Saudi Hollandi Bank - US Equity Fund - Alawwal Invest
Al Yusr Global Equity Fund (Managed by Alawwal Invest Company, previously Known as Saudi Hollandi Capital Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2017
Al Yusr Global Equity Fund INTERIM BALANCE SHEET As at 30 June 2017
Note ASSETS Bank balance Trading investments
30 June 2017 (Unaudited) US $
31 December 2016 (Audited) US $
30 June 2016 (Unaudited) US $
29,544 3,710,420 ───────── 3,739,964
124,477 3,546,140 ───────── 3,670,617
364,612 3,652,057 ───────── 4,016,669
6,974 ───────── 3,732,990 ═════════
13,066 ───────── 3,657,551 ═════════
6,594 ───────── 4,010,075 ═════════
Units in issue
27,923 ═════════
29,504 ═════════
33,050 ═════════
Per unit value
133.6877 ═════════
123.9680 ═════════
121.3336 ═════════
LIABILITY Accrued expenses NET ASSETS
4
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2
Al Yusr Global Equity Fund INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
Note INVESTMENT INCOME Trading income, net
2017 (Unaudited) US $
2016 (Unaudited) US $
5
296,252 ─────────
168,338 ─────────
EXPENSES Management fees Other expenses
6
NET INCOME FROM OPERATIONS
8
(8,700) (6,728) ───────── (15,428) ───────── 280,824 ═════════
(8,672) (8,210) ───────── (16,882) ───────── 151,456 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3
Al Yusr Global Equity Fund INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017 2017 (Unaudited) US $ OPERATING ACTIVITIES Net income from operations Adjustments for: Unrealised gains on trading investments
Changes in operating assets and liability: Trading investments Accrued expenses Net cash from operating activities FINANCING ACTIVITIES Proceeds from sale of units Value of units redeemed Net cash (used in) from financing activities (DECREASE) INCREASE IN BANK BALANCE Bank balance at the beginning of the period BANK BALANCE AT THE END OF THE PERIOD
280,824
2016 (Unaudited) US $
151,456
(253,693) ───────── 27,131
(95,964) ───────── 55,492
89,413 (6,092) ───────── 110,452 ─────────
115,104 6,594 ───────── 177,190 ─────────
(205,385) ───────── (205,385) ───────── (94,933)
477,210 (327,250) ───────── 149,960 ───────── 327,150
124,477 ───────── 29,544 ═════════
37,462 ───────── 364,612 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4
Al Yusr Global Equity Fund INTERIM STATEMENT OF CHANGES IN NET ASSETS For the six-month period ended 30 June 2017 2017 (Unaudited) US $ NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS Net income from operations CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2016 (Unaudited) US $
3,657,551 ─────────
3,708,659 ─────────
280,824 ─────────
151,456 ─────────
(205,385) ───────── (205,385) ───────── 3,732,990 ═════════
477,210 (327,250) ───────── 149,960 ───────── 4,010,075 ═════════
2017 (Unaudited) Units
2016 (Unaudited) Units
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows:
UNITS AT THE BEGINNING OF THE PERIOD
29,504 ─────────
31,782 ─────────
Units sold Units redeemed
(1,581) ───────── (1,581) ───────── 27,923 ═════════
3,972 (2,704) ───────── 1,268 ───────── 33,050 ═════════
Net (decrease) increase in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 5
Al Yusr Global Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017 1
GENERAL
Al Yusr Global Equity Fund (the “Fund”) is an open-ended fund created by an agreement between Alawwal Invest Company (the “Fund Manager”) and investors in the Fund (the Unit Holders) and is designed for achieving long term capital appreciation through investments in Sharia compliant global equity markets. The assets of the Fund were invested in Sharia compliant Exchange Traded Funds (ETF’s) that invest in global equity markets. The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The Fund's investments were held by Euroclear Bank, S.A. (the Custodian). All income was reinvested in the Fund and was reflected in the unit price. The Fund commenced its operations on 24 Muharram 1432H (corresponding to 30 December 2010). The books and records of the Fund are maintained in US Dollars (US $). 2
REGULATING AUTHORITY
The Fund is governed by the Investment Fund Regulations (“the Regulations”) issued by the CMA on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) and effective from 6 Safar 1438 (corresponding 6 November 2016) by the New Investment Fund Regulations (“Amended Regulations”), published by the Capital Market Authority on 16 Sha’aban 1437H (corresponding to 23 May 2016), detailing requirements for all funds within the Kingdom of Saudi Arabia. The enhanced requirements of Annexure 5(e) of the Amended Regulations are effective from 2017. 3
SIGNIFICANT ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with the accounting standard on interim financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). The significant accounting policies used in the preparation of these interim financial statements are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2016 and are as follows: Accounting convention The interim financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Investment valuation Trading investments are valued at market prices. Unrealised gains and losses on the revaluation of investments and realised gains and losses on the sale of investments are recognised in the interim statement of operations. Investment transactions Investment transactions are accounted for as of the trade date. Zakat and income tax Zakat and income tax are considered to be the obligation of the Unit Holders and are not provided in the accompanying interim financial statements. Revenue recognition Dividend income is recorded when declared. Realised gains and losses on investments sold are determined on an average cost basis. Trading income includes all gains and losses from changes in fair value and related dividends from trading investments. Expenses Expenses are recognised based on the accrual method. Foreign currencies Transactions in foreign currencies are translated into US Dollars at the rates of exchange prevailing at the date of the transaction. Assets and liabilities in foreign currencies at the interim balance sheet date are translated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the interim statement of operations.
