AlAhli Saudi Trading Equity Fund
AlAhli Saudi Trading Equity Fund
Annual Report – 2017
Contents A. Investment Fund Information ................................................................................................................................... 3
B. Fund Performance..................................................................................................................................................... 3
C. Fund Manager ........................................................................................................................................................... 5
D. Custodian .................................................................................................................................................................. 6
E. Auditor ...................................................................................................................................................................... 6
F. Financial Statements ................................................................................................................................................. 6
Annex - Exercised Voting Rights
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
AlAhli Saudi Trading Equity Fund – 2017 Annual Report A. Investment Fund Information 1. Investment Objective AlAhli Saudi Trading Equity Fund investment objective is to achieve long term capital growth through investing in the Saudi equity market in accordance with the Shariah guidelines issued by the Fund Shariah Board. 2. Investment Policies Investing mainly in Shariah compliant shares of companies listed in the main market, including IPOs and right issues, and ETFs authorized by CMA. In addition, the Fund may invest in real estate investment traded funds and shares of companies listed on the Saudi parallel market (Nomu), including IPOs and right issues. The fund may also invest in mutual funds that invest in Saudi or GCC markets. The Fund may invest cash surplus in Shariah-compliant money market transactions or funds. 3. Distribution of income and gain policy Income and dividends will be reinvested in the Fund. No income or dividends will be distributed to Unitholders. 4. The fund's reports are available upon request free of charge. B. Fund Performance 1. The following table shows a comparison of the following data for the last three years: Year
2017
2016
2015
956,183,136
983,799,639
976,455,017
NAV per Unit*
8.27
8.46
7.81
Highest Price*
8.61
8.51
10.73
Lowest Price*
7.83
6.41
7.62
115,551,391
116,238,656
125,007,489
-
-
-
1.79%
1.81%
1.93%
AUM*
Number of Units Income Distribution Fees and Expense ratio * In Saudi Riyal
2. Total return compared to the benchmark for 1 year, 3 years, 5 years and 10 years: Period
Year
3 Years
5 Years
10 Years
Total return %
-2.23
-2.61
3.92
-0.17
Benchmark %
3.89
-0.78
3.66
-0.63
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
3. Annual total return for each of the last 10 financial years: Year
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Return %
-2.23
8.35
-12.82
-0.10
31.34
5.29
1.97
16.57
33.63
-51.5
Benchmark %
3.89
10.57
-14.98
-4.74
28.64
12.43
2.47
13.35
38.59
-56.68
4. Actual fees and fund expenses paid by the investment fund during the year: Fees and Expenses
Percentage of NAV
Management Fee Expense
1.75%
Audit Fee Expense
0.00%
Fund Admin Fee Expense
0.03%
CMA Fee Expense
0.00%
Tadawul Fee Expense
0.00%
Shariah Audit Fee Expense
0.00%
Fund Board Fee Expense
0.00%
Expense Ratio
1.79%
5. Material Changes: Crude oil prices for most of 2017 have been above the USD 55/bbl level, but during last quarter of the year soared and closed the year with Brent oil price at USD 66.9/bbl resulting in 17.7% up from 2016 levels. However, the Saudi market still lagged oil movement where it closed the year of 2017 up by +0.22% (i.e. +16 points). Furthermore, banks were able to increase dividends throughout 2017 due to improved assets quality, less provision than 2016, and rise in interest rates which enhanced returns and led to better capital adequacy ratios for the banking sector. The recent budget has a clear focus on spending, capex and the private sector that is expected to boost economic development. Importantly, the budget has set a well-defined pathway towards higher dependency on non-oil revenues and gradual implementation of energy price & subsidy adjustments. The gradual implementation of reforms under NTP 2020 and Saudi Vision 2030 is positive for the Kingdom. The inclusion of KSA by MSCI into its EM watch-list and FTSE reassessment on Saudi Arabia’s inclusion next March are potent near-term catalyst for the equity markets. Finally, the Kingdom’s is going multiple positive developments including its transparency drive, ongoing economic transformation and forthcoming slated IPO of Aramco. 6. Exercising of voting right The Fund Manager has exercised voting rights, for more details kindly refer to the “Exercising of voting right Annex”.
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
7. Fund Board Annual Report: The Board of Directors consists of the following members, who were appointed by the fund manager and approved by the Capital Market Authority: Mohammed Al-Ali Mohammed Saqaf Dr. Abdulrauof Banajah Alaaeldden Sami
Chairman of the Fund’s Board of Directors non-independent member independent member independent member
The Fund's Board of Directors held three meetings during 2017. The following is a summary of the key decisions approved and the matters discussed by the Fund’s Board of Directors: Fund’s performance review: as the fund depreciated by 2.23%. Risks related to the funds; including: liquidity, market, operational risks. Ensuring fund’s compliance to all applicable rules and regulations. The effects of the updated Investment Funds Regulations on the fund. C. Fund Manager 1. NCB Capital Company. King Saud Road, P.O. Box 22216, Riyadh 11495, Saudi Arabia, Tel: +966 920000232 Website: www.alahlicapital.com 2. Sub-manager / investment adviser None 3. Investment activities On the back of the different government initiatives and announcements throughout 2017 (increase in gas prices, energy prices, and announcement of possible inclusion of KSA by MSCI into its EM), the fund witnessed some changes to stock selection and sector allocation to enhance performance and gain from positive changes to the economy that are expected to directly affect certain companies. 4. Fund’s performance In 2017, The Fund performance was -2.23% while the benchmark was 3.89%. 5. T&C’s Material changes The Fund Manager has made certain revisions to the terms and conditions of the Fund. Which Includes: Adding Definitions to the Terms and Conditions; Updating the Terms and Condition to include Value Added Tax law; Updating Fund’s Investments Policies and Practices, and Principal Risks to include investing in the Parallel Market (Nomu) and REITs, and payment of redemption proceeds to be five days. 6. The fund does not invest substantially in other investment funds. 7. No special commissions were received by the fund manager during the period
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
D. Custodian 1. NCB Capital Company. King Saud Road, P.O. Box 22216, Riyadh 11495, Saudi Arabia, Tel: +966 920000232 Website: www.alahlicapital.com 2. Custodian’s duties and responsibilities The custodian shall be held responsible to the fund manager and unitholders for any losses caused to the investment fund due to the custodian fraud, negligence, misconduct or willful default. The custodian shall be responsible for taking custody and protecting the fund's assets on behalf of unitholders, and taking all necessary administrative measures in relation to the custody of the fund's assets. 3. Custodian’s opinion NCB Capital Co. hereby confirms that we Issued, transferred and redeemed the units in accordance with the provision of the IFR and Fund T&Cs. NCB Capital Co. hereby confirms that we valued and calculated the Unit price in accordance with the provisions of IFR, Fund T&Cs and Information Memorandum. NCB Capital Co. hereby confirms that we have not breached any of the Investment Restrictions, Limitations and borrowing powers applicable to IFR. E. Auditor 1. KPMG Al Fozan & Partners. Zahran Business Center, Prince Sultan Street, Jeddah, Saudi Arabia Tel: +966 12 6989595 Website: www.kpmg.com/sa 2. Auditor’s opinion: Accompanying financial statements have complied with the requirements of the applicable provisions of the Investment Funds Regulations issued by the Capital Market Authority, and the Fund’s Terms and Conditions and the Information Memorandum in so far as they affect the preparation of the financial statements and accordingly nothing has been reported by the auditor in their report which is in compliance with the SOCPA requirements. F. Financial Statements
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) FINANCIAL STATEMENTS For the year ended 31 December 2017 with INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS
kpmg
KPMG Al Fozan & Partners Certified Public Accountants Zahran Business Centre, 9th Floor Prince Sultan Street PO Box 55078 Jeddah 21534 Kingdom of Saudi Arabia
Telephone +966 12 698 9595 Fax +966 12 698 9494 Internet www.kpmg.com.sa License No. 46/11/323 issued 11/3/1992
Independent auditors’ report The Unitholders AlAhli Saudi Trading Equity Fund Jeddah, Kingdom of Saudi Arabia Opinion We have audited the financial statements of AlAhli Saudi Trading Equity Fund (“the Fund”) managed by NCB Capital Company (the “Fund Manager”) which comprise the balance sheet as at 31 December 2017, the statements of income, cash flows and changes in net assets attributable to unitholders for the year then ended, and notes, comprising significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with generally accepted accounting standards as issued by Saudi Organization for Certified Public Accountants (SOCPA). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Fund in accordance with the professional code of conduct and ethics that are endorsed in the Kingdom of Saudi Arabia that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Fund Manager and Those Charged with Governance for the Financial Statements. The Fund Manager is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting standards as issued by SOCPA, the applicable provisions of the Investment Funds Regulations issued by Capital Market Authority, the Fund’s terms and conditions, the Information Memorandum, and for such internal control as Fund Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Fund Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Fund Manager either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Fund’s financial reporting process.
