292) (6,408) (48,700) 991,397
(48,587) (5,210) (53,797) 467,177
Note INCOME Trading gain, net EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements.
2
AL FURSAN BRIC 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 US Dollar)
2016
2015
991,397
467,177
86,796 (1,126,893) (48,700)
85,175 (606,149) (53,797)
(112,254) 308,149 (671) 183 (7,078) 139,629
(170,280) 425,494 -6 (4,200) 197,223
172,695 (314,028) (141,333)
255,631 (452,792) (197,161)
(1,704) 30,290 28,586
62 10,192 10,254
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustment to reconcile net income to net cash generated from operating activities:
Realized loss on investments held for trading Unrealized gain on investments held for trading Changes in operating assets and liabilities: Additions to Investments held for trading Proceeds from disposal of Investments held for trading Prepaid expenses Fund management fee payable Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payment for redemption of units Net cash used in financing activities Net 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 13 form an integral part of these interim condensed financial statements.
3
AL FURSAN BRIC EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in US Dollar)
Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2016
2015
7,997,759
9,015,808
991,397
467,177
172,695 (324,924) (152,229) 8,836,927
255,631 (451,658) (196,027) 9,286,958
Changes from unit transactions Proceeds from issuance of units Payment 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
704,380
716,261
Units issued Units redeemed Net change in units Units at the end of the period
15,071 (26,693) (11,622) 692,758
19,250 (33,860) (14,610) 701,651
The accompanying notes 1 to 13 form an integral part of these interim condensed financial statements.
4
AL FURSAN BRIC 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 Fursan BRIC 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 “Unit holders”). The Fund commenced its operations on 18 July 2006.The Fund is a feeder fund which maintains all of its investments in the Sub Fund of Amundi Islamic BRIC Quant (“the Master-Fund”), established in Luxembourg. Amundi Luxembourg is the fund manager of the Master fund. The Fund invested in the I2 share class of the Master Fund specifically issued to facilitate the conversion. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset attributable to the Unitholders. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The objective of the Fund is to provide long term capital growth primarily by investing in Shari’ah compliant publicly listed companies in Brazil, Russia, India & China in accordance with Shari’ah guidelines determined by the Shari’ah Board of the Fund. The Fund has updated their terms and condition which have been approved by the 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 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 of units with a cut off time of 12:00 pm on Monday, Tuesday and Wednesday. The net asset attributable to the Unitholders of the Fund is determined on Wednesday, Thursday and Sunday (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 available for redemption 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 do 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 FURSAN BRIC 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 US Dollar) 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 United States Dollars (USD), which is the functional currency of the Fund. All financial information presented in United States Dollars has been rounded to the nearest United States Dollars (USD).
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 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 AND OTHER CHARGES The management of the Fund is the responsibility of the Fund Manager. The Fund pays a management fee calculated at an annual rate of 1.04 percent of the net asset attributable to the Unitholders. This is accrued daily and paid on a monthly basis. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as audit fee, board 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. Amundi Luxembourg charges a management fee at the rate of 0.31 percent per annum of the Fund's net asset value. This is accrued daily and paid on a monthly basis.
6
AL FURSAN BRIC 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 US Dollar) 7.
INVESTMENTS HELD FOR TRADING As at period end, the investment in the I2 class shares of Amundi Islamic BRIC Quant (“the Master Fund”) is summarised as follows: 2015 2016 Units in Amundi Islamic BRIC Quant I2 class shares Number of units 1,103,480 1,132,539 Price per unit 8.0035 8.20 Net Asset Value of Amundi Islamic BRIC Quant I2 class shares 8,831,654 9,290,044 Prices per unit have been rounded off to nearest two decimals. The carrying cost of these investments is as follow: Units in Amundi Islamic BRIC Quant I2 class shares Number of units Cost price per unit Cost of Amundi Islamic BRIC Quant I2 class shares
2016
2015
1,103,480 9.7339 10,741,185
1,132,539 9.80 11,101,358
Prices per unit have been rounded off to nearest two decimals. Geographical break down of investments made by Amundi Islamic BRIC Quant I2 class shares in term of percentage is as follows: Description by geographical segment Quoted shares: China Brazil India Russia Others
8.
2015 % of value
27.54 26.44 23.00 21.76 1.26 100.00
29.06 23.59 25.00 19.89 2.46 100.00
2016
2015
(86,796)
(85,175)
1,126,893 1,040,097
606,149 520,974
2016
2015
6,337 71 6,408
5,044 166 5,210
TRADING GAIN, NET
Realised loss on disposal of investments held for trading Unrealised gain on revaluation of investments held for trading
9.
2016 % of value
OTHER EXPENSES
Professional fee Fund board fee
7
AL FURSAN BRIC 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 month period ended 30 June 2016 (Amounts in US Dollar) 10.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the “Fund Manager”), Banque Saudi Fransi (the “Bank” and the Shareholder of the Fund Manager) and Allianz Saudi Fransi (“ASF”) 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. At the end of the period, cash balance with the Bank amounted to USD 28,586 (30 June 2015: USD 10,254). Related party transactions for the period ended 30 June 2016 and balances resulting from such transactions are as follows:
Name of related party
Nature of transactions
Saudi Fransi Capital Board of Directors
Fund management fee Annual remuneration
Amount of transactions during the period 2015 2016 48,587 42,292 166 71
Closing balance 2015 2016 8,130 7,400 166 22
The units in issue at 30 June 2016 include units held by the employees of the Banque Saudi Fransi and Saudi Fransi Capital was: 2,683 units (30 June 2015: Nil units). The units in issue at 30 June 2016 include units held by Allianz Saudi Fransi was: 103,387 units (30 June 2015: 84,764 units). 11.
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 financial assets and financial liabilities. The Fund’s financial assets consist of bank balance, investment account with the Fund Manager and investments held for trading, and its financial liabilities comprise of fund management fee payable, accrued expenses and redemption payable. 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.
12.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to USD 2,781 (30 June 2015: USD 6,165) after the cutoff time and hence issued units subsequent to period end.
13.
LAST VALUATION DATE In accordance with terms and conditions of the Fund, the last valuation date of the period was 30 June 2016 (30 June 2015: 29 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
