SAIB Saudi IPO Fund (Managed by Alistithmar for Financial Securities and Brokerage Company)

Transcription

1 (Managed by Alistithmar for Financial Securities and Brokerage Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE

2

3 INTERIM BALANCE SHEET As at 30 June ASSETS Note 30 June 31 December (Audited) 30 June Bank balances 9,799,436 6,692,746 25,937,086 Trading investments 4 27,458,511 31,533,187 50,508,311 Dividend receivable 191,661 70,361 - Other receivable ,810 37,449,608 38,296,294 76,704,207 LIABILITY Accrued expenses 43,391 49,899 28,478 NET ASSETS 37,406,217 38,246,395 76,675,729 Units in issue 376, , ,529 Per unit value The accompanying notes 1 to 8 form part of these interim financial statements. 2

4 INTERIM STATEMENT OF OPERATIONS Six month period ended 30 June INVESTMENT INCOME (LOSS) Note Trading income (loss), net 5 890,126 (823,555) EXPENSES Management fees 6 (396,329) (819,583) Other expenses (23,159) (23,868) (419,488) (843,451) NET INCOME (LOSS) FROM OPERATIONS 8 470,638 (1,667,006) The accompanying notes 1 to 8 form part of these interim financial statements. 3

5 INTERIM STATEMENT OF CASH FLOWS Six month period ended 30 June OPERATING ACTIVITIES Net income (loss) from operations 470,638 (1,667,006) Adjustment for: Movement in unrealised (gains) losses on trading investments (1,989,257) 2,587,091 1,518, ,085 Changes in operating assets and liability: Trading investments 6,063,933 2,153,259 Dividend receivable (121,300) 3,170,856 Accrued expenses (6,508) 16,743 Net cash from in operating activities 4,417,506 6,260,943 FINANCING ACTIVITIES Proceeds from units sold - 724,500 Value of units redeemed (1,310,816) (753,496) Net cash used in financing activities (1,310,816) (28,996) INCREASE IN BANK BALANCES 3,106,690 6,231,947 Bank balances at the beginning of the period 6,692,746 19,705,139 BANK BALANCES AT THE END OF THE PERIOD 9,799,436 25,937,086 Operational cash flows from dividend Dividend received 492, ,772 The accompanying notes 1 to 8 form part of these interim financial statements. 4

6 INTERIM STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June NET ASSETS VALUE AT THE BEGINNING OF THE PERIOD 38,246,395 78,371,731 CHANGES FROM OPERATIONS Net income (loss) from operations 470,638 (1,667,006) CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold - 724,500 Value of units redeemed (1,310,816) (753,496) Net change from unit transactions (1,310,816) (28,996) NET ASSET VALUE AT THE END OF THE PERIOD 37,406,217 76,675,729 UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows: Units Units UNITS AT THE BEGINNING OF THE PERIOD 390, ,532 Units sold - 8,217 Units redeemed (14,138) (8,220) Net decrease in units (14,138) (3) UNITS AT THE END OF THE PERIOD 376, ,529 The accompanying notes 1 to 8 form part of these interim financial statements. 5

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 1 GENERAL SAIB Saudi IPO Fund (the Fund) is an open ended fund created by an agreement between the Fund Manager and investors (the Unitholders) in the Fund. The Fund commenced operation on 31 August The objective of the Fund is to achieve capital appreciation with optimum returns, by investing in Initial Public Offering (IPO) and Rights issue of listed Saudi companies. The Fund also invests in recently listed Saudi companies within three years of listing. 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 (). 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 1438H (corresponding 6 November ) by the New Investment Fund Regulations ( Amended Regulations ) published by the Capital Market Authority on 16 Sha aban 1437H (corresponding to 23 May ), 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 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. 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 interim financial statements. Foreign currencies Transactions in foreign currencies are translated into Saudi Riyal 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 interim statement of operations. 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 4 TRADING INVESTMENTS The composition of the trading investments portfolio on the balance sheet date is summarised below: 30 June Cost Market value % of market value Equity investments (by sector): Banking 5,157,986 5,740, Retail 7,878,325 5,681, Industrial Investment 4,575,179 4,566, Transport 3,262,777 2,626, Others 8,384,767 8,843, ,259,034 27,458, December (Audited) Equity investments (by sector): Retail 17,166,573 12,793, Banking 5,769,255 5,028, Transport 2,322,036 2,689, Cement 1,556, , Others 8,508,926 10,107, ,322,967 31,533, June Equity investments (by sector): Retail 18,408,769 16,785, Banking 13,338,377 10,903, Transport 5,686,560 4,810, Cement 1,556,177 1,217, Others 33,083,415 31,428, ,977,969 43,549, Mutual Funds Investment: SAIB Trade Finance Fund 6,891,877 6,958, ,869,846 50,508,

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 5 TRADING INCOME (LOSS), NET Six month period ended 30 June Movement in unrealised gain (loss) 1,989,257 (2,587,091) Dividend income 613, ,582 Realised (loss) gain (1,713,062) 948, ,126 (823,555) 6 TRANSACTIONS WITH RELATED PARTIES The Fund paid a management fee, administration fee and custody fee at an annual rate of 2.0%, 0.1% and 0.1% respectively of the net asset value at each valuation date. The management fees reflected in the interim 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 0.60% of net asset value per annum. Trade transactions on Tadawul and other 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 30 June (: 30 June ). 8 RESULTS OF OPERATIONS The results for the interim period may not be indicative of the annual operating results. 8