SAIB Arab Companies Fund AWS
SAIB Arab Companies Fund (Managed by Alistithmar for Financial Securities and Brokerage Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2016
SAIB Arab Companies Fund BALANCE SHEET As at 30 June 2016
30 June 2016 (Unaudited) USD
31 December 2015 (Audited) USD
30 June 2015 (Unaudited) USD
292,515 3,154,148 4,493 ───────── 3,451,156 ─────────
102,571 3,213,381 81,113 ───────── 3,397,065 ─────────
185,025 4,203,031 3,028 ───────── 4,391,084 ─────────
5,275 ───────── 3,445,881 ═════════
15,295 ───────── 3,381,770 ═════════
8,489 ───────── 4,382,595 ═════════
Units in issue
40,175 ═════════
40,295 ═════════
40,370 ═════════
Per unit value
USD 85.77 ═════════
USD 83.93 ═════════
USD 108.56 ═════════
Note ASSETS Bank balance Trading investments Other receivable
4
LIABILITY Accrued expenses NET ASSETS
The accompanying notes 1 to 8 form part of these interim financial statements. 2
SAIB Arab Companies Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) USD
2015 (Unaudited) USD
5
105,731 ─────────
600,930 ─────────
EXPENSES Management fees Other expenses
6
NET INCOME FROM OPERATIONS
8
(27,836) (4,944) ───────── (32,780) ───────── 72,951 ═════════
(36,894) (7,438) ───────── (44,332) ───────── 556,598 ═════════
Note INVESTMENT INCOME Trading income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB Arab Companies Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016
OPERATING ACTIVITIES Net income from operations Adjustment for: Movement in unrealized gains on trading investments
Changes in operating assets and liability: Trading investments Other receivable Accrued expenses Net cash from operating activities FINANCING ACTIVITES Value of units sold Value of units redeemed Net cash used in financing activities INCREASE (DECREASE) IN BANK BALANCE Bank balance at the beginning of the period BANK BALANCE AT THE END OF THE PERIOD
Operational cash flows from dividend Dividend received
The accompanying notes 1 to 8 form part of these interim financial statements. 4
2016 (Unaudited) USD
2015 (Unaudited) USD
72,951
556,598
(224,495) ───────── (151,544)
(547,561) ───────── 9,037
283,728 76,620 (10,020) ───────── 198,784 ─────────
47,082 (3,028) (9,396) ───────── 43,695 ─────────
(8,840) ───────── (8,840) ───────── 189,944
7,907 (57,149) ───────── (49,242) ───────── (5,547)
102,571 ───────── 292,515 ═════════
190,572 ───────── 185,025 ═════════
80,271 ═════════
100,299 ═════════
SAIB Arab Companies Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS Net income from operations CHANGES FROM UNIT TRANSACTIONS Value of units sold Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2016 (Unaudited) USD
2015 (Unaudited) USD
3,381,770 ─────────
3,875,239 ─────────
72,951 ─────────
556,598 ─────────
(8,840) ───────── (8,840) ───────── 3,445,881 ═════════
7,907 (57,149) ───────── (49,242) ───────── 4,382,595 ═════════
2016 (Unaudited) Units
2015 (Unaudited) Units
40,295 ───────── (120) ───────── (120) ─────────
40,820 ───────── 83 (533) ───────── (450) ─────────
40,175 ═════════
40,370 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarized as follows:
UNITS AT THE BEGINNING OF THE PERIOD Units sold Units redeemed Net decrease in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form part of these interim financial statements. 5
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB Arab Companies Fund (the Fund) is an open-ended investment fund created by an agreement between the Fund Manager and investors (the Unitholders) in the Fund. The Fund commenced operations on 23 April 2005. The Fund is designed for investors seeking long-term capital growth through diversified exposure to Shariah compliant GCC & Arab market equities and money market products. All income is reinvested in the Fund and is reflected in the unit price. Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital), wholly owned subsidiary of the Saudi Investment Bank (The Bank) is the Fund Manager, Broker and Custodian of the Fund. The books and records of the Fund are maintained in US Dollars (USD). 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 funds within the Kingdom of Saudi Arabia. 