KPMG Al Fozan & Partners, a partnership registered in Saudi Arabia and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) BALANCE SHEET As at 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes
2017
2016
ASSETS Cash and cash equivalents
7
15,835
45,951
Held for trading investments
9
942,297
937,958
502 ─────────
-────────
958,634
983,909
1,988
59
463
50
─────────
────────
2,451 ───────── 956,183 ═════════ 115,551 ═════════ 8.2750 ═════════
109 ──────── 983,800 ════════ 116,239 ════════ 8.4636 ════════
Dividends receivable Total assets
LIABILITY Payable to unitholders on account of redemptions Management fee payable
Total liabilities Net assets attributable to Unitholders 10
Units in issue in thousands (number) Net asset value per unit (SR)
The accompanying notes 1 to 14 form integral part of these financial statements
1
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF INCOME For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Note
2017
2016
Dividend income
29,204
27,016
Realised gain / (loss) on sale of held for trading investments
21,022
(209,138)
(55,137) ─────── (4,911) ───────
274,197 ─────── 92,075 ───────
16,999
15,653
270
619
Shariah audit fee
27
27
Professional fees
28
24
Fund Board remuneration
18
17
7 ─────── 17,349 ─────── (22,260) ═══════
7 ─────── 16,347 ─────── 75,728 ═══════
INVESTMENT REVENUE
Unrealised (loss) / gain on measurement of held for trading investments Total (loss) / revenue
8
EXPENSES Management fee Administrative expenses
CMA fee Total expenses Net (loss) / income for the year
The accompanying notes 1 to 14 form integral part of these financial statements
2
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF CASH FLOWS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Note
2017
2016
(22,260)
75,728
-55,137 ───────── 32,877
9,524 (274,197) ──────── ─ (188,945)
(59,476) (502) --
177,192 2,344 960
Cash flow from operating activities Net (loss) / income for the year Adjustment for: Value of units reinvested Unrealized loss / (gain) on held for trading investments
Changes in operating assets and liabilities: (Increase) / decrease in held for trading investments (Increase) / decrease in dividends receivable Decrease in IPO deposit Increase in payable to unitholders on account of redemptions Increase in management fee payable
12 1,929 50 413 ───────── ───────── (24,759) (8,387) ───────── ─────────
Net cash used in operating activities
Cash flow from financing activities Proceeds from units sold Value of units redeemed Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year
7
Cash and cash equivalents at the end of the year
7
219,184 (224,541) ───────── (5,357) ───────── (30,116)
99,484 (177,440) ───────── (77,956) ───────── (86,343)
45,951 ───────── 15,835 ═════════
132,294 ───────── 45,951 ═════════
The accompanying notes 1 to 14 form integral part of these financial statements
3
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Notes
2017
2016
Net assets attributable to Unitholders at the beginning of the year
983,800
976,504
Net (loss) / income for the year
(22,260)
75,728
219,184
99,484
--
9,524
(224,541)
(177,440)
(5,357) ─────────
(68,432) ─────────
956,183
983,800
═════════
═════════
Decrease in net assets from unit transactions during the year
9
Proceeds from units sold Value of units reinvested
8
Value of units redeemed
Net assets attributable to Unitholders at the end of the year
The accompanying notes 1 to 14 form integral part of these financial statements
4
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 1
THE FUND AND ITS ACTIVITIES
AlAhli Saudi Trading Equity Fund (the “Fund”) is a Shariah compliant, open-ended investment fund, managed by NCB Capital Company (the “Fund Manager”), a subsidiary of The National Commercial Bank (the "Bank"), for the benefit of the Fund's Unitholders. The Fund is established under article 30 of the Investment Fund Regulations (the Regulations) issued by the Capital Market Authority (CMA). NCB Capital Company also acts as the custodian of the Fund. As defined in Capital Market Authority's (CMA) Regulation No. 2-83-2005 dated 21 Jumada Awal 1426H (28 June, 2005) the Fund Manager conducts following securities’ activities: a) b) c) d) e)
Dealing; Arranging; Managing; Advising; Custody;
The Fund's objective is to achieve long term capital growth through investing in listed companies in the Saudi equity market that comply with Shariah guidelines. The terms and conditions of the Fund were initially approved by the Saudi Arabian Monetary Authority (SAMA) and subsequently endorsed by the Capital Markets Authority (CMA) through their letter dated 18 Dhul Hijja 1429H (corresponding to 16 December 2008). The Fund commenced its activities on 3 June 1998. 2
REGULATING AUTHORITY
The Fund is governed by the Regulations issued by the CMA pursuant to resolution number 7-219-2006 dated 3 Dhul Hijja 1427H (corresponding to 24 December 2006) as amended by the Resolution No 1/61/2016 of Board of the CMA dated 16 Sha’ban 1437H (corresponding to 23 May 2016), which provided detailed requirements for all funds within the Kingdom of Saudi Arabia. 3
CHANGES IN FUND' S TERMS AND CONDITIONS
During the year ended 31 December 2017, the Fund Manager has made certain revisions to the terms and conditions of the Fund. The main change in the terms and conditions relate to change in Fund’s investment strategy, inclusion of additional risk factors relating to change in investment strategy, revision redemption proceeds payment deadline and inclusion of VAT clause. The changes other than inclusion of VAT clause were notified CMA through a letter dated 11 July 2017 and was notified by the Fund manager to the unitholders through a letter dated 27 July 2017. The revised terms and conditions became effective from 27 August 2017. The change for the inclusion of VAT clause was notified to CMA through a letter dated 4 December 2017 and notified by the Fund Manager to the unitholders through a letter dated 6 December 2017. The change became effective from 1 January 2018.
5
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
SUBSCRIPTION AND REDEMPTION
The Fund is open for subscriptions / redemptions of units on every Saudi Business day. The net asset value of the Fund is determined on each Saudi Business day. All transactions for purchase / sale of units are entered on the net assets value of the Fund, determined by dividing the value of net assets of the Fund by the total number of outstanding Fund units on the relevant Valuation day. 5
BASIS OF PREPARATION
Statement of compliance These financial statements are prepared in accordance with generally accepted accounting standards in the Kingdom of Saudi Arabia promulgated by Saudi Organization for Certified Public Accountants ("SOCPA"), the applicable provisions of the Investment Funds Regulations issued by Capital Market Authority, the Fund’s terms and conditions and the Information Memorandum. The Fund prepares its financial statements as at and for the year ended on its last valuation date (note 13). Basis of measurement These financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for held for trading investments which are carried at fair value. Functional and presentational currency These financial statements are presented in Saudi Arabian Riyals (SR), which is the Fund’s functional currency. All financial information presented in Saudi Arabian Riyals has been rounded to the nearest thousand. Use of estimates and judgments The preparation of the financial statements in conformity with the generally accepted accounting standards as applicable in the Kingdom of Saudi Arabia requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues 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 any future periods affected. Valuation of financial assets 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. As the Fund's financial instruments are accounted for under the historical cost convention, except for held for trading investments, differences may arise between the carrying values and fair values. The Fund Manager believes that at the reporting date, the fair values of the Fund's financial assets and liabilities are not materially different from their carrying values.
6
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5
BASIS OF PREPARATION (continued)
Use of estimates and judgments (continued) Valuation of financial assets (continued) The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
All financial assets of the fund, carried at fair value at the reporting date, are classified under hierarchy level 1. 6
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all years presented in these financial statements. a)
Held for trading investments
Securities listed or traded on a stock exchange are classified as Held for Trading and are initially recognized at cost, being the fair value of the consideration given and are subsequently measured at fair value. Changes in fair values of held for trading investments (“investments”), comprising unrealized gains and losses are included in the statement of income. Realized gains and losses on investments sold are determined on weighted average basis. b)
Investment transaction
Investment transactions are accounted for as of the trade date. c)
Impairment of financial assets
An assessment is made at the balance sheet date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence exists, any impairment loss is recognized in the statement of income. If a financial asset is impaired, impairment is determined as follows: (i)
For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognized in the statement of income; (ii) For assets carried at cost, impairment is the difference between carrying value and the present value of future cash flows discounted at the current market rate of return for a similar financial asset; (iii) For assets carried at amortized cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective commission rate.
7
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 6 d)
SIGNIFICANT ACCOUNTING POLICIES (continued) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized where: (i) (ii) (iii)
The rights to receive cash flows from the asset have expired; or The Fund has transferred its rights to receive cash flows from the asset; and Either (a) the Fund has transferred substantially all the risks and rewards of the asset, or (b) the Fund has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Fund has transferred its rights to receive cash flows from an asset, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Fund’s continuing involvement in the asset. e)
Revenue recognition
Realized gains and losses on investments sold are determined on an average cost basis. Dividends are recognized when the Fund’s right to receive the payment is established. Increases or decreases in the difference between the cost and market value of the Fund’s portfolio of investments are recognized as change in fair value of investments in the statement of income. f)
Foreign currency translation
Transactions during the year in currencies other than the functional currency are translated into the functional currency at the rates of exchange at the dates of the transactions. Monetary assets and liabilities that are denominated in a foreign currency are retranslated at the rate of exchange ruling at the balance sheet date. Exchange gains or losses are reflected in the statement of income. g)
Taxation / zakat
Taxation / zakat is the obligation of the Unitholders and therefore, no provision for such liability is made in these financial statements. h)
Cash and cash equivalents
For the purposes of the statement of cashflows, cash and cash equivalents consists of bank balances. i)
Net asset value per unit
The net asset value per unit is calculated by dividing the net assets attributable to Unitholders included in the balance sheet by the number of units outstanding at the year end.
