SAIB GCC Equity Fund
SAIB GCC Equity Fund (Managed by Alistithmar for Financial Securities and Brokerage Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2016
SAIB GCC Equity Fund BALANCE SHEET As at 30 June 2016 30 June 2016 (Unaudited) USD
Note ASSETS Bank balance Trading investments Other receivables
31 December 2015 (Audited) USD
30 June 2015 (Unaudited) USD
4,258,732 56,313,599 118,509 ───────── 60,690,840 ─────────
4,664,577 56,640,178 336,945 ───────── 61,641,700 ─────────
4,002,404 74,426,978 92,459 ───────── 78,521,841 ─────────
12,133 ─────────
15,035 ─────────
25,170 ─────────
NET ASSETS
60,678,707 ═════════
61,626,665 ═════════
78,496,671 ═════════
Units in issue
319,034 ═════════
321,322 ═════════
322,605 ═════════
Per unit value
USD 190.20 ═════════
USD 191.79 ═════════
USD 243.32 ═════════
LIABILITY Accrued expenses
4
The accompanying notes 1 to 8 form part of these interim financial statements. 2
SAIB GCC Equity Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) USD
2015 (Unaudited) USD
5
(32,123) ─────────
9,730,402 ─────────
EXPENSES Management fees Others
6
NET (LOSS) INCOME FROM OPERATIONS
8
(499,228) (9,978) ───────── (509,206) ───────── (541,329) ═════════
(654,455) (6,348) ───────── (660,803) ───────── 9,069,599 ═════════
Note INVESTMENT (LOSS) INCOME Trading (loss) income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB GCC Equity Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016
2016 (Unaudited) USD OPERATING ACTIVITIES Net (loss) income from operations
(541,329)
Adjustment for: Movement in unrealized gains on trading investment
Changes in operating assets and liabilities: Trading investments Other receivables Accrued expenses Net cash from operating activities FINANCING ACTIVITIES Proceeds from units sold Value of units redeemed Net cash used in financing activities (DECREASE)/INCREASE IN BANK BALANCES Bank balances at the beginning of the period BANK BALANCES AT THE END OF THE PERIOD
Operational cash flows from dividend Dividend received
9,069,599
(1,476,259) ───────── (2,017,588)
(7,923,423) ───────── 1,146,176
1,802,838 218,436 (2,902) ───────── 784 ─────────
(691,555) (83,593) 7,497 ───────── 378,525 ─────────
(406,629) ───────── (406,629) ───────── (405,845)
68,058 (87,400) ───────── (19,342) ───────── 359,183
4,664,577 ───────── 4,258,732 ═════════
3,643,221 ───────── 4,002,404 ═════════
1,501,628 ═════════
1,648,617 ═════════
The accompanying notes 1 to 8 form part of these interim financial statements. 4
2015 (Unaudited) USD
SAIB GCC Equity Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
2016 (Unaudited) USD NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERTIONS Net (loss) 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
2015 (Unaudited) USD
61,626,665 ─────────
69,446,414 ─────────
(541,329) ─────────
9,069,599 ─────────
(406,629) ───────── (406,629) ───────── 60,678,707 ═════════
68,058 (87,400) ───────── (19,342) ───────── 78,496,671 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarized as follows: 2016 (Unaudited) Units UNITS AT THE BEGINNING OF THE PERIOD
321,322 ───────── (2,289) ───────── (2,289) ───────── 319,033 ═════════
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
2015 (Unaudited) Units 322,668 ───────── 315 (378) ───────── (63) ───────── 322,605 ═════════
SAIB GCC Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB GCC Equity Fund (the Fund) is an open-ended investment fund created by an agreement between the Fund Manager and investors (the Unit holders) in the Fund. The Fund commenced operations on 24 July 2004. The Fund is designed for investors seeking long-term capital growth through diversified exposure to GCC, Arab markets & other Gulf countries’ equities and financial 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 for 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 period 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 Unit holders 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 GCC Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the investment portfolio on the balance sheet date is summarised below:
