SAIB Trade Finance 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

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3 BALANCE SHEET As at 31 December (Audited) Note ASSETS Bank balance 7,988,185 22,212,328 23,392,373 Money market placements 4 349,957, ,491, ,555,986 Held to maturity investments 5 145,961, ,778, ,388,624 Trading investments 6 45,134,963 1,381, ,841,860 Accrued income 4,217,622 5,571,143 4,078,636 Other receivable 200, , , ,459, ,641,550 1,163,407,666 LIABILITIES Risk allowance 8 4,437,702 3,970,292 3,239,212 Accrued expenses 1,053, ,676 1,412,570 5,490,941 4,835,968 4,651,782 NET ASSETS 547,968, ,805,582 1,158,755,884 Units in issue 41,913,180 67,337,345 89,646,066 Per unit value The accompanying notes 1 to 10 form part of these interim financial statements. 2

4 STATEMENT OF OPERATIONS Six month period ended Note INVESTMENT INCOME Special commission income 6,181,064 8,554,966 Trading income 7 387, ,217 6,568,514 9,307,183 EXPENSES Management fees 8 (1,756,496) (2,738,428) Risk allowance 8 (467,409) (586,884) Service charges 8 (21,160) (14,803) Others expenses (158,771) (671,559) (2,403,836) (4,011,674) NET INCOME FROM OPERATIONS 10 4,164,678 5,295,509 The accompanying notes 1 to 10 form part of these interim financial statements. 3

5 STATEMENT OF CASH FLOWS Six month period ended OPERATING ACTIVITIES Net income from operations 4,164,678 5,295,509 Adjustment for: Movement in unrealized gains on trading investments (250,295) (112,844) 3,914,383 5,182,665 Changes in operating assets and liabilities: Money market placements, net 298,534,087 (194,663,012) Held to maturity investments 55,816,750 (4,735,676) Trading investments (43,503,574) (21,239,373) Accrued income 1,353,521 (1,166,960) Other receivable 7,290 17,845,602 Risk allowance 467, ,884 Accrued expenses 187, ,840 Net cash from (used in) operating activities 316,777,430 (197,657,030) FINANCING ACTIVITIES Proceed from units sold 118,974, ,100,485 Value of units redeemed (449,976,221) (448,140,758) Net cash used in financing activities (331,001,573) (55,040,273) DECREASE IN BANK BALANCE (14,224,143) (252,697,303) Bank balance at the beginning of the period 22,212, ,089,676 BANK BALANCE AT THE END OF THE PERIOD 7,988,185 23,392,373 Operational cash flows from special commission income Special commission income received 7,534,585 7,388,006 The accompanying notes 1 to 10 form part of these interim financial statements. 4

6 STATEMENT OF CHANGES IN NET ASSETS Six month period ended NET ASSETS AT THE BEGINNING OF THE PERIOD 874,805,582 1,208,500,648 CHANGES FROM OPERATIONS Net income from operations 4,164,678 5,295,509 CHANGES FROM UNIT TRANSACTIONS Proceeds from units sold 118,974, ,100,485 Value of units redeemed (449,976,221) (448,140,758) Net change from unit transactions (331,001,573) (55,040,273) NET ASSETS AT THE END OF THE PERIOD 547,968,687 1,158,755,884 UNIT TRANSACTIONS Transactions in units for the period ended are summarized as follows: Unaudited Units Units UNITS AT THE BEGINNING OF THE PERIOD 67,337,345 93,944,243 Units sold 9,135,995 30,467,222 Units redeemed (34,560,160) (34,765,399) Net decrease in units (25,424,166) (4,298,177) UNITS AT THE END OF THE PERIOD 41,913,180 89,646,066 The accompanying notes 1 to 10 form part of these interim financial statements. 5