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 2015 and are as follows: Accounting convention The financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Revenue recognition Trading income includes movement in unrealised gains (losses) from changes in fair value, realised gains (losses) from sale of trading investments and dividends from trading investments. Realised gains (losses) on trading investments sold are determined on a weighted average cost basis. Dividend income is recognised when declared (i.e. when the Fund’s right to receive the dividend is established). Investment valuation Equity investments which are purchased for trading purposes are valued at their market price as at the balance sheet date. Investments in mutual funds are valued on the basis of net asset values published by the Fund Manager. Investment transactions Investment transactions are accounted for as of the trade date. Zakat and income tax Zakat and income tax are the obligations of the Unitholders and are not provided for in the accompanying financial statements. Foreign currencies Transactions in foreign currencies are translated into US Dollars at the rates of exchange prevailing at the dates of the transaction. Assets and liabilities in foreign currencies at the balance sheet date are retranslated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the statement of operations
6
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the trading investments portfolio on the balance sheet date is summarised below:
Cost USD
Market value USD
% of market value
30 June 2016 (Unaudited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Agriculture Petrochemical Cement Others
568,134 227,193 438,094 260,103 1,302,922 ──────── 2,796,446
442,485 298,807 272,846 159,199 1,332,301 ──────── 2,505,638
14.03 9.47 8.65 5.05 42.24 ───── 79.44
259,417 219,770 108,255 ──────── 3,383,888 ════════
364,451 203,096 80,963 ──────── 3,154,148 ════════
11.55 6.44 2.57 ───── 100.00 ═════
568,134 629,917 227,193 260,103 1,247,498 ──────── 2,932,845
440,807 364,541 256,225 167,772 1,142,720 ──────── 2,372,065
13.72 11.34 7.97 5.22 35.56 ───── 73.82
242,514 304,000 108,255 ──────── 3,587,614
381,749 311,308 87,352 ──────── 3,152,474
11.88 9.69 2.72 ───── 98.10
80,002 ──────── 3,667,616 ════════
60,907 ──────── 3,213,381 ════════
1.90 ───── 100.00 ═════
Other countries: Qatar United Arab Emirates Kuwait
31 December 2015 (Audited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemical Agriculture Cement Others
Other Countries: Qatar United Arab Emirates Kuwait
Mutual Funds Investment: SAIB GCC Equity Income Fund
7
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS (continued) Cost USD
Market value USD
% of market value
30 June 2015 (Unaudited) Equity investments Kingdom of Saudi Arabia – Sectors: Petrochemical Banking Agriculture Cement Others
Other Countries: Qatar United Arab Emirates Kuwait
Mutal Fund Investment: SAIB GCC Equity Income Fund
5
764,996 533,061 227,169 260,075 1,181,627 ──────── 2,966,928
606,055 552,384 334,725 253,646 1,443,089 ──────── 3,189,899
14.42 13.14 7.96 6.03 34.33 ───── 75.90
242,347 303,997 108,531 ──────── 3,621,803
443,136 388,400 102,172 ──────── 4,123,607
10.54 9.24 2.43 ───── 98.11
79,994 ──────── 3,701,797 ════════
79,424 ──────── 4,203,031 ════════
1.89 ───── 100.00 ═════
TRADING INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) USD USD
Movement in unrealised gains Dividend income Realised losses
6
224,495 84,764 (203,528) ───────── 105,731 ═════════
547,561 100,299 (46,930) ───────── 600,930 ═════════
TRANSACTIONS WITH RELATED PARTIES
The Fund paid a management fee calculated at an annual rate of 1.75% of the net asset value at each valuation date. The management fees reflected in the statement of operations represent the fees charged by the Fund Manager during the period. Additionally, administration expenses paid by the Fund Manager on behalf of the Fund are reimbursed from the Fund, subject to a maximum administration expense of 0.40% of net asset value per annum. Trade transactions on Tadawul and other GCC countries’ stock exchanges are executed through Alistithmar Capital which is also the custodian of the Fund’s investments. The Bank acts as the Fund’s banker. 7
LAST VALUATION DAY