Cost USD
Market value USD
% of market value
13,341,510 7,405,770 3,246,398 2,334,599 18,625,363 ──────── 44,953,640
10,547,122 4,714,777 3,977,121 1,664,720 19,144,956 ──────── 40,048,696
18.73 8.37 7.06 2.96 34.00 ───── 71.12
8,932,733 4,915,266 2,674,926 ──────── 61,476,565 ════════
7,867,773 6,759,689 1,637,441 ──────── 56,313,599 ════════
13.97 12.00 2.91 ───── 100.00 ═════
13,672,659 7,717,980 3,336,553 3,200,604 19,377,737 ───────── 47,305,533
11,795,198 4,552,697 3,673,510 2,117,447 17,861,048 ─────── 39,999,900
20.82 8.04 6.49 3.74 31.53 ───── 70.62
8,551,953 4,606,322 2,674,926 140,669 ───────── 63,279,403 ═════════
7,436,788 6,923,526 2,090,836 189,128 ───────── 56,640,178 ═════════
13.13 12.22 3.69 0.34 ───── 100.00 ═════
30 June 2016 (Unaudited) Equity Investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemical Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait
31 December 2015 (Audited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemcial Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait Oman
7
SAIB GCC Equity 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: Banking Petrochemical Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait Oman
5
13,671,201 9,706,736 3,336,197 3,552,254 18,237,025 ──────── 48,503,413
15,308,526 8,394,932 4,841,778 3,588,789 22,570,945 ──────── 54,704,970
20.57 11.28 6.51 4.82 30.32 ───── 73.50
8,551,879 4,603,149 2,681,759 162,545 ──────── 64,502,745 ════════
9,464,810 7,736,956 2,267,437 252,805 ──────── 74,426,978 ════════
12.72 10.40 3.04 0.34 ───── 100.00 ═════
TRADING (LOSS) INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) USD USD
Dividend income Movement in unrealised gains Realised (losses) gains
6
1,611,271 1,476,259 (3,119,653) ───────── (32,123) ═════════
1,648,617 7,923,423 158,362 ───────── 9,730,402 ═════════
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 0.33% 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 GCC Equity Fund BALANCE SHEET As at 30 June 2016 30 June 2016 (Unaudited) USD
Note ASSETS Bank balance Trading investments Other receivables
31 December 2015 (Audited) USD
30 June 2015 (Unaudited) USD
4,258,732 56,313,599 118,509 ───────── 60,690,840 ─────────
4,664,577 56,640,178 336,945 ───────── 61,641,700 ─────────
4,002,404 74,426,978 92,459 ───────── 78,521,841 ─────────
12,133 ─────────
15,035 ─────────
25,170 ─────────
NET ASSETS
60,678,707 ═════════
61,626,665 ═════════
78,496,671 ═════════
Units in issue
319,034 ═════════
321,322 ═════════
322,605 ═════════
Per unit value
USD 190.20 ═════════
USD 191.79 ═════════
USD 243.32 ═════════
LIABILITY Accrued expenses
4
The accompanying notes 1 to 8 form part of these interim financial statements. 2
SAIB GCC Equity Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) USD
2015 (Unaudited) USD
5
(32,123) ─────────
9,730,402 ─────────
EXPENSES Management fees Others
6
NET (LOSS) INCOME FROM OPERATIONS
8
(499,228) (9,978) ───────── (509,206) ───────── (541,329) ═════════
(654,455) (6,348) ───────── (660,803) ───────── 9,069,599 ═════════
Note INVESTMENT (LOSS) INCOME Trading (loss) income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB GCC Equity Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016
2016 (Unaudited) USD OPERATING ACTIVITIES Net (loss) income from operations
(541,329)
Adjustment for: Movement in unrealized gains on trading investment
Changes in operating assets and liabilities: Trading investments Other receivables Accrued expenses Net cash from operating activities FINANCING ACTIVITIES Proceeds from units sold Value of units redeemed Net cash used in financing activities (DECREASE)/INCREASE IN BANK BALANCES Bank balances at the beginning of the period BANK BALANCES AT THE END OF THE PERIOD
Operational cash flows from dividend Dividend received
9,069,599
(1,476,259) ───────── (2,017,588)
(7,923,423) ───────── 1,146,176