6
Al Yusr Global Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 4
TRADING INVESTMENTS
A summary of the investment portfolio on the last valuation date of the period is set out below: Equity investments: 30 June 2017 (Unaudited) iShares MSCI World Islamic (ISWD) 31 December 2016 (Audited) iShares MSCI World Islamic (ISWD) 30 June 2016 (Unaudited) iShares MSCI World Islamic (ISWD)
5
Cost US$
Market Value US$
3,188,688 ═══════
3,710,420 ═══════
3,278,100 ═══════
3,546,140 ═══════
3,442,040 ═══════
3,652,057 ═══════
TRADING INCOME, NET For the six-month period ended 30 June 2017 2016 (Unaudited) (Unaudited) US $ US $
Unrealised gains Dividend income Realised gains
6
253,693 28,991 13,568 ─────── 296,252 ═══════
95,964 28,792 43,582 ─────── 168,338 ═══════
TRANSACTIONS WITH RELATED PARTIES
The Fund is managed and administered by the Fund Manager. For these services the Fund pays a management fee calculated on every valuation day at an annual rate of 1.10% of the Fund’s daily net assets at each valuation date. In addition the Fund Manager charges a subscription fee of 1% on gross subscriptions to cover administration costs and a redemption fee of 0.5% on redemptions within a month of subscribing, which is reinvested in the Fund. Other expenses paid by the Company on behalf of the Fund are charged to the Fund. In the normal course of business, the Fund places deposits and borrows from or to the Bank at prevailing market rates. The Bank acts as the Fund’s banker and the Fund Manager acts as the custodian to the Fund’s investment. 7
LAST VALUATION DAY
The last valuation day of the period was 30 June 2017 (2016: 30 June 2016). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
7
Al Yusr Global Equity Fund INTERIM BALANCE SHEET As at 30 June 2017
Note ASSETS Bank balance Trading investments
30 June 2017 (Unaudited) US $
31 December 2016 (Audited) US $
30 June 2016 (Unaudited) US $
29,544 3,710,420 ───────── 3,739,964
124,477 3,546,140 ───────── 3,670,617
364,612 3,652,057 ───────── 4,016,669
6,974 ───────── 3,732,990 ═════════
13,066 ───────── 3,657,551 ═════════
6,594 ───────── 4,010,075 ═════════
Units in issue
27,923 ═════════
29,504 ═════════
33,050 ═════════
Per unit value
133.6877 ═════════
123.9680 ═════════
121.3336 ═════════
LIABILITY Accrued expenses NET ASSETS
4
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2
Al Yusr Global Equity Fund INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
Note INVESTMENT INCOME Trading income, net
2017 (Unaudited) US $
2016 (Unaudited) US $
5
296,252 ─────────
168,338 ─────────
EXPENSES Management fees Other expenses
6
NET INCOME FROM OPERATIONS
8
(8,700) (6,728) ───────── (15,428) ───────── 280,824 ═════════
(8,672) (8,210) ───────── (16,882) ───────── 151,456 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3
Al Yusr Global Equity Fund INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017 2017 (Unaudited) US $ OPERATING ACTIVITIES Net income from operations Adjustments for: Unrealised gains on trading investments
Changes in operating assets and liability: Trading investments Accrued expenses Net cash from operating activities FINANCING ACTIVITIES Proceeds from sale of units Value of units redeemed Net cash (used in) from financing activities (DECREASE) INCREASE IN BANK BALANCE Bank balance at the beginning of the period BANK BALANCE AT THE END OF THE PERIOD
280,824
2016 (Unaudited) US $
151,456
(253,693) ───────── 27,131
(95,964) ───────── 55,492
89,413 (6,092) ───────── 110,452 ─────────
115,104 6,594 ───────── 177,190 ─────────
(205,385) ───────── (205,385) ───────── (94,933)
477,210 (327,250) ───────── 149,960 ───────── 327,150
124,477 ───────── 29,544 ═════════
37,462 ───────── 364,612 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4
Al Yusr Global Equity Fund INTERIM STATEMENT OF CHANGES IN NET ASSETS For the six-month period ended 30 June 2017 2017 (Unaudited) US $ NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS Net income from operations CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2016 (Unaudited) US $
3,657,551 ─────────
3,708,659 ─────────
280,824 ─────────
151,456 ─────────
(205,385) ───────── (205,385) ───────── 3,732,990 ═════════
477,210 (327,250) ───────── 149,960 ───────── 4,010,075 ═════════
2017 (Unaudited) Units
2016 (Unaudited) Units
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows:
UNITS AT THE BEGINNING OF THE PERIOD
29,504 ─────────
31,782 ─────────
Units sold Units redeemed
(1,581) ───────── (1,581) ───────── 27,923 ═════════
3,972 (2,704) ───────── 1,268 ───────── 33,050 ═════════
Net (decrease) increase in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 5
Al Yusr Global Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017 1
