Al Oula Geojit Al Johar Saudi Equity Fund
Al Oula Geojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Auditors’ Limited Review Report and Interim Financial Statements for the Six Months Period Ended 30 June 2016 (Unaudited)
Al Oula Geojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia —
Index Page
Exhibit
Auditors’ Limited Review Report
1
Interim Statement of Financial Position as of 30 June 2016 (Unaudited)
2
A
Interim Statement of Income for the Six Months Period Ended 30 June 2016 (Unaudited)
3
B
Interim Statement of Cash Flow for the Six Months Period Ended 30 June 2016 (Unaudited)
4
C
Interim Statement of Changes in Net Assets Attributable to Unitholders for the Six Months Period Ended 30 June 2016 (Unaudited)
5
D
Notes to the Interim Financial Statements for the Six Months Period Ended 30 June 2016 (Unaudited)
6-8
:“
Talal Abu—Ghazaleh & Co. License No. 323)11/81 Dated 5/7/1416
CenifiedPublicAccountants
....tflt/V/O L//1t/rTT ck,ut3
II1
The Unitholders of Al Oula Geojit Al Johar Saudi Equity Fund Kingdom of Saudi Arabia —
Auditors’ Limited Review Report Scope of Review: We have reviewed the accompanying interim statement of financial position of Al Oula Geojit— Al Johar Saudi Equity Fund (the “Fund”) managed by Al Oula Gcojit Capital Company (the “Fund Manger”) as of 30 June 2016 and the related interim statements of income, cash flow and changes in net assets attributable to unitholders for the six months period then ended. These interim financial statements are the responsibility of the Fund Manager who has prepared and submitted them to us alone with all the information requested. We conducted our limited review in accordance with the Standard on Review of Interim Financial Reporting set forth by the Saudi Organization for Certified Public Accountants (SOCPA). A limited review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion on the financial statements; therefore, we do not express such opinion. Conclusion: Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements in order for them to be in conformity with accounting standards generally accepted in the Kingdom of Saudi Arabia. For Tidal Abu-GhazajJi & Co.
ileed A. Bamarouf Certified Public Accountant
License No. 408 04 Dhu Al-Qadah 1437 H. 07 August 2016 C.
Olaya Main St. Beside Ministry of Interior, Tel.: +96611 4642936 Fax: +966 11465 9915 P.O.Box: 9767, Riyadh 11423 Saudi Arabia
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-
www.tagi.com
tagco.niyad’i@tagjcom
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Al ()ula Ceojit Al Johar Saudi Equity Fund Managed by Al Oula (;eojit Capital Company Kingdom of Saudi Arabia Interim Statement of Financial Position As of3O June 2016 (Unaudited) —
Exhibit A Note
Assets Cash and cash equivalents Investments held for trading Dividend receivable Total Assets
(6)
Liabilities Accrued expenses and others Due to fund manager Total Liabilities Net Assets Attributable to Unitholders
(9) —
Exhibit D
Units in issue (numbers) Net assets attributable to each unit (SR)
(7)
2015 SR.
2016 SR. 447,942 1,424,083 3,510 1,875,535
6,890,162 3,012.855 1,607 9,904,624
53,642 8,997 62,639 1,812,896
22,620 36,219 58.839 9,845,785
—
175,943 10.30
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
.2
810,525 12.15
.41 Oula (;cojit Al Johar Saudi Equity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Interim Statement of Income For the Six Months Period Ended 30 June 2016 (Unaudited) —
Exhibit B For six months period ended 30 June 2016 2015 SR. SR. —
Income Realized (loss) / gain on disposal of investments held for trading Unrealized gain on revaluation of investments held for trading Net (loss) I gain from investments held for trading Dividend income Total (loss) I income for the period Expenses Management and administration fees Other expenses Total expenses for the period Net (Loss) / Income for the Period
(8)
—
Exhibit D
—
(147,831) 54,823 (93,008) 35,158 (57,850)
832,654
(56,233) (255) (56,488) (114,338)
(91 ,578) (335) (91,913) 740,741
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-3-
—
525,625 2 I 0.538 736.163
L 964
Al Oula (.cojit Al Johar Saudi Equity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Interim Statement of Cash Flow For the Six Months Period Ended 30 June 2016 (Unaudited) —
Exhibit C For six months period ended 30 June 2016 2015 SR. SR.
