Blom Saudi IPO Fund - BLOMINVEST Saudi Arabia
Blom Saudi IPO Fund
2016 Annual Fund Report
1
Contents Investment Fund Information ................................................................................................................. 3 Fund Performance .................................................................................................................................. 4 Fund Expenses ........................................................................................................................................ 4 Fund Manager ......................................................................................................................................... 6 Custodian ................................................................................................................................................ 7 Auditor .................................................................................................................................................... 8 Financial Statements ............................................................................................................................... 9
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Investment Fund Information Fund Name Blom Saudi IPO Fund Benchmark Blom Ideal Ratings IPO Islamic Index Investment Objectives and Policies The Fund’s objective is long-term capital development attained by Investing mainly in ShariahCompliant Initial Public Offerings of Saudi Companies as well as Shariah-Compliant Saudi Companies that have been listed in the Saudi Stock Exchange for 3 years or less. The fund’s performance will be measured against Blom Ideal Ratings IPO Islamic Index in order to give investors an indication of the Fund’s performance. Investment Policies: Blom Saudi IPO Fund will invest primarily in Initial Public Offerings and rights issues of Saudi companies which have been listed for 3 years or less, the Fund may also invest in newly listed companies in the Saudi market (listed for 3 years or less). The Fund manager may also invest in other mutual funds similar to the objectives of the Fund, as well as public money market funds licensed by the Capital Market Authority. The Fund’s investments will be concentrated in Shariah-complaint IPOs in addition to rights issues and shares of companies listed on “Tadawul” for less than 3 years. The Fund’s investment strategy will try to incorporate as many sectors as available in the investment universe. In addition to the restrictions highlighted in the IFR, the fund will adhere to the following investment limitations at all possible times; Investment Type IPOs, newly listed companies and rights issues Cash and money market funds Mutual Funds similar to the Fund’s objectives
Minimum
Maximum
25% 0% 0%
100% 75% 30%
The Fund will adopt an active investment strategy based on continuously altering positions of the Funds investment. This is will be done by studying the companies’ financial statements and the historical movement since inception, comparing that to the industry and the market, as well as studying the behaviour of the newly listed companies in previous periods and then building a portfolio by defining the size of each investment and reviewing the result regularly to ensure commitment to investment limitations as well as the investment strategy. Distribution of income and gain policy Dividends and/or income are reinvested in the Fund not paid our or distributed to investors. The Fund Reports are available upon request free of charge www.blom.sa
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Fund Performance NAV at year-end (SAR) NAV/unit at year-end (SAR) Lowest NAV (SAR) Highest NAV(SAR) Units at year-end Distribution/ unit Expense Ratio
2015 101,005,368.23 1,001.07 993.36 1,120.89 100,897.13 1.25%
2016 57,555,304.70 977.48 851.16 1,030.60 58,881.09 1.79%
1 year -2.36%
Since Inception -2.25%
2015 0.15%
2016 -2.36%
Amount SAR 1,473,350 SAR 124,838 SAR 45,000 SAR 37,500 SAR 30,000 SAR 18,750 SAR 7,500 SAR 5,000 SAR 1,741,938
Pct. Of average NAV 1.51% 0.13% 0.05% 0.04% 0.03% 0.02% 0.01% 0.01% 1.79%
Total Return
Annual Total Return
Fund Expenses Fee Type Management Expense Custody/Admin Expense Audit Expense Fund Board Expense Shariah Board Expense Bechmark Expense CMA Expense Tadawul Fees Total
The measures of performance have been consistently applied. Material changes that occurred during the period and that affected the performance of the fund No Material changes occurred during 2016 Exercise of annual voting rights The Fund Manager abstained from voting during 2016
4
Fund board meeting Board Resolution dated 30/08/2016 Discussion Topics a. b. c. d. e. f.
2016 performance review of the Fund Approving the financial statements (year-end 2015) Discussion of CMA findings during their audit (Jan 2016) Discussion of potential conflict of interest Review of third-party contracts Review of the Fund’s terms and conditions including financial disclosure
Resolutions g. The board recommended steps to address CMA’s findings h. The board decided there was no material conflict of interest
Board Resolution dated 01/11/2016 Discussion Topics a. b. c. d.