The last valuation day of the period was 29 June 2016 (2015: 29 June 2015). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results. 8
SAIB Arab Companies Fund BALANCE SHEET As at 30 June 2016
30 June 2016 (Unaudited) USD
31 December 2015 (Audited) USD
30 June 2015 (Unaudited) USD
292,515 3,154,148 4,493 ───────── 3,451,156 ─────────
102,571 3,213,381 81,113 ───────── 3,397,065 ─────────
185,025 4,203,031 3,028 ───────── 4,391,084 ─────────
5,275 ───────── 3,445,881 ═════════
15,295 ───────── 3,381,770 ═════════
8,489 ───────── 4,382,595 ═════════
Units in issue
40,175 ═════════
40,295 ═════════
40,370 ═════════
Per unit value
USD 85.77 ═════════
USD 83.93 ═════════
USD 108.56 ═════════
Note ASSETS Bank balance Trading investments Other receivable
4
LIABILITY Accrued expenses NET ASSETS
The accompanying notes 1 to 8 form part of these interim financial statements. 2
SAIB Arab Companies Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) USD
2015 (Unaudited) USD
5
105,731 ─────────
600,930 ─────────
EXPENSES Management fees Other expenses
6
NET INCOME FROM OPERATIONS
8
(27,836) (4,944) ───────── (32,780) ───────── 72,951 ═════════
(36,894) (7,438) ───────── (44,332) ───────── 556,598 ═════════
Note INVESTMENT INCOME Trading income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB Arab Companies Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016
OPERATING ACTIVITIES Net income from operations Adjustment for: Movement in unrealized gains on trading investments
Changes in operating assets and liability: Trading investments Other receivable Accrued expenses Net cash from operating activities FINANCING ACTIVITES Value of units sold Value of units redeemed Net cash used in financing activities INCREASE (DECREASE) IN BANK BALANCE Bank balance at the beginning of the period BANK BALANCE AT THE END OF THE PERIOD
Operational cash flows from dividend Dividend received
The accompanying notes 1 to 8 form part of these interim financial statements. 4
2016 (Unaudited) USD
2015 (Unaudited) USD
72,951
556,598
(224,495) ───────── (151,544)
(547,561) ───────── 9,037
283,728 76,620 (10,020) ───────── 198,784 ─────────
47,082 (3,028) (9,396) ───────── 43,695 ─────────
(8,840) ───────── (8,840) ───────── 189,944
7,907 (57,149) ───────── (49,242) ───────── (5,547)
102,571 ───────── 292,515 ═════════
190,572 ───────── 185,025 ═════════
80,271 ═════════
100,299 ═════════
SAIB Arab Companies Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS Net income from operations CHANGES FROM UNIT TRANSACTIONS Value of units sold Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2016 (Unaudited) USD
2015 (Unaudited) USD
3,381,770 ─────────
3,875,239 ─────────
72,951 ─────────
556,598 ─────────
(8,840) ───────── (8,840) ───────── 3,445,881 ═════════
7,907 (57,149) ───────── (49,242) ───────── 4,382,595 ═════════
2016 (Unaudited) Units
2015 (Unaudited) Units
40,295 ───────── (120) ───────── (120) ─────────
40,820 ───────── 83 (533) ───────── (450) ─────────
40,175 ═════════
40,370 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarized as follows:
UNITS AT THE BEGINNING OF THE PERIOD Units sold Units redeemed Net decrease in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form part of these interim financial statements. 5
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB Arab Companies Fund (the Fund) is an open-ended investment fund created by an agreement between the Fund Manager and investors (the Unitholders) in the Fund. The Fund commenced operations on 23 April 2005. The Fund is designed for investors seeking long-term capital growth through diversified exposure to Shariah compliant GCC & Arab market equities and money market products. All income is reinvested in the Fund and is reflected in the unit price. Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital), wholly owned subsidiary of the Saudi Investment Bank (The Bank) is the Fund Manager, Broker and Custodian of the Fund. The books and records of the Fund are maintained in US Dollars (USD). 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 funds within the Kingdom of Saudi Arabia. 