MANAGED BY SAUDI FRANSI CAPITAL
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) Interim Condensed Financial Statements (Un-Audited) For the six months period ended 30 June 2016 together with the Review Report to the Unitholders
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED BALANCE SHEET (UN-AUDITED) As at 30 June 2016 (Amounts in SAR) Note
2016
2015
7 8
2,065,107 29,910,450 31,975,557
2,263,601 40,820,213 4,806 43,088,620
6
72,493 51,826 124,319
63,034 52,037 115,071
Net asset attributable to the Unitholders
31,851,238
42,973,549
Units in issue (numbers)
2,763,748
2,968,084
11.5247
14.4785
ASSETS Cash balances Investments held for trading Other receivable Total assets LIABILITIES Fund management fee payable Accrued expenses Total liabilities
Net asset value - per unit
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 9 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF INCOME (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) Note
2016
2015
9
308,235 980,399 1,288,634
2,863,047 907,063 616,467 4,386,577
6 10
(273,112) (85,908) (359,020) 929,614
(308,791) (49,629) (358,420) 4,028,157
INCOME Trading gain, net Dividend income Other income
EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
2
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CASH FLOWS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 2016
2015
929,614
4,028,157
619,628 1,549,242
(1,534,540) 2,493,617
Changes in operating assets and liabilities: Investments held for trading Other receivable Fund management fee payable Accrued expenses Net cash generated from / (used in) operating activities
865,744 -24,234 (18,857) 2,420,363
(3,444,707) (656) (97,728) (21,316) (1,070,790)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payment for redemption of units Net cash (used in) / generated from financing activities
535,828 (1,724,377) (1,188,549)
3,879,100 (1,496,739) 2,382,361
1,231,814 833,293 2,065,107
1,311,571 952,030 2,263,601
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustment to reconcile net income to net cash (used in) / generated from operating activities: Unrealized loss / (gain) on investments held for trading
Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
3
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 2016 Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2015
32,110,173
36,563,031
929,614
4,028,157
535,828 (1,724,377) (1,188,549) 31,851,238
3,879,100 (1,496,739) 2,382,361 42,973,549
Changes from unit transactions Proceeds from issuance of units Payments for redemption of units Net change from unit transactions Net asset attributable to the Unitholders at the end of the period
Transactions in units for the period are summarized as follows:
Units at the beginning of the period
(In numbers) 2,865,695 2,811,644
Units issued Units redeemed Net change in units Units at the end of the period
52,838 (154,785) (101,947) 2,763,748
262,641 (106,201) 156,440 2,968,084
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
4
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES Al Qasr GCC Real Estate and Construction Equity Trading Fund (the “Fund”) is an open ended investment fund based on an agreement between Saudi Fransi Capital (the “Fund Manager”) and the investors (the “Unitholders”). The Fund commenced its operations on 16 April 2007. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset value. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The objective of the Fund is to provide medium to long-term capital growth primarily by investing in publicly listed Shar'iah compliant companies that drive a majority of their revenues, directly or indirectly from the real estate and construction sectors in the GCC member countries that includes the Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman and the Kingdom of Bahrain. The Fund may also invest up to 20% of its total investment in real estate and construction sectors in other Arab countries in the Middle East and North Africa in Shari'ah compliant assets in accordance with the Shari'ah guidelines issued by the Shari'ah Board of the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund's Terms and Conditions, the Fund Manager can delegate or assign its duties to another financial institution. Accordingly, pursuant to an agreement, dated 15 July 2008, EFG Hermes UAE Limited acts as sub-fund manager and HSBC Middle East Bank Limited as the sub-custodian of the Fund. The Fund has updated their terms and condition which have been approved by the Capital Market Authority “CMA” on 24 Sha’aban 1436H (corresponding to 11 June 2015). The Fund Manager and Custodian of the Fund is Saudi Fransi Capital.
2.
REGULATORY AUTHORITY The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by 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 OF UNITS The Fund is open for subscriptions/ redemptions with a cutoff time of 12:00 pm on Sunday and Tuesday. The net asset attributable to the Unitholders of the Fund’s portfolio is determined on Tuesday and Thursday (each a “Dealing day”).The net asset attributable to the Unitholders of the Fund for the purpose of subscription / redemption of units are determined by dividing the net asset attributable to the Unitholders of the Fund (fair value of the Fund’s assets minus the Fund’s liabilities) by the total number of the Fund’s units outstanding on the relevant Dealing day.
4.
BASIS OF PREPARATION
4.1
Statement of compliance These interim condensed financial statements have been presented in accordance with the requirements of the accounting standards on financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). These interim condensed financial statements have been presented in condensed form and did not include all the information presented in annual financial statements of the Fund; therefore, these interim condensed financial statements should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. 5
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 4.