2016 performance review of the Fund
Approving the financial statements (semi-annual 2016) Compliance officer’s review of funds’ compliance with laws and regulations. Follow-up on CMA findings during their audit (Jan 2016)
Resolutions e. The board recommended monitoring compliance through utilizing the newly acquired IT system f. The board approved steps taken to address CMA comments
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Fund Manager Fund Manager BLOMINVEST Saudi Arabia, with its registered office at Al Oula Building, 3rd floor, King Fahad Road, Riyadh, P.O. Box 8151, Riyadh 11482, Saudi Arabia. Names and addresses of sub-manager and/or investment adviser The Fund Manager did not appoint a sub-manager or investment advisor Investment activities during the period The fund has subscribed to three Initial Public Offering of the year: Middle East Healthcare, AL Yamamah Steel and Lazurde. In most other cases the fund has maintained an average exposure of 35% to the listed market within its investment universe with a tilt towards quality/value as opposed to market cap. Investment fund’s performance during the period Over 2016, the fund lost 2.4% vs a loss of 16.5% for the Ideal Ratings IPO Index (the Benchmark). 110 100 90 80 70
Ideal Ratings IPO Index TASI
60
BLOM IPO Fund
50
Details of any material changes made during the period No material changes took place during the period Investment fund invests substantially in other investment funds The fund invested 6mn in NOMU IPO Fund in December 2015 redeemed half in February 2016 and maintained the rest until December 2016. Average exposure throughout the year was less than 3%.
The Fund manager did not receive any special commission during 2016.
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Custodian Letter Custodian Saudi Fransi Capital Head Office | Kingdom of Saudi Arabia | P.O. Box: 23454 Riyadh 11426 www.sfc.sa
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Auditor Auditor
8
Ernst & Young Al Faisaliah Office Tower | King Fahad Road | P.O. Box 2732 | Riyadh 11461, Saudi Arabia
Financial Statements
9
2016 Annual Fund Report
1
Contents Investment Fund Information ................................................................................................................. 3 Fund Performance .................................................................................................................................. 4 Fund Expenses ........................................................................................................................................ 4 Fund Manager ......................................................................................................................................... 6 Custodian ................................................................................................................................................ 7 Auditor .................................................................................................................................................... 8 Financial Statements ............................................................................................................................... 9
2
Investment Fund Information Fund Name Blom Saudi IPO Fund Benchmark Blom Ideal Ratings IPO Islamic Index Investment Objectives and Policies The Fund’s objective is long-term capital development attained by Investing mainly in ShariahCompliant Initial Public Offerings of Saudi Companies as well as Shariah-Compliant Saudi Companies that have been listed in the Saudi Stock Exchange for 3 years or less. The fund’s performance will be measured against Blom Ideal Ratings IPO Islamic Index in order to give investors an indication of the Fund’s performance. Investment Policies: Blom Saudi IPO Fund will invest primarily in Initial Public Offerings and rights issues of Saudi companies which have been listed for 3 years or less, the Fund may also invest in newly listed companies in the Saudi market (listed for 3 years or less). The Fund manager may also invest in other mutual funds similar to the objectives of the Fund, as well as public money market funds licensed by the Capital Market Authority. The Fund’s investments will be concentrated in Shariah-complaint IPOs in addition to rights issues and shares of companies listed on “Tadawul” for less than 3 years. The Fund’s investment strategy will try to incorporate as many sectors as available in the investment universe. In addition to the restrictions highlighted in the IFR, the fund will adhere to the following investment limitations at all possible times; Investment Type IPOs, newly listed companies and rights issues Cash and money market funds Mutual Funds similar to the Fund’s objectives
