Al Yusr Mizan Multi Asset Fund (Managed by Alawwal Invest Company, previously known as Saudi Hollandi Capital Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2017
Al Yusr Mizan Multi Asset Fund INTERIM BALANCE SHEET As at 30 June 2017 30 June 2017 (Unaudited) SR
31 December 2016 (Audited) SR
30 June 2016 (Unaudited) SR
26,008 10,681,150 ───────── 10,707,158
141,357 11,648,870 ───────── 11,790,227
62,871 12,726,008 ───────── 12,788,879
33,360 ───────── 10,673,798 ═════════
63,918 ───────── 11,726,309 ═════════
31,787 ───────── 12,757,092 ═════════
Units in issue
834,266 ═════════
934,372 ═════════
1,014,378 ═════════
Per unit value
12.7942 ═════════
12.5499 ═════════
12.5763 ═════════
Note ASSETS Bank balance Trading investments
LIABILITY Accrued expenses NET ASSETS
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The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2
Al Yusr Mizan Multi Asset Fund INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
Note INVESTMENT INCOME Trading income, net
2017 (Unaudited) SR
2016 (Unaudited) SR
5
258,843 ─────────
115,085 ─────────
EXPENSES Management fees Other expenses
6
NET INCOME FROM OPERATIONS
8
(16,371) (31,699) ───────── (48,070) ───────── 210,773 ═════════
(31,585) (31,615) ───────── (63,200) ───────── 51,885 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3
Al Yusr Mizan Multi Asset Fund INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017 2017 (Unaudited) SR OPERATING ACTIVITIES Net income from operations Adjustment for: Unrealised losses (gains) on trading investments
Changes in operating assets and liability: Trading investments Accrued expenses Net cash from operating activities
FINANCING ACTIVITIES Bank overdraft Proceeds from sale of units Value of units redeemed Net cash used in financing activities (DECREASE) INCREASE IN BANK BALANCE Bank balance at the beginning of the period BANK BALANCE AT THE END OF THE PERIOD
210,773
2016 (Unaudited) SR 51,885
218,525 ───────── 429,298
(299,307) ───────── (247,422)
749,195 (30,558) ───────── 1,147,935 ─────────
813,379 31,787 ───────── 597,744 ─────────
144,025 (1,407,309) ───────── (1,263,284) ───────── (115,349)
(260,329) 68,775 (343,319) ───────── (534,873) ───────── 62,871
141,357 ───────── 26,008 ═════════
───────── 62,871 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4
Al Yusr Mizan Multi Asset Fund INTERIM STATEMENT OF CHANGES IN NET ASSETS For the six-month period ended 30 June 2017 2017 (Unaudited) SR NET ASSETS AT THE BEGINNING OF THE PERIOD
CHANGES FROM OPERATIONS Net income from operations
CHANGES FROM UNIT TRANSACTIONS Proceeds from sale of units Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2016 (Unaudited) SR
11,726,309 ─────────
12,979,751 ─────────
210,773 ─────────
51,885 ─────────
144,025 (1,407,309) ───────── (1,263,284) ───────── 10,673,798 ═════════
68,775 (343,319) ───────── (274,544) ───────── 12,757,092 ═════════
2017 (Unaudited) Units
2016 (Unaudited) Units
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows:
UNITS AT THE BEGINNING OF THE PERIOD
934,372 ─────────
1,036,130 ─────────
Units sold Units redeemed
11,425 (111,531) ───────── (100,106) ───────── 834,266 ═════════
5,673 (27,425) ───────── (21,752) ───────── 1,014,378 ═════════
Net decrease in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 5
Al Yusr Mizan Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017 1
GENERAL
Al Yusr Mizan Multi Asset Fund (the “Fund”) is a Sharia-compliant open-ended Saudi Riyal denominated investment fund of funds created by an agreement between the Alawwal Invest (the “Fund Manager”), a subsidiary of Alawwal Bank (the “Bank”) and investors in the Fund (the “Unit Holders”) and is designed for medium risk Unit Holders seeking long term capital growth. The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The Fund invests in Sharia compliant investment funds (sub-funds) of the Fund Manager and other mutual funds licensed by Capital Market Authority (the “CMA”) with exposure to equities and low risk investments. All income is reinvested in the Fund and is reflected in the unit price. The Fund commenced its operations on 8 Sha’aban 1424H (corresponding to 4 October 2003). 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”) issued by the CMA on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) and effective from 6 Safar 1438 (corresponding 6 November 2016) by the New Investment Fund Regulations (“Amended Regulations”), published by the Capital Market Authority on 16 Sha’aban 1437H (corresponding to 23 May 2016), detailing requirements for all funds within the Kingdom of Saudi Arabia. The enhanced requirements of Annexure 5(e) of the Amended Regulations are effective from 2017. 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 2016 and are as follows: Accounting convention The interim financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Investment valuation Trading investments in mutual funds are valued at the net asset value as announced by asset managers. Unrealised gains and losses on the revaluation and realised gains and losses on the disposal of investments are included in the interim statement of operations. Investment transactions Investment transactions are accounted for as of the trade date. Revenue recognition 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. Zakat and income tax Zakat and income tax are considered to be the obligation of the Unit Holders and are not provided in the accompanying interim financial statements. 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 interim balance sheet date are translated at the rates of exchange ruling at that date. Resulting exchange gains and losses are taken to the interim statement of operations.
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Al Yusr Mizan Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 4
TRADING INVESTMENTS
The composition of the investment portfolio on the last valuation day of the period is summarised below: Description
Cost SR
Market value SR
3,689,202 2,320,422 819,003 493,333 368,533 ───────── 7,690,493
3,871,751 3,058,050 772,339 605,456 346,764 ───────── 8,654,360
1,890,000 ───────── 9,580,493 ═════════
2,026,790 ───────── 10,681,150 ═════════
4,875,447 2,320,422 819,003 493,333 368,533 ───────── 8,876,738
5,072,345 2,836,498 781,697 600,834 352,168 ───────── 9,643,542
1,890,000 ───────── 10,766,738 ═════════
2,005,328 ───────── 11,648,870 ═════════
4,625,127 2,538,332 1,390,789 875,967 600,011 ───────── 10,030,226
4,789,010 3,035,832 1,316,251 1,023,570 584,068 ───────── 10,748,731
1,890,000 ───────── 11,920,226 ═════════
1,977,277 ───────── 12,726,008 ═════════
30 June 2017 (Unaudited) Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund Al Yusr Global Equity Fund Al Yusr Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund
Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal)
31 December 2016 (Audited) Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund Al Yusr Global Equity Fund Al Yusr Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund
Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal)
30 June 2016 (Unaudited) Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund Al Yusr Global Equity Fund Al Yusr Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund
Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal)
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Al Yusr Mizan Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 5
TRADING INCOME, NET For the six-month period ended 30 June 2017 2016 (Unaudited) (Unaudited) SR SR 218,525 40,318 ───────── 258,843 ═════════
Unrealised gains Realised gains (losses)
6
299,307 (184,222) ───────── 115,085 ═════════
TRANSACTIONS WITH RELATED PARTIES
The Fund is managed and administered by the Fund Manager. For these services the Fund pays a service fee calculated at an annual rate of 0.5% of the net asset value at each valuation date. The Fund Manager also charges a subscription fee of 0.5% each 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 reimbursed from the Fund. The Bank acts as the Fund’s banker and the Fund Manager acts as the custodian of the Fund’s investments. 7
LAST VALUATION DAY
The last valuation day of the period was 30 June 2017 (2016: 30 June 2016). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
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