Blom Saudi Arabia Fund

Transcription

1 Blom Saudi Arabia Fund Annual Fund Report 2017 Mohamadiya Area, Al-Oula Building 3rd Floor, King Fahd Road, Riyadh 11482, Saudi Arabia P.O. Box 8151 Tel: Fax: Blom Saudi Arabia is a public fund managed by Blominvest Saudi Arabia ( BSA ). BSA is a Joint Stock company with a capital of SAR 245 million paid in full under CR date 24/07/1429 H issued from Riyadh, Saudi Arabia. BSA is licensed by the Saudi Capital Market Authority under number to offer the services of Dealing as Principle, Agent, Underwriting, Managing, Arranging, Advising and Custody in Securities Business.

2 Contents Investment Fund Information... 3 Fund Performance... 4 Fund Expenses... 4 Fund Manager... 7 Custodian... 8 Auditor... 9 Financial Statements

3 Investment Fund Information Fund Name Blom Saudi Arabia Fund Benchmark Tadawul all share index Investment Objectives and Policies The objective of the Fund is to generate long-term capital growth primarily through investing in equity securities listed on the Tadawul, either directly or through other funds or collective investment schemes established under the laws and regulations of Saudi Arabia with a primary focus on investments in equity securities listed on the Tadawul. The Fund will seek to mitigate risk and manage liquidity by also investing in short-term fixed income instruments and money markets funds, as well as cash and cash-equivalents. The performance of the Fund shall be measured by reference to the Tadawul index in order to supply investors with an indication of the performance of the Fund. Under normal market conditions, the Fund will comply with the following guidelines: The Fund will invest primarily in equity securities listed on the Tadawul or in units of funds or other collective investment schemes established under the laws and regulations of Saudi Arabia with a primary focus on investments in equity securities listed on the Tadawul. While the Fund Manager intends to hold positions at any one time, the Fund may, at any particular time, hold a fewer or greater number of positions. The Fund will seek to mitigate risk and manage liquidity by also investing in short-term fixed income instruments, money markets funds and cash and cash-equivalents, such as time and on-demand deposit accounts. The Fund will allocate its assets among equities, fixed income and cash and cash-equivalents depending on investment opportunities, market conditions and liquidity requirements. The Fund may invest in securities issued by the Fund Manager or its affiliates organized in the KSA (if any); provided that such investments are made in accordance with the investment objective and restrictions of the Fund. Distribution of income and gain policy Dividends and/or income are reinvested in the Fund not paid out or distributed to investors. The Fund Reports are available upon request free of charge at Blominvest Saudi Arabia website: 3

4 Fund Performance NAV at year-end (SAR) 20,244,218 14,531,013 11,487,641 NAV/unit at year-end (SAR) 1, , , Lowest NAV (SAR) 1, , Highest NAV(SAR) 1, , , Units at year-end 15, , , Distribution/ unit Expense Ratio 2.59% 3.68% 4.09% 1 year 3 year 5 year Total Return -0.39% % 28.91% Annual Total Return -5.30% 7.46% 31.65% 18.38% % 3.68% -0.39% Fund Expenses Fee Type Amount Pct. Of average NAV Management Expense SAR 184, % Custodian Expense SAR 90, % Administrator Expense SAR 90, % Transaction Expense SAR 45, % Audit Expense SAR 45, % Fund Board Expense SAR 37, % CMA Expense SAR 7, % Tadawul Charges SAR 5, % Miscellaneous SAR % Total SAR 505, % The Fund Manager did not elect to waive or rebate any fees. The measures of performance have been consistently applied. Material changes that occurred during the period and that affected the performance of the fund. No Material changes occurred during 2017 Exercise of annual voting rights 4

5 Issuer name date of GA Subject Decision Saudi Co for hardware 24/12/2017 Updating the work of the Audit committee. Agree Updating the work list of the Nominations and Remuneration Committee. Agree Updating the policies that will make the person qualified to join the Board of directors. Agree Remuneration police to the Board of director, its committees and executive management. Agree Saudi British Bank 27/09/2017 The business between SABB and HSBC Asia. Agree Fund board meeting Board Resolution dated 01/08/2017 Discussion Topics a. Performance review of the Fund. b. Approval of the financial statements (year-end 2016) c. Changes to the Terms and Conditions to reflect the amended IFR. d. Compliance with IFR (specifically investment limitations). Resolutions a. The board approved the performance of the fund. b. The board approved the financial statements (year-end 2016). c. The board approved the change of Terms and Conditions to reflect the change in the amended IFR. d. The board approved the suggested method of monitoring investment limitations and urged implementation. Board Resolution dated 06/11/2017 Discussion Topics a. Potential conflict of interest. b. Review of resolutions made on the first BOD meeting in c. Fund performance. d. CMA letter regarding the delay announcing of the funds prices on Tadawul. e. Forward-looking strategy for the funds. Resolutions a. Board discussed membership in other mutual funds managed by Blominvest and found no conflict. b. The board approved steps taken to avoid future delays in posting funds prices as well as the consequences of such delays, the board also requested that the compliance team must closely monitor the matter. 5

6 Fund Manager Fund Manager BLOMINVEST Saudi Arabia, with its registered office at Al Oula Building, 3rd floor, King Fahad Road, Riyadh, P.O. Box 8151, Riyadh 11482, Saudi Arabia. Names and addresses of sub-manager and/or investment adviser The Fund Manager did not appoint a sub-manager or investment advisor Investment activities during the period The Saudi Market closed 2017 flat (save dividends). The Fund Manager adopted a multi-factor qualitative strategy and fundamental overrides based on promising names and thematic plays: Increased exposure to Financials including Banking favoring rising US interest rates that should be translated automatically into higher rates in KSA given the currency peg, as well as Insurance; mainly focusing on names with auto exposure following the ban lift on female drivers and stricter motor insurance. Petrochemicals was also an attractive sector given rising oil prices, supply delays and stronger than expected demand driven growth which all combined to drive utilization rates and commodity chemical spreads higher. The Fund manager was selective on value plays in the Petrochemicals universe. Over-weighing certain names in the Cement sector was a tactival play towards the second half of 2017 mainly following the announcement of large projects as part of vision 2030 as well as the lift of export ban. Finally, the Fund Manager was bullish Consumer Discretionary sector in 2H17 on the back of reinstatement of civil servants allowances as well as the citizen s account initiative. Investment fund s performance during the period YTD The Fund ended 2017 down -0.38% vs -0.22% for the benchmark. Since Inception The Fund ended 2017 up +31.2% vs % for the benchmark. 6

7 NAV Benchmark 650 7/6/2011 7/6/2012 7/6/2013 7/6/2014 7/6/2015 7/6/2016 7/6/2017 Details of any material changes made during the period No material changes took place during the period. Any other information that would enable unitholders to make an informed judgment about the fund s activities during the period. Not Applicable Investment fund invests substantially in other investment funds Not Applicable The Fund manager did not receive any special commission during Other data and other information required to be included in this report. Not Applicable 7

8 Custodian Custodian HSBC Saudi Arabia Limited HSBC Building, Olaya Road, Al-Murooj l Riyadh l P.O. Box 9084, Saudi Arabia 8

9 Auditor & Financial Statements Auditor Ernst & Young Al Faisaliah Office Tower l King Fahad Road l P.O. Box 2732 l Riyadh 11461, Saudi Arabia. 9

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