AlAhli GCC Growth and Income Fund AWS
AlAhli GCC Growth and Income Fund
AlAhli GCC Growth & Income Fund – Interim Report A. Fund Manager 1. The Fund Manager is NCB Capital Company. Address: King Saud Road, P.O. Box 22216, Riyadh 11495, Kingdom of Saudi Arabia, Tel: +966 920000232
Fax +966 114060049
Website: www.alahlicapital.com
2. Sub-manager / investment adviser None 3. Investment activities GCC Markets were a mixed bag during 1H17 driven by their own specific dynamics and political tension. The local market performed well on the back of the announcement of the Kingdom being added to the MSCI watch list for inclusion in the global BM by mid2018. However, other GCC markets were mixed with Qatar and Oman being the worst performers and Kuwait and Bahrain with the strongest performance. 4. Fund’s performance AlAhli GCC Growth & Income Fund appreciated by 4.38% outperforming the Benchmark by 5.04% during 1H17. 5. Distributions The fund board has approved the income distribution of SAR 2,300,000 (approximately SAR 0.02 per unit) to the unitholders. The distribution represents around 2% the units’ nominal value. 6. T&C’s Material Changes The Fund Manager has not made any changes to the terms and conditions of the Fund.
NCB Capital is authorized by the Capital Market Authority of the Kingdom of Saudi Arabia under license number 37-06046. The registered office is at King Saud Road, NCB Regional Building P.O. Box 22216, 11495 Riyadh, Kingdom of Saudi Arabia T: +966 11 874 7106 F: +966 11 406 0049 www.alahlicapital.com
06046-37 شركة األهلي المالية (األهلي كابيتال) هي شركة مرخصــة من قبــل هيئة السـوق الماليــــة ترخيـص رقم ، 22216 ص ب، المبنى اإلقليمي للبنك األهلي التجاري، طريق الملك سعود:وعنوان مركزها الرئيسي المسجل. المملكة العربية السعودية، 11495 الرياض www.alahlicapital.com +966 11 406 0049 : ف+966 11 874 7106 :هـ
7. The fund does not invest substantially in other investment funds. 8. No special commissions were received by the fund manager during the period.
B. Financial Statements
NCB Capital is authorized by the Capital Market Authority of the Kingdom of Saudi Arabia under license number 37-06046. The registered office is at King Saud Road, NCB Regional Building P.O. Box 22216, 11495 Riyadh, Kingdom of Saudi Arabia T: +966 11 874 7106 F: +966 11 406 0049 www.alahlicapital.com
06046-37 شركة األهلي المالية (األهلي كابيتال) هي شركة مرخصــة من قبــل هيئة السـوق الماليــــة ترخيـص رقم ، 22216 ص ب، المبنى اإلقليمي للبنك األهلي التجاري، طريق الملك سعود:وعنوان مركزها الرئيسي المسجل. المملكة العربية السعودية، 11495 الرياض www.alahlicapital.com +966 11 406 0049 : ف+966 11 874 7106 :هـ
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM FINANCIAL STATEMENTS (unaudited) For the six months period ended 30 June 2017 with REVIEW REPORT TO THE UNITHOLDERS
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM BALANCE SHEET As at 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes
30 June 31 December 30 June 2017 2016 2016 (Unaudited) (Audited) (Unaudited)
ASSETS Cash and cash equivalents
6
1,782
7,382
11,461
Held for trading investments
8
111,805
120,562
131,985
Accounts receivable
9
Total assets
-──────── 113,587
229 181 ───────── ──────── 128,173 143,627
LIABILITIY 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)
1,038
--
--
173 ──────── 1,211 ──────── 112,376 ════════ 92,457 ════════ 1.215 ════════
-───────── -───────── 128,173 ═════════ 107,782 ═════════ 1.1892 ═════════
-──────── -──────── 143,627 ════════ 121,565 ════════ 1.1815 ════════
The accompanying notes 1 to 13 form integral part of these interim financial statements 2
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF INCOME (unaudited) For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 30 June 2017
30 June 2016
4,447
5,253
Realised loss on sale of held for trading investments
(1,359)
(15,296)
Unrealised gain on measurement of held for trading investments
2,798
7,764
(50) ───────── 5,836 ─────────
(81) ───────── (2,360) ─────────
1,013
1,318
1
94
Shariah audit fee
14
13
Audit fee
12
11
Fund Board remuneration
9
8
CMA fee
4
4
50 ───────── 1,103 ───────── 4,733 ═════════
93 ───────── 1,541 ───────── (3,901) ═════════
Note INVESTMENT REVENUE Dividend income
Exchange loss Total revenue 7
EXPENSES Management fee Custody fee
Administrative expenses Total expenses NET INCOME / (LOSS) FOR THE PERIOD
The accompanying notes 1 to 13 form integral part of these interim financial statements 3
