Tamoh Multi Asset Fund - Alawwal Invest
Tamoh Multi Asset Fund (Managed by Alawwal Invest Company, previously known as Saudi Hollandi Capital Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2017
Tamoh Multi Asset Fund INTERIM BALANCE SHEET As at 30 June 2017
Note ASSETS Bank balance Trading investments
30 June 2017 (Unaudited) SR
31 December 2016 (Audited) SR
30 June 2016 (Unaudited) SR
145,290 4,976,385 ───────── 5,121,675
138,264 5,023,906 ───────── 5,162,170
45,275 5,587,495 ───────── 5,632,770
32,671 ───────── 5,089,004 ═════════
63,646 ───────── 5,098,524 ═════════
31,690 ───────── 5,601,080 ═════════
Units in issue
227,256 ═════════
235,329 ═════════
255,420 ═════════
Per unit value
22.3933 ═════════
21.6655 ═════════
21.9289 ═════════
LIABILITY Accrued expenses NET ASSETS
4
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2
Tamoh Multi Asset Fund INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
Note
2017 (Unaudited) SR
2016 (Unaudited) SR
INVESTMENT INCOME (LOSS) Trading income (loss), net Special commission income
5
212,323 110 ───────── 212,433 ─────────
(22,482) 105 ───────── (22,377) ─────────
EXPENSES Management fees Other expenses
6
NET INCOME (LOSS) FROM OPERATIONS
8
(12,705) (31,931) ───────── (44,636) ───────── 167,797 ═════════
(14,350) (31,791) ───────── (46,141) ───────── (68,518) ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3
Tamoh Multi Asset Fund INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017 2017 (Unaudited) SR OPERATING ACTIVITIES Net income (loss) 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 Proceeds from sale of units 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 special commission income and dividend income Special commission income received
2016 (Unaudited) SR
167,797
(68,518)
183,343 ───────── 351,140
(188,121) ───────── (256,639)
(135,822) (30,975) ───────── 184,343 ─────────
805,418 31,690 ───────── 580,469 ─────────
86,549 (263,866) ───────── (177,317) ───────── 7,026
24,601 (638,358) ───────── (613,757) ───────── (33,288)
138,264 ───────── 145,290 ═════════
78,563 ───────── 45,275 ═════════
110 ═════════
105 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4
Tamoh 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 (loss) 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
5,098,524 ─────────
6,283,355 ─────────
167,797 ─────────
(68,518) ─────────
86,549 (263,866) ───────── (177,317) ───────── 5,089,004 ═════════
24,601 (638,358) ───────── (613,757) ───────── 5,601,080 ═════════
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
235,329 ─────────
283,967 ─────────
Units sold Units redeemed
3,954 (12,027) ───────── (8,073) ───────── 227,256 ═════════
1,201 (29,748) ───────── (28,547) ───────── 255,420 ═════════
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
Tamoh Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017 1
GENERAL
Tamoh Multi Asset Fund (the “Fund”) is an open-ended Saudi Riyal denominated investment fund of funds created by an agreement between Alawwal Invest Company (the “Fund Manager”), a subsidiary of Alawwal Bank (the “Bank”) and investors in the Fund (the “Unit Holders”). The Fund is designed for Unit Holders seeking long term capital appreciation. The Fund invests in investment funds (sub-funds) of the Fund Manager and other mutual funds licensed by Capital Market Authority (the “CMA”) with main exposure to equity and minor exposure to low risk investments. The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The Fund commenced its operations on 24 Shawwal 1423H (corresponding to 28 December 2002). 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 generally accepted in the Kingdom of Saudi Arabia. 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 statement of operations. Units in sub-funds are stated at the net asset value as announced 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 considered to be the obligation of the Unit Holders and are not provided in the accompanying interim financial statements. Revenue recognition Dividend income is recorded when the right to receive dividends is established .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 interim statement of operations.
6
Tamoh 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: Cost SR
Description
Market value SR
Units in Mutual Funds managed by the Company 30 June 2017 (Unaudited) Al Yusr Global Equity Fund Al Yusr SAR Morabaha Fund Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
31 December 2016 (Audited) Al Yusr Global Equity Fund Al Yusr SAR Morabaha Fund Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
30 June 2016 (Unaudited) Al Yusr Global Equity Fund Al Yusr GCC Equity Fund Saudi Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
5
2,089,530 741,067 522,633 426,260 343,148 259,269 143,815 ───────── 4,525,722 ═════════
2,411,586 751,754 544,388 528,908 302,583 266,542 170,624 ───────── 4,976,385 ═════════
2,320,395 741,067 522,633 426,260 343,148 259,269 143,815 ───────── 4,756,587 ═════════
2,484,014 745,238 539,872 524,870 307,299 263,969 158,644 ───────── 5,023,906 ═════════
2,518,201 752,286 881,113 556,021 408,376 255,196 ───────── 5,371,193 ═════════
2,637,524 888,741 888,301 507,226 409,900 255,803 ───────── 5,587,495 ═════════
TRADING INCOME (LOSS), NET For the six-month period ended 30 June 2017 2016 (Unaudited) (Unaudited) SR SR
Unrealised gains Realised gains (losses)
28,980 183,343 ───────── 212,323 ═════════
7
188,121 (210,603) ───────── (22,482) ═════════
Tamoh Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 6
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 charged to 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.