8
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 6
SIGNIFICANT ACCOUNTING POLICIES (continued)
j)
Provision and accruals
Provisions and accruals are recognized when the Fund has an obligation (legal or constructive) arising from a past event, and the costs to settle the obligation are both probable and can be measured reliably. k)
Offsetting
Financial assets and liabilities are offset and reported net in the balance sheet when there is a legally enforceable right to set off the recognized amounts and when the Fund intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. Income and expenses are presented on a net basis only when permitted under accounting standards generally accepted in the Kingdom of Saudi Arabia, or for gains and losses arising from a group of similar transactions. 7
CASH AND CASH EQUIVALENTS
Cash and cash equivalents represent cash held in current accounts with National Commercial Bank (a related party). 8
MANAGEMENT FEE AND OTHER EXPENSES
The Fund is managed and administered by the Fund Manager. For these services, the Fund accrues, on each valuation day, a management fee, as determined by the Fund Manager, but which is no more than the maximum annual rate of 1.75%, as set out in the Fund’s terms and conditions, of the Fund's net assets on those dates. The Fund Manager is also entitled to recover expenses incurred on behalf of the Fund relating to audit, custody, advisory, data processing and other similar charges. The maximum amount of such expenses that can be recovered from the Fund by the Fund Manager is restricted to 0.5% per annum of the Fund's net assets at the respective valuation days. These expenses have been recovered by the Fund Manager on an actual basis. Until 23 July 2016, the Fund Manager was allocated units against settlement of the management fee and other expenses on every valuation day, which were reinvested in the Fund. Subsequent to this date, these fees/charges are paid in cash.
9
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 9
HELD FOR TRADING INVESTMENTS
The composition of held for trading investments by industry sector is summarized below: 2017 Industry Sector
Petrochemical Industries Banking and Financial Services Real Estate Development Insurance Retail Industrial Investment Agricultural and Food Industries Transportation Energy and Utilities Cement Industry Hotel tourism AlAhli Fund of REITs Fund
% of Total Value
33.63 20.83 12.29 6.48 5.12 4.85 4.35 3.56 3.50 2.66 2.40 0.33 ──────── 100 ════════
Cost
271,569 175,941 122,785 62,227 49,454 33,564 44,495 31,924 36,544 26,662 29,101 3,000 ──────── 887,226 ════════
Fair Value
316,904 196,294 115,843 61,063 48,290 45,724 41,030 33,567 32,970 25,032 22,581 2,999 ──────── 942,297 ════════
2016 Industry Sector Petrochemical Industries Banking and Financial Services Real Estate Development Transportation Retail Industrial Investment Telecommunication and Information Technology Insurance Agricultural and Food Industries
% of Total Investment
Cost
Fair Value
39.72 15.53 12.72 10.20 7.05 5.46
315,690 146,742 102,417 82,710 54,368 48,377
372,592 145,704 119,282 95,652 66,119 51,242
5.22 3.61 0.48 ──────── 100 ════════
46,115 27,203 4,167 ──────── 827,789 ════════
48,971 33,879 4,517 ──────── 937,958 ════════
10
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 10
UNIT TRANSACTIONS
Transactions in units during the year are summarized as follows: 2017 Units 000
2016 Units 000
116,239
125,014
26,662
13,410
Units reinvested
--
1,282
Units redeemed
(27,350)
(23,467)
(688) ───────── 115,551 ═════════
(8,775) ───────── 116,239 ═════════
Units at the beginning of the year
Units sold
Net increase / (decrease) in units during the year Units at the end of the year
As at 31 December 2017, top five Unitholders represented 20.05% (31 December 2016: 14.93%) of the Fund’s units. 11
RELATED PARTY TRANSACTIONS
In the ordinary course of its activities, the Fund transacts business with related parties on the basis of approved terms and conditions of the Fund. All related party transactions are approved by the Fund Board. Name of entity
Relationship
NCB Capital Company National Commercial Bank (NCB)
Fund Manager Shareholder of Fund Manager and Banker to the Fund Associate of NCB Unitholder Unitholder Unitholder Unitholder Unitholder
AlAhli Takaful Company AlAhli Multi Asset Conservative Fund AlAhli Multi Asset Moderate Fund AlAhli Multi Asset Growth Fund AlAhli IPO Fund AlAhli Global Equity Fund
11
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 11
RELATED PARTY TRANSACTIONS (continued)
The significant related party transactions entered into by the Fund during the year and balances resulting from such transactions are as follows: Value of units Amount of transactions held as at 31 December Related party Nature of transaction 2017 2016 2017 2016 NCBC
Management Fee
16,999
15,653
Expenses paid on behalf of the fund
350
694
AlAhli Multi Asset Conservative Fund
Subscription of units
41,848
15,732
Redemption of units
25,360
7,706
AlAhli Multi Asset Moderate Fund
Subscription of units
43,622
15,267
Redemption of units
23,377
7,366
AlAhli Multi Asset Growth Fund
Subscription of units
38,799
11,800
Redemption of units
21,106
4,306
Subscription of units
1,406
800
Redemption of units
2,194
--
Subscription of units
5,500
Redemption of units
4,056
--
Subscription of units
15,908
--
Redemption of units
14,178
--
AlAhli Global Equity Fund
--
---
25,921
9,316
29,477
9,144
26,040
8,345
--
834 -
AlAhli IPO Fund
AlAhli Takaful Company
12
1,405
-
1,609
-
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 12
FINANCIAL RISK MANAGEMENT
The Fund’s activities expose it to a variety of financial risks: market risk, credit risk, equity risk, currency risk and liquidity risk. The Fund’s overall risk management program seeks to maximize the returns derived for the level of risk to which the Fund is exposed, and, to minimize potential adverse effects on the Fund’s financial performance. The Fund Manager uses different methods to measure and manage the various types of risk to which the Fund is exposed. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Fund Manager seeks to manage credit risk by monitoring credit exposures, limiting transactions with specific counterparties, and continually assessing the creditworthiness of counterparties. As at the balance sheet date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents, which represent cash at bank with a local Bank having sound credit rating. Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial asset. The Fund Manager seeks to manage liquidity risk by ensuring, as far as possible, that it will have sufficient liquidity to meet its financial liabilities as and when they fall due, in normal or stressed conditions, without incurring unacceptable losses or risking damage to the its reputation. Equity price risk Equity price risk is the risk that the value of financial instruments will fluctuate because of changes in market prices. The Fund's investments are susceptible to market price risk arising from uncertainties about future prices. The Fund Manager manages this risk through diversification of its investment portfolio in terms of industry concentration (see note 9). The effect on the statement of income (as a result of the change in the fair value of investments in equity instruments as at December 31) due to a reasonably possible change in equity indices based on the industry concentration, with all other variables held constant is as follows:
Effect on net assets
Change in market prices
2017
2016
± 10%
±94,298
± 93,796
Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to a change in foreign exchange rates. The Fund views the Saudi Arabian Riyals as its functional currency. The Fund's financial assets and liabilities are denominated in its functional currency. Accordingly, there is no significant currency risk.
13
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 13
LAST VALUATION DAY
The last valuation day for the year was 31 December 2017 (2016: 28 December 2016). 14
APPROVAL OF THE FINANCIAL STATEMENTS
These financial statements were approved by the Fund Manager on Rajab 10, 1439H, corresponding to March 27, 2018.
14
Annex - Exercised Voting Rights Company
Date Of AGM
Subject Of Voting
Voting Decision
National Shipping Company Of Saudi Arabia
16/01/2017
BoD member selection
National Shipping Company Of Saudi Arabia
16/01/2017
Vote on recommendation of BoD to appoint the external auditors
Abstain
National Shipping Company Of Saudi Arabia
16/01/2017
vote to approve the decisions which are taken by the current BoD
Abstain
National Shipping Company Of Saudi Arabia
16/01/2017
Distribution of cash dividend
Jabal Omar Development Co.
23/02/2017
Auditors report
Abstain
Jabal Omar Development Co.
23/02/2017
Consolidated financial statements
Abstain
Jabal Omar Development Co.
23/02/2017
Board of Directors Report
Abstain
Jabal Omar Development Co.
23/02/2017
Discharge of the members of the Board of Directors from liability
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on recommendation of BoD to appoint the external auditors ,
Abstain
Jabal Omar Development Co.
23/02/2017
BoD member selection
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/02/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
Abstain
Advanced Petrochemical Co.
07/03/2017
Board of Directors Report
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Advanced Petrochemical Co.
07/03/2017
Consolidated financial statements
Abstain
Advanced Petrochemical Co.
07/03/2017
Auditors' report
Abstain
Advanced Petrochemical Co.
07/03/2017
Distribution of cash dividend
Abstain
Advanced Petrochemical Co.
07/03/2017
Distribute interim cash dividends
Abstain
Advanced Petrochemical Co.
07/03/2017
The recommendation of the Board of Directors to pay remuneration of Saudi Riyals 200,000
Abstain
Advanced Petrochemical Co.
07/03/2017
Discharge of the members of the Board of Directors from liability
Abstain
Advanced Petrochemical Co.
07/03/2017
The recommendation of the Board of Directors to appoint the external auditors
Abstain
Advanced Petrochemical Co.
07/03/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
Abstain
Advanced Petrochemical Co.
07/03/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/03/2017
Auditors report
YES
Jabal Omar Development Co.
23/03/2017
Consolidated financial statements
YES
Jabal Omar Development Co.
23/03/2017
BoD Report
YES
Jabal Omar Development Co.
23/03/2017
Discharge of the members of the Board of Directors from liability
Jabal Omar Development Co.
23/03/2017
Vote on recommendation of BoD to appoint the external auditors ,
Jabal Omar Development Co.
23/03/2017
BoD member selection
Abstain
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/03/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
Saudi Arabian Mining Co.
02/04/2017
Consolidated financial statements
YES
Saudi Arabian Mining Co.
02/04/2017
Auditors report
YES
Saudi Arabian Mining Co.
02/04/2017
BoD Report
YES
Saudi Arabian Mining Co.