GENERAL
Al Yusr Global Equity Fund (the “Fund”) is an open-ended fund created by an agreement between Alawwal Invest Company (the “Fund Manager”) and investors in the Fund (the Unit Holders) and is designed for achieving long term capital appreciation through investments in Sharia compliant global equity markets. The assets of the Fund were invested in Sharia compliant Exchange Traded Funds (ETF’s) that invest in global equity markets. The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The Fund's investments were held by Euroclear Bank, S.A. (the Custodian). All income was reinvested in the Fund and was reflected in the unit price. The Fund commenced its operations on 24 Muharram 1432H (corresponding to 30 December 2010). The books and records of the Fund are maintained in US Dollars (US $). 2
REGULATING AUTHORITY
The Fund is governed by the Investment Fund Regulations (“the Regulations”) issued by the CMA on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) and effective from 6 Safar 1438 (corresponding 6 November 2016) by the New Investment Fund Regulations (“Amended Regulations”), published by the Capital Market Authority on 16 Sha’aban 1437H (corresponding to 23 May 2016), detailing requirements for all funds within the Kingdom of Saudi Arabia. The enhanced requirements of Annexure 5(e) of the Amended Regulations are effective from 2017. 3
SIGNIFICANT ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with the accounting standard on interim financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). The significant accounting policies used in the preparation of these interim financial statements are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2016 and are as follows: Accounting convention The interim financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Investment valuation Trading investments are valued at market prices. Unrealised gains and losses on the revaluation of investments and realised gains and losses on the sale of investments are recognised in the interim statement of operations. Investment transactions Investment transactions are accounted for as of the trade date. Zakat and income tax Zakat and income tax are considered to be the obligation of the Unit Holders and are not provided in the accompanying interim financial statements. Revenue recognition Dividend income is recorded when declared. Realised gains and losses on investments sold are determined on an average cost basis. Trading income includes all gains and losses from changes in fair value and related dividends from trading investments. Expenses Expenses are recognised based on the accrual method. Foreign currencies Transactions in foreign currencies are translated into US Dollars at the rates of exchange prevailing at the date of the transaction. Assets and liabilities in foreign currencies at the interim balance sheet date are translated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the interim statement of operations.
6
Al Yusr Global Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 4
TRADING INVESTMENTS
A summary of the investment portfolio on the last valuation date of the period is set out below: Equity investments: 30 June 2017 (Unaudited) iShares MSCI World Islamic (ISWD) 31 December 2016 (Audited) iShares MSCI World Islamic (ISWD) 30 June 2016 (Unaudited) iShares MSCI World Islamic (ISWD)
5
Cost US$
Market Value US$
3,188,688 ═══════
3,710,420 ═══════
3,278,100 ═══════
3,546,140 ═══════
3,442,040 ═══════
3,652,057 ═══════
TRADING INCOME, NET For the six-month period ended 30 June 2017 2016 (Unaudited) (Unaudited) US $ US $
Unrealised gains Dividend income Realised gains
6
253,693 28,991 13,568 ─────── 296,252 ═══════
95,964 28,792 43,582 ─────── 168,338 ═══════
TRANSACTIONS WITH RELATED PARTIES
The Fund is managed and administered by the Fund Manager. For these services the Fund pays a management fee calculated on every valuation day at an annual rate of 1.10% of the Fund’s daily net assets at each valuation date. In addition the Fund Manager charges a subscription fee of 1% on gross subscriptions to cover administration costs and a redemption fee of 0.5% on redemptions within a month of subscribing, which is reinvested in the Fund. Other expenses paid by the Company on behalf of the Fund are charged to the Fund. In the normal course of business, the Fund places deposits and borrows from or to the Bank at prevailing market rates. The Bank acts as the Fund’s banker and the Fund Manager acts as the custodian to the Fund’s investment. 7
LAST VALUATION DAY
The last valuation day of the period was 30 June 2017 (2016: 30 June 2016). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
7