Cash Flow from Operating Activities Net (loss) / income for the period
(114,338)
740.741
Adjustment for: Unrealized (gain) on investments held for trading
(54,823)
(210.538)
Changes in Operating Assets and Liabilities Investments held for trading Investment in IPO Dividend receivable Accrued expenses and others Due to fund manager
754,530 81,810 (3,510) 21,797 (18,674)
2,979,122
Net cash from operating activities
666,792
(1,607) (10,409) (4,876) 3,492,433
Cash Flow from Financing Activities Proceeds from issuance of units Payments against redemption of units
(2,653,691)
4,608.360 (2.846,217)
Net cash (used in) / from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents, beginning of the period
(2,653,691)
1,762,143
(1,986,899) 2,434,841
5,254,576 I ,635,586
447,942
6,890.162
Cash and Cash Equivalents, End of the Period
—
Exhibit A
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-4-
A I ()u Ia (eojit Al John r Sn ud i Fq u ity Fund Managed by Al Oula (;eojit Capital Conipany Kingdom of Saudi Arabia Interim Statement of Changes in Net Assets Attributable to Unitholders For the Six Months Period Ended 30 June 2016 (Unaudited) —
ExhibitD
Net Assets Attributable to Unitholders at Beginning of the Period
For six months period ended 30 June 2016 2015 SR. SR. 4,580,925 7.342,901
Net (loss) / income for the period Total
(114,338) 4,466,587
740,741 8.083.642
(2,653,691) 1,812,896
4.608,360 (2,846,21 7) 9,845,785
—
Exhibit B
Changes from unit transactions Proceeds from issuance of units Payments against redemption of units Net Assets Attributable to Unitholders at End of the Period
—
Exhibit A
-
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-5-
Al ()ula (.eojit Al Johar Saudi I’.quity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) —
1-
The Fund and Its Activities: Al Oula Geojit Al Johar Saudi Equity Fund (“the Fund”) is an open—ended mutual investment fund which is managed through an agreement between a! Oula Geojit Capital Company (“the Fund Manager”) and the investors (the Unitholders). The objective of the Fund is to seek capital growth by investing in a diversified portfolio of companies listed on Tadawul (Saudi equity market), over medium to long term period. All income is reinvested in the Fund and is reflected in the unit price. In dealing with the unit holders, the Fund Manager considers the Fund as an independent unit. Accordingly, the Fund Manager prepares separate financial statements for the Fund. The Fund commenced its activities on 23 January 201 2 to meet the above mentioned objectives. —
2-
Regulating Authority: The Fund is governed by the Investment Fund Regulations (“the Regulations”) issued by the Board of the Capital Market Authority (“CMA”) pursuant to its resolution number 1-219-2006 dated 3 Dhul Hijjah 1427H. corresponding to 24 December 2006 based on the Capital Market Law issued by Royal Decree No. M/30 dated 2 Jumada Al Akhir 1424 H. corresponding to 31 July 2003.
3-
Subscription / Redemption (Dealing Day & Valuation Day): Subscription / redemption requests will be accepted on all days on which the Tadawul is open. The value of the Fund’s portfolio is determined twice weekly on Monday and Wednesday (each being a “Valuation Day”). The net asset value of the Fund for the purpose of purchase or sale of units is determined by dividing the net value of assets by the total number of outstanding fund units on the relevant valuation day.
4-
Basis of Preparation: a)
Statement of Compliance: These interim financial statements have been prepared in accordance with the requirements of accounting standard on interim linancial reporting issued by the Saudi Organization of Certified Public Accountants (the “SOCPA”).
b)
Basis of Measurement: These interim financial statements have been prepared tinder the historical cost convention, except for the investments held for trading that are measured at fair value, using accrual basis of accounting and the going concern concept.
C)
Functional and Presentation Currency: These interim financial statements are presented in Saudi Arabian Riyals (SR) which is the functional currency of the Fund.
d)
Use of Estimates and Judgments: In the ordinary course of business, the preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. 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 in future periods affected.