BASIS OF PREPARATION (CONTINUED)
4.1
Statement of compliance (Continued) These interim condensed financial statements does not necessarily constitute an indication of the year-end financial results. Certain prior period figures have been reclassified to conform with the current period presentation.
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for the investment held for trading which are measured at fair value.
4.3
Functional and presentation currency These interim condensed financial statements have been presented in Saudi Arabian Riyals (SAR), which is also the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR.
4.4
Use of estimates and judgment In the ordinary course of business, the preparation of the 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 on prospective basis.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements and the risk management policies are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2015.
6.
MANAGEMENT FEE, CUSTODIAN FEE AND OTHER CHARGES The Fund pays a management fee calculated at an annual rate of 1.75% of the net asset attributable to the Unitholders. This is accrued daily and paid on monthly basis. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as custodian fee, audit fee, Board members compensation and other similar charges. Subscription fee up to 3 percent of the invested amount is adjusted by deduction from the gross subscription hence, it does not impact or reflect in the interim condensed financial statements of the Fund.
6
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
7.
CASH BALANCES
Cash at bank Cash at brokerage investment account
8.
2016
2015
1,219,164 845,943 2,065,107
1,559,869 703,732 2,263,601
INVESTMENTS HELD FOR TRADING The fund invests primarily in listed equity securities of GCC, Arab countries and Saudi companies. The geographical breakdown of investments is summarized as follows: 30 June 2016
Quoted shares: Kingdom of Saudi Arabia United Arab Emirates Kuwait Qatar
9.
30 June 2015
Cost
Market value
Cost
Market value
17,936,714 6,888,690 2,197,528 1,959,655 28,982,587
18,649,055 7,484,714 1,981,175 1,795,506 29,910,450
29,283,114 5,342,039 3,092,583 1,565,568 39,283,304
29,707,963 5,617,917 3,551,658 1,942,675 40,820,213
2016
2015
927,863
1,328,507
(619,628)
1,534,540
308,235
2,863,047
2016
2015
45,565 17,405 338 22,600 85,908
15,652 18,898 947 14,132 49,629
TRADING GAIN, NET
Realised gain on disposal of investments held for trading Unrealised (loss) / gain on revaluation of investments held for trading
10.
OTHER EXPENSES
Custody fee Professional fee Fund board fee Other expense
11.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the Fund Manager), Banque Saudi Fransi (the Bank and the shareholder of the Fund Manager), Unitholders and affiliates of the Fund Manager are related parties. In the ordinary course of its activities, the Fund transacts business with related parties. The related party transactions are governed by limits set by the regulations issued by CMA. All the related party transactions are approved by the Fund Board. 7
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 11.
TRANSACTIONS WITH RELATED PARTIES (CONTINUED) Related party transactions for the period ended 30 June and balances resulting from such transactions are as follows: Name of related party
Saudi Fransi Capital Fund board
Amount of transactions during the period
Nature of transactions
Fund Management fee Brokerage fee Annual remuneration
Closing balance
2016
2015
2016
2015
273,112 1,441 338
308,791 969 947
72,493 -338
63,034 -947
The units in issue at 30 June 2016 include 21,425 units held by employees of Saudi Fransi Capital and its affiliates (30 June 2015: 147 units). 12.
FAIR VALUES OF FINANCIAL INSTRUMENTS 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. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets comprise of bank balances, investments held for trading and other receivable and its financial liability comprise of fund management fee payable and accrued expenses. Investments held for trading are carried at fair value. The fair values of other financial instruments are not materially different from their carrying values. Investments held for trading comprise of listed equities, fluctuation in the stock market may cause changes in fair value of the investments portfolio.
13.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to SAR 9,022 (30 June 2015: SAR Nil) after the cutoff time and hence issued units subsequent to period end.
14.
LAST VALUATION DATE In accordance with terms and conditions of the Fund, the last valuation date of the period was 30 June 2016 (30 June 2015: 26 June 2015). The last valuation date for the purpose of preparation of these interim condensed financial statements was 30 June 2016 (30 June 2015: 30 June 2015).
8
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED BALANCE SHEET (UN-AUDITED) As at 30 June 2016 (Amounts in SAR) Note
2016
2015
7 8
2,065,107 29,910,450 31,975,557
2,263,601 40,820,213 4,806 43,088,620
6
72,493 51,826 124,319
63,034 52,037 115,071
Net asset attributable to the Unitholders
31,851,238
42,973,549
Units in issue (numbers)
2,763,748
2,968,084
11.5247
14.4785
ASSETS Cash balances Investments held for trading Other receivable Total assets LIABILITIES Fund management fee payable Accrued expenses Total liabilities
Net asset value - per unit
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements. The interim condensed financial statements appearing from page 1 to 9 were approved by the Fund Manager (as per the terms and conditions of the Fund) on 14th August 2016.
