SAIB Saudi Equity Fund
SAIB Saudi Equity Fund (Managed by Alistithmar for Financial Securities and Brokerage Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2016
SAIB Saudi Equity Fund BALANCE SHEET As at 30 June 2016
30 June 2016 (Unaudited) SR
31 December 2015 (Audited) SR
30 June 2015 (Unaudited) SR
2,644,587 54,092,433 57,616 ───────── 56,794,636 ─────────
833,037 56,976,397 846,414 ───────── 58,655,848 ─────────
2,925,356 73,955,846 73,137 ───────── 76,954,339 ─────────
26,583 ───────── 56,768,053 ═════════
48,110 ───────── 58,607,738 ═════════
27,491 ───────── 76,926,848 ═════════
Units in issue
338,897 ═════════
345,287 ═════════
346,081 ═════════
Per unit value
SR 167.51 ═════════
SR 169.74 ═════════
SR 222.28 ═════════
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 Saudi Equity Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) SR
2015 (Unaudited) SR
5
(336,762) ─────────
13,212,068 ─────────
EXPENSES Management fees Others
6
NET (LOSS) INCOME FROM OPERATIONS
8
(469,027) (23,868) ───────── (492,895) ───────── (829,657) ═════════
(640,068) (23,803) ───────── (663,871) ───────── 12,548,197 ═════════
Note INVESTMENT (LOSS) INCOME Trading (loss) income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB Saudi Equity Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016 2016 (Unaudited) SR OPERATING ACTIVITIES Net (loss) income from operations
(829,657)
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 ACTIVITIES Proceed from units sold Value of units redeemed Net cash (used in) from financing activities INCREASE 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
2015 (Unaudited) SR
12,548,197
(616,829) ───────── (1,446,486)
(11,681,268) ───────── 866,929
3,500,793 788,798 (21,527) ───────── 2,821,578 ─────────
(412,651) (73,137) (16,871) ───────── 364,270 ─────────
(1,010,028) ───────── (1,010,028) ───────── 1,811,550
1,017,260 (494,814) ───────── 522,446 ───────── 886,716
833,037 ───────── 2,644,587 ═════════
2,038,640 ───────── 2,925,356 ═════════
1,238,146 ═════════
1,079,923 ═════════
SAIB Saudi Equity Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
2016 (Unaudited) SR NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS 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) SR
58,607,738 ─────────
63,856,205 ─────────
(829,657) ─────────
12,548,197 ─────────
(1,010,028) ───────── (1,010,028) ───────── 56,768,053 ═════════
1,017,260 (494,814) ───────── 522,446 ───────── 76,926,848 ═════════
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 Units sold Units redeemed Net (decrease) increase 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
345,287 ───────── (6,389) ───────── (6,389) ─────────
343,743 ───────── 4,706 (2,368) ───────── 2,338 ─────────
338,898 ═════════
346,081 ═════════
SAIB Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB Saudi Equity 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 24 July 2004. The Fund is designed for investors seeking capital appreciation, over the long term, through diversified exposure to publicly traded Saudi 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 Saudi Riyals (SR). 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 Saudi Riyals 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 Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the trading investments portfolio on the last valuation day of the period is summarised below: Cost SR
Market value SR
% of market Value
30 June 2016 (Unaudited) Equity Investments (by sector) Banking Petrochemical Agriculture Cement Telecom & IT Others
20,308,746 10,552,895 7,108,786 4,224,120 840,365 22,252,621 ──────── 65,287,533 ════════
14,497,909 7,033,875 6,891,041 2,796,768 901,460 21,971,380 ──────── 54,092,433 ════════
26.80 13.00 12.74 5.17 1.67 40.62 ───── 100.00 ═════
22,305,957 7,962,167 9,422,003 4,391,641 21,876,558 ──────── 65,958,326
17,446,918 7,309,193 5,735,335 2,793,342 20,852,488 ──────── 54,137,276
30.62 12.83 10.07 4.90 36.60 ───── 95.02
2,830,000 ──────── 68,788,326 ════════
2,839,121 ──────── 56,976,397 ════════
4.98 ───── 100.00 ═════
21,628,563 7,962,167 9,833,244 4,391,642 23,746,623 ──────── 67,562,239 ════════
21,681,160 9,652,218 8,328,978 4,221,450 30,072,040 ──────── 73,955,846 ════════
29.32 13.05 11.26 5.71 40.66 ───── 100.00 ═════
31 December 2015 (Audited) Equity investments (by sector) Banking Agriculture Petrochemical Cement Others
Mutual Funds Investment: SAIB Trade Finance Fund
30 June 2015 (Unaudited) Equity investments (by sector) Banking Agriculture Petrochemical Cement Others
7
SAIB Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016
5
TRADING (LOSS) INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) SR SR
Dividend income Movement in unrealised gains Realised (losses) gains
6
1,295,762 616,829 (2,249,353) ───────── (336,762) ═════════
1,079,923 11,681,268 450,877 ───────── 13,212,068 ═════════
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 0.25% of net asset value per annum. Trade transactions on Tadawul 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 30 June 2016 (2015: 30 June 2015). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
8