02/04/2017
Vote on recommendation of BoD not to distribute cash dividends
Saudi Arabian Mining Co.
02/04/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Saudi Arabian Mining Co.
02/04/2017
Discharge of the members of the Board of Directors from liability
YES
Saudi Arabian Mining Co.
02/04/2017
BoD member selection
Saudi Arabian Mining Co.
02/04/2017
The formation of the Audit Committee
YES
Saudi Arabian Mining Co.
02/04/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Board of Directors Report
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Consolidated financial statements
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Auditors' report
YES
Abstain
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
National Shipping Company Of Saudi Arabia
12/04/2017
Discharge of the members of the Board of Directors from liability
Abstain
National Shipping Company Of Saudi Arabia
12/04/2017
The formation of the Audit Committee
Abstain
National Shipping Company Of Saudi Arabia
12/04/2017
Authorizing BoD to distribute half yearly dividends or quarterly dividends
National Shipping Company Of Saudi Arabia
12/04/2017
The recommendation of the Board of Directors to pay remuneration of Saudi Riyals 200,000
National Shipping Company Of Saudi Arabia
12/04/2017
Change on the company bylaws
YES
Sahara Petrochemical Co.
18/04/2017
Board of Directors Report
YES
Sahara Petrochemical Co.
18/04/2017
Auditors' report
YES
Sahara Petrochemical Co.
18/04/2017
Consolidated financial statements
YES
Sahara Petrochemical Co.
18/04/2017
Discharge of the members of the Board of Directors from liability
Sahara Petrochemical Co.
18/04/2017
Distribution of cash dividend
YES
Sahara Petrochemical Co.
18/04/2017
Change on the company bylaws
YES
Sahara Petrochemical Co.
18/04/2017
Change on company bylaws item no.(19) no.(21) no.(46)
YES
Sahara Petrochemical Co.
18/04/2017
The formation of the Audit Committee
Sahara Petrochemical Co.
18/04/2017
Vote on recommendation of BoD to appoint the external auditors
Sahara Petrochemical Co.
18/04/2017
Pay remuneration of Saudi Riyals 200,000
YES
Abstain
Abstain
Abstain
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
24/04/2017
Board of Directors Report
YES
Emaar The Economic City
24/04/2017
Consolidated financial statements
YES
Emaar The Economic City
24/04/2017
Auditors' report
YES
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on recommendation of BoD to appoint the external auditors
Emaar The Economic City
24/04/2017
Discharge of the members of the Board of Directors from liability
Abstain
Emaar The Economic City
24/04/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
Emaar The Economic City
24/04/2017
The formation of the Audit Committee
Abstain
Emaar The Economic City
24/04/2017
Vote on remuneration of directors
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Board of Directors Report
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Auditors' report
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Consolidated financial statements
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on related party transactions
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Distribution of cash dividend
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on remuneration of directors
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Discharge of the members of the Board of Directors from liability
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Updating the Company’s bylaws in accordance with the new Companies Law.
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the Remuneration policy of the Board of members
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the policy of the Remuneration Committee
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the employee stock scheme
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Voting on the Company's purchase of its own shares for the employees program
Abstain
Saudi Industrial Services Co.
18/05/2017
Board of Directors Report
YES
Saudi Industrial Services Co.
18/05/2017
Auditors' report
YES
Saudi Industrial Services Co.
18/05/2017
Consolidated financial statements
YES
Abstain
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Saudi Industrial Services Co.
18/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Saudi Industrial Services Co.
18/05/2017
Discharge of the members of the Board of Directors from liability
Abstain
Saudi Industrial Services Co.
18/05/2017
BoD member selection
Abstain
Saudi Industrial Services Co.
18/05/2017
Changes to the Review Committee/Audit Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
The formation of the Audit Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
Changes to the Reward and Remuneration Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Board of Directors Report
YES
Walaa Cooperative Insurance Co.
21/05/2017
Auditors' report
YES
Walaa Cooperative Insurance Co.
21/05/2017
Consolidated financial statements
YES
Walaa Cooperative Insurance Co.
21/05/2017
Discharge of the members of the Board of Directors from liability
Walaa Cooperative Insurance Co.
21/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Walaa Cooperative Insurance Co.
21/05/2017
vote on change the company name
YES
Walaa Cooperative Insurance Co.
21/05/2017
Vote on amend on the company bylaws
YES
Walaa Cooperative Insurance Co.
21/05/2017
Remuneration of directors
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
vote on issuing insurance policy
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
AlHammadi Company For Development & Investment
23/07/2017
The recommendation of the Board of Directors to appoint the external auditors
AlHammadi Company For Development & Investment
23/07/2017
Vote on related party transactions
Saudi Arabian Mining Co.
22/10/2017
Changes to the Review Committee/Audit Committee
YES
Saudi Arabian Mining Co.
22/10/2017
Changes to the Reward and Remuneration Committee
YES
Saudi Arabian Mining Co.
22/10/2017
Vote on BoD members selection
YES
Saudi Arabian Mining Co.
22/10/2017
The formation of the Audit Committee
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on remuneration of directors policy
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the remuneration policy of the members of the modified Board Committees
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the policy and procedures for the nomination and appointment of members of the Board of Directors
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the executive management remuneration policy
Abstain
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Voting on the amended Governance Regulation
YES
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the recommendation of the BoD to reduce the current session of the Council
YES
Saudi Public Transport Co.
04/12/2017
Vote to update the company's corporate governance
YES
Saudi Public Transport Co.
04/12/2017
Vote on remuneration of directors policy
YES
Saudi Public Transport Co.
04/12/2017
Vote on the Audit committee agenda items.
YES
Saudi Public Transport Co.
04/12/2017
Vote on the policy and criteria for nomination to the board of directors of the company
YES
Saudi Public Transport Co.
04/12/2017
Vote on the executive management remuneration policy
YES
Najran Cement Co.
04/12/2017
Vote on adding additional items to the Company’s bylaws (17) (18) (19) (20)
YES
Najran Cement Co.
04/12/2017
Vote on modifying items No. (21) (47)
YES
Najran Cement Co.
04/12/2017
Vote on renumbering the company's bylaws items
YES
Najran Cement Co.
04/12/2017
Vote to update the company's corporate governance
YES
Najran Cement Co.
04/12/2017
Vote on the updated Audit committee agenda items.
YES
Najran Cement Co.
04/12/2017
Changes to the Reward and Remuneration Committee
YES
Najran Cement Co.
04/12/2017
Najran Cement Co.
04/12/2017
Emaar The Economic City
21/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members Approval of new contracts
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
21/12/2017
Approval of new contracts
YES
Emaar The Economic City
21/12/2017
Changes to the Reward and Remuneration Committee
YES
Emaar The Economic City
21/12/2017
Vote on the Remuneration policy of the Board of members
YES
Emaar The Economic City
21/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company
YES
Emaar The Economic City
21/12/2017
Vote on BoD members selection
YES
AlHammadi Company For Development & Investment
26/12/2017
Vote to update the company's corporate governance
YES
AlHammadi Company For Development & Investment
26/12/2017
Vote on the updated policy of remuneration of directors
YES
AlHammadi Company For Development & Investment
26/12/2017
AlHammadi Company For Development & Investment
26/12/2017
AlHammadi Company For Development & Investment
26/12/2017
Vote on the Audit committee agenda items.
YES
AlHammadi Company For Development & Investment
26/12/2017
Distribution of cash dividend
YES
Sahara Petrochemical Co.
27/12/2017
Changes to the Reward and Remuneration Committee
YES
Sahara Petrochemical Co.
27/12/2017
Sahara Petrochemical Co.
27/12/2017
Vote on the Remuneration policy of the Board of members and its related committee members Vote on updating the policy and criteria for nomination to the board of directors of the company
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
YES
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Sahara Petrochemical Co.
27/12/2017
Vote on BoD members selection
YES
The Company For Cooperative Insurance
28/12/2017
Vote on assigning new board member
YES
The Company For Cooperative Insurance
28/12/2017
Approval of new contracts
YES
The Company For Cooperative Insurance
28/12/2017
Approval of new contracts
YES
Advanced Petrochemical Co.
28/12/2017
Vote on assigning a new member on Audit committee
YES
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
Advanced Petrochemical Co.
28/12/2017
Advanced Petrochemical Co.
28/12/2017
Advanced Petrochemical Co.
28/12/2017
Changes to the Reward and Remuneration Committee
YES
Advanced Petrochemical Co.
28/12/2017
Vote on the Audit committee agenda items.
YES
Dallah Healthcare Co.
30/12/2017
vote on the updated policy of remuneration of directors
YES
Dallah Healthcare Co.
30/12/2017
Vote on the Audit committee agenda items.
YES
Dallah Healthcare Co.
30/12/2017
Dallah Healthcare Co.
