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

Size: px

Start display at page:

Download "SAIB Sukuk Fund (Managed by Alistithmar for Financial Securities and Brokerage Company)"

Ursula Rose
5 years ago
Views:

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

3 INTERIM BALANCE SHEET As at 30 June ASSETS Note 30 June 31 December (Audited) 30 June Cash and cash equivalents 4 75, ,774 12,391,098 Money market placements 5-12,100,000 - Trading investments 6 16,199,109 8,037,539 11,919,385 Accrued income 88, ,098 90,717 Other receivable 4,113, ,476,757 20,734,411 24,401,200 LIABILITY Accrued expenses 60,631 94,493 67,698 NET ASSETS 20,416,126 20,639,918 24,333,502 Units in issue 187, , ,456 Per unit value The accompanying notes 1 to 10 form part of these interim financial statements. 2

4 INTERIM STATEMENT OF OPERATIONS Six month period ended 30 June INVESTMENT INCOME Note Special commission income 284, ,625 Trading (loss) income, net 7 (1,745) 97, , ,710 EXPENSES Management fees 8 (54,433) (87,489) Others (82,689) (82,526) (137,122) (170,015) NET INCOME FROM OPERATIONS 145, ,695 The accompanying notes 1 to 10 form part of these interim financial statements. 3

5 INTERIM STATEMENT OF CASH FLOWS Six month period ended 30 June OPERATING ACTIVITIES Note Net income from operations 145, ,695 Adjustment for: Movement in unrealized losses (gains) on trading investment 1,745 (58,393) 147, ,301 Changes in operating assets and liability: Money market placements 12,100,000 - Trading investments (8,163,315) 8,155,183 Accrued income 18,666 37,252 Other receivable (4,113,707) - Accrued expenses (33,862) (68,830) Net cash (used in) from operating activities (44,999) 8,242,907 FINANCING ACTIVITY Value of units redeemed (369,266) (1,624,506) Net cash used in financing activity (369,266) (1,624,506) (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (414,265) 6,618,401 Cash and cash equivalents at the beginning of the period 489,774 5,772,697 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 4 75,509 12,391,098 Operational cash flows from special commission income Special commission income 303, ,877 The accompanying notes 1 to 10 form part of these interim financial statements. 4

6 INTERIM STATEMENT OF CHANGES IN NET ASSETS Six month period ended 30 June NET ASSETS AT THE BEGINNING OF THE PERIOD 20,639,918 25,780,313 CHANGES FROM OPERTIONS Net income from operations 145, ,695 CHANGES FROM UNIT TRANSACTIONS Value of units redeemed (369,266) (1,624,506) Net change from unit transactions (369,266) (1,624,506) NET ASSETS AT THE END OF THE PERIOD 20,416,126 24,333,502 UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarized as follows: Units Units UNITS AT THE BEGINNING OF THE PERIOD 191, ,603 Units redeemed (3,396) (15,147) Net decrease in units (3,396) (15,147) UNITS AT THE END OF THE PERIOD 187, ,456 The accompanying notes 1 to 10 form part of these interim financial statements. 5

