NOMW IPO Fund (Managed by NOMW Capital)

Transcription

1 NOMW IPO Fund (Managed by NOMW Capital) UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2017

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3 INTERIM BALANCE SHEET As at 30 June June December (Audited) 30 June Note ASSETS Bank balances 12,055,579 11,125,985 27,200,047 Trading investments 4 5,634,660 8,775,020 14,036,880 Due from broker 505, Other receivable and prepayments 5,521 17, ,512 TOTAL ASSETS 18,201,305 19,918,032 41,508,439 LIABILITIES Other payables and accrued expenses 115, , ,996 Redemption payable ,583 TOTAL LIABILITIES 115, , ,579 NET ASSETS 18,085,648 19,737,829 41,130,860 Units in issue 1,812,668 1,951,549 3,948,804 Per unit value The attached notes 1 to 7 form part of these interim financial statements. 2

4 INTERIM STATEMENT OF OPERATIONS June 2017 Notes June 2017 June INVESTMENT INCOME Trading (loss)/income, net 5 (48,616) 2,880,489 Other income - 143,018 TOTAL (LOSS)/INCOME (48,616) 3,023,507 EXPENSES Management fees 6 (133,526) (317,759) Custody fees 6 (22,254) (52,959) Brokerage fees (11,748) (37,188) Other expenses (53,174) (60,761) TOTAL EXPENSES (220,702) (468,667) NET (LOSS)/INCOME FROM OPERATIONS (269,318) 2,554,840 The attached notes 1 to 7 form part of these interim financial statements. 3

5 INTERIM STATEMENT OF CASH FLOWS June 2017 Note June 2017 June OPERATING ACTIVITIES Net (loss) income from operations (269,318) 2,554,840 Adjustment for: Unrealised loss/(gains) on trading investments 4 419,385 (484,979) 150,067 2,069,861 Changes in operating asset and liabilities: Trading investments 2,720,975 (1,843,398) Due from broker (505,545) - Other receivable and prepayments 11,506 (242,994) Other payables and accrued expenses (64,546) 57,901 Redemption payable - (9,322,417) Subscription advance received - (8,000,000) Net cash from/(used in) operating activities 2,312,457 (17,281,047) FINANCING ACTIVITIES Proceed from units sold - 47,031,036 Value of units redeemed (1,382,863) (61,960,162) Net cash used in financing activities (1,382,863) (14,929,126) INCREASE (DECREASE) IN BANK BALANCES DURING THE PERIOD 929,594 (32,210,173) Bank balances at the beginning of the period 11,125,985 59,410,220 BANK BALANCES AT THE END OF THE PERIOD 12,055,579 27,200,047 The attached notes 1 to 7 form part of these interim financial statements. 4

6 INTERIM STATEMENT OF CHANGES IN NET ASSETS June June December (Audited) June NET ASSET VALUE AT THE BEGINNING OF THE PERIOD/YEAR 19,737,829 53,505,146 53,505,146 CHANGES FROM OPERATIONS Net (loss)/income from operations (269,318) 1,237,573 2,554,840 CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold - 47,034,126 47,031,036 Value of units redeemed (1,382,863) (82,039,016) (61,960,162) Net change from unit transactions (1,382,863) (35,004,890) (14,929,126) NET ASSET VALUE AT THE END OF THE PERIOD/YEAR 18,085,648 19,737,829 41,130,860 UNITS TRANSACTIONS Transactions in units for the period/year end are summarized as follows: June December (Audited) June UNITS AT THE BEGINNING OF THE PERIOD/YEAR 1,951,549 5,516,152 5,516,152 Units sold - 4,769,231 4,768,934 Units redeemed (138,881) (8,333,834) (6,336,282) Net decrease in units (138,881) (3,564,603) (1,567,348) UNITS AT THE END OF THE PERIOD/YEAR 1,812,668 1,951,549 3,948,804 The attached notes 1 to 7 form part of these interim financial statements. 5

