COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed ...
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) Interim Condensed Financial Statements (Un-Audited) For the six month period ended 30 June 2016 together with the Review Report to the Unitholders
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED BALANCE SHEET (Un-Audited) As at 30 June 2016 (Amounts in SAR) Notes
2016
2015
ASSETS Cash and cash equivalents Investments Accrued special commission income Total assets
7
161,454,847 2,369,148,626 19,032,443 2,549,635,916
58,033,974 3,630,148,625 13,447,668 3,701,630,267
3,533,442 150,000 3,683,442
4,759,153 737,689 5,496,842
2,545,952,474
3,696,133,425
1,266,838.85
1,858,831.98
2,009.69
1,988.42
LIABILITIES Accrued expenses Redemptions payable Total liabilities Net asset attributable to unit holders Units in issue (numbers)
8
Net asset attributable to each unit
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 2
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF INCOME (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016
2015
INCOME Special commission income
27,938,362
19,212,781
(5,339,964) (2,296,278) (7,636,242)
(9,960,948) (273,476) (10,234,424)
20,302,120
8,978,357
EXPENSES Fund management fees Other expenses
10 10
Net income for the period
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 3
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF CASH FLOWS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016
2015
20,302,120
8,978,357
1,253,148,624 (1,144,190) (1,951,848) 1,270,354,706
513,851,375 (2,002,182) 78,248 520,905,798
780,626,785 (2,066,975,920) (1,286,349,135)
1,220,879,392 (1,811,170,998) (590,291,606)
Net (decrease) in cash and cash equivalents
(15,994,429)
(69,385,808)
Cash and cash equivalents at beginning of the period
177,449,276
145,419,782
161,454,847
76,033,974
Note CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period Changes in operating assets and liabilities Investments Accrued special commission income Accrued expenses Net cash from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payments for redemption of units Net cash used in financing activities
9
Cash and cash equivalents at end of the period
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 4
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016 Net asset attributable to unit holders at beginning of the period
Net income for the period
3,812,149,489
20,302,120
Changes from unit transactions: Issuance of units Redemption of units Net change from unit transactions Net asset attributable to unit holders at end of the period
2015 4,278,164,084 8,978,357
780,626,785 (2,067,125,920) (1,286,499,135)
1,220,879,392 (1,811,888,408) (591,009,016)
2,545,952,474
3,696,133,425
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 5
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES The Commodity Trading Fund (SAR) (the “Fund”) is a trade fund managed through an agreement between Riyad Capital (the “Fund Manager”) and the Fund Investors (the “Unitholders”). The objective of the Fund is to seek maximum possible preservation of capital and realize a reasonable return thereon through participation in short-term trading investment denominated in Saudi Riyal that do not contradict the principles of Islamic Sharia. In dealing with the Unitholders, the Fund Management considers the Fund as an independent accounting unit. Accordingly, the Fund Manager prepares separate financial statements for the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund’s Agreement, the Fund Manager can delegate or assign its duties to one or more of the financial institutions in the Kingdom of Saudi Arabia and overseas. SAMA’s approval for the establishment of the Fund was granted in its letter number 11020/MA/3727 dated Zul Qa’dah 18, 1413 H (corresponding to 9 May 1993). The Fund commenced its operations on 1 July 1993.
2.
REGULATING AUTHORITY The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by Capital Market Authority (CMA) on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) detailing requirements for all investment funds within the Kingdom of Saudi Arabia.
3.
SUBSCRIPTION / REDEMPTION The Fund is open for subscriptions/ redemptions of units on from Sunday to Thursday. The net assets value of the Fund is determined from Sunday to Thursday (each a “Dealing Day”). The net assets value of the Fund for the purpose of purchase or sale of units is determined by dividing the net value of assets (fair value of Fund assets minus Fund liabilities) by the total number of outstanding fund units on the relevant Dealing Day.
4.
BASIS OF PRESENTATION
4.1
Statement of compliance These interim condensed financial statements have been prepared in accordance with generally accepted accounting standards applicable in the Kingdom of Saudi Arabia issued by the Saudi Organization of Certified Public Accountants. These interim condensed financial statements do not include all of the information required for a full set of financial statements and should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. These interim condensed financial statements does not necessarily constitute an indication of the year-end financial statements. These interim condensed financial statements were approved by the Fund’s Board of Directors on 11 Dhual Qa’dah 1437H corresponding to 14 August 2016. .
6
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 4.
BASIS OF PRESENTATION (Continued)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention, except for measurement at fair value investments available for sale, using accrual basis of accounting and the going concern concept
4.3 Functional and presentation currency These interim condensed financial statements are presented in Saudi Arab Riyals (SAR) which is the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR. 4.4
Use of estimates and judgments In the ordinary course of business, the preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods affected.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements are consistent with those used and disclosed the annual financial statements of the Fund for the year ended 31 December 2015. Risk management policies are consistent with those as disclosed in the annual financial statements of the Fund for the year ended 31 December 2015.