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 2015 and are as follows: Accounting convention The financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Revenue recognition Trading income includes movement in unrealised gains (losses) from changes in fair value, realised gains (losses) from sale of trading investments and dividends from trading investments. Realised gains (losses) on trading investments sold are determined on a weighted average cost basis. Dividend income is recognised when declared (i.e. when the Fund’s right to receive the dividend is established). Investment valuation Equity investments which are purchased for trading purposes are valued at their market price as at the balance sheet date. Investments in mutual funds are valued on the basis of net asset values published by the Fund Manager. Investment transactions Investment transactions are accounted for as of the trade date. Zakat and income tax Zakat and income tax are the obligations of the Unitholders and are not provided for in the accompanying financial statements. Foreign currencies Transactions in foreign currencies are translated into US Dollars at the rates of exchange prevailing at the dates of the transaction. Assets and liabilities in foreign currencies at the balance sheet date are retranslated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the statement of operations
6
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the trading investments portfolio on the balance sheet date is summarised below:
Cost USD
Market value USD
% of market value
30 June 2016 (Unaudited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Agriculture Petrochemical Cement Others
568,134 227,193 438,094 260,103 1,302,922 ──────── 2,796,446
442,485 298,807 272,846 159,199 1,332,301 ──────── 2,505,638
14.03 9.47 8.65 5.05 42.24 ───── 79.44
259,417 219,770 108,255 ──────── 3,383,888 ════════
364,451 203,096 80,963 ──────── 3,154,148 ════════
11.55 6.44 2.57 ───── 100.00 ═════
568,134 629,917 227,193 260,103 1,247,498 ──────── 2,932,845
440,807 364,541 256,225 167,772 1,142,720 ──────── 2,372,065
13.72 11.34 7.97 5.22 35.56 ───── 73.82
242,514 304,000 108,255 ──────── 3,587,614
381,749 311,308 87,352 ──────── 3,152,474
11.88 9.69 2.72 ───── 98.10
80,002 ──────── 3,667,616 ════════
60,907 ──────── 3,213,381 ════════
1.90 ───── 100.00 ═════
Other countries: Qatar United Arab Emirates Kuwait
31 December 2015 (Audited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemical Agriculture Cement Others
Other Countries: Qatar United Arab Emirates Kuwait
Mutual Funds Investment: SAIB GCC Equity Income Fund
7
SAIB Arab Companies Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS (continued) Cost USD
Market value USD
% of market value
30 June 2015 (Unaudited) Equity investments Kingdom of Saudi Arabia – Sectors: Petrochemical Banking Agriculture Cement Others
Other Countries: Qatar United Arab Emirates Kuwait
Mutal Fund Investment: SAIB GCC Equity Income Fund
5
764,996 533,061 227,169 260,075 1,181,627 ──────── 2,966,928
606,055 552,384 334,725 253,646 1,443,089 ──────── 3,189,899
14.42 13.14 7.96 6.03 34.33 ───── 75.90
242,347 303,997 108,531 ──────── 3,621,803
443,136 388,400 102,172 ──────── 4,123,607
10.54 9.24 2.43 ───── 98.11
79,994 ──────── 3,701,797 ════════
79,424 ──────── 4,203,031 ════════
1.89 ───── 100.00 ═════
TRADING INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) USD USD
Movement in unrealised gains Dividend income Realised losses
6
224,495 84,764 (203,528) ───────── 105,731 ═════════
547,561 100,299 (46,930) ───────── 600,930 ═════════
TRANSACTIONS WITH RELATED PARTIES
The Fund paid a management fee calculated at an annual rate of 1.75% of the net asset value at each valuation date. The management fees reflected in the statement of operations represent the fees charged by the Fund Manager during the period. Additionally, administration expenses paid by the Fund Manager on behalf of the Fund are reimbursed from the Fund, subject to a maximum administration expense of 0.40% of net asset value per annum. Trade transactions on Tadawul and other GCC countries’ stock exchanges are executed through Alistithmar Capital which is also the custodian of the Fund’s investments. The Bank acts as the Fund’s banker. 7
LAST VALUATION DAY
The last valuation day of the period was 29 June 2016 (2015: 29 June 2015). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results. 8