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June GENERAL NOMW IPO Fund (the Fund ) is an open-ended fund created by an agreement between NOMW Capital (the Fund Manager ) and investors (the Unit Holders ) in the Fund. The investment objective of the Fund is to invest in accordance to the Shari ah guidelines of the Fund by investing in the initial public offering ( IPO ) of the Saudi companies and to invest in the rump offering of right issues and by investing in the shares of the companies which have not been listed for more than three (3) years on the Saudi stock exchange ( Tadawul ), and to invest the available cash in Money Markets instruments in Saudi Riyal. The Fund was established on 14 Shaban 1436H (corresponding to 1 June 2015) as per approval from the Capital Market Authority (the CMA ) and commenced its operations on 16 Shawwal 1436H (corresponding to 2 August 2015). The books and records of the Fund are maintained in Saudi Riyals (). The results for the interim period may not be indicative of the annual operating results. 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 to 6 November ) by the New Investment Fund Regulations ( Amended Regulations ) published by the CMA on 16 Sha aban 1437H (corresponding to 23 May ), detailing requirements for all funds operating within the Kingdom of Saudi Arabia. The enhanced requirements of the Annexure 5(e) of the Amended Regulations are effective from SIGNIFICANT ACCOUNTING POLICIES The interim financial statements have been prepared in accordance with accounting standards 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 all movements in unrealised gains and losses from changes in fair value and related dividends from trading investments. Realised gains and losses on trading investments sold are determined on a weighted average cost basis. Dividend income is recognised when right to receive the dividend is established. Investment valuation Investments which are purchased for trading purposes are valued at their bid quoted market price as at the balance sheet date. Unrealised gains and losses on the revaluation of investments and realised gains and losses on the disposal of investments are recognised in the statement of operations. Investment transactions Investments 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 for in these interim financial statements. Expenses Expenses are recognised on accrual basis. 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June TRADING INVESTMENTS The composition of the trading investments portfolio on the last valuation day of the period is summarized below: Unrealised Cost Market value gain/(loss) 30 June 2017 % Holding Health Care 42% 2,151,418 2,385, ,469 Real estate management and development 24% 776,159 1,371, ,785 Food & Beverages 12% 643, ,123 16,379 Insurance 8% 411, ,515 30,405 Transportation 8% 606, ,344 (169,606) Materials 6% 361, ,847 (23,691) 100% 4,950,919 5,634, ,741 Cost Market value Unrealised gain 31 December (Audited) % Holding Health Care 27% 2,123,090 2,373, ,190 Food & Beverages 26% 2,074,372 2,270,063 73,089 Real estate management and development 14% 428,828 1,258, ,963 Insurance 10% 839, ,741 60,881 Commercial and professional services 10% 708, , ,838 Consumer services 9% 703, ,000 64,000 Transportation 4% 263, ,200 7, % 7,141,518 8,775,020 1,633,502 Unrealised Cost Market value gain/(loss) 30 June % Holding Retail 73% 9,906,930 10,293, ,954 Building and construction 11% 1,552,896 1,495,094 (57,802) Insurance 6% 840, , ,303 Hotel and tourism 6% 750, ,920 (26,167) Real estate management and development 4% 501, ,811 60, % 13,551,901 14,036, ,979 Trading investments are listed on Tadawul. The Fund Manager seeks to limit its risk by monitoring exposures in each investment sector and individual securities. 7

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June TRADING (LOSS)/INCOME, NET period ended 30 June 2017 period ended 30 June Realised gains 251,379 2,072,655 Unrealised (losses) / gains (419,385) 484,979 Dividend income 119, ,855 (48,616) 2,880,489 6 TRANSACTIONS WITH RELATED PARTIES As per the terms and conditions of the private placement memorandum, the Fund shall pay certain fees as follows: a) Management fee calculated at an annual rate of 1.5% of the net asset value on daily basis. b) Custodian fee calculated at an annual rate of 0.25% of the net asset value on daily basis. c) Further, the Unit Holders account at 30 June 2017 included 1,749,495 units (31 December : 1,749,495 units and 30 June : 1,749,495 units) held by the Fund Manager. 7 LAST VALUATION DAY The last valuation day of the period was 30 June 2017 (: 30 June ). 8