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF CASH FLOWS (unaudited) For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Note Cash flow from operating activities Net income / (loss) for the period Adjustment for: Value of units reinvested Unrealised gain on held for trading investments
30 June 2017
30 June 2016
4,733
(3,901)
1,541 -(7,764) (2,798) ───────── ───────── (10,124) 1,935
Changes in operating assets and liabilities: Decrease in held for trading investments Decrease in IPO deposit Decrease in account receivable Increase / (decrease) in payable to Unitholders on account of redemptions Increase in management fee payable
11,555 -229
20,809 960 49
(87) 1,038 -173 ───────── ───────── 11,607 14,930 ───────── ─────────
Net cash provided by operating activities Cash flow from financing activities Proceeds from units sold Subscription fees deducted Value of units redeemed Income distribution to Unitholders
7,122 2,120 (54) -(17,521) (20,350) (4,300) (2,300) ───────── ───────── (14,753) (20,530) ───────── ───────── (3,146) (5,600)
Net cash used in financing activities Decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period
6
Cash and cash equivalents at the end of the period
6
14,607 7,382 ───────── ───────── 11,461 1,782 ═════════ ═════════
The accompanying notes 1 to 13 form integral part of these interim financial statements 4
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes Net assets attributable to Unitholders at the beginning of the period (audited)
30 June 2017
30 June 2016
128,173
160,740
4,733
(3,901)
2,120
7,122
Net income / (loss) for the period Decrease in net assets from unit transactions during the period
10
Gross proceeds from units sold Subscription fee deducted
--
(54)
2,120
7,068
--
1,541
(20,350)
(17,521)
(2,300) ───────── (20,530) ─────────
(4,300) ───────── (13,212) ─────────
112,376 ═════════
143,627 ═════════
Net proceeds from units sold Value of units reinvested
7
Value of units redeemed Income distribution to Unitholders
Net assets attributable to Unitholders at the end of the period (unaudited)
The accompanying notes 1 to 13 form integral part of these interim financial statements 5
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 1
THE FUND AND ITS ACTIVITIES
Al-Ahli GCC Growth and Income Fund (the "Fund") is a Shariah compliant, open-ended 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 Regulation) 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 investments in GCC companies, other than those listed on the stock exchange of the Kingdom of Saudi Arabia, are held by Citibank N.A., a sub-custodian appointed by the Fund Manager. The Fund is established with the objective to provide investors with long term capital growth through investments in GCC equity markets companies in accordance with the Shariah guidelines issued by the Fund Shariah Board. The terms and conditions of the Fund were originally approved by the Saudi Arabian Monetary Agency (SAMA) and subsequently endorsed by CMA through their letter dated 18 Dhul Hijja 1429H (corresponding to 16 December 2008). The Fund commenced its activities on 6 October 2005. The results for the six months period ended 30 June 2017 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2017. 2
REGULATORY AUTHORITY
The Fund is governed by the Regulations issued by the CMA pursuant to resolution number 7-2192006 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
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.
6
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
BASIS OF PREPARATION
Statement of compliance These interim 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 Fund prepares its interim financial statements as at and for the period ended on its last valuation date (note 12). The Fund presents comparative numbers of December in Balance Sheet and its related notes as additional information for benefit of Unitholders. Basis of measurement These interim 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 interim 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. Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the interim financial statements interim financial statements have been consistent with those used in the preparation of annual financial statements of the Funds for the year ended December 31, 2016. 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.