-6-
Al Dub Ceojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) —
5-
Significant Accounting Policies: The significant accounting policies used in these interim financial statements are consistent with those used in the Fund’s annual financial statements for the year ended 31 December 2015. These interim financial statements do not include all the information presented in full set of annual financial statements; therefore, these interim financial statements should be read in conjunction with the full set of annual financial statements for the year ended 31 December 2015. The interim results of the Fund are not necessarily indicative of results for the full year.
6-
Investments Held for Trading: a) The sectorw’ise composition of investments held for trading is summarized as follows: 2016 SR. 632,773 industries Petrochemical 307,666 development Real estate 237,594 Industrial 106,265 Banks and financial services Transport 56,078 Retail Hotels Cement 83,707 Telecommunication and information technology Others 1,424,083 Total Exhibit A --
—
b)
7-
—
2015 SR. 997,850 168,042 --
155,373 846,654 110,992 450,030 --
283,914 3,012,855
Cost of the above mentioned investments held for trading amounted to SR. 1,369,260 as of 30 June 2016 G (30 June 2015 SR. 2,802,317).
Unit Transactions: Transactions in units for the period are summarized as follows: For the six months period ended 30 June
2016 Units 441,089
Units at beginning of the period Units issued during the period Units redeemed during the period tinits at end of the period Exhibit A
(265,146) 175,943
—
8-
2015 Units 686,421 369,436 (245,332) 810,525
Management Fee, Custodian & Fund Administration Fees and Sundry Expenses: The Fund Manager charges to the Fund on each Valuation Day, management fee at a rate of 1 .75% per annum of the Fund’s net assets value. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund including custodian and fund administration fee, audit fee, board compensation and other similar charges. These charges, in total, are not expected to exceed the limit as mentioned in terms and conditions of the Fund.
-7-
_______
Al Oula (cojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) -
9-
Transactions and Balances With Related Parties: Related parties of the Fund include unit holders, the Fund Manager and other funds managed by the Fund manager. All transactions with related parties are carried out on mutually agreed prices under formal agreement. Related party transactions for the period and balances arising there from are described as under: Related party
i\ature of transactions
For six months ended 30 June
.
2016 SR. Al Oula Geojit Capital Company (Fund Manager)
Management fee, custody fee and administration fee Redemption of units
2015 SR. 27,937
69,013
2,653,691
The above transaction resulted in the following balance:
Al Oula Geojit Capital Company (Fund Manager) 10-
—
Exhibit A
30 June 2016 SR. 8,997
30 June 2015 SR. 36,219
Financial Risk Management: The Fund maintains position in financial instrument as dictated by its investment policy. All investments are “held for trading” investments. The Fund is exposed to the following risks: Credit Risk: Credit risk is a risk one party to a financial instrument may fail to discharge an obligation and cause the other party to incur a financial loss. The Fund is exposed to the credit risk on cash and cash equivalents which are maintained with the financial institutions with good credit rating. Thus the credit risk is not considered significant. Equity Price Risk: Equity price risk is the risk that the fair value of equity investments decreases as a result of changes in the levels of equity indices and the value of individual stocks. The Fund is exposed to equity price risk arising from its investments in shares. The Fund Manger endeavors to minimize the risk through diversification across various sectors of the Saudi stock markets (Tadawal). Further, the Fund Manager has established risk guidelines to manage its equity prices risk. Currency Risk: Currency risk is the risk that the value of a financial instrument may fluctuate due to a change in foreign exchange rates. The Fund is not subject to currency risk as all the assets and liabilities of the Fund are in local currency.
11-
Fair Values of Financial Instruments: Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise financial assets and financial liabilities. The Fund’s financial assets consist of investments held for trading and cash at bank; its financial liabilities comprise of expenses payable. Investment held for trading are carried at fair values. The fair values of other financial instruments are not materially different from their carrying values.
12-
Last Valuation Day: The last valuation day of the period was 30 June 2016.