1
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF INCOME (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) Note
2016
2015
9
308,235 980,399 1,288,634
2,863,047 907,063 616,467 4,386,577
6 10
(273,112) (85,908) (359,020) 929,614
(308,791) (49,629) (358,420) 4,028,157
INCOME Trading gain, net Dividend income Other income
EXPENSES Fund management fee Other expenses Net income for the period
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
2
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CASH FLOWS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 2016
2015
929,614
4,028,157
619,628 1,549,242
(1,534,540) 2,493,617
Changes in operating assets and liabilities: Investments held for trading Other receivable Fund management fee payable Accrued expenses Net cash generated from / (used in) operating activities
865,744 -24,234 (18,857) 2,420,363
(3,444,707) (656) (97,728) (21,316) (1,070,790)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of units Payment for redemption of units Net cash (used in) / generated from financing activities
535,828 (1,724,377) (1,188,549)
3,879,100 (1,496,739) 2,382,361
1,231,814 833,293 2,065,107
1,311,571 952,030 2,263,601
CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period Adjustment to reconcile net income to net cash (used in) / generated from operating activities: Unrealized loss / (gain) on investments held for trading
Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
3
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) INTERIM CONDENSED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO THE UNITHOLDERS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 2016 Net asset attributable to the Unitholders at the beginning of the period Net income for the period
2015
32,110,173
36,563,031
929,614
4,028,157
535,828 (1,724,377) (1,188,549) 31,851,238
3,879,100 (1,496,739) 2,382,361 42,973,549
Changes from unit transactions Proceeds from issuance of units Payments for redemption of units Net change from unit transactions Net asset attributable to the Unitholders at the end of the period
Transactions in units for the period are summarized as follows:
Units at the beginning of the period
(In numbers) 2,865,695 2,811,644
Units issued Units redeemed Net change in units Units at the end of the period
52,838 (154,785) (101,947) 2,763,748
262,641 (106,201) 156,440 2,968,084
The accompanying notes 1 to 14 form an integral part of these interim condensed financial statements.
4
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 1.
THE FUND AND ITS ACTIVITIES Al Qasr GCC Real Estate and Construction Equity Trading Fund (the “Fund”) is an open ended investment fund based on an agreement between Saudi Fransi Capital (the “Fund Manager”) and the investors (the “Unitholders”). The Fund commenced its operations on 16 April 2007. The Fund is an income accumulation fund whereby net income is re-invested in the Fund and reflected in the net asset value. Units of the Fund are made available for purchase only in the Kingdom of Saudi Arabia. The objective of the Fund is to provide medium to long-term capital growth primarily by investing in publicly listed Shar'iah compliant companies that drive a majority of their revenues, directly or indirectly from the real estate and construction sectors in the GCC member countries that includes the Kingdom of Saudi Arabia, UAE, Kuwait, Qatar, Oman and the Kingdom of Bahrain. The Fund may also invest up to 20% of its total investment in real estate and construction sectors in other Arab countries in the Middle East and North Africa in Shari'ah compliant assets in accordance with the Shari'ah guidelines issued by the Shari'ah Board of the Fund. The management of the Fund is the responsibility of the Fund Manager. However, in accordance with the Fund's Terms and Conditions, the Fund Manager can delegate or assign its duties to another financial institution. Accordingly, pursuant to an agreement, dated 15 July 2008, EFG Hermes UAE Limited acts as sub-fund manager and HSBC Middle East Bank Limited as the sub-custodian of the Fund. The Fund has updated their terms and condition which have been approved by the Capital Market Authority “CMA” on 24 Sha’aban 1436H (corresponding to 11 June 2015). The Fund Manager and Custodian of the Fund is Saudi Fransi Capital.
2.
REGULATORY AUTHORITY The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by 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 OF UNITS The Fund is open for subscriptions/ redemptions with a cutoff time of 12:00 pm on Sunday and Tuesday. The net asset attributable to the Unitholders of the Fund’s portfolio is determined on Tuesday and Thursday (each a “Dealing day”).The net asset attributable to the Unitholders of the Fund for the purpose of subscription / redemption of units are determined by dividing the net asset attributable to the Unitholders of the Fund (fair value of the Fund’s assets minus the Fund’s liabilities) by the total number of the Fund’s units outstanding on the relevant Dealing day.
4.
BASIS OF PREPARATION
4.1
Statement of compliance These interim condensed financial statements have been presented in accordance with the requirements of the accounting standards on financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). These interim condensed financial statements have been presented in condensed form and did not include all the information presented in annual financial statements of the Fund; therefore, these interim condensed financial statements should be read in conjunction with the annual financial statements of the Fund for the year ended 31 December 2015. 5
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 4.
BASIS OF PREPARATION (CONTINUED)
4.1
Statement of compliance (Continued) These interim condensed financial statements does not necessarily constitute an indication of the year-end financial results. Certain prior period figures have been reclassified to conform with the current period presentation.