7
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
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. 5
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods 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 recognised 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 unrealised gains and losses are included in the statement of income. Realised 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 recognised in the statement of income. If a financial asset is impaired, impairment is determined as follows: (i) (ii) (iii)
For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognised in the statement of income; 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; For assets carried at amortised cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective commission rate. 8
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5
SIGNIFICANT ACCOUNTING POLICIES (continued)
d)
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised 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 recognised to the extent of the Fund’s continuing involvement in the asset. e)
Revenue recognition
Realised gains and losses on investments sold are determined on an average cost basis. Dividends are recognised 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 receognised 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 period end.
9
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5 j)
SIGNIFICANT ACCOUNTING POLICIES (continued) 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 realise 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. 6
CASH AND CASH EQUIVALENTS
Cash and cash equivalents represent cash held in current accounts with National Commercial Bank (a related party). 7
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 1.85% p.a., as set out in the Fund’s terms and conditions. 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 1.5% 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. Furthermore, the Fund Manager is entitled to a subscription fee of 2% at the time of the investment in the Fund by a Unitholder. This fee may be waived at the discretion of the Fund Manager. 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.
10
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS
The composition of the held for trading investments by currency is summarized below:
Currency
Country
Saudi Riyal
Kingdom of Saudi Arabia United Arab Emirates Kuwait
UAE Dirham Kuwaiti Dinar
30 June 2017 (Unaudited) % of Total Value Cost
81.87 17.87 0.26 ──────── 100 ════════
84,040 18,913 -──────── 102,953 ════════
Fair Value
91,537 19,975 293 ──────── 111,805 ════════
31 December 2016 Currency
Country
Saudi Riyal Qatari Riyal UAE Dirham
Kingdom of Saudi Arabia Qatar United Arab Emirates
Kuwaiti Dinar
Kuwait
Currency
Country
Saudi Riyal
Kingdom of Saudi Arabia Qatar United Arab Emirates Kuwait
Qatari Riyal UAE Dirham Kuwaiti Dinar
% of Total Investment
Cost
Fair Value
70.69 15.93
78,636 19,907
85,220 19,202
13.15 0.24 ──────── 100 ════════
15,965 -──────── 114,508 ════════
15,849 291 ──────── 120,562 ════════
30 June 2016 (Unaudited) % of Total Value Cost
79.66 9.51 8.49 2.34 ──────── 100 ════════
11
111,120 12,905 10,111 2,869 ──────── 137,005 ════════
Fair Value
105,140 12,556 11,207 3,082 ──────── 131,985 ════════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS (continued)
The composition of the held for trading investments by industry sector is summarized below:
Industry Sector
30 June 2017 (Unaudited) % of Total Value Cost Fair Value 36.17 20.08 11.14 8.42
35,529 19,641 11,774 9,595
40,442 22,444 12,455 9,414
7.47 6.17 5.47 5.08
5,955 7,860 5,676 6,923
8,351 6,900 6,120 5,679
────────
────────
────────
100
102,953
111,805
════════
════════
════════
Petrochemical Industries Banks and Financial Services Retail Real Estate Development Telecommunication and Information Technology Agriculture and Food Industries Energy and Utilities Transport
31 December 2016 Industry Sector
% of Total Value
Cost
Fair Value
35.16 20.83 12.74 10.97
37,384 23,896 15,025 15,706
42,394 25,119 15,365 13,221
9.39 5.22 3.40 2.29
8,391 7,347 3,986 2,773
11,318 6,291 4,095 2,759
Petrochemical Industries Banks and Financial Services Transport Retail Telecommunication and Information Technology Agriculture and Food Industries Real Estate Development Energy Utility
────────
────────