13-
Approval of the Interim Financial Statements: These interim financial statements were approved by the Fund Board on 04 Dhu Al-Qadah l437H. corresponding to 07 August 2016G. -8-
Al Oula Geojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia —
Index Page
Exhibit
Auditors’ Limited Review Report
1
Interim Statement of Financial Position as of 30 June 2016 (Unaudited)
2
A
Interim Statement of Income for the Six Months Period Ended 30 June 2016 (Unaudited)
3
B
Interim Statement of Cash Flow for the Six Months Period Ended 30 June 2016 (Unaudited)
4
C
Interim Statement of Changes in Net Assets Attributable to Unitholders for the Six Months Period Ended 30 June 2016 (Unaudited)
5
D
Notes to the Interim Financial Statements for the Six Months Period Ended 30 June 2016 (Unaudited)
6-8
:“
Talal Abu—Ghazaleh & Co. License No. 323)11/81 Dated 5/7/1416
CenifiedPublicAccountants
....tflt/V/O L//1t/rTT ck,ut3
II1
The Unitholders of Al Oula Geojit Al Johar Saudi Equity Fund Kingdom of Saudi Arabia —
Auditors’ Limited Review Report Scope of Review: We have reviewed the accompanying interim statement of financial position of Al Oula Geojit— Al Johar Saudi Equity Fund (the “Fund”) managed by Al Oula Gcojit Capital Company (the “Fund Manger”) as of 30 June 2016 and the related interim statements of income, cash flow and changes in net assets attributable to unitholders for the six months period then ended. These interim financial statements are the responsibility of the Fund Manager who has prepared and submitted them to us alone with all the information requested. We conducted our limited review in accordance with the Standard on Review of Interim Financial Reporting set forth by the Saudi Organization for Certified Public Accountants (SOCPA). A limited review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion on the financial statements; therefore, we do not express such opinion. Conclusion: Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements in order for them to be in conformity with accounting standards generally accepted in the Kingdom of Saudi Arabia. For Tidal Abu-GhazajJi & Co.
ileed A. Bamarouf Certified Public Accountant
License No. 408 04 Dhu Al-Qadah 1437 H. 07 August 2016 C.
Olaya Main St. Beside Ministry of Interior, Tel.: +96611 4642936 Fax: +966 11465 9915 P.O.Box: 9767, Riyadh 11423 Saudi Arabia
L1.IJ1 jjjj
-
www.tagi.com
tagco.niyad’i@tagjcom
-
4t LiJi
tit Yt
i . 4 u
-
‘i i %vW
t)L
Al ()ula Ceojit Al Johar Saudi Equity Fund Managed by Al Oula (;eojit Capital Company Kingdom of Saudi Arabia Interim Statement of Financial Position As of3O June 2016 (Unaudited) —
Exhibit A Note
Assets Cash and cash equivalents Investments held for trading Dividend receivable Total Assets
(6)
Liabilities Accrued expenses and others Due to fund manager Total Liabilities Net Assets Attributable to Unitholders
(9) —
Exhibit D
Units in issue (numbers) Net assets attributable to each unit (SR)
(7)
2015 SR.
2016 SR. 447,942 1,424,083 3,510 1,875,535
6,890,162 3,012.855 1,607 9,904,624
53,642 8,997 62,639 1,812,896
22,620 36,219 58.839 9,845,785
—
175,943 10.30
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
.2
810,525 12.15
.41 Oula (;cojit Al Johar Saudi Equity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Interim Statement of Income For the Six Months Period Ended 30 June 2016 (Unaudited) —
Exhibit B For six months period ended 30 June 2016 2015 SR. SR. —
Income Realized (loss) / gain on disposal of investments held for trading Unrealized gain on revaluation of investments held for trading Net (loss) I gain from investments held for trading Dividend income Total (loss) I income for the period Expenses Management and administration fees Other expenses Total expenses for the period Net (Loss) / Income for the Period
(8)
—
Exhibit D
—
(147,831) 54,823 (93,008) 35,158 (57,850)
832,654
(56,233) (255) (56,488) (114,338)
(91 ,578) (335) (91,913) 740,741
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-3-
—
525,625 2 I 0.538 736.163
L 964
Al Oula (.cojit Al Johar Saudi Equity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Interim Statement of Cash Flow For the Six Months Period Ended 30 June 2016 (Unaudited) —
Exhibit C For six months period ended 30 June 2016 2015 SR. SR.