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 1 GENERAL SAIB Sukuk Fund (the Fund) is an open-ended investment fund created by an agreement between the Fund Manager and investors (the Unitholders) in the Fund.The fund commenced operations on 6 April The objective of the Fund is to achieve medium to long-term capital growth through investing in a diversified portfolio of GCC based sukuk issues, sukuk funds, murabaha placements and other short-term instruments. All income is reinvested in the Fund and is reflected in the unit price. The Fund Manager has entered into arrangements with HSBC Saudi Arabia as an administrator and custodian on behalf of the Fund. Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital), wholly owned subsidiary of the Saudi Investment Bank (The Bank) is the Fund Manager of the Fund. The books and records of the Fund are maintained in Saudi Riyal (). 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 unrealized gains (losses) from changes in fair value, realized gains (losses) from sale of trading investments and dividends from trading investments. Realized gains (losses) on trading investments sold are determined on a weighted average cost basis. Dividend income is recognized when declared (i.e. when the Fund s right to receive the dividend is established). Special commission income is recognized on an effective yield basis. Investment valuation Money market placements are carried at cost. Investments in Sukuk, 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. Cash and cash equivalents Cash and cash equivalents consists of bank balances, cash on hand, and investments that are readily convertible into known amounts of cash and have a maturity of three months or less when purchased. Investment transactions Investments 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. 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 3 SIGNIFICANT ACCOUNTING POLICIES (continued) Foreign currencies Transactions in foreign currencies are translated into Saudi Riyals 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. 4 CASH AND CASH EQUIVALENTS 30 June 31 December (Audited) 30 June Bank balances 75, ,774 2,791,098 Money market placements with an original - - 9,600,000 maturity of three months or less 75, ,774 12,391,098 5 MONEY MARKET PLACEMENTS Money market placements comprise placements with commercial banks with minimum of investment grade credit rating and have an original maturity of more than three months from date of placement. The average variable special commission rate on the placement as at 30 June is based on the market rate. 6 TRADING INVESTMENTS The composition of the investment portfolio on the balance sheet date is summarised below: 30 June Cost Market value % of market Value Sukuk: KSA Sukuk Ltd 3,007,620 3,015, Sharjah Islamic Bank Co Ltd 2,017,814 2,020, DIB Sukuk Ltd 1,905,695 1,903, Saudi Electricity 1,603,165 1,590, Ooredoo Tamweel 1,431,029 1,387, Qatar Islamic Bank 1,271,983 1,243, Sipchem 1,000,000 1,000, IDB Trust Servies Ltd 794, , ,032,021 12,948, Mutual Funds: Sanbullah Riyal Fund 3,250,000 3,251, ,282,021 16,199, December (Audited) Sukuk: Sharjah Islamic Bank Co Ltd 2,017,814 1,991, Saudi Electricity 1,603,165 1,585, Ooredoo Tamweel 1,431,029 1,409, Qatar Islamic Bank 1,271,983 1,262, Sipchem 1,000,000 1,000, IDB Trust Servies Ltd 794, , ,118,706 8,037,

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 6 TRADING INVESTMENTS (continued) 30 June Cost Market value % of market Value Sukuk: IDB Trust Servies Ltd 2,182,327 2,188, SIB Sukuk Co Ltd 2,017,814 2,020, Saudi Electricity Company Sukuk 1,603,165 1,571, Qatar Telecommunication 1,431,030 1,417, Qatar Islamic Bank Sukuk 1,271,983 1,276, Sipchem 1,000,000 1,000, ,506,319 9,475, Mutual Funds: Falcom SAR Murabaha Fund 2,355,946 2,443, ,862,265 11,919, TRADING (LOSS) INCOME, NET Six month period ended 30 June Movement in unrealised (losses) gains (1,745) 58,393 Realised gains - 38,692 (1,745) 97,085 8 TRANSACTIONS WITH RELATED PARTIES The Fund pays a management fee calculated at an annual rate of 1% of the net asset value at each valuation date. The management fees reflected in the statement of operations represent the fees charged by the Fund Manager during the period. The Fund pays to HSBC Saudi Arabia a custody fee at 0.05% and an administration fee at 0.08% per annum of the net asset value of the Fund calculated on twice monthly basis, subject to a monthly minimum charge of 3,750 each per month. Other operating expenses are paid by the Fund Manager on behalf of the Fund are reimbursed from the Fund. Total expense ratio shall not exceed 1.30% per annum of the net asset value including management fee, custodian fee, administration fee and other operating expenses. The Bank and The Saudi British Bank acts as the Fund s bankers. 9 LAST VALUATION DAY The last valuation day of the period was 30 June (: 30 June ). 10 RESULTS OF OPERATIONS The results for the interim period may not be indicative of the annual operating results. 8

SAIB Trade Finance Fund (Managed by Alistithmar for Financial Securities and Brokerage Company)

SAIB Trade Finance Fund (Managed by Alistithmar for Financial Securities and Brokerage Company) (Managed by Alistithmar for Financial Securities and Brokerage Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE INTERIM BALANCE SHEET As at ASSETS Note 31 December (Audited) Bank balance 40,748,165