100
114,508
════════
12
════════
────────
120,562
════════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS (continued)
Industry Sector Retail Cement Banks and Financial Services Telecommunication and Information Technology Building and Construction Transport Petrochemical Industries Energy and Utilities Agriculture and Food Industries Real Estate Development Industrial Investment
9
30 June 2016 (Unaudited) % of Total Value Cost
Fair Value
19.98 14.39 13.18
26,424 24,342 17,477
26,371 18,987 17,400
9.73 9.52 9.05 7.15 6.24 5.05 3.59 2.11 ──────── 100 ════════
10,731 11,706 14,375 9,687 7,217 8,170 4,007 2,869 ──────── 137,005 ════════
12,846 12,560 11,950 9,442 8,234 6,665 4,742 2,788 ──────── 131,985 ════════
ACCOUNT RECEIVABLE
Dividends receivable Other receivables
13
30 June 2017 (Unaudited)
31 December 2016 (Audited)
30 June 2016 (Unaudited)
--─────── -═══════
-229 ─────── 229 ═══════
128 53 ─────── 181 ═══════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 10
UNIT TRANSACTIONS
Transactions in units are summarized as follows: For the six months period ended 30 June 2017 Units’ 000
For the six months period ended 30 June 2016 Units’ 000
107,782
129,485
1,765
5,944
Units reinvested
--
1,341
Units redeemed
(17,090)
(15,205)
(15,325) ──────── 92,457 ════════
(7,920) ──────── 121,565 ════════
Units at the beginning of the period (audited) Units sold
Net decrease in units during the period (unaudited) Units at the end of the period
As at 30 June 2017, top five Unitholders represented 18.69% (30 June 2016: 20.27%) 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 Unitholder
Al Ahli Takaful Company
The significant related party transactions entered into by the Fund during the period and balances resulting from such transactions are as follows:
Related party Nature of transaction NCBC
Amount of transactions 2017 2016
Management Fee
1,013
1,318
Expenses paid on behalf of the fund
90
223
14
Value of units held as at 30 June 2017 2016
--
8,190
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 12 LAST VALUATION DAY The last valuation day for the period was 22 June 2017 (30 June 2016: 29 June 2016). There is no significant change in the net asset value per unit of the Fund between last valuation and 30 June 2017. 13
APPROVAL OF THE FINANCIAL STATEMENTS
These interim financial statements were approved by the Fund Manager on Dhul Qadah 23, 1438H, corresponding to August 15, 2017.
15
AlAhli GCC Growth & Income Fund – Interim Report A. Fund Manager 1. The Fund Manager is NCB Capital Company. Address: King Saud Road, P.O. Box 22216, Riyadh 11495, Kingdom of Saudi Arabia, Tel: +966 920000232
Fax +966 114060049
Website: www.alahlicapital.com
2. Sub-manager / investment adviser None 3. Investment activities GCC Markets were a mixed bag during 1H17 driven by their own specific dynamics and political tension. The local market performed well on the back of the announcement of the Kingdom being added to the MSCI watch list for inclusion in the global BM by mid2018. However, other GCC markets were mixed with Qatar and Oman being the worst performers and Kuwait and Bahrain with the strongest performance. 4. Fund’s performance AlAhli GCC Growth & Income Fund appreciated by 4.38% outperforming the Benchmark by 5.04% during 1H17. 5. Distributions The fund board has approved the income distribution of SAR 2,300,000 (approximately SAR 0.02 per unit) to the unitholders. The distribution represents around 2% the units’ nominal value. 6. T&C’s Material Changes The Fund Manager has not made any changes to the terms and conditions of the Fund.
NCB Capital is authorized by the Capital Market Authority of the Kingdom of Saudi Arabia under license number 37-06046. The registered office is at King Saud Road, NCB Regional Building P.O. Box 22216, 11495 Riyadh, Kingdom of Saudi Arabia T: +966 11 874 7106 F: +966 11 406 0049 www.alahlicapital.com
06046-37 شركة األهلي المالية (األهلي كابيتال) هي شركة مرخصــة من قبــل هيئة السـوق الماليــــة ترخيـص رقم ، 22216 ص ب، المبنى اإلقليمي للبنك األهلي التجاري، طريق الملك سعود:وعنوان مركزها الرئيسي المسجل. المملكة العربية السعودية، 11495 الرياض www.alahlicapital.com +966 11 406 0049 : ف+966 11 874 7106 :هـ
7. The fund does not invest substantially in other investment funds. 8. No special commissions were received by the fund manager during the period.