6.
MANAGEMENT FEE AND OTHER CHARGES On daily basis, the Fund Manager charges the Fund management fee at the rate of 0.5 percent per annum of the Fund's net assets value. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as audit and legal fees, board compensation and other similar charges. These charges are not expected to exceed in total 0.2 percent per annum of the Fund’s net assets value.
7
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 7.
INVESTMENTS Held to maturity investments Available for sale investments
7-1 7-2
2016
2015
-2,369,148,626 2,369,148,626
2,824,000,000 806,148,625 3,630,148,625
7.1 During 2015, the Fund has realized some of its Murabaha deposits before their contractual maturity dates. Therefore, portfolio classified as ‘Held to Maturity’, has been re-classified to ‘Available for Sale’. The held to maturity investment portfolio in the prior year comprised of Murabaha deposits. The table below set out the remaining contractual maturities of the held to maturity investments: Maturity within:
2016
1 – 3 month - Original Maturity of three month or less - Original Maturity more than three month
-------
3 – 6 month 6 – 12 month
7.2
2015
65,000,000 684,000,000 749,000,000 1,089,000,000 1,855,000,000 3,693,000,000
The “Available for Sale” investments consist of Murabaha deposits and Sukuks, carrying special commission rates ranging from 0.95% to 4.08% per annum whereby some of the sukuks bear floating commission rate.
7.3.1 & 7.3.2
Sukuks
2016
2015
951,148,625 951,148,625
498,000,000 498,000,000
773,000,000 645,000,001 1,418,000,001
-----
2,369,148,626
498,000,000
Murabaha deposits -
-
With maturity of three month or less • Original Maturity of three month or less • Original Maturity more than three month With maturity of more than three month 7.4
7.3.1 There is no active market available of the Sukuks and in the absence of market indicators, cost is considered a reliable measure of the fair value of the available for sales investments. As the fair value of the above available for sales investments approximate its par value; therefore, no reserve is created against these investments. 7.3.2 Included in the above sukuk investments as at 30 June 2016, an amount of SAR 34,162,658 represents sukuk being called by the issuer (Saudi Binladin Group) on 23 June 2016.
8
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 7.4
The fair value of Murabaha deposits approximates its carrying amount.
7.5
The table below set out the remaining contractual maturities of the available for sales investments: Maturity within: 1- 12 month 1-2 years 2-3 years 3-4 years 4- 5 years Over 5 years
8.
2016
2015
34,148,625 -50,000,000 70,000,000 50,000,000 747,000,000 951,148,625
-75,000,000 250,000,000 -80,000,000 93,000,000 498,000,000
UNIT TRANSACTIONS Transactions in units for the period are summarized as follows: (In numbers) Units at beginning of the period Units issued Units redeemed Net change in units Units at end of the period
9.
1,909,655.48
2,156,443.52
389,867.57 (1,032,684.21) (642,816.63)
614,765.65 (912,377.19) (297,611.54)
1,266,838.85
1,858,831.98
CASH AND CASH EQUIVALENTS
Cash at bank Time deposits having maturity of three month or less from the date of acquisition
9
161,454,847
58,033,974
161,454,847
18,000,000 76,033,974
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 10.
TRANSACTIONS WITH RELATED PARTIES Related parties of the Fund include “Riyad Capital” being the Fund Manager and Riyad Bank (being the shareholder of Riyad Capital). In the ordinary course of its activities, the Fund transacts business with related parties. The related parties transactions are governed by limits set by the regulations issued by the CMA. All related party transactions are approved by the Fund Board of directors. Riyad Bank acts as a banker of the Fund and as at 30 June 2016 SAR 161.45 million (30 June 2015: SAR 58.03 million) were held in current account with the Riyad Bank. The significant related party transactions entered into by the Fund during the period and the balances resulting from such transactions are as follows: Related parties
Nature of transactions
Closing balance receivable / payable)
2016
2015
2016
2015
--
--
689,000,000
190,000,000
86,336
632,992
3,822,434
463,184
Riyad Capital Management fee (5,339,964)
(9,960,948)
(3,492,422)
(4,727,030)
(64,246)
(41.020)
(32,123)
Riyad Bank
Held to maturity investments Special commission income
Expenses incurred on behalf of the Fund 11.
Amount of transactions during the period
(2,305,594)
FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets consist of cash and cash equivalents, investments and accrued special commission income and financial liabilities consist of accrued expenses and redemptions payable. The fair value of financial instruments is not materially different from their carrying values.
12.
LAST VALUATION DAY The last valuation day of the period was 30 June 2016 (30 June 2015: 30 June 2015).