1,802,838 218,436 (2,902) ───────── 784 ─────────
(691,555) (83,593) 7,497 ───────── 378,525 ─────────
(406,629) ───────── (406,629) ───────── (405,845)
68,058 (87,400) ───────── (19,342) ───────── 359,183
4,664,577 ───────── 4,258,732 ═════════
3,643,221 ───────── 4,002,404 ═════════
1,501,628 ═════════
1,648,617 ═════════
The accompanying notes 1 to 8 form part of these interim financial statements. 4
2015 (Unaudited) USD
SAIB GCC Equity Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
2016 (Unaudited) USD NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERTIONS Net (loss) 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
2015 (Unaudited) USD
61,626,665 ─────────
69,446,414 ─────────
(541,329) ─────────
9,069,599 ─────────
(406,629) ───────── (406,629) ───────── 60,678,707 ═════════
68,058 (87,400) ───────── (19,342) ───────── 78,496,671 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarized as follows: 2016 (Unaudited) Units UNITS AT THE BEGINNING OF THE PERIOD
321,322 ───────── (2,289) ───────── (2,289) ───────── 319,033 ═════════
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
2015 (Unaudited) Units 322,668 ───────── 315 (378) ───────── (63) ───────── 322,605 ═════════
SAIB GCC Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB GCC Equity Fund (the Fund) is an open-ended investment fund created by an agreement between the Fund Manager and investors (the Unit holders) in the Fund. The Fund commenced operations on 24 July 2004. The Fund is designed for investors seeking long-term capital growth through diversified exposure to GCC, Arab markets & other Gulf countries’ equities and financial 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 for 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 period 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 Unit holders 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 GCC Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the investment portfolio on the balance sheet date is summarised below:
Cost USD
Market value USD
% of market value
13,341,510 7,405,770 3,246,398 2,334,599 18,625,363 ──────── 44,953,640
10,547,122 4,714,777 3,977,121 1,664,720 19,144,956 ──────── 40,048,696
18.73 8.37 7.06 2.96 34.00 ───── 71.12
8,932,733 4,915,266 2,674,926 ──────── 61,476,565 ════════
7,867,773 6,759,689 1,637,441 ──────── 56,313,599 ════════
13.97 12.00 2.91 ───── 100.00 ═════
13,672,659 7,717,980 3,336,553 3,200,604 19,377,737 ───────── 47,305,533
11,795,198 4,552,697 3,673,510 2,117,447 17,861,048 ─────── 39,999,900
20.82 8.04 6.49 3.74 31.53 ───── 70.62
8,551,953 4,606,322 2,674,926 140,669 ───────── 63,279,403 ═════════
7,436,788 6,923,526 2,090,836 189,128 ───────── 56,640,178 ═════════
13.13 12.22 3.69 0.34 ───── 100.00 ═════
30 June 2016 (Unaudited) Equity Investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemical Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait
31 December 2015 (Audited) Equity investments Kingdom of Saudi Arabia – Sectors: Banking Petrochemcial Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait Oman
7
SAIB GCC Equity 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: Banking Petrochemical Agriculture Cement Others
Other Countries: United Arab Emirates Qatar Kuwait Oman
5
13,671,201 9,706,736 3,336,197 3,552,254 18,237,025 ──────── 48,503,413
15,308,526 8,394,932 4,841,778 3,588,789 22,570,945 ──────── 54,704,970
20.57 11.28 6.51 4.82 30.32 ───── 73.50
8,551,879 4,603,149 2,681,759 162,545 ──────── 64,502,745 ════════
9,464,810 7,736,956 2,267,437 252,805 ──────── 74,426,978 ════════
12.72 10.40 3.04 0.34 ───── 100.00 ═════
TRADING (LOSS) INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) USD USD
Dividend income Movement in unrealised gains Realised (losses) gains
6
1,611,271 1,476,259 (3,119,653) ───────── (32,123) ═════════
1,648,617 7,923,423 158,362 ───────── 9,730,402 ═════════
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 0.33% 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
