RIYAD MONEY FUND (USD) Open-ended Fund (Managed by Riyad ...
RIYAD MONEY FUND (USD) 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
RIYAD MONEY FUND (USD) Open-ended Fund (Managed by Riyad Capital) INTERIM CONDENSED BALANCE SHEET (Un-audited) As at 30 June 2016 (Amounts in USD) Notes
2016
2015
ASSETS Cash at bank Held to maturity investments Accrued special commission income Total Assets
7
3,598,585 17,950,000 64,630 21,613,215
533,116 21,050,000 37,751 21,620,867
14,773 14,773
14,650 14,650
21,598,442
21,606,217
860,717.50
863,413.28
25.094
25.024
LIABILITIES Accrued expenses Total Liabilities
9
Net asset attributable to unit holders Units in issue (numbers)
8
Net asset value attributable to each unit
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
1
RIYAD MONEY FUND (USD) 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 USD) 2016
2015
7
69,812
42,022
9 9
(27,279) (2,064) (29,343)
(27,217) (1,948) (29,166)
40,469
12,856
INCOME Special commission income EXPENSES Fund management fee Other expenses
Net income for the period
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
2
RIYAD MONEY FUND (USD) 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 USD) Note
2016
2015
40,469
12,856
1,300,000 (27,648) 507 1,313,328
400,000 (1,124) (233) 411,512
Proceeds from issuance of units Payments for redemption of units Net cash generated from/used in financing activities
2,053,192 (952,508) 1,100,684
1,311,117 (1,721,925) (410,808)
Net increase in cash and cash equivalents
2,414,012
691
Cash and cash equivalents at beginning of the period
1,184,573
532,425
Cash and cash equivalents at end of the period
3,598,585
533,116
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustments to reconcile net income to net cash generated from operating activities: Changes in operating assets and liabilities Held to maturity investments Accrued special commission income Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
3
RIYAD MONEY FUND (USD) 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 USD) 2016 Net asset attributable to unit holders at beginning of the period Net income for the period
2015
20,457,289
22,004,169
40,469
12,856
2,053,192 (952,508) 1,100,684
1,311,117 (1,721,925) (410,808)
21,598,442
21,606,217
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
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements.
4
RIYAD MONEY FUND (USD) 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 Riyad Money Fund (USD) (the “Fund”) is a money market 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 preservation of capital and realize return thereon, mainly through participation in money market instruments denominated in US Dollar. In dealing with the Unitholders, the Fund Manager 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 dated Rabi Thanni 4, 1409 H (corresponding to 28 November 1988). The Fund commenced its operations on 18 June 1988. The interim results of the Fund may not be an indicator of its annual results.
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 from Sunday till 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 shall be 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 do 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).
5
RIYAD MONEY FUND (USD) 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 USD)
4.
BASIS OF PRESENTATION (Continued)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention, using accrual basis of accounting and the going concern concept.
4.3
Functional and presentation currency These interim condensed financial statements are presented in United States Dollar (USD) which is the functional currency of the fund. All financial information presented has been rounded to the nearest USD.
4.4
Use of estimates and judgments In the ordinary course of business, the preparation of these 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 in 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 0.25 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 asset value.
6
RIYAD MONEY FUND (USD) 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 USD)
7.
HELD TO MATURITY INVESTMENTS The investments portfolio is summarized as follows: Description Time deposits (Murabaha) Time deposits (Murabaha) Time deposits (Murabaha) Time deposits (Murabaha)
8.
Maturity 1-3 months 4-6 months 7-9 months Over 9 months
2015
2016 10,550,000 7,400,000 --17,950,000
6,850,000 8,400,000 1,600,000 4,200,000 21,050,000
2016
2015
UNIT TRANSACTIONS Transactions in units for the period are summarized as follows: (In numbers)
9.
Units at beginning of the period
816,769.16
879,838.15
Units issued Units redeemed Net change in units
81,944.53 (37,996.18)
43,948.35
52,403.47 (68,828.33) (16,424.86)
Units at end of the period
860,717.50
863,413.28
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 USD 3,598,585 (30 June 2015: USD 533,116) were held in current account of the Fund maintained with the Riyad Bank.
7
RIYAD MONEY FUND (USD) 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 USD) 9.
TRANSACTIONS WITH RELATED PARTIES- Continued 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
Riyad Bank
Nature of transactions
Held to maturity investments
10.
Closing balance receivable/ (payable) 2015 2016
-
-
3,700,000
9,050,000
5,877
12,943
7,409
10,788
Fund management fee
(27,279)
(27,217)
(13,741)
(13,676)
Expenses incurred on behalf of the Fund
(2,064)
(1,948)
(1,032)
(974)
Special income Riyad Capital
Amount of transactions during the period 2015 2016
commission
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 liability. The Fund’s financial assets consist of cash at bank, investments and accrued special commission income and financial liability consists of accrued expenses. The fair values of financial instruments are not materially different from their carrying values.
11.
