(Managed by Alawwal Invest Company, previously known as Saudi … · known as Saudi Hollandi...
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Al Yusr Morabaha and Sukuk Fund (Managed by Alawwal Invest Company, previously known as Saudi Hollandi Capital Company) UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2017
Transcript of (Managed by Alawwal Invest Company, previously known as Saudi … · known as Saudi Hollandi...
Al Yusr Morabaha and Sukuk Fund (Managed by Alawwal Invest Company, previously
known as Saudi Hollandi Capital Company)
UNAUDITED INTERIM FINANCIAL STATEMENTS
30 JUNE 2017
Al Yusr Morabaha and Sukuk Fund
INTERIM BALANCE SHEET As at 30 June 2017
The accompanying notes 1 to 10 form an integral part of these interim financial statements.
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Note
30 June 2017
(Unaudited) SR
31 December 2016
(Audited) SR
30 June 2016
(Unaudited) SR
ASSETS
Bank balance 6,345,113 1,604,107 9,090,915
Morabaha placements 4 201,000,000 298,000,000 469,000,000
Held to maturity investments 5 405,633,750 251,769,750 251,907,250
Trading Investments 6 431,250,923 125,125,437 4,036,549
Accrued income 7,901,507 6,313,132 4,737,764
Receivables and prepayments 1,027,740 2,411,559 27,597,160
──────── ──────── ────────
1,053,159,033 685,223,985 766,369,638
──────── ──────── ────────
LIABILITY
Accrued expenses 154,267 76,518 34,637
──────── ───────── ────────
154,267 76,518 34,637
──────── ──────── ────────
NET ASSETS 1,053,004,766 685,147,467 766,335,001
════════ ═════════ ════════
Units in issue 88,816,279 58,367,131 66,219,566
════════ ═════════ ════════
Per unit value 11.8560 11.7386 11.5726
════════ ════════ ════════
Al Yusr Morabaha and Sukuk Fund
INTERIM STATEMENT OF OPERATIONS For the six-month period ended 30 June 2017
The accompanying notes 1 to 10 form an integral part of these interim financial statements.
3
Note
2017 (Unaudited)
SR
2016 (Unaudited)
SR
INVESTMENT INCOME
Special commission income 8,352,591 10,499,137
Trading income, net 7 2,783,337 102,384
───────── ─────────
11,135,928 10,601,521
───────── ─────────
EXPENSES
Management fees 8 (2,192,786) (1,784,091)
Other expenses (223,549) (207,297)
───────── ─────────
(2,416,335) (1,991,388)
───────── ─────────
NET INCOME FROM OPERATIONS 10 8,719,593 8,610,133
═════════ ═════════
Al Yusr Morabaha and Sukuk Fund
INTERIM STATEMENT OF CASH FLOWS For the six-month period ended 30 June 2017
The accompanying notes 1 to 10 form an integral part of these interim financial statements.
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2017 (Unaudited)
SR
2016 (Unaudited)
SR OPERATING ACTIVITIES
Net income from operations 8,719,593 8,610,133
Adjustment for:
Unrealized (gains) losses on trading investments (2,837,592) 603,488
───────── ─────────
5,882,001 9,213,621
Changes in operating assets and liability:
Morabaha placements 97,000,000 (127,000,000)
Held to maturity investments (153,864,000) 24,530,375
Accrued income (1,588,375) (2,485,102)
Trading investment (303,287,894) 38,500,000
Accrued expenses 77,749 27,223
Receivables and prepayments 1,383,819 (26,305,205)
───────── ─────────
Net cash used in operating activities (354,396,700) (83,519,088)
───────── ─────────
FINANCING ACTIVITIES
Bank overdraft - (112,650,408)
Proceeds from sale of units 478,354,662 737,816,014
Value of units redeemed (119,216,956) (532,555,603)
───────── ─────────
Net cash from financing activities 359,137,706 92,610,003
───────── ─────────
INCREASE IN BANK BALANCE 4,741,006 9,090,915
Bank balance at the beginning of the period 1,604,107 -
───────── ─────────
BANK BALANCE AT THE END OF THE PERIOD 6,345,113 9,090,915
═════════ ═════════
OPERATIONAL CASH FLOWS FROM SPECIAL COMMISSION INCOME
Special commission income received 6,764,216 8,014,035
═════════ ═════════
Al Yusr Morabaha and Sukuk Fund
INTERIM STATEMENT OF CHANGES IN NET ASSETS
For the six-month period ended 30 June 2017
The accompanying notes 1 to 10 form an integral part of these interim financial statements.