30/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
YES
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Annual Report – 2017
Contents A. Investment Fund Information ................................................................................................................................... 3
B. Fund Performance..................................................................................................................................................... 3
C. Fund Manager ........................................................................................................................................................... 5
D. Custodian .................................................................................................................................................................. 6
E. Auditor ...................................................................................................................................................................... 6
F. Financial Statements ................................................................................................................................................. 6
Annex - Exercised Voting Rights
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
AlAhli Saudi Trading Equity Fund – 2017 Annual Report A. Investment Fund Information 1. Investment Objective AlAhli Saudi Trading Equity Fund investment objective is to achieve long term capital growth through investing in the Saudi equity market in accordance with the Shariah guidelines issued by the Fund Shariah Board. 2. Investment Policies Investing mainly in Shariah compliant shares of companies listed in the main market, including IPOs and right issues, and ETFs authorized by CMA. In addition, the Fund may invest in real estate investment traded funds and shares of companies listed on the Saudi parallel market (Nomu), including IPOs and right issues. The fund may also invest in mutual funds that invest in Saudi or GCC markets. The Fund may invest cash surplus in Shariah-compliant money market transactions or funds. 3. Distribution of income and gain policy Income and dividends will be reinvested in the Fund. No income or dividends will be distributed to Unitholders. 4. The fund's reports are available upon request free of charge. B. Fund Performance 1. The following table shows a comparison of the following data for the last three years: Year
2017
2016
2015
956,183,136
983,799,639
976,455,017
NAV per Unit*
8.27
8.46
7.81
Highest Price*
8.61
8.51
10.73
Lowest Price*
7.83
6.41
7.62
115,551,391
116,238,656
125,007,489
-
-
-
1.79%
1.81%
1.93%
AUM*
Number of Units Income Distribution Fees and Expense ratio * In Saudi Riyal
2. Total return compared to the benchmark for 1 year, 3 years, 5 years and 10 years: Period
Year
3 Years
5 Years
10 Years
Total return %
-2.23
-2.61
3.92
-0.17
Benchmark %
3.89
-0.78
3.66
-0.63
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
3. Annual total return for each of the last 10 financial years: Year
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
Return %
-2.23
8.35
-12.82
-0.10
31.34
5.29
1.97
16.57
33.63
-51.5
Benchmark %
3.89
10.57
-14.98
-4.74
28.64
12.43
2.47
13.35
38.59
-56.68
4. Actual fees and fund expenses paid by the investment fund during the year: Fees and Expenses
Percentage of NAV
Management Fee Expense
1.75%
Audit Fee Expense
0.00%
Fund Admin Fee Expense
0.03%
CMA Fee Expense
0.00%
Tadawul Fee Expense
0.00%
Shariah Audit Fee Expense
0.00%
Fund Board Fee Expense
0.00%
Expense Ratio
1.79%
5. Material Changes: Crude oil prices for most of 2017 have been above the USD 55/bbl level, but during last quarter of the year soared and closed the year with Brent oil price at USD 66.9/bbl resulting in 17.7% up from 2016 levels. However, the Saudi market still lagged oil movement where it closed the year of 2017 up by +0.22% (i.e. +16 points). Furthermore, banks were able to increase dividends throughout 2017 due to improved assets quality, less provision than 2016, and rise in interest rates which enhanced returns and led to better capital adequacy ratios for the banking sector. The recent budget has a clear focus on spending, capex and the private sector that is expected to boost economic development. Importantly, the budget has set a well-defined pathway towards higher dependency on non-oil revenues and gradual implementation of energy price & subsidy adjustments. The gradual implementation of reforms under NTP 2020 and Saudi Vision 2030 is positive for the Kingdom. The inclusion of KSA by MSCI into its EM watch-list and FTSE reassessment on Saudi Arabia’s inclusion next March are potent near-term catalyst for the equity markets. Finally, the Kingdom’s is going multiple positive developments including its transparency drive, ongoing economic transformation and forthcoming slated IPO of Aramco. 6. Exercising of voting right The Fund Manager has exercised voting rights, for more details kindly refer to the “Exercising of voting right Annex”.
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
7. Fund Board Annual Report: The Board of Directors consists of the following members, who were appointed by the fund manager and approved by the Capital Market Authority: Mohammed Al-Ali Mohammed Saqaf Dr. Abdulrauof Banajah Alaaeldden Sami
Chairman of the Fund’s Board of Directors non-independent member independent member independent member
The Fund's Board of Directors held three meetings during 2017. The following is a summary of the key decisions approved and the matters discussed by the Fund’s Board of Directors: Fund’s performance review: as the fund depreciated by 2.23%. Risks related to the funds; including: liquidity, market, operational risks. Ensuring fund’s compliance to all applicable rules and regulations. The effects of the updated Investment Funds Regulations on the fund. C. Fund Manager 1. NCB Capital Company. King Saud Road, P.O. Box 22216, Riyadh 11495, Saudi Arabia, Tel: +966 920000232 Website: www.alahlicapital.com 2. Sub-manager / investment adviser None 3. Investment activities On the back of the different government initiatives and announcements throughout 2017 (increase in gas prices, energy prices, and announcement of possible inclusion of KSA by MSCI into its EM), the fund witnessed some changes to stock selection and sector allocation to enhance performance and gain from positive changes to the economy that are expected to directly affect certain companies. 4. Fund’s performance In 2017, The Fund performance was -2.23% while the benchmark was 3.89%. 5. T&C’s Material changes The Fund Manager has made certain revisions to the terms and conditions of the Fund. Which Includes: Adding Definitions to the Terms and Conditions; Updating the Terms and Condition to include Value Added Tax law; Updating Fund’s Investments Policies and Practices, and Principal Risks to include investing in the Parallel Market (Nomu) and REITs, and payment of redemption proceeds to be five days. 6. The fund does not invest substantially in other investment funds. 7. No special commissions were received by the fund manager during the period
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
D. Custodian 1. NCB Capital Company. King Saud Road, P.O. Box 22216, Riyadh 11495, Saudi Arabia, Tel: +966 920000232 Website: www.alahlicapital.com 2. Custodian’s duties and responsibilities The custodian shall be held responsible to the fund manager and unitholders for any losses caused to the investment fund due to the custodian fraud, negligence, misconduct or willful default. The custodian shall be responsible for taking custody and protecting the fund's assets on behalf of unitholders, and taking all necessary administrative measures in relation to the custody of the fund's assets. 3. Custodian’s opinion NCB Capital Co. hereby confirms that we Issued, transferred and redeemed the units in accordance with the provision of the IFR and Fund T&Cs. NCB Capital Co. hereby confirms that we valued and calculated the Unit price in accordance with the provisions of IFR, Fund T&Cs and Information Memorandum. NCB Capital Co. hereby confirms that we have not breached any of the Investment Restrictions, Limitations and borrowing powers applicable to IFR. E. Auditor 1. KPMG Al Fozan & Partners. Zahran Business Center, Prince Sultan Street, Jeddah, Saudi Arabia Tel: +966 12 6989595 Website: www.kpmg.com/sa 2. Auditor’s opinion: Accompanying financial statements have complied with the requirements of the applicable provisions of the Investment Funds Regulations issued by the Capital Market Authority, and the Fund’s Terms and Conditions and the Information Memorandum in so far as they affect the preparation of the financial statements and accordingly nothing has been reported by the auditor in their report which is in compliance with the SOCPA requirements. F. Financial Statements
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) FINANCIAL STATEMENTS For the year ended 31 December 2017 with INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS
kpmg
KPMG Al Fozan & Partners Certified Public Accountants Zahran Business Centre, 9th Floor Prince Sultan Street PO Box 55078 Jeddah 21534 Kingdom of Saudi Arabia
Telephone +966 12 698 9595 Fax +966 12 698 9494 Internet www.kpmg.com.sa License No. 46/11/323 issued 11/3/1992
Independent auditors’ report The Unitholders AlAhli Saudi Trading Equity Fund Jeddah, Kingdom of Saudi Arabia Opinion We have audited the financial statements of AlAhli Saudi Trading Equity Fund (“the Fund”) managed by NCB Capital Company (the “Fund Manager”) which comprise the balance sheet as at 31 December 2017, the statements of income, cash flows and changes in net assets attributable to unitholders for the year then ended, and notes, comprising significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with generally accepted accounting standards as issued by Saudi Organization for Certified Public Accountants (SOCPA). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Fund in accordance with the professional code of conduct and ethics that are endorsed in the Kingdom of Saudi Arabia that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Fund Manager and Those Charged with Governance for the Financial Statements. The Fund Manager is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting standards as issued by SOCPA, the applicable provisions of the Investment Funds Regulations issued by Capital Market Authority, the Fund’s terms and conditions, the Information Memorandum, and for such internal control as Fund Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Fund Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Fund Manager either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Fund’s financial reporting process.