Minimum
Maximum
25% 0% 0%
100% 75% 30%
The Fund will adopt an active investment strategy based on continuously altering positions of the Funds investment. This is will be done by studying the companies’ financial statements and the historical movement since inception, comparing that to the industry and the market, as well as studying the behaviour of the newly listed companies in previous periods and then building a portfolio by defining the size of each investment and reviewing the result regularly to ensure commitment to investment limitations as well as the investment strategy. Distribution of income and gain policy Dividends and/or income are reinvested in the Fund not paid our or distributed to investors. The Fund Reports are available upon request free of charge www.blom.sa
3
Fund Performance NAV at year-end (SAR) NAV/unit at year-end (SAR) Lowest NAV (SAR) Highest NAV(SAR) Units at year-end Distribution/ unit Expense Ratio
2015 101,005,368.23 1,001.07 993.36 1,120.89 100,897.13 1.25%
2016 57,555,304.70 977.48 851.16 1,030.60 58,881.09 1.79%
1 year -2.36%
Since Inception -2.25%
2015 0.15%
2016 -2.36%
Amount SAR 1,473,350 SAR 124,838 SAR 45,000 SAR 37,500 SAR 30,000 SAR 18,750 SAR 7,500 SAR 5,000 SAR 1,741,938
Pct. Of average NAV 1.51% 0.13% 0.05% 0.04% 0.03% 0.02% 0.01% 0.01% 1.79%
Total Return
Annual Total Return
Fund Expenses Fee Type Management Expense Custody/Admin Expense Audit Expense Fund Board Expense Shariah Board Expense Bechmark Expense CMA Expense Tadawul Fees Total
The measures of performance have been consistently applied. Material changes that occurred during the period and that affected the performance of the fund No Material changes occurred during 2016 Exercise of annual voting rights The Fund Manager abstained from voting during 2016
4
Fund board meeting Board Resolution dated 30/08/2016 Discussion Topics a. b. c. d. e. f.
2016 performance review of the Fund Approving the financial statements (year-end 2015) Discussion of CMA findings during their audit (Jan 2016) Discussion of potential conflict of interest Review of third-party contracts Review of the Fund’s terms and conditions including financial disclosure
Resolutions g. The board recommended steps to address CMA’s findings h. The board decided there was no material conflict of interest
Board Resolution dated 01/11/2016 Discussion Topics a. b. c. d.
2016 performance review of the Fund
Approving the financial statements (semi-annual 2016) Compliance officer’s review of funds’ compliance with laws and regulations. Follow-up on CMA findings during their audit (Jan 2016)
Resolutions e. The board recommended monitoring compliance through utilizing the newly acquired IT system f. The board approved steps taken to address CMA comments
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Fund Manager Fund Manager BLOMINVEST Saudi Arabia, with its registered office at Al Oula Building, 3rd floor, King Fahad Road, Riyadh, P.O. Box 8151, Riyadh 11482, Saudi Arabia. Names and addresses of sub-manager and/or investment adviser The Fund Manager did not appoint a sub-manager or investment advisor Investment activities during the period The fund has subscribed to three Initial Public Offering of the year: Middle East Healthcare, AL Yamamah Steel and Lazurde. In most other cases the fund has maintained an average exposure of 35% to the listed market within its investment universe with a tilt towards quality/value as opposed to market cap. Investment fund’s performance during the period Over 2016, the fund lost 2.4% vs a loss of 16.5% for the Ideal Ratings IPO Index (the Benchmark). 110 100 90 80 70
Ideal Ratings IPO Index TASI
60
BLOM IPO Fund
50
Details of any material changes made during the period No material changes took place during the period Investment fund invests substantially in other investment funds The fund invested 6mn in NOMU IPO Fund in December 2015 redeemed half in February 2016 and maintained the rest until December 2016. Average exposure throughout the year was less than 3%.
The Fund manager did not receive any special commission during 2016.
6
Custodian Letter Custodian Saudi Fransi Capital Head Office | Kingdom of Saudi Arabia | P.O. Box: 23454 Riyadh 11426 www.sfc.sa
7
Auditor Auditor
8
Ernst & Young Al Faisaliah Office Tower | King Fahad Road | P.O. Box 2732 | Riyadh 11461, Saudi Arabia
Financial Statements
9