LAST VALUATION DAY The last valuation day of the period was 30 June 2016. (30 June 2015: 30 June 2015)
8
RIYAD MONEY FUND (USD) Open-ended Fund (Managed by Riyad Capital) INTERIM CONDENSED BALANCE SHEET (Un-audited) As at 30 June 2016 (Amounts in USD) Notes
2016
2015
ASSETS Cash at bank Held to maturity investments Accrued special commission income Total Assets
7
3,598,585 17,950,000 64,630 21,613,215
533,116 21,050,000 37,751 21,620,867
14,773 14,773
14,650 14,650
21,598,442
21,606,217
860,717.50
863,413.28
25.094
25.024
LIABILITIES Accrued expenses Total Liabilities
9
Net asset attributable to unit holders Units in issue (numbers)
8
Net asset value attributable to each unit
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
1
RIYAD MONEY FUND (USD) 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 USD) 2016
2015
7
69,812
42,022
9 9
(27,279) (2,064) (29,343)
(27,217) (1,948) (29,166)
40,469
12,856
INCOME Special commission income EXPENSES Fund management fee Other expenses
Net income for the period
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
2
RIYAD MONEY FUND (USD) 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 USD) Note
2016
2015
40,469
12,856
1,300,000 (27,648) 507 1,313,328
400,000 (1,124) (233) 411,512
Proceeds from issuance of units Payments for redemption of units Net cash generated from/used in financing activities
2,053,192 (952,508) 1,100,684
1,311,117 (1,721,925) (410,808)
Net increase in cash and cash equivalents
2,414,012
691
Cash and cash equivalents at beginning of the period
1,184,573
532,425
Cash and cash equivalents at end of the period
3,598,585
533,116
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustments to reconcile net income to net cash generated from operating activities: Changes in operating assets and liabilities Held to maturity investments Accrued special commission income Accrued expenses Net cash generated from operating activities CASH FLOWS FROM FINANCING ACTIVITIES
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements
3
RIYAD MONEY FUND (USD) 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 USD) 2016 Net asset attributable to unit holders at beginning of the period Net income for the period
2015
20,457,289
22,004,169
40,469
12,856
2,053,192 (952,508) 1,100,684
1,311,117 (1,721,925) (410,808)
21,598,442
21,606,217
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
The accompanying notes 1 through 11 form an integral part of these interim condensed financial statements.
4
RIYAD MONEY FUND (USD) 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 Riyad Money Fund (USD) (the “Fund”) is a money market 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 preservation of capital and realize return thereon, mainly through participation in money market instruments denominated in US Dollar. In dealing with the Unitholders, the Fund Manager 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 dated Rabi Thanni 4, 1409 H (corresponding to 28 November 1988). The Fund commenced its operations on 18 June 1988. The interim results of the Fund may not be an indicator of its annual results.
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 from Sunday till 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 shall be 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 do 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).
5
RIYAD MONEY FUND (USD) 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 USD)
4.
BASIS OF PRESENTATION (Continued)
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention, using accrual basis of accounting and the going concern concept.
4.3
Functional and presentation currency These interim condensed financial statements are presented in United States Dollar (USD) which is the functional currency of the fund. All financial information presented has been rounded to the nearest USD.
4.4
Use of estimates and judgments In the ordinary course of business, the preparation of these 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 in 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 0.25 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 asset value.
6
RIYAD MONEY FUND (USD) 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 USD)
7.
HELD TO MATURITY INVESTMENTS The investments portfolio is summarized as follows: Description Time deposits (Murabaha) Time deposits (Murabaha) Time deposits (Murabaha) Time deposits (Murabaha)
8.
Maturity 1-3 months 4-6 months 7-9 months Over 9 months
2015
2016 10,550,000 7,400,000 --17,950,000
6,850,000 8,400,000 1,600,000 4,200,000 21,050,000
2016
2015
UNIT TRANSACTIONS Transactions in units for the period are summarized as follows: (In numbers)
9.
Units at beginning of the period
816,769.16
879,838.15
Units issued Units redeemed Net change in units
81,944.53 (37,996.18)
43,948.35
52,403.47 (68,828.33) (16,424.86)
Units at end of the period
860,717.50
863,413.28
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 USD 3,598,585 (30 June 2015: USD 533,116) were held in current account of the Fund maintained with the Riyad Bank.
7
RIYAD MONEY FUND (USD) 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 USD) 9.
TRANSACTIONS WITH RELATED PARTIES- Continued 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
Riyad Bank
Nature of transactions
Held to maturity investments
10.
Closing balance receivable/ (payable) 2015 2016
-
-
3,700,000
9,050,000
5,877
12,943
7,409
10,788
Fund management fee
(27,279)
(27,217)
(13,741)
(13,676)
Expenses incurred on behalf of the Fund
(2,064)
(1,948)
(1,032)
(974)
Special income Riyad Capital
Amount of transactions during the period 2015 2016
commission
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 liability. The Fund’s financial assets consist of cash at bank, investments and accrued special commission income and financial liability consists of accrued expenses. The fair values of financial instruments are not materially different from their carrying values.
11.
LAST VALUATION DAY The last valuation day of the period was 30 June 2016. (30 June 2015: 30 June 2015)
8