B. Financial Statements
NCB Capital is authorized by the Capital Market Authority of the Kingdom of Saudi Arabia under license number 37-06046. The registered office is at King Saud Road, NCB Regional Building P.O. Box 22216, 11495 Riyadh, Kingdom of Saudi Arabia T: +966 11 874 7106 F: +966 11 406 0049 www.alahlicapital.com
06046-37 شركة األهلي المالية (األهلي كابيتال) هي شركة مرخصــة من قبــل هيئة السـوق الماليــــة ترخيـص رقم ، 22216 ص ب، المبنى اإلقليمي للبنك األهلي التجاري، طريق الملك سعود:وعنوان مركزها الرئيسي المسجل. المملكة العربية السعودية، 11495 الرياض www.alahlicapital.com +966 11 406 0049 : ف+966 11 874 7106 :هـ
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM FINANCIAL STATEMENTS (unaudited) For the six months period ended 30 June 2017 with REVIEW REPORT TO THE UNITHOLDERS
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM BALANCE SHEET As at 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes
30 June 31 December 30 June 2017 2016 2016 (Unaudited) (Audited) (Unaudited)
ASSETS Cash and cash equivalents
6
1,782
7,382
11,461
Held for trading investments
8
111,805
120,562
131,985
Accounts receivable
9
Total assets
-──────── 113,587
229 181 ───────── ──────── 128,173 143,627
LIABILITIY 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)
1,038
--
--
173 ──────── 1,211 ──────── 112,376 ════════ 92,457 ════════ 1.215 ════════
-───────── -───────── 128,173 ═════════ 107,782 ═════════ 1.1892 ═════════
-──────── -──────── 143,627 ════════ 121,565 ════════ 1.1815 ════════
The accompanying notes 1 to 13 form integral part of these interim financial statements 2
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF INCOME (unaudited) For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 30 June 2017
30 June 2016
4,447
5,253
Realised loss on sale of held for trading investments
(1,359)
(15,296)
Unrealised gain on measurement of held for trading investments
2,798
7,764
(50) ───────── 5,836 ─────────
(81) ───────── (2,360) ─────────
1,013
1,318
1
94
Shariah audit fee
14
13
Audit fee
12
11
Fund Board remuneration
9
8
CMA fee
4
4
50 ───────── 1,103 ───────── 4,733 ═════════
93 ───────── 1,541 ───────── (3,901) ═════════
Note INVESTMENT REVENUE Dividend income
Exchange loss Total revenue 7
EXPENSES Management fee Custody fee
Administrative expenses Total expenses NET INCOME / (LOSS) FOR THE PERIOD
The accompanying notes 1 to 13 form integral part of these interim financial statements 3
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF CASH FLOWS (unaudited) For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Note Cash flow from operating activities Net income / (loss) for the period Adjustment for: Value of units reinvested Unrealised gain on held for trading investments
30 June 2017
30 June 2016
4,733
(3,901)
1,541 -(7,764) (2,798) ───────── ───────── (10,124) 1,935
Changes in operating assets and liabilities: Decrease in held for trading investments Decrease in IPO deposit Decrease in account receivable Increase / (decrease) in payable to Unitholders on account of redemptions Increase in management fee payable
11,555 -229
20,809 960 49
(87) 1,038 -173 ───────── ───────── 11,607 14,930 ───────── ─────────
Net cash provided by operating activities Cash flow from financing activities Proceeds from units sold Subscription fees deducted Value of units redeemed Income distribution to Unitholders
7,122 2,120 (54) -(17,521) (20,350) (4,300) (2,300) ───────── ───────── (14,753) (20,530) ───────── ───────── (3,146) (5,600)
Net cash used in financing activities Decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period
6
Cash and cash equivalents at the end of the period
6
14,607 7,382 ───────── ───────── 11,461 1,782 ═════════ ═════════
The accompanying notes 1 to 13 form integral part of these interim financial statements 4
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) INTERIM STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS For the six months period ended 30 June 2017 Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated)
Notes Net assets attributable to Unitholders at the beginning of the period (audited)
30 June 2017
30 June 2016
128,173
160,740
4,733
(3,901)
2,120
7,122
Net income / (loss) for the period Decrease in net assets from unit transactions during the period
10
Gross proceeds from units sold Subscription fee deducted
--
(54)
2,120
7,068
--
1,541
(20,350)
(17,521)
(2,300) ───────── (20,530) ─────────
(4,300) ───────── (13,212) ─────────
112,376 ═════════
143,627 ═════════
Net proceeds from units sold Value of units reinvested
7
Value of units redeemed Income distribution to Unitholders
Net assets attributable to Unitholders at the end of the period (unaudited)