KPMG Al Fozan & Partners, a partnership registered in Saudi Arabia and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) BALANCE SHEET As at 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes
2017
2016
ASSETS Cash and cash equivalents
7
15,835
45,951
Held for trading investments
9
942,297
937,958
502 ─────────
-────────
958,634
983,909
1,988
59
463
50
─────────
────────
2,451 ───────── 956,183 ═════════ 115,551 ═════════ 8.2750 ═════════
109 ──────── 983,800 ════════ 116,239 ════════ 8.4636 ════════
Dividends receivable Total assets
LIABILITY Payable to unitholders on account of redemptions Management fee payable
Total liabilities Net assets attributable to Unitholders 10
Units in issue in thousands (number) Net asset value per unit (SR)
The accompanying notes 1 to 14 form integral part of these financial statements
1
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF INCOME For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Note
2017
2016
Dividend income
29,204
27,016
Realised gain / (loss) on sale of held for trading investments
21,022
(209,138)
(55,137) ─────── (4,911) ───────
274,197 ─────── 92,075 ───────
16,999
15,653
270
619
Shariah audit fee
27
27
Professional fees
28
24
Fund Board remuneration
18
17
7 ─────── 17,349 ─────── (22,260) ═══════
7 ─────── 16,347 ─────── 75,728 ═══════
INVESTMENT REVENUE
Unrealised (loss) / gain on measurement of held for trading investments Total (loss) / revenue
8
EXPENSES Management fee Administrative expenses
CMA fee Total expenses Net (loss) / income for the year
The accompanying notes 1 to 14 form integral part of these financial statements
2
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF CASH FLOWS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Note
2017
2016
(22,260)
75,728
-55,137 ───────── 32,877
9,524 (274,197) ──────── ─ (188,945)
(59,476) (502) --
177,192 2,344 960
Cash flow from operating activities Net (loss) / income for the year Adjustment for: Value of units reinvested Unrealized loss / (gain) on held for trading investments
Changes in operating assets and liabilities: (Increase) / decrease in held for trading investments (Increase) / decrease in dividends receivable Decrease in IPO deposit Increase in payable to unitholders on account of redemptions Increase in management fee payable
12 1,929 50 413 ───────── ───────── (24,759) (8,387) ───────── ─────────
Net cash used in operating activities
Cash flow from financing activities Proceeds from units sold Value of units redeemed Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year
7
Cash and cash equivalents at the end of the year
7
219,184 (224,541) ───────── (5,357) ───────── (30,116)
99,484 (177,440) ───────── (77,956) ───────── (86,343)
45,951 ───────── 15,835 ═════════
132,294 ───────── 45,951 ═════════
The accompanying notes 1 to 14 form integral part of these financial statements
3
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) Notes
2017
2016
Net assets attributable to Unitholders at the beginning of the year
983,800
976,504
Net (loss) / income for the year
(22,260)
75,728
219,184
99,484
--
9,524
(224,541)
(177,440)
(5,357) ─────────
(68,432) ─────────
956,183
983,800
═════════
═════════
Decrease in net assets from unit transactions during the year
9
Proceeds from units sold Value of units reinvested
8
Value of units redeemed
Net assets attributable to Unitholders at the end of the year
The accompanying notes 1 to 14 form integral part of these financial statements
4
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 1
THE FUND AND ITS ACTIVITIES
AlAhli Saudi Trading Equity Fund (the “Fund”) is a Shariah compliant, open-ended investment fund, managed by NCB Capital Company (the “Fund Manager”), a subsidiary of The National Commercial Bank (the "Bank"), for the benefit of the Fund's Unitholders. The Fund is established under article 30 of the Investment Fund Regulations (the Regulations) issued by the Capital Market Authority (CMA). NCB Capital Company also acts as the custodian of the Fund. As defined in Capital Market Authority's (CMA) Regulation No. 2-83-2005 dated 21 Jumada Awal 1426H (28 June, 2005) the Fund Manager conducts following securities’ activities: a) b) c) d) e)
Dealing; Arranging; Managing; Advising; Custody;
The Fund's objective is to achieve long term capital growth through investing in listed companies in the Saudi equity market that comply with Shariah guidelines. The terms and conditions of the Fund were initially approved by the Saudi Arabian Monetary Authority (SAMA) and subsequently endorsed by the Capital Markets Authority (CMA) through their letter dated 18 Dhul Hijja 1429H (corresponding to 16 December 2008). The Fund commenced its activities on 3 June 1998. 2
REGULATING AUTHORITY
The Fund is governed by the Regulations issued by the CMA pursuant to resolution number 7-219-2006 dated 3 Dhul Hijja 1427H (corresponding to 24 December 2006) as amended by the Resolution No 1/61/2016 of Board of the CMA dated 16 Sha’ban 1437H (corresponding to 23 May 2016), which provided detailed requirements for all funds within the Kingdom of Saudi Arabia. 3
CHANGES IN FUND' S TERMS AND CONDITIONS
During the year ended 31 December 2017, the Fund Manager has made certain revisions to the terms and conditions of the Fund. The main change in the terms and conditions relate to change in Fund’s investment strategy, inclusion of additional risk factors relating to change in investment strategy, revision redemption proceeds payment deadline and inclusion of VAT clause. The changes other than inclusion of VAT clause were notified CMA through a letter dated 11 July 2017 and was notified by the Fund manager to the unitholders through a letter dated 27 July 2017. The revised terms and conditions became effective from 27 August 2017. The change for the inclusion of VAT clause was notified to CMA through a letter dated 4 December 2017 and notified by the Fund Manager to the unitholders through a letter dated 6 December 2017. The change became effective from 1 January 2018.
5
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
SUBSCRIPTION AND REDEMPTION
The Fund is open for subscriptions / redemptions of units on every Saudi Business day. The net asset value of the Fund is determined on each Saudi Business day. All transactions for purchase / sale of units are entered on the net assets value of the Fund, determined by dividing the value of net assets of the Fund by the total number of outstanding Fund units on the relevant Valuation day. 5
BASIS OF PREPARATION
Statement of compliance These financial statements are prepared in accordance with generally accepted accounting standards in the Kingdom of Saudi Arabia promulgated by Saudi Organization for Certified Public Accountants ("SOCPA"), the applicable provisions of the Investment Funds Regulations issued by Capital Market Authority, the Fund’s terms and conditions and the Information Memorandum. The Fund prepares its financial statements as at and for the year ended on its last valuation date (note 13). Basis of measurement These financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for held for trading investments which are carried at fair value. Functional and presentational currency These financial statements are presented in Saudi Arabian Riyals (SR), which is the Fund’s functional currency. All financial information presented in Saudi Arabian Riyals has been rounded to the nearest thousand. Use of estimates and judgments The preparation of the financial statements in conformity with the generally accepted accounting standards as applicable in the Kingdom of Saudi Arabia requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues 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 any future periods affected. Valuation of financial assets 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. As the Fund's financial instruments are accounted for under the historical cost convention, except for held for trading investments, differences may arise between the carrying values and fair values. The Fund Manager believes that at the reporting date, the fair values of the Fund's financial assets and liabilities are not materially different from their carrying values.
6
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5
BASIS OF PREPARATION (continued)
Use of estimates and judgments (continued) Valuation of financial assets (continued) The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
Level 1: Fair value measurements using quoted price (unadjusted) in an active market for identical assets or liabilities. Level 2: Fair value measurements using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Fair value measurement using inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
All financial assets of the fund, carried at fair value at the reporting date, are classified under hierarchy level 1. 6
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all years presented in these financial statements. a)
Held for trading investments
Securities listed or traded on a stock exchange are classified as Held for Trading and are initially recognized at cost, being the fair value of the consideration given and are subsequently measured at fair value. Changes in fair values of held for trading investments (“investments”), comprising unrealized gains and losses are included in the statement of income. Realized gains and losses on investments sold are determined on weighted average basis. b)
Investment transaction
Investment transactions are accounted for as of the trade date. c)
Impairment of financial assets
An assessment is made at the balance sheet date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence exists, any impairment loss is recognized in the statement of income. If a financial asset is impaired, impairment is determined as follows: (i)
For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognized in the statement of income; (ii) For assets carried at cost, impairment is the difference between carrying value and the present value of future cash flows discounted at the current market rate of return for a similar financial asset; (iii) For assets carried at amortized cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective commission rate.
7
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 6 d)
SIGNIFICANT ACCOUNTING POLICIES (continued) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized where: (i) (ii) (iii)
The rights to receive cash flows from the asset have expired; or The Fund has transferred its rights to receive cash flows from the asset; and Either (a) the Fund has transferred substantially all the risks and rewards of the asset, or (b) the Fund has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Fund has transferred its rights to receive cash flows from an asset, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Fund’s continuing involvement in the asset. e)
Revenue recognition
Realized gains and losses on investments sold are determined on an average cost basis. Dividends are recognized when the Fund’s right to receive the payment is established. Increases or decreases in the difference between the cost and market value of the Fund’s portfolio of investments are recognized as change in fair value of investments in the statement of income. f)
Foreign currency translation
Transactions during the year in currencies other than the functional currency are translated into the functional currency at the rates of exchange at the dates of the transactions. Monetary assets and liabilities that are denominated in a foreign currency are retranslated at the rate of exchange ruling at the balance sheet date. Exchange gains or losses are reflected in the statement of income. g)
Taxation / zakat
Taxation / zakat is the obligation of the Unitholders and therefore, no provision for such liability is made in these financial statements. h)
Cash and cash equivalents
For the purposes of the statement of cashflows, cash and cash equivalents consists of bank balances. i)
Net asset value per unit
The net asset value per unit is calculated by dividing the net assets attributable to Unitholders included in the balance sheet by the number of units outstanding at the year end.
8
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 6
SIGNIFICANT ACCOUNTING POLICIES (continued)
j)
Provision and accruals
Provisions and accruals are recognized when the Fund has an obligation (legal or constructive) arising from a past event, and the costs to settle the obligation are both probable and can be measured reliably. k)
Offsetting
Financial assets and liabilities are offset and reported net in the balance sheet when there is a legally enforceable right to set off the recognized amounts and when the Fund intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. Income and expenses are presented on a net basis only when permitted under accounting standards generally accepted in the Kingdom of Saudi Arabia, or for gains and losses arising from a group of similar transactions. 7
CASH AND CASH EQUIVALENTS
Cash and cash equivalents represent cash held in current accounts with National Commercial Bank (a related party). 8
MANAGEMENT FEE AND OTHER EXPENSES
The Fund is managed and administered by the Fund Manager. For these services, the Fund accrues, on each valuation day, a management fee, as determined by the Fund Manager, but which is no more than the maximum annual rate of 1.75%, as set out in the Fund’s terms and conditions, of the Fund's net assets on those dates. The Fund Manager is also entitled to recover expenses incurred on behalf of the Fund relating to audit, custody, advisory, data processing and other similar charges. The maximum amount of such expenses that can be recovered from the Fund by the Fund Manager is restricted to 0.5% per annum of the Fund's net assets at the respective valuation days. These expenses have been recovered by the Fund Manager on an actual basis. Until 23 July 2016, the Fund Manager was allocated units against settlement of the management fee and other expenses on every valuation day, which were reinvested in the Fund. Subsequent to this date, these fees/charges are paid in cash.