8
Tamoh Multi Asset Fund INTERIM BALANCE SHEET As at 30 June 2017
Note ASSETS Bank balance Trading investments
30 June 2017 (Unaudited) SR
31 December 2016 (Audited) SR
30 June 2016 (Unaudited) SR
145,290 4,976,385 ───────── 5,121,675
138,264 5,023,906 ───────── 5,162,170
45,275 5,587,495 ───────── 5,632,770
32,671 ───────── 5,089,004 ═════════
63,646 ───────── 5,098,524 ═════════
31,690 ───────── 5,601,080 ═════════
Units in issue
227,256 ═════════
235,329 ═════════
255,420 ═════════
Per unit value
22.3933 ═════════
21.6655 ═════════
21.9289 ═════════
LIABILITY Accrued expenses NET ASSETS
4
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2
Tamoh Multi Asset Fund INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
Note
2017 (Unaudited) SR
2016 (Unaudited) SR
INVESTMENT INCOME (LOSS) Trading income (loss), net Special commission income
5
212,323 110 ───────── 212,433 ─────────
(22,482) 105 ───────── (22,377) ─────────
EXPENSES Management fees Other expenses
6
NET INCOME (LOSS) FROM OPERATIONS
8
(12,705) (31,931) ───────── (44,636) ───────── 167,797 ═════════
(14,350) (31,791) ───────── (46,141) ───────── (68,518) ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3
Tamoh Multi Asset Fund INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017 2017 (Unaudited) SR OPERATING ACTIVITIES Net income (loss) 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 Proceeds from sale of units 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 special commission income and dividend income Special commission income received
2016 (Unaudited) SR
167,797
(68,518)
183,343 ───────── 351,140
(188,121) ───────── (256,639)
(135,822) (30,975) ───────── 184,343 ─────────
805,418 31,690 ───────── 580,469 ─────────
86,549 (263,866) ───────── (177,317) ───────── 7,026
24,601 (638,358) ───────── (613,757) ───────── (33,288)
138,264 ───────── 145,290 ═════════
78,563 ───────── 45,275 ═════════
110 ═════════
105 ═════════
The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4
Tamoh 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 (loss) 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
5,098,524 ─────────
6,283,355 ─────────
167,797 ─────────
(68,518) ─────────
86,549 (263,866) ───────── (177,317) ───────── 5,089,004 ═════════
24,601 (638,358) ───────── (613,757) ───────── 5,601,080 ═════════
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
235,329 ─────────
283,967 ─────────
Units sold Units redeemed
3,954 (12,027) ───────── (8,073) ───────── 227,256 ═════════
1,201 (29,748) ───────── (28,547) ───────── 255,420 ═════════
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
Tamoh Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017 1
GENERAL
Tamoh Multi Asset Fund (the “Fund”) is an open-ended Saudi Riyal denominated investment fund of funds created by an agreement between Alawwal Invest Company (the “Fund Manager”), a subsidiary of Alawwal Bank (the “Bank”) and investors in the Fund (the “Unit Holders”). The Fund is designed for Unit Holders seeking long term capital appreciation. The Fund invests in investment funds (sub-funds) of the Fund Manager and other mutual funds licensed by Capital Market Authority (the “CMA”) with main exposure to equity and minor exposure to low risk investments. The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The Fund commenced its operations on 24 Shawwal 1423H (corresponding to 28 December 2002). 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 generally accepted in the Kingdom of Saudi Arabia. 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 statement of operations. Units in sub-funds are stated at the net asset value as announced 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 considered to be the obligation of the Unit Holders and are not provided in the accompanying interim financial statements. Revenue recognition Dividend income is recorded when the right to receive dividends is established .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 interim statement of operations.
6
Tamoh 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: Cost SR
Description
Market value SR
Units in Mutual Funds managed by the Company 30 June 2017 (Unaudited) Al Yusr Global Equity Fund Al Yusr SAR Morabaha Fund Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
31 December 2016 (Audited) Al Yusr Global Equity Fund Al Yusr SAR Morabaha Fund Saudi Equity Fund Al Yusr GCC Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
30 June 2016 (Unaudited) Al Yusr Global Equity Fund Al Yusr GCC Equity Fund Saudi Equity Fund Al Yusr IPO Fund Al Yusr Morabaha and Sukuk Fund Saudi Financial Equity Fund
5
2,089,530 741,067 522,633 426,260 343,148 259,269 143,815 ───────── 4,525,722 ═════════
2,411,586 751,754 544,388 528,908 302,583 266,542 170,624 ───────── 4,976,385 ═════════
2,320,395 741,067 522,633 426,260 343,148 259,269 143,815 ───────── 4,756,587 ═════════
2,484,014 745,238 539,872 524,870 307,299 263,969 158,644 ───────── 5,023,906 ═════════
2,518,201 752,286 881,113 556,021 408,376 255,196 ───────── 5,371,193 ═════════
2,637,524 888,741 888,301 507,226 409,900 255,803 ───────── 5,587,495 ═════════
TRADING INCOME (LOSS), NET For the six-month period ended 30 June 2017 2016 (Unaudited) (Unaudited) SR SR
Unrealised gains Realised gains (losses)
28,980 183,343 ───────── 212,323 ═════════
7
188,121 (210,603) ───────── (22,482) ═════════
Tamoh Multi Asset Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017 6
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 charged to 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.
8