The accompanying notes 1 to 13 form integral part of these interim financial statements 5
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 1
THE FUND AND ITS ACTIVITIES
Al-Ahli GCC Growth and Income Fund (the "Fund") is a Shariah compliant, open-ended 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 Regulation) 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 investments in GCC companies, other than those listed on the stock exchange of the Kingdom of Saudi Arabia, are held by Citibank N.A., a sub-custodian appointed by the Fund Manager. The Fund is established with the objective to provide investors with long term capital growth through investments in GCC equity markets companies in accordance with the Shariah guidelines issued by the Fund Shariah Board. The terms and conditions of the Fund were originally approved by the Saudi Arabian Monetary Agency (SAMA) and subsequently endorsed by CMA through their letter dated 18 Dhul Hijja 1429H (corresponding to 16 December 2008). The Fund commenced its activities on 6 October 2005. The results for the six months period ended 30 June 2017 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2017. 2
REGULATORY AUTHORITY
The Fund is governed by the Regulations issued by the CMA pursuant to resolution number 7-2192006 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
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.
6
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
BASIS OF PREPARATION
Statement of compliance These interim 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 Fund prepares its interim financial statements as at and for the period ended on its last valuation date (note 12). The Fund presents comparative numbers of December in Balance Sheet and its related notes as additional information for benefit of Unitholders. Basis of measurement These interim 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 interim 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. Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the interim financial statements interim financial statements have been consistent with those used in the preparation of annual financial statements of the Funds for the year ended December 31, 2016. 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.
7
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 4
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. 5
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods 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 recognised 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 unrealised gains and losses are included in the statement of income. Realised 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 recognised in the statement of income. If a financial asset is impaired, impairment is determined as follows: (i) (ii) (iii)
For assets carried at fair value, impairment is the difference between cost and fair value, less any impairment loss previously recognised in the statement of income; 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; For assets carried at amortised cost, impairment is the difference between carrying amount and the present value of future cash flows discounted at the original effective commission rate. 8
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5
SIGNIFICANT ACCOUNTING POLICIES (continued)
d)
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised 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 recognised to the extent of the Fund’s continuing involvement in the asset. e)
Revenue recognition
Realised gains and losses on investments sold are determined on an average cost basis. Dividends are recognised 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 receognised 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 period end.
9
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 5 j)
SIGNIFICANT ACCOUNTING POLICIES (continued) 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 realise 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. 6
CASH AND CASH EQUIVALENTS
Cash and cash equivalents represent cash held in current accounts with National Commercial Bank (a related party). 7
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 1.85% p.a., as set out in the Fund’s terms and conditions. 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 1.5% 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. Furthermore, the Fund Manager is entitled to a subscription fee of 2% at the time of the investment in the Fund by a Unitholder. This fee may be waived at the discretion of the Fund Manager. 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.