9
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 9
HELD FOR TRADING INVESTMENTS
The composition of held for trading investments by industry sector is summarized below: 2017 Industry Sector
Petrochemical Industries Banking and Financial Services Real Estate Development Insurance Retail Industrial Investment Agricultural and Food Industries Transportation Energy and Utilities Cement Industry Hotel tourism AlAhli Fund of REITs Fund
% of Total Value
33.63 20.83 12.29 6.48 5.12 4.85 4.35 3.56 3.50 2.66 2.40 0.33 ──────── 100 ════════
Cost
271,569 175,941 122,785 62,227 49,454 33,564 44,495 31,924 36,544 26,662 29,101 3,000 ──────── 887,226 ════════
Fair Value
316,904 196,294 115,843 61,063 48,290 45,724 41,030 33,567 32,970 25,032 22,581 2,999 ──────── 942,297 ════════
2016 Industry Sector Petrochemical Industries Banking and Financial Services Real Estate Development Transportation Retail Industrial Investment Telecommunication and Information Technology Insurance Agricultural and Food Industries
% of Total Investment
Cost
Fair Value
39.72 15.53 12.72 10.20 7.05 5.46
315,690 146,742 102,417 82,710 54,368 48,377
372,592 145,704 119,282 95,652 66,119 51,242
5.22 3.61 0.48 ──────── 100 ════════
46,115 27,203 4,167 ──────── 827,789 ════════
48,971 33,879 4,517 ──────── 937,958 ════════
10
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 10
UNIT TRANSACTIONS
Transactions in units during the year are summarized as follows: 2017 Units 000
2016 Units 000
116,239
125,014
26,662
13,410
Units reinvested
--
1,282
Units redeemed
(27,350)
(23,467)
(688) ───────── 115,551 ═════════
(8,775) ───────── 116,239 ═════════
Units at the beginning of the year
Units sold
Net increase / (decrease) in units during the year Units at the end of the year
As at 31 December 2017, top five Unitholders represented 20.05% (31 December 2016: 14.93%) of the Fund’s units. 11
RELATED PARTY TRANSACTIONS
In the ordinary course of its activities, the Fund transacts business with related parties on the basis of approved terms and conditions of the Fund. All related party transactions are approved by the Fund Board. Name of entity
Relationship
NCB Capital Company National Commercial Bank (NCB)
Fund Manager Shareholder of Fund Manager and Banker to the Fund Associate of NCB Unitholder Unitholder Unitholder Unitholder Unitholder
AlAhli Takaful Company AlAhli Multi Asset Conservative Fund AlAhli Multi Asset Moderate Fund AlAhli Multi Asset Growth Fund AlAhli IPO Fund AlAhli Global Equity Fund
11
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 11
RELATED PARTY TRANSACTIONS (continued)
The significant related party transactions entered into by the Fund during the year and balances resulting from such transactions are as follows: Value of units Amount of transactions held as at 31 December Related party Nature of transaction 2017 2016 2017 2016 NCBC
Management Fee
16,999
15,653
Expenses paid on behalf of the fund
350
694
AlAhli Multi Asset Conservative Fund
Subscription of units
41,848
15,732
Redemption of units
25,360
7,706
AlAhli Multi Asset Moderate Fund
Subscription of units
43,622
15,267
Redemption of units
23,377
7,366
AlAhli Multi Asset Growth Fund
Subscription of units
38,799
11,800
Redemption of units
21,106
4,306
Subscription of units
1,406
800
Redemption of units
2,194
--
Subscription of units
5,500
Redemption of units
4,056
--
Subscription of units
15,908
--
Redemption of units
14,178
--
AlAhli Global Equity Fund
--
---
25,921
9,316
29,477
9,144
26,040
8,345
--
834 -
AlAhli IPO Fund
AlAhli Takaful Company
12
1,405
-
1,609
-
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 12
FINANCIAL RISK MANAGEMENT
The Fund’s activities expose it to a variety of financial risks: market risk, credit risk, equity risk, currency risk and liquidity risk. The Fund’s overall risk management program seeks to maximize the returns derived for the level of risk to which the Fund is exposed, and, to minimize potential adverse effects on the Fund’s financial performance. The Fund Manager uses different methods to measure and manage the various types of risk to which the Fund is exposed. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Fund Manager seeks to manage credit risk by monitoring credit exposures, limiting transactions with specific counterparties, and continually assessing the creditworthiness of counterparties. As at the balance sheet date, the Fund’s maximum exposure to credit risk is represented by the carrying amount of cash and cash equivalents, which represent cash at bank with a local Bank having sound credit rating. Liquidity risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial asset. The Fund Manager seeks to manage liquidity risk by ensuring, as far as possible, that it will have sufficient liquidity to meet its financial liabilities as and when they fall due, in normal or stressed conditions, without incurring unacceptable losses or risking damage to the its reputation. Equity price risk Equity price risk is the risk that the value of financial instruments will fluctuate because of changes in market prices. The Fund's investments are susceptible to market price risk arising from uncertainties about future prices. The Fund Manager manages this risk through diversification of its investment portfolio in terms of industry concentration (see note 9). The effect on the statement of income (as a result of the change in the fair value of investments in equity instruments as at December 31) due to a reasonably possible change in equity indices based on the industry concentration, with all other variables held constant is as follows:
Effect on net assets
Change in market prices
2017
2016
± 10%
±94,298
± 93,796
Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to a change in foreign exchange rates. The Fund views the Saudi Arabian Riyals as its functional currency. The Fund's financial assets and liabilities are denominated in its functional currency. Accordingly, there is no significant currency risk.
13
ALAHLI SAUDI TRADING EQUITY FUND (Managed by NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 13
LAST VALUATION DAY
The last valuation day for the year was 31 December 2017 (2016: 28 December 2016). 14
APPROVAL OF THE FINANCIAL STATEMENTS
These financial statements were approved by the Fund Manager on Rajab 10, 1439H, corresponding to March 27, 2018.
14
Annex - Exercised Voting Rights Company
Date Of AGM
Subject Of Voting
Voting Decision
National Shipping Company Of Saudi Arabia
16/01/2017
BoD member selection
National Shipping Company Of Saudi Arabia
16/01/2017
Vote on recommendation of BoD to appoint the external auditors
Abstain
National Shipping Company Of Saudi Arabia
16/01/2017
vote to approve the decisions which are taken by the current BoD
Abstain
National Shipping Company Of Saudi Arabia
16/01/2017
Distribution of cash dividend
Jabal Omar Development Co.
23/02/2017
Auditors report
Abstain
Jabal Omar Development Co.
23/02/2017
Consolidated financial statements
Abstain
Jabal Omar Development Co.
23/02/2017
Board of Directors Report
Abstain
Jabal Omar Development Co.
23/02/2017
Discharge of the members of the Board of Directors from liability
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on recommendation of BoD to appoint the external auditors ,
Abstain
Jabal Omar Development Co.
23/02/2017
BoD member selection
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/02/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/02/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
Abstain
Advanced Petrochemical Co.
07/03/2017
Board of Directors Report
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Advanced Petrochemical Co.
07/03/2017
Consolidated financial statements
Abstain
Advanced Petrochemical Co.
07/03/2017
Auditors' report
Abstain
Advanced Petrochemical Co.
07/03/2017
Distribution of cash dividend
Abstain
Advanced Petrochemical Co.
07/03/2017
Distribute interim cash dividends
Abstain
Advanced Petrochemical Co.
07/03/2017
The recommendation of the Board of Directors to pay remuneration of Saudi Riyals 200,000
Abstain
Advanced Petrochemical Co.
07/03/2017
Discharge of the members of the Board of Directors from liability
Abstain
Advanced Petrochemical Co.
07/03/2017
The recommendation of the Board of Directors to appoint the external auditors
Abstain
Advanced Petrochemical Co.
07/03/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
Abstain
Advanced Petrochemical Co.
07/03/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/03/2017
Auditors report
YES
Jabal Omar Development Co.
23/03/2017
Consolidated financial statements
YES
Jabal Omar Development Co.
23/03/2017
BoD Report
YES
Jabal Omar Development Co.
23/03/2017
Discharge of the members of the Board of Directors from liability
Jabal Omar Development Co.
23/03/2017
Vote on recommendation of BoD to appoint the external auditors ,
Jabal Omar Development Co.
23/03/2017
BoD member selection
Abstain
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Jabal Omar Development Co.
23/03/2017
Vote on related party transactions
Abstain
Jabal Omar Development Co.
23/03/2017
The formation of the Audit Committee
Abstain
Jabal Omar Development Co.
23/03/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
Saudi Arabian Mining Co.
02/04/2017
Consolidated financial statements
YES
Saudi Arabian Mining Co.
02/04/2017
Auditors report
YES
Saudi Arabian Mining Co.
02/04/2017
BoD Report
YES
Saudi Arabian Mining Co.
02/04/2017
Vote on recommendation of BoD not to distribute cash dividends
Saudi Arabian Mining Co.
02/04/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Saudi Arabian Mining Co.
02/04/2017
Discharge of the members of the Board of Directors from liability
YES
Saudi Arabian Mining Co.