SAIB Saudi Equity Fund BALANCE SHEET As at 30 June 2016
30 June 2016 (Unaudited) SR
31 December 2015 (Audited) SR
30 June 2015 (Unaudited) SR
2,644,587 54,092,433 57,616 ───────── 56,794,636 ─────────
833,037 56,976,397 846,414 ───────── 58,655,848 ─────────
2,925,356 73,955,846 73,137 ───────── 76,954,339 ─────────
26,583 ───────── 56,768,053 ═════════
48,110 ───────── 58,607,738 ═════════
27,491 ───────── 76,926,848 ═════════
Units in issue
338,897 ═════════
345,287 ═════════
346,081 ═════════
Per unit value
SR 167.51 ═════════
SR 169.74 ═════════
SR 222.28 ═════════
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 Saudi Equity Fund STATEMENT OF OPERATIONS Six month period ended 30 June 2016 2016 (Unaudited) SR
2015 (Unaudited) SR
5
(336,762) ─────────
13,212,068 ─────────
EXPENSES Management fees Others
6
NET (LOSS) INCOME FROM OPERATIONS
8
(469,027) (23,868) ───────── (492,895) ───────── (829,657) ═════════
(640,068) (23,803) ───────── (663,871) ───────── 12,548,197 ═════════
Note INVESTMENT (LOSS) INCOME Trading (loss) income, net
The accompanying notes 1 to 8 form part of these interim financial statements. 3
SAIB Saudi Equity Fund STATEMENT OF CASH FLOWS Six month period ended 30 June 2016 2016 (Unaudited) SR OPERATING ACTIVITIES Net (loss) income from operations
(829,657)
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 ACTIVITIES Proceed from units sold Value of units redeemed Net cash (used in) from financing activities INCREASE 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
2015 (Unaudited) SR
12,548,197
(616,829) ───────── (1,446,486)
(11,681,268) ───────── 866,929
3,500,793 788,798 (21,527) ───────── 2,821,578 ─────────
(412,651) (73,137) (16,871) ───────── 364,270 ─────────
(1,010,028) ───────── (1,010,028) ───────── 1,811,550
1,017,260 (494,814) ───────── 522,446 ───────── 886,716
833,037 ───────── 2,644,587 ═════════
2,038,640 ───────── 2,925,356 ═════════
1,238,146 ═════════
1,079,923 ═════════
SAIB Saudi Equity Fund STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June 2016
2016 (Unaudited) SR NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS 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) SR
58,607,738 ─────────
63,856,205 ─────────
(829,657) ─────────
12,548,197 ─────────
(1,010,028) ───────── (1,010,028) ───────── 56,768,053 ═════════
1,017,260 (494,814) ───────── 522,446 ───────── 76,926,848 ═════════
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 Units sold Units redeemed Net (decrease) increase 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
345,287 ───────── (6,389) ───────── (6,389) ─────────
343,743 ───────── 4,706 (2,368) ───────── 2,338 ─────────
338,898 ═════════
346,081 ═════════
SAIB Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2016 1
GENERAL
SAIB Saudi Equity 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 24 July 2004. The Fund is designed for investors seeking capital appreciation, over the long term, through diversified exposure to publicly traded Saudi 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 Saudi Riyals (SR). 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 Saudi Riyals 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 Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016 4
TRADING INVESTMENTS
The composition of the trading investments portfolio on the last valuation day of the period is summarised below: Cost SR
Market value SR
% of market Value
30 June 2016 (Unaudited) Equity Investments (by sector) Banking Petrochemical Agriculture Cement Telecom & IT Others
20,308,746 10,552,895 7,108,786 4,224,120 840,365 22,252,621 ──────── 65,287,533 ════════
14,497,909 7,033,875 6,891,041 2,796,768 901,460 21,971,380 ──────── 54,092,433 ════════
26.80 13.00 12.74 5.17 1.67 40.62 ───── 100.00 ═════
22,305,957 7,962,167 9,422,003 4,391,641 21,876,558 ──────── 65,958,326
17,446,918 7,309,193 5,735,335 2,793,342 20,852,488 ──────── 54,137,276
30.62 12.83 10.07 4.90 36.60 ───── 95.02
2,830,000 ──────── 68,788,326 ════════
2,839,121 ──────── 56,976,397 ════════
4.98 ───── 100.00 ═════
21,628,563 7,962,167 9,833,244 4,391,642 23,746,623 ──────── 67,562,239 ════════
21,681,160 9,652,218 8,328,978 4,221,450 30,072,040 ──────── 73,955,846 ════════
29.32 13.05 11.26 5.71 40.66 ───── 100.00 ═════
31 December 2015 (Audited) Equity investments (by sector) Banking Agriculture Petrochemical Cement Others
Mutual Funds Investment: SAIB Trade Finance Fund
30 June 2015 (Unaudited) Equity investments (by sector) Banking Agriculture Petrochemical Cement Others
7
SAIB Saudi Equity Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2016
5
TRADING (LOSS) INCOME, NET Six month period ended 30 June 2015 2016 (Unaudited) (Unaudited) SR SR
Dividend income Movement in unrealised gains Realised (losses) gains
6
1,295,762 616,829 (2,249,353) ───────── (336,762) ═════════
1,079,923 11,681,268 450,877 ───────── 13,212,068 ═════════
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 0.25% of net asset value per annum. Trade transactions on Tadawul 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 30 June 2016 (2015: 30 June 2015). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
8