10
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED BALANCE SHEET (Un-Audited) As at 30 June 2016 (Amounts in SAR) Notes
2016
2015
ASSETS Cash and cash equivalents Investments Accrued special commission income Total assets
7
161,454,847 2,369,148,626 19,032,443 2,549,635,916
58,033,974 3,630,148,625 13,447,668 3,701,630,267
3,533,442 150,000 3,683,442
4,759,153 737,689 5,496,842
2,545,952,474
3,696,133,425
1,266,838.85
1,858,831.98
2,009.69
1,988.42
LIABILITIES Accrued expenses Redemptions payable Total liabilities Net asset attributable to unit holders Units in issue (numbers)
8
Net asset attributable to each unit
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 2
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF INCOME (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016
2015
INCOME Special commission income
27,938,362
19,212,781
(5,339,964) (2,296,278) (7,636,242)
(9,960,948) (273,476) (10,234,424)
20,302,120
8,978,357
EXPENSES Fund management fees Other expenses
10 10
Net income for the period
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 3
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF CASH FLOWS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016
2015
20,302,120
8,978,357
1,253,148,624 (1,144,190) (1,951,848) 1,270,354,706
513,851,375 (2,002,182) 78,248 520,905,798
780,626,785 (2,066,975,920) (1,286,349,135)
1,220,879,392 (1,811,170,998) (590,291,606)
Net (decrease) in cash and cash equivalents
(15,994,429)
(69,385,808)
Cash and cash equivalents at beginning of the period
177,449,276
145,419,782
161,454,847
76,033,974
Note CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period Changes in operating assets and liabilities Investments Accrued special commission income Accrued expenses Net cash from operating activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payments for redemption of units Net cash used in financing activities
9
Cash and cash equivalents at end of the period
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 4
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 2016 Net asset attributable to unit holders at beginning of the period
Net income for the period
3,812,149,489
20,302,120
Changes from unit transactions: Issuance of units Redemption of units Net change from unit transactions Net asset attributable to unit holders at end of the period
2015 4,278,164,084 8,978,357
780,626,785 (2,067,125,920) (1,286,499,135)
1,220,879,392 (1,811,888,408) (591,009,016)
2,545,952,474
3,696,133,425
The accompanying notes 1 through 12 form an integral part of these interim condensed financial statements 5
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES The Commodity Trading Fund (SAR) (the “Fund”) is a trade fund managed through an agreement between Riyad Capital (the “Fund Manager”) and the Fund Investors (the “Unitholders”). The objective of the Fund is to seek maximum possible preservation of capital and realize a reasonable return thereon through participation in short-term trading investment denominated in Saudi Riyal that do not contradict the principles of Islamic Sharia. In dealing with the Unitholders, the Fund Management considers the Fund as an independent accounting unit. Accordingly, the Fund Manager prepares separate financial statements for the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund’s Agreement, the Fund Manager can delegate or assign its duties to one or more of the financial institutions in the Kingdom of Saudi Arabia and overseas. SAMA’s approval for the establishment of the Fund was granted in its letter number 11020/MA/3727 dated Zul Qa’dah 18, 1413 H (corresponding to 9 May 1993). The Fund commenced its operations on 1 July 1993.
2.
REGULATING AUTHORITY The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by Capital Market Authority (CMA) on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) detailing requirements for all investment funds within the Kingdom of Saudi Arabia.
3.
SUBSCRIPTION / REDEMPTION The Fund is open for subscriptions/ redemptions of units on from Sunday to Thursday. The net assets value of the Fund is determined from Sunday to Thursday (each a “Dealing Day”). The net assets value of the Fund for the purpose of purchase or sale of units is determined by dividing the net value of assets (fair value of Fund assets minus Fund liabilities) by the total number of outstanding fund units on the relevant Dealing Day.
4.
BASIS OF PRESENTATION
4.1
Statement of compliance These interim condensed financial statements have been prepared in accordance with generally accepted accounting standards applicable in the Kingdom of Saudi Arabia issued by the Saudi Organization of Certified Public Accountants. These interim condensed financial statements do not include all of the information required for a full set of financial statements and should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. These interim condensed financial statements does not necessarily constitute an indication of the year-end financial statements. These interim condensed financial statements were approved by the Fund’s Board of Directors on 11 Dhual Qa’dah 1437H corresponding to 14 August 2016. .
6
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 4.
BASIS OF PRESENTATION (Continued)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention, except for measurement at fair value investments available for sale, using accrual basis of accounting and the going concern concept
4.3 Functional and presentation currency These interim condensed financial statements are presented in Saudi Arab Riyals (SAR) which is the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR. 4.4
Use of estimates and judgments In the ordinary course of business, the preparation of interim condensed financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods affected.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements are consistent with those used and disclosed the annual financial statements of the Fund for the year ended 31 December 2015. Risk management policies are consistent with those as disclosed in the annual financial statements of the Fund for the year ended 31 December 2015.