Cash Flow from Operating Activities Net (loss) / income for the period
(114,338)
740.741
Adjustment for: Unrealized (gain) on investments held for trading
(54,823)
(210.538)
Changes in Operating Assets and Liabilities Investments held for trading Investment in IPO Dividend receivable Accrued expenses and others Due to fund manager
754,530 81,810 (3,510) 21,797 (18,674)
2,979,122
Net cash from operating activities
666,792
(1,607) (10,409) (4,876) 3,492,433
Cash Flow from Financing Activities Proceeds from issuance of units Payments against redemption of units
(2,653,691)
4,608.360 (2.846,217)
Net cash (used in) / from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents, beginning of the period
(2,653,691)
1,762,143
(1,986,899) 2,434,841
5,254,576 I ,635,586
447,942
6,890.162
Cash and Cash Equivalents, End of the Period
—
Exhibit A
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-4-
A I ()u Ia (eojit Al John r Sn ud i Fq u ity Fund Managed by Al Oula (;eojit Capital Conipany Kingdom of Saudi Arabia Interim Statement of Changes in Net Assets Attributable to Unitholders For the Six Months Period Ended 30 June 2016 (Unaudited) —
ExhibitD
Net Assets Attributable to Unitholders at Beginning of the Period
For six months period ended 30 June 2016 2015 SR. SR. 4,580,925 7.342,901
Net (loss) / income for the period Total
(114,338) 4,466,587
740,741 8.083.642
(2,653,691) 1,812,896
4.608,360 (2,846,21 7) 9,845,785
—
Exhibit B
Changes from unit transactions Proceeds from issuance of units Payments against redemption of units Net Assets Attributable to Unitholders at End of the Period
—
Exhibit A
-
The Accompanying Notes from (1) to (13) Constitute an Integral Part of These Interim Financial Statements
-5-
Al ()ula (.eojit Al Johar Saudi I’.quity Fund Managed by Al Oula Ceojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) —
1-
The Fund and Its Activities: Al Oula Geojit Al Johar Saudi Equity Fund (“the Fund”) is an open—ended mutual investment fund which is managed through an agreement between a! Oula Geojit Capital Company (“the Fund Manager”) and the investors (the Unitholders). The objective of the Fund is to seek capital growth by investing in a diversified portfolio of companies listed on Tadawul (Saudi equity market), over medium to long term period. All income is reinvested in the Fund and is reflected in the unit price. In dealing with the unit holders, the Fund Manager considers the Fund as an independent unit. Accordingly, the Fund Manager prepares separate financial statements for the Fund. The Fund commenced its activities on 23 January 201 2 to meet the above mentioned objectives. —
2-
Regulating Authority: The Fund is governed by the Investment Fund Regulations (“the Regulations”) issued by the Board of the Capital Market Authority (“CMA”) pursuant to its resolution number 1-219-2006 dated 3 Dhul Hijjah 1427H. corresponding to 24 December 2006 based on the Capital Market Law issued by Royal Decree No. M/30 dated 2 Jumada Al Akhir 1424 H. corresponding to 31 July 2003.
3-
Subscription / Redemption (Dealing Day & Valuation Day): Subscription / redemption requests will be accepted on all days on which the Tadawul is open. The value of the Fund’s portfolio is determined twice weekly on Monday and Wednesday (each being a “Valuation Day”). The net asset value of the Fund for the purpose of purchase or sale of units is determined by dividing the net value of assets by the total number of outstanding fund units on the relevant valuation day.
4-
Basis of Preparation: a)
Statement of Compliance: These interim financial statements have been prepared in accordance with the requirements of accounting standard on interim linancial reporting issued by the Saudi Organization of Certified Public Accountants (the “SOCPA”).
b)
Basis of Measurement: These interim financial statements have been prepared tinder the historical cost convention, except for the investments held for trading that are measured at fair value, using accrual basis of accounting and the going concern concept.
C)
Functional and Presentation Currency: These interim financial statements are presented in Saudi Arabian Riyals (SR) which is the functional currency of the Fund.
d)
Use of Estimates and Judgments: In the ordinary course of business, the preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. 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 in future periods affected.