7 NOTES TO THE INTERIM FINANCIAL STATEMENTS 1 GENERAL SAIB Trade Finance 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 The Fund is designed for investors seeking capital preservation and high liquidity through exposure to Shariah compliant assets. All income is reinvested in the Fund and is reflected in the unit price. 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) published by Capital Market Authority (CMA) on 3 Dhul Hijja 1427H (corresponding to 24 December 2006) 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 financial statements are prepared under the historical cost convention modified to include the measurement at fair value of trading investments. Revenue recognition Special commission income is recognised on an effective yield basis. 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. Other income is recognized when earned. Investment valuation Money market placements are carried at cost. 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. Investments that are bought with the intention of being held to maturity are carried at cost (adjusted for any premium or discount on an effective yield basis), less permanent decline in value. 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 Unitholders and are not provided for in the accompanying financial statements. 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 statement of operations. Cash and cash equivalents For the purposes of cash flow statement, cash and cash equivalents consist of bank balances and money market placements with an original maturity of three months or less. 6

8 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 4 MONEY MARKET PLACEMENTS The composition of the money market placements on the last valuation day of the period is summarised below: 31 December (Audited) Murabaha placements with other banks 349,184, ,800, ,800,400 Murabaha car financing placement with the Bank 773, , , ,957, ,491, ,555,986 5 HELD TO MATURITY INVESTMENTS 31 December (Audited) Sukuk: Saudi Electricity Company 56,951,250 74,124,375 - Goldemen Sacks 33,806,484 33,806,484 24,340,078 Saudi British Bank 12,152,699 12,152,699 12,152,699 Saudi Hollandi Bank 12,113,809 12,113,809 12,113,809 Sharjah Islamic Bank 9,390,000 9,390,000 49,485,750 Qatar Telecommunications 8,812,973 13,875,660 69,410,466 Emaar 7,734,375 7,734,375 24,707,813 Spichem 5,000,000 5,400,000 5,400,000 Qatar Islamic Bank - 22,488,750 2,459,438 Emirates Islamic Bank - 6,261,563 24,790,406 Islamic Development Bank - 2,250,000 2,250,000 HBME - 2,180,625 2,180,625 Saudi Binladen Group ,000,000 Abu Dhabi Islamic Bank ,854,286 First Gulf Bank ,596,884 Emirates Airline - - 5,646, ,961, ,778, ,388,624 7

9 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 6 TRADING INVESTMENTS Cost Market value % of market Value Mutual funds Falcom SAR Murabaha Fund 20,037,726 20,183, Al-Sunbullah Riyal Fund 15,051,575 15,096, Al Awal Capital Murabaha SAR Fund 9,800,000 9,854, ,889,301 45,134, December (Audited) Mutual funds SAIB Sukuk Fund 1,300,000 1,295, Al Rajhi Commodities Mudaraba Fund-SAR 84,015 84, Falcom SAR Murabaha Fund 1,712 1, ,385,727 1,381, Mutual funds Al Rajhi Commodities Mudaraba Fund SAR 98,961,306 99,278, Falcom SAR Murabaha Fund 57,458,336 58,339, MEFIC Murabaha Fund 10,000,000 10,223, ,419, ,841, TRADING INCOME Six month period ended Movement in unrealized gains 250, ,844 Realised gains 137, , , ,217 8

10 NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 8 TRANSACTIONS WITH RELATED PARTIES The Fund pays a management fee calculated at an annual rate of 0.50% 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. 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 0.20% of net asset value per annum. At each valuation date, the Fund pays to the Bank service charges annually at 5.5% of the Fund s car financing placements with the Bank. The Fund calculates a risk allowance at an annual rate of 10% of net income from operations at each valuation date. The risk allowance is in respect of the credit risk on Fund s assets. The risk allowance reflected in the statement of operations represents the allowance charged during the period. The Bank acts as the Fund s banker. 9 LAST VALUATION DAY The last valuation day of the period was (: ). 10 RESULTS OF OPERATIONS The results for the interim period may not be indicative of the annual operating results. 9