6.
MANAGEMENT FEE AND OTHER CHARGES On daily basis, the Fund Manager charges the Fund management fee at the rate of 0.5 percent per annum of the Fund's net assets value. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as audit and legal fees, board compensation and other similar charges. These charges are not expected to exceed in total 0.2 percent per annum of the Fund’s net assets value.
7
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 7.
INVESTMENTS Held to maturity investments Available for sale investments
7-1 7-2
2016
2015
-2,369,148,626 2,369,148,626
2,824,000,000 806,148,625 3,630,148,625
7.1 During 2015, the Fund has realized some of its Murabaha deposits before their contractual maturity dates. Therefore, portfolio classified as ‘Held to Maturity’, has been re-classified to ‘Available for Sale’. The held to maturity investment portfolio in the prior year comprised of Murabaha deposits. The table below set out the remaining contractual maturities of the held to maturity investments: Maturity within:
2016
1 – 3 month - Original Maturity of three month or less - Original Maturity more than three month
-------
3 – 6 month 6 – 12 month
7.2
2015
65,000,000 684,000,000 749,000,000 1,089,000,000 1,855,000,000 3,693,000,000
The “Available for Sale” investments consist of Murabaha deposits and Sukuks, carrying special commission rates ranging from 0.95% to 4.08% per annum whereby some of the sukuks bear floating commission rate.
7.3.1 & 7.3.2
Sukuks
2016
2015
951,148,625 951,148,625
498,000,000 498,000,000
773,000,000 645,000,001 1,418,000,001
-----
2,369,148,626
498,000,000
Murabaha deposits -
-
With maturity of three month or less • Original Maturity of three month or less • Original Maturity more than three month With maturity of more than three month 7.4
7.3.1 There is no active market available of the Sukuks and in the absence of market indicators, cost is considered a reliable measure of the fair value of the available for sales investments. As the fair value of the above available for sales investments approximate its par value; therefore, no reserve is created against these investments. 7.3.2 Included in the above sukuk investments as at 30 June 2016, an amount of SAR 34,162,658 represents sukuk being called by the issuer (Saudi Binladin Group) on 23 June 2016.
8
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 7.4
The fair value of Murabaha deposits approximates its carrying amount.
7.5
The table below set out the remaining contractual maturities of the available for sales investments: Maturity within: 1- 12 month 1-2 years 2-3 years 3-4 years 4- 5 years Over 5 years
8.
2016
2015
34,148,625 -50,000,000 70,000,000 50,000,000 747,000,000 951,148,625
-75,000,000 250,000,000 -80,000,000 93,000,000 498,000,000
UNIT TRANSACTIONS Transactions in units for the period are summarized as follows: (In numbers) Units at beginning of the period Units issued Units redeemed Net change in units Units at end of the period
9.
1,909,655.48
2,156,443.52
389,867.57 (1,032,684.21) (642,816.63)
614,765.65 (912,377.19) (297,611.54)
1,266,838.85
1,858,831.98
CASH AND CASH EQUIVALENTS
Cash at bank Time deposits having maturity of three month or less from the date of acquisition
9
161,454,847
58,033,974
161,454,847
18,000,000 76,033,974
COMMODITY TRADING FUND (SAR) Open-Ended Fund (Managed by Riyad Capital) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (Un-Audited) For the six month period ended 30 June 2016 (Amounts in SAR) 10.
TRANSACTIONS WITH RELATED PARTIES Related parties of the Fund include “Riyad Capital” being the Fund Manager and Riyad Bank (being the shareholder of Riyad Capital). In the ordinary course of its activities, the Fund transacts business with related parties. The related parties transactions are governed by limits set by the regulations issued by the CMA. All related party transactions are approved by the Fund Board of directors. Riyad Bank acts as a banker of the Fund and as at 30 June 2016 SAR 161.45 million (30 June 2015: SAR 58.03 million) were held in current account with the Riyad Bank. The significant related party transactions entered into by the Fund during the period and the balances resulting from such transactions are as follows: Related parties
Nature of transactions
Closing balance receivable / payable)
2016
2015
2016
2015
--
--
689,000,000
190,000,000
86,336
632,992
3,822,434
463,184
Riyad Capital Management fee (5,339,964)
(9,960,948)
(3,492,422)
(4,727,030)
(64,246)
(41.020)
(32,123)
Riyad Bank
Held to maturity investments Special commission income
Expenses incurred on behalf of the Fund 11.
Amount of transactions during the period
(2,305,594)
FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets consist of cash and cash equivalents, investments and accrued special commission income and financial liabilities consist of accrued expenses and redemptions payable. The fair value of financial instruments is not materially different from their carrying values.
12.
LAST VALUATION DAY The last valuation day of the period was 30 June 2016 (30 June 2015: 30 June 2015).
10