-6-
Al Dub Ceojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) —
5-
Significant Accounting Policies: The significant accounting policies used in these interim financial statements are consistent with those used in the Fund’s annual financial statements for the year ended 31 December 2015. These interim financial statements do not include all the information presented in full set of annual financial statements; therefore, these interim financial statements should be read in conjunction with the full set of annual financial statements for the year ended 31 December 2015. The interim results of the Fund are not necessarily indicative of results for the full year.
6-
Investments Held for Trading: a) The sectorw’ise composition of investments held for trading is summarized as follows: 2016 SR. 632,773 industries Petrochemical 307,666 development Real estate 237,594 Industrial 106,265 Banks and financial services Transport 56,078 Retail Hotels Cement 83,707 Telecommunication and information technology Others 1,424,083 Total Exhibit A --
—
b)
7-
—
2015 SR. 997,850 168,042 --
155,373 846,654 110,992 450,030 --
283,914 3,012,855
Cost of the above mentioned investments held for trading amounted to SR. 1,369,260 as of 30 June 2016 G (30 June 2015 SR. 2,802,317).
Unit Transactions: Transactions in units for the period are summarized as follows: For the six months period ended 30 June
2016 Units 441,089
Units at beginning of the period Units issued during the period Units redeemed during the period tinits at end of the period Exhibit A
(265,146) 175,943
—
8-
2015 Units 686,421 369,436 (245,332) 810,525
Management Fee, Custodian & Fund Administration Fees and Sundry Expenses: The Fund Manager charges to the Fund on each Valuation Day, management fee at a rate of 1 .75% per annum of the Fund’s net assets value. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund including custodian and fund administration fee, audit fee, board compensation and other similar charges. These charges, in total, are not expected to exceed the limit as mentioned in terms and conditions of the Fund.
-7-
_______
Al Oula (cojit Al Johar Saudi Equity Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Six Months Period Ended 30 June 2016 (Unaudited) -
9-
Transactions and Balances With Related Parties: Related parties of the Fund include unit holders, the Fund Manager and other funds managed by the Fund manager. All transactions with related parties are carried out on mutually agreed prices under formal agreement. Related party transactions for the period and balances arising there from are described as under: Related party
i\ature of transactions
For six months ended 30 June
.
2016 SR. Al Oula Geojit Capital Company (Fund Manager)
Management fee, custody fee and administration fee Redemption of units
2015 SR. 27,937
69,013
2,653,691
The above transaction resulted in the following balance:
Al Oula Geojit Capital Company (Fund Manager) 10-
—
Exhibit A
30 June 2016 SR. 8,997
30 June 2015 SR. 36,219
Financial Risk Management: The Fund maintains position in financial instrument as dictated by its investment policy. All investments are “held for trading” investments. The Fund is exposed to the following risks: Credit Risk: Credit risk is a risk one party to a financial instrument may fail to discharge an obligation and cause the other party to incur a financial loss. The Fund is exposed to the credit risk on cash and cash equivalents which are maintained with the financial institutions with good credit rating. Thus the credit risk is not considered significant. Equity Price Risk: Equity price risk is the risk that the fair value of equity investments decreases as a result of changes in the levels of equity indices and the value of individual stocks. The Fund is exposed to equity price risk arising from its investments in shares. The Fund Manger endeavors to minimize the risk through diversification across various sectors of the Saudi stock markets (Tadawal). Further, the Fund Manager has established risk guidelines to manage its equity prices risk. Currency Risk: Currency risk is the risk that the value of a financial instrument may fluctuate due to a change in foreign exchange rates. The Fund is not subject to currency risk as all the assets and liabilities of the Fund are in local currency.
11-
Fair Values of Financial Instruments: Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise financial assets and financial liabilities. The Fund’s financial assets consist of investments held for trading and cash at bank; its financial liabilities comprise of expenses payable. Investment held for trading are carried at fair values. The fair values of other financial instruments are not materially different from their carrying values.
12-
Last Valuation Day: The last valuation day of the period was 30 June 2016.
13-
Approval of the Interim Financial Statements: These interim financial statements were approved by the Fund Board on 04 Dhu Al-Qadah l437H. corresponding to 07 August 2016G. -8-