02/04/2017
BoD member selection
Saudi Arabian Mining Co.
02/04/2017
The formation of the Audit Committee
YES
Saudi Arabian Mining Co.
02/04/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Board of Directors Report
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Consolidated financial statements
YES
National Shipping Company Of Saudi Arabia
12/04/2017
Auditors' report
YES
Abstain
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
National Shipping Company Of Saudi Arabia
12/04/2017
Discharge of the members of the Board of Directors from liability
Abstain
National Shipping Company Of Saudi Arabia
12/04/2017
The formation of the Audit Committee
Abstain
National Shipping Company Of Saudi Arabia
12/04/2017
Authorizing BoD to distribute half yearly dividends or quarterly dividends
National Shipping Company Of Saudi Arabia
12/04/2017
The recommendation of the Board of Directors to pay remuneration of Saudi Riyals 200,000
National Shipping Company Of Saudi Arabia
12/04/2017
Change on the company bylaws
YES
Sahara Petrochemical Co.
18/04/2017
Board of Directors Report
YES
Sahara Petrochemical Co.
18/04/2017
Auditors' report
YES
Sahara Petrochemical Co.
18/04/2017
Consolidated financial statements
YES
Sahara Petrochemical Co.
18/04/2017
Discharge of the members of the Board of Directors from liability
Sahara Petrochemical Co.
18/04/2017
Distribution of cash dividend
YES
Sahara Petrochemical Co.
18/04/2017
Change on the company bylaws
YES
Sahara Petrochemical Co.
18/04/2017
Change on company bylaws item no.(19) no.(21) no.(46)
YES
Sahara Petrochemical Co.
18/04/2017
The formation of the Audit Committee
Sahara Petrochemical Co.
18/04/2017
Vote on recommendation of BoD to appoint the external auditors
Sahara Petrochemical Co.
18/04/2017
Pay remuneration of Saudi Riyals 200,000
YES
Abstain
Abstain
Abstain
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
24/04/2017
Board of Directors Report
YES
Emaar The Economic City
24/04/2017
Consolidated financial statements
YES
Emaar The Economic City
24/04/2017
Auditors' report
YES
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on related party transactions
Abstain
Emaar The Economic City
24/04/2017
Vote on recommendation of BoD to appoint the external auditors
Emaar The Economic City
24/04/2017
Discharge of the members of the Board of Directors from liability
Abstain
Emaar The Economic City
24/04/2017
Amending the Company’s bylaws in accordance with the new Companies Law.
YES
Emaar The Economic City
24/04/2017
The formation of the Audit Committee
Abstain
Emaar The Economic City
24/04/2017
Vote on remuneration of directors
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Board of Directors Report
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Auditors' report
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Consolidated financial statements
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on related party transactions
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Distribution of cash dividend
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on remuneration of directors
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Discharge of the members of the Board of Directors from liability
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Updating the Company’s bylaws in accordance with the new Companies Law.
YES
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the Remuneration policy of the Board of members
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the policy of the Remuneration Committee
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Vote on the employee stock scheme
Abstain
Bupa Arabia For Cooperative Insurance Co.
08/05/2017
Voting on the Company's purchase of its own shares for the employees program
Abstain
Saudi Industrial Services Co.
18/05/2017
Board of Directors Report
YES
Saudi Industrial Services Co.
18/05/2017
Auditors' report
YES
Saudi Industrial Services Co.
18/05/2017
Consolidated financial statements
YES
Abstain
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Saudi Industrial Services Co.
18/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Saudi Industrial Services Co.
18/05/2017
Discharge of the members of the Board of Directors from liability
Abstain
Saudi Industrial Services Co.
18/05/2017
BoD member selection
Abstain
Saudi Industrial Services Co.
18/05/2017
Changes to the Review Committee/Audit Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
The formation of the Audit Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
Changes to the Reward and Remuneration Committee
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Saudi Industrial Services Co.
18/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Board of Directors Report
YES
Walaa Cooperative Insurance Co.
21/05/2017
Auditors' report
YES
Walaa Cooperative Insurance Co.
21/05/2017
Consolidated financial statements
YES
Walaa Cooperative Insurance Co.
21/05/2017
Discharge of the members of the Board of Directors from liability
Walaa Cooperative Insurance Co.
21/05/2017
The recommendation of the Board of Directors to appoint the external auditors
YES
Walaa Cooperative Insurance Co.
21/05/2017
vote on change the company name
YES
Walaa Cooperative Insurance Co.
21/05/2017
Vote on amend on the company bylaws
YES
Walaa Cooperative Insurance Co.
21/05/2017
Remuneration of directors
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
vote on issuing insurance policy
Abstain
Walaa Cooperative Insurance Co.
21/05/2017
Vote on related party transactions
Abstain
AlHammadi Company For Development & Investment
23/07/2017
The recommendation of the Board of Directors to appoint the external auditors
AlHammadi Company For Development & Investment
23/07/2017
Vote on related party transactions
Saudi Arabian Mining Co.
22/10/2017
Changes to the Review Committee/Audit Committee
YES
Saudi Arabian Mining Co.
22/10/2017
Changes to the Reward and Remuneration Committee
YES
Saudi Arabian Mining Co.
22/10/2017
Vote on BoD members selection
YES
Saudi Arabian Mining Co.
22/10/2017
The formation of the Audit Committee
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on remuneration of directors policy
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the remuneration policy of the members of the modified Board Committees
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the policy and procedures for the nomination and appointment of members of the Board of Directors
YES
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the executive management remuneration policy
Abstain
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Voting on the amended Governance Regulation
YES
YES
Abstain
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Bupa Arabia For Cooperative Insurance Co.
30/11/2017
Vote on the recommendation of the BoD to reduce the current session of the Council
YES
Saudi Public Transport Co.
04/12/2017
Vote to update the company's corporate governance
YES
Saudi Public Transport Co.
04/12/2017
Vote on remuneration of directors policy
YES
Saudi Public Transport Co.
04/12/2017
Vote on the Audit committee agenda items.
YES
Saudi Public Transport Co.
04/12/2017
Vote on the policy and criteria for nomination to the board of directors of the company
YES
Saudi Public Transport Co.
04/12/2017
Vote on the executive management remuneration policy
YES
Najran Cement Co.
04/12/2017
Vote on adding additional items to the Company’s bylaws (17) (18) (19) (20)
YES
Najran Cement Co.
04/12/2017
Vote on modifying items No. (21) (47)
YES
Najran Cement Co.
04/12/2017
Vote on renumbering the company's bylaws items
YES
Najran Cement Co.
04/12/2017
Vote to update the company's corporate governance
YES
Najran Cement Co.
04/12/2017
Vote on the updated Audit committee agenda items.
YES
Najran Cement Co.
04/12/2017
Changes to the Reward and Remuneration Committee
YES
Najran Cement Co.
04/12/2017
Najran Cement Co.
04/12/2017
Emaar The Economic City
21/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members Approval of new contracts
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Emaar The Economic City
21/12/2017
Approval of new contracts
YES
Emaar The Economic City
21/12/2017
Changes to the Reward and Remuneration Committee
YES
Emaar The Economic City
21/12/2017
Vote on the Remuneration policy of the Board of members
YES
Emaar The Economic City
21/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company
YES
Emaar The Economic City
21/12/2017
Vote on BoD members selection
YES
AlHammadi Company For Development & Investment
26/12/2017
Vote to update the company's corporate governance
YES
AlHammadi Company For Development & Investment
26/12/2017
Vote on the updated policy of remuneration of directors
YES
AlHammadi Company For Development & Investment
26/12/2017
AlHammadi Company For Development & Investment
26/12/2017
AlHammadi Company For Development & Investment
26/12/2017
Vote on the Audit committee agenda items.
YES
AlHammadi Company For Development & Investment
26/12/2017
Distribution of cash dividend
YES
Sahara Petrochemical Co.
27/12/2017
Changes to the Reward and Remuneration Committee
YES
Sahara Petrochemical Co.
27/12/2017
Sahara Petrochemical Co.
27/12/2017
Vote on the Remuneration policy of the Board of members and its related committee members Vote on updating the policy and criteria for nomination to the board of directors of the company
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
YES
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
Company
Date Of AGM
Subject Of Voting
Voting Decision
Sahara Petrochemical Co.
27/12/2017
Vote on BoD members selection
YES
The Company For Cooperative Insurance
28/12/2017
Vote on assigning new board member
YES
The Company For Cooperative Insurance
28/12/2017
Approval of new contracts
YES
The Company For Cooperative Insurance
28/12/2017
Approval of new contracts
YES
Advanced Petrochemical Co.
28/12/2017
Vote on assigning a new member on Audit committee
YES
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
Advanced Petrochemical Co.
28/12/2017
Advanced Petrochemical Co.
28/12/2017
Advanced Petrochemical Co.
28/12/2017
Changes to the Reward and Remuneration Committee
YES
Advanced Petrochemical Co.
28/12/2017
Vote on the Audit committee agenda items.
YES
Dallah Healthcare Co.
30/12/2017
vote on the updated policy of remuneration of directors
YES
Dallah Healthcare Co.
30/12/2017
Vote on the Audit committee agenda items.
YES
Dallah Healthcare Co.
30/12/2017
Dallah Healthcare Co.
30/12/2017
Vote on updating the policy and criteria for nomination to the board of directors of the company Vote on the Remuneration policy of the Board of members and its related committee members
YES
YES
YES
YES
AlAhli Saudi Trading Equity Fund – 2017 Annual Report
