Al Yusr Aman Multi Asset Fund (Managed by Alawwal Invest Company, previously known as Saudi Hollandi Capital Company)

Transcription

1 (Managed by Alawwal Invest Company, previously known as Saudi Hollandi Capital Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE

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3 INTERIM BALANCE SHEET As at 30 June Note 30 June 31 December (Audited) 30 June ASSETS Bank balance 38,031 91,567 43,594 Trading investments 4 4,243,192 4,383,141 4,957,144 4,281,223 4,474,708 5,000,738 LIABILITY Accrued expenses 32,306 63,528 31,648 NET ASSETS 4,248,917 4,411,180 4,969,090 Units in issue 335, , ,847 Per unit value The accompanying notes 1 to 8 form an integral part of these interim financial statements. 2

4 INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June Note INVESTMENT INCOME Trading income, net 5 60,051 49,213 EXPENSES Management fees 6 (5,358) (6,145) Other expenses (31,923) (31,614) (37,281) (37,759) NET INCOME FROM OPERATIONS 8 22,770 11,454 The accompanying notes 1 to 8 form an integral part of these interim financial statements. 3

5 INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June OPERATING ACTIVITIES Net income from operations 22,770 11,454 Adjustment for: Unrealised gain on trading investments (50,674) (64,279) (27,904) (52,825) Changes in operating assets and liability: Trading investments 190,623 97,338 Accrued expenses (31,222) 31,648 Net cash from operating activities 131,497 76,161 FINANCING ACTIVITIES Proceeds from sale of units 13,773 4,596 Value of units redeemed (198,806) (49,283) Net cash used in financing activities (185,033) (44,687) (DECREASE) INCREASE IN BANK BALANCE (53,536) 31,474 Bank balance at the beginning of the period 91,567 12,120 BANK BALANCE AT THE END OF THE PERIOD 38,031 43,594 The accompanying notes 1 to 8 form an integral part of these interim financial statements. 4

6 INTERIM STATEMENT OF CHANGES IN NET ASSETS For the six-month period ended 30 June NET ASSET VALUE AT THE BEGINNING OF THE PERIOD 4,411,180 5,002,323 CHANGES FROM OPERATIONS Net income from operations 22,770 11,454 CHANGES FROM UNIT TRANSACTIONS Proceeds from sale of units 13,773 4,596 Value of units redeemed (198,806) (49,283) Net change from unit transactions (185,033) (44,687) NET ASSET VALUE AT THE END OF THE PERIOD 4,248,917 4,969,090 UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows: Units Units UNITS AT THE BEGINNING OF THE PERIOD 349, ,441 Units sold 1, Units redeemed (15,723) (3,963) Net decrease in units (14,633) (3,594) UNITS AT THE END OF THE PERIOD 335, ,847 The accompanying notes 1 to 8 form an integral part of these interim financial statements. 5

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 1 GENERAL (the Fund ) is a Sharia-compliant open-ended Saudi Riyal denominated investment fund of funds created by an agreement between Alawwal Invest (the Fund Manager ), a subsidiary of Alawwal Bank (the Bank ) and investors in the Fund (the Unit Holders ) and is designed for unit holders seeking high level of protection for their capital and return through investing mainly in low risk investments, and investing up to 15% of the fund s AUM into equities. The fund is governed by the terms and condition of its prospectus dated 01 March. 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 a limited exposure to equities and mainly in 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 (). 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 ) 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. The enhanced requirements of Annexure 5(e) of the Amended Regulations are effective from. 3 SIGNIFICANT ACCOUNTING POLICIES These interim financial statements have been prepared in accordance with the standard on accounting for 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. 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. 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 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 financial assets held for trading. Expenses Expenses are recognised on an accrual basis. 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. 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 4 TRADING INVESTMENTS The composition of the investment portfolio on the last valuation day of the period is summarised below: Description 30 June Cost Market value Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund 1,683,856 1,778,784 Al Yusr Global Equity Fund 265, ,434 Al Yusr Saudi Equity Fund 93,884 87,262 Al Yusr GCC Equity Fund 58,478 68,361 Al Yusr IPO Fund 41,596 39,139 2,143,632 2,318,980 Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal) 1,800,543 1,924,212 Total 3,944,175 4,243, December (Audited) Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund 1,874,479 1,962,991 Al Yusr Global Equity Fund 265, ,407 Al Yusr Saudi Equity Fund 93,884 88,319 Al Yusr GCC Equity Fund 58,478 67,840 Al Yusr IPO Fund 41,596 39,748 2,334,255 2,479,305 Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal) 1,800,542 1,903,836 Total 4,134,797 4,383, June Units in Mutual Funds managed by the Company Al Yusr SAR Morabaha Fund 1,890,142 1,980,881 Al Yusr Saudi Equity Fund 166, ,021 Al Yusr Global Equity Fund 303, ,396 Al Yusr GCC Equity Fund 108, ,490 Al Yusr IPO Fund 70,624 68,748 2,538,262 2,682,536 Units in fund managed by Samba Capital & Investment Management Company International Trade Finance Fund (Sunbullah Saudi Riyal) 2,181,716 2,274,608 Total 4,719,978 4,957,144 7

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 5 TRADING INCOME, NET For the six-month period ended 30 June Realised gains (losses) 50,674 (15,066) Unrealised gains 9,377 64,279 60,051 49,213 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 0.25% 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. In the normal course of business the Fund places deposits at prevailing market rates and obtains overdraft facilities from the Bank. 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 (: 30 June ). 8 RESULTS OF OPERATIONS The results for the interim period may not be indicative of the annual operating results. 8