10
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS
The composition of the held for trading investments by currency is summarized below:
Currency
Country
Saudi Riyal
Kingdom of Saudi Arabia United Arab Emirates Kuwait
UAE Dirham Kuwaiti Dinar
30 June 2017 (Unaudited) % of Total Value Cost
81.87 17.87 0.26 ──────── 100 ════════
84,040 18,913 -──────── 102,953 ════════
Fair Value
91,537 19,975 293 ──────── 111,805 ════════
31 December 2016 Currency
Country
Saudi Riyal Qatari Riyal UAE Dirham
Kingdom of Saudi Arabia Qatar United Arab Emirates
Kuwaiti Dinar
Kuwait
Currency
Country
Saudi Riyal
Kingdom of Saudi Arabia Qatar United Arab Emirates Kuwait
Qatari Riyal UAE Dirham Kuwaiti Dinar
% of Total Investment
Cost
Fair Value
70.69 15.93
78,636 19,907
85,220 19,202
13.15 0.24 ──────── 100 ════════
15,965 -──────── 114,508 ════════
15,849 291 ──────── 120,562 ════════
30 June 2016 (Unaudited) % of Total Value Cost
79.66 9.51 8.49 2.34 ──────── 100 ════════
11
111,120 12,905 10,111 2,869 ──────── 137,005 ════════
Fair Value
105,140 12,556 11,207 3,082 ──────── 131,985 ════════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS (continued)
The composition of the held for trading investments by industry sector is summarized below:
Industry Sector
30 June 2017 (Unaudited) % of Total Value Cost Fair Value 36.17 20.08 11.14 8.42
35,529 19,641 11,774 9,595
40,442 22,444 12,455 9,414
7.47 6.17 5.47 5.08
5,955 7,860 5,676 6,923
8,351 6,900 6,120 5,679
────────
────────
────────
100
102,953
111,805
════════
════════
════════
Petrochemical Industries Banks and Financial Services Retail Real Estate Development Telecommunication and Information Technology Agriculture and Food Industries Energy and Utilities Transport
31 December 2016 Industry Sector
% of Total Value
Cost
Fair Value
35.16 20.83 12.74 10.97
37,384 23,896 15,025 15,706
42,394 25,119 15,365 13,221
9.39 5.22 3.40 2.29
8,391 7,347 3,986 2,773
11,318 6,291 4,095 2,759
Petrochemical Industries Banks and Financial Services Transport Retail Telecommunication and Information Technology Agriculture and Food Industries Real Estate Development Energy Utility
────────
────────
100
114,508
════════
12
════════
────────
120,562
════════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 8
HELD FOR TRADING INVESTMENTS (continued)
Industry Sector Retail Cement Banks and Financial Services Telecommunication and Information Technology Building and Construction Transport Petrochemical Industries Energy and Utilities Agriculture and Food Industries Real Estate Development Industrial Investment
9
30 June 2016 (Unaudited) % of Total Value Cost
Fair Value
19.98 14.39 13.18
26,424 24,342 17,477
26,371 18,987 17,400
9.73 9.52 9.05 7.15 6.24 5.05 3.59 2.11 ──────── 100 ════════
10,731 11,706 14,375 9,687 7,217 8,170 4,007 2,869 ──────── 137,005 ════════
12,846 12,560 11,950 9,442 8,234 6,665 4,742 2,788 ──────── 131,985 ════════
ACCOUNT RECEIVABLE
Dividends receivable Other receivables
13
30 June 2017 (Unaudited)
31 December 2016 (Audited)
30 June 2016 (Unaudited)
--─────── -═══════
-229 ─────── 229 ═══════
128 53 ─────── 181 ═══════
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 10
UNIT TRANSACTIONS
Transactions in units are summarized as follows: For the six months period ended 30 June 2017 Units’ 000
For the six months period ended 30 June 2016 Units’ 000
107,782
129,485
1,765
5,944
Units reinvested
--
1,341
Units redeemed
(17,090)
(15,205)
(15,325) ──────── 92,457 ════════
(7,920) ──────── 121,565 ════════
Units at the beginning of the period (audited) Units sold
Net decrease in units during the period (unaudited) Units at the end of the period
As at 30 June 2017, top five Unitholders represented 18.69% (30 June 2016: 20.27%) 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 Unitholder
Al Ahli Takaful Company
The significant related party transactions entered into by the Fund during the period and balances resulting from such transactions are as follows:
Related party Nature of transaction NCBC
Amount of transactions 2017 2016
Management Fee
1,013
1,318
Expenses paid on behalf of the fund
90
223
14
Value of units held as at 30 June 2017 2016
--
8,190
AL-AHLI GCC GROWTH AND INCOME FUND (Managed by NCB Capital Company) NOTES TO THE INTERIM FINANCIAL STATEMENTS For the six months period ended 30 June 2017 (unaudited) Expressed in Saudi Arabian Riyals ‘000 (unless otherwise stated) 12 LAST VALUATION DAY The last valuation day for the period was 22 June 2017 (30 June 2016: 29 June 2016). There is no significant change in the net asset value per unit of the Fund between last valuation and 30 June 2017. 13
APPROVAL OF THE FINANCIAL STATEMENTS
These interim financial statements were approved by the Fund Manager on Dhul Qadah 23, 1438H, corresponding to August 15, 2017.
15
