Saudi Hollandi Capital Company IPO FUND UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2015
Saudi Hollandi Capital Company – SHC IPO Fund BALANCE SHEET As at 30 June 2015 30 June 2015 (Unaudited) SR
31 December 2014 (Audited) SR
219,012,810 178,495,149 71,413 ───────── 397,579,372 ─────────
72,060 12,467,359 ───────── 12,539,419 ─────────
35,422 ───────── 397,543,950 ═════════
344 ───────── 12,539,075 ═════════
Units in issue
32,543,186 ═════════
1,286,853 ═════════
Per unit value
12.2159 ═════════
9.7439 ═════════
Note
ASSETS Bank balance Trading investments Other receivables
LIABILITY Accrued expenses NET ASSETS
The accompanying notes 1 to 8 form part of these financial statements. 2
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Saudi Hollandi Capital Company – SHC IPO Fund STATEMENT OF OPERATIONS For the six month period ended 30 June 2015
Notes INVESTMENT INCOME Trading income, net Redemption income
EXPENSES Management fees Other expenses
NET INCOME FOR THE PERIOD
\
\
The accompanying notes 1 to 8 form part of these financial statements. 3
2015 SR
5
25,997,364 107 ───────── 25,997,471 ─────────
6 6
(375,330) (132,312) ───────── (507,642) ───────── 25,489,829 ═════════
Saudi Hollandi Capital Company – SHC IPO Fund STATEMENT OF CASH FLOWS For the six month period ended 30 June 2015 2015 SR OPERATING ACTIVITIES Net income for the period Adjustment for: Unrealised gains on trading investments
25,489,829
(7,039,874) ───────── 18,449,955
Changes in operating asset and liability: Trading investments Accrued expenses Other recievables Net cash used in operating activities
FINANCING ACTIVITIES Proceed from units sold Value of units redeemed
(158,987,916) 35,078 )71,413( ───────── )140,574,296( ─────────
368,456,459 )8,941,413( ─────────
Net cash from financing activities
359,515,046 ─────────
INCREASE IN BANK BALANCE
218,940,750
Bank balance at the beginning of the period
72,060 ─────────
BANK BALANCE AT THE END OF THE PERIOD
219,012,810 ═════════
The accompanying notes 1 to 8 form part of these financial statements. 4
Saudi Hollandi Capital Company – SHC IPO Fund STATEMENT OF CHANGES IN NET ASSETS For the six month period ended 30 June 2015 2015 SR NET ASSET VALUE AT THE BEGINNING OF THE PERIOD
CHANGES FROM OPERATIONS Net income for the period
CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold Value of units redeemed Net change from unit transactions NET ASSET VALUE AT THE END OF THE PERIOD
12,539,075 ─────────
25,489,829 ─────────
368,456,459 )8,941,413( ───────── 359,515,046 ───────── 397,543,950 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows: 2015 Units UNITS AT THE BEGINNING OF THE PERIOD
1,286,853 ─────────
Units sold Units redeemed
32,066,827 (810,494) ───────── 31,256,333 ───────── 32,543,186 ═════════
Net increase in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form part of these financial statements. 5
Saudi Hollandi Capital Company – SHC IPO Fund NOTES TO THE FINANCIAL STATEMENTS 30 June 2015
1
GENERAL
SHC IPO Fund (the Fund) is an open ended fund created by an agreement between Saudi Hollandi Capital Company (the Fund Manager or the Company), a subsidiary of Saudi Hollandi Bank (the Bank) and investors in the Fund (the Unitholders) and is designed for investors seeking long term capital appreciation through investing and participating in Initial Public Offerings (IPOs) of equities that will be listed in the Saudi stock market and/or equities of companies listed in the Saudi stock market in the last three years, the fund also invest in Mutual Funds of similar nature (mutual funds investing in IPOs), and in short term money market instruments such as short term Morabaha placements, and Morabaha mutual funds. All income is reinvested in the Fund and is reflected in the unit price. The fund commences its operations on 2 November 2014. The books and records of the Fund are maintained in Saudi Riyals (SR). These are the first interim financial statements of the fund. Hence, comparative information is not presented. 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 2014 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. 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 statement of operations. Investment transactions Investment transactions are accounted for as of the trade date. Zakat/income tax Zakat/income tax is the obligation of the Unitholders and is not provided for in the accompanying financial statements. Revenue recognition Dividend income is recorded when declared. Special commission income is recognised on an effective yield basis. 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 Saudi Riyals at the rates of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the statement of operations.
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Saudi Hollandi Capital Company – SHC IPO Fund NOTES TO THE FINANCIAL STATEMENTS (continued) 30 June 2015 4
TRADING INVESTMENTS
The composition of the trading investment portfolio on the last valuation day of the period is set out below: Cost SR
Description
Market value SR
30 June 2015 (Unaudited) Cement Retail Transport Sector Agri. & Food Industries Sector Hotel & Tourism sector Building & Construction Sector Industrial investment sector Insurance sector
Mutual Funds: Baitik IPO Fund
34,583,972 30,922,157 16,859,500 17,484,386 17,692,488 17,310,847 6,737,543 547,250 ──────── 142,138,143 ────────
33,337,186 31,844,893 24,220,670 17,101,231 16,928,455 16,739,338 6,779,551 493,200 ──────── 147,444,524 ────────
30,000,000 ──────── 172,138,143 ═══════
31,050,625 ──────── 178,495,149 ═══════
5,609,833 2,314,264 1,192,762 1,248,058 1,038,909 715,675 501,838 528,888 ───────── 13,150,227 ═════════
5,195,610 2,275,056 1,115,420 1,071,601 898,960 725,839 645,705 539,168 ───────── 12,467,359 ═════════
31 December 2014 (Audited) Banks and financial services Building & Construction Sector Insurance sector Retail Cement Hotel & Tourism sector Industrial investment sector Agri. & Food Industries Sector Total
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TRADING INCOME, NET 30 June 2015 SR Movement in unrealized gains Dividend income Realised gains
7,039,874 182,957 18,774,533 ──────── 25,997,364 ════════
Total
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Saudi Hollandi Capital Company – SHC IPO Fund NOTES TO THE FINANCIAL STATEMENTS (continued) 30 June 2015 6
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% of the Fund’s daily net assets. In addition, the Fund Manager charges a subscription fee of 1.5% on gross subscriptions 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 Company acts as the custodian to the Fund’s investment. During the period the Fund has placed special commission bearing money market placements and other accounts with the Bank. 7
LAST VALUATION DAY
The last valuation day of the period was 30 June 2015. 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
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