4.2
Basis of measurement These interim condensed financial statements have been prepared under the historical cost convention using the accrual basis of accounting and the going concern concept, except for the investment held for trading which are measured at fair value.
4.3
Functional and presentation currency These interim condensed financial statements have been presented in Saudi Arabian Riyals (SAR), which is also the functional currency of the Fund. All financial information presented has been rounded to the nearest SAR.
4.4
Use of estimates and judgment In the ordinary course of business, the preparation of the 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 on prospective basis.
5.
SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES The significant accounting policies used in the preparation of these interim condensed financial statements and the risk management policies are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2015.
6.
MANAGEMENT FEE, CUSTODIAN FEE AND OTHER CHARGES The Fund pays a management fee calculated at an annual rate of 1.75% of the net asset attributable to the Unitholders. This is accrued daily and paid on monthly basis. The Fund Manager also recovers from the Fund any other expenses incurred on behalf of the Fund such as custodian fee, audit fee, Board members compensation and other similar charges. Subscription fee up to 3 percent of the invested amount is adjusted by deduction from the gross subscription hence, it does not impact or reflect in the interim condensed financial statements of the Fund.
6
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR)
7.
CASH BALANCES
Cash at bank Cash at brokerage investment account
8.
2016
2015
1,219,164 845,943 2,065,107
1,559,869 703,732 2,263,601
INVESTMENTS HELD FOR TRADING The fund invests primarily in listed equity securities of GCC, Arab countries and Saudi companies. The geographical breakdown of investments is summarized as follows: 30 June 2016
Quoted shares: Kingdom of Saudi Arabia United Arab Emirates Kuwait Qatar
9.
30 June 2015
Cost
Market value
Cost
Market value
17,936,714 6,888,690 2,197,528 1,959,655 28,982,587
18,649,055 7,484,714 1,981,175 1,795,506 29,910,450
29,283,114 5,342,039 3,092,583 1,565,568 39,283,304
29,707,963 5,617,917 3,551,658 1,942,675 40,820,213
2016
2015
927,863
1,328,507
(619,628)
1,534,540
308,235
2,863,047
2016
2015
45,565 17,405 338 22,600 85,908
15,652 18,898 947 14,132 49,629
TRADING GAIN, NET
Realised gain on disposal of investments held for trading Unrealised (loss) / gain on revaluation of investments held for trading
10.
OTHER EXPENSES
Custody fee Professional fee Fund board fee Other expense
11.
TRANSACTIONS WITH RELATED PARTIES Saudi Fransi Capital (the Fund Manager), Banque Saudi Fransi (the Bank and the shareholder of the Fund Manager), Unitholders and affiliates of the Fund Manager are related parties. In the ordinary course of its activities, the Fund transacts business with related parties. The related party transactions are governed by limits set by the regulations issued by CMA. All the related party transactions are approved by the Fund Board. 7
AL QASR GCC REAL ESTATE AND CONSTRUCTION EQUITY TRADING FUND AN OPEN ENDED MUTUAL FUND (MANAGED BY SAUDI FRANSI CAPITAL) NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED) For the six months period ended 30 June 2016 (Amounts in SAR) 11.
TRANSACTIONS WITH RELATED PARTIES (CONTINUED) Related party transactions for the period ended 30 June and balances resulting from such transactions are as follows: Name of related party
Saudi Fransi Capital Fund board
Amount of transactions during the period
Nature of transactions
Fund Management fee Brokerage fee Annual remuneration
Closing balance
2016
2015
2016
2015
273,112 1,441 338
308,791 969 947
72,493 -338
63,034 -947
The units in issue at 30 June 2016 include 21,425 units held by employees of Saudi Fransi Capital and its affiliates (30 June 2015: 147 units). 12.
FAIR VALUES OF FINANCIAL INSTRUMENTS 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. Financial instruments comprise of financial assets and financial liabilities. The Fund’s financial assets comprise of bank balances, investments held for trading and other receivable and its financial liability comprise of fund management fee payable and accrued expenses. Investments held for trading are carried at fair value. The fair values of other financial instruments are not materially different from their carrying values. Investments held for trading comprise of listed equities, fluctuation in the stock market may cause changes in fair value of the investments portfolio.
13.
SUBSCRIPTION REQUEST The Fund has received subscription request as of 30 June 2016, amounting to SAR 9,022 (30 June 2015: SAR Nil) after the cutoff time and hence issued units subsequent to period end.
14.
LAST VALUATION DATE In accordance with terms and conditions of the Fund, the last valuation date of the period was 30 June 2016 (30 June 2015: 26 June 2015). The last valuation date for the purpose of preparation of these interim condensed financial statements was 30 June 2016 (30 June 2015: 30 June 2015).
8