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2017 (Unaudited)
SR
2016 (Unaudited)
SR
NET ASSETS AT THE BEGINNING OF THE PERIOD 685,147,467 552,464,457
───────── ─────────
CHANGES FROM OPERATIONS
Net income from operations 8,719,593 8,610,133
───────── ─────────
CHANGES FROM UNIT TRANSACTIONS
Proceeds from sale of units 478,354,662 737,816,014
Value of units redeemed (119,216,956) (532,555,603)
───────── ─────────
Net change from unit transactions 359,137,706 205,260,411
───────── ─────────
NET ASSETS AT THE END OF THE PERIOD 1,053,004,766 766,335,001
═════════ ═════════
UNIT TRANSACTIONS
Transactions in units for the period ended 30 June are summarised as follows:
2017 (Unaudited)
2016 (Unaudited)
Units Units
UNITS AT THE BEGINNING OF THE PERIOD 58,367,131 48,308,163
───────── ─────────
Units sold 40,545,795 64,276,114
Units redeemed (10,096,647) (46,364,711)
───────── ─────────
Net increase in units 30,449,148 17,911,403
───────── ─────────
UNITS AT THE END OF THE PERIOD 88,816,279 66,219,566
═════════ ═════════
Al Yusr Morabaha and Sukuk Fund
NOTES TO THE INTERIM FINANCIAL STATEMENTS At 30 June 2017
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1 GENERAL
Al Yusr Morabaha and Sukuk Fund (the “Fund”) is an open-ended fund created by an agreement between Alawwal
Invest Company (the “Fund Manager”), a subsidiary of Alawwal Bank (the “Bank”) and investors in the Fund (the “Unit
Holders”) and is designed for investors seeking steady capital appreciation with the preservation of capital and liquidity.
The fund is governed by the terms and condition of its prospectus dated 01 March 2017. The assets of the Fund are
invested in Morabaha transactions and funds together with and Sukuks in accordance with Sharia principles. All income
is reinvested in the Fund and is reflected in the unit price. The Fund commenced its operations on 1 Jumad Awal 1424H
(corresponding to 1 July 2003).
The books and records are maintained in Saudi Riyals (SR).
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 2016) by
the New Investment Fund Regulations (“Amended Regulations”), published by the Capital Market Authority on 16
Sha’aban 1437H (corresponding to 23 May 2016), 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 2017.
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 2016 and are as follows:
Accounting convention The interim financial statements are prepared under the historical cost convention.
Investment valuation
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.
Trading investments are valued at their 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 interim
statement of operations.
Morabaha placements are carried at cost less provisions for any uncollectable amounts. Accrued special commission
income as at the period end, is disclosed separately.
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 a weighted average cost basis. Trading income includes all gains and losses from changes in fair value and related interest income or expense and dividends from financial assets held for trading. Expenses Expenses are recognised based on the accrual method.
Al Yusr Morabaha and Sukuk Fund
NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017
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4 MORABAHA PLACEMENTS
30 June 2017
(Unaudited) SR
31 December 2016
(Audited) SR
30 June 2016
(Unaudited) SR
Placements with the Bank - - 32,000,000
Placements with other banks 201,000,000 298,000,000 437,000,000
──────── ───────── ────────
201,000,000 298,000,000 469,000,000
════════ ════════ ════════
5 HELD TO MATURITY INVESTMENTS
Debt Securities
30 June 2017
(Unaudited) SR
31 December 2016
(Audited) SR
30 June 2016
(Unaudited) SR
Riyadh Bank – Sukuk 90,000,000 33,000,000 33,000,000
National Commercial Bank Sukuk 90,000,000 20,000,000 20,000,000
Almarai Sukuk 4 58,000,000 28,000,000 28,000,000
Al Hilal Bank Sukuk 54,391,250 54,391,250 54,391,250
Ordeico Sukuk 33,000,000 33,000,000 33,000,000
Saudi British Bank – Sukuk 28,000,000 28,000,000 28,000,000
Najran Cement – Sukuk 20,000,000 20,000,000 20,000,000
Alawwal Bank Sukuk 15,000,000 15,000,000 15,000,000
Advance Sukuk 13,000,000 13,000,000 13,000,000
Arabian Aramco Total Services Company-Sukuk 4,242,500 4,378,500 4,516,000
Saudi Electricity Company-Sukuk – III - 3,000,000 3,000,000
──────── ──────── ────────
405,633,750 251,769,750 251,907,250
════════ ════════ ════════ 6 TRADING INVESTMENTS
Mutual funds Cost SR
Market value SR
30 June 2017 (Unaudited)
International Trade Finance Fund (Sunbullah SAR) – Samba Capital 225,000,000 226,724,171
Falcom SAR Morabaha Fund 196,000,000 197,031,958
Itqan Fund for Murabahat and Sukuk 7,300,000 7,494,794
═════════ ═════════
428,300,000 431,250,923
═════════ ═════════
31 December 2016 (Audited)
International Trade Finance Fund (Sunbullah SAR) – Samba Capital 110,000,000 110,011,163
Falcom SAR Morabaha Fund 11,000,000 11,012,965
Itqan Fund for Murabahat and Sukuk 4,000,000 4,101,309
═════════ ═════════
125,000,000 125,125,437
═════════ ═════════
30 June 2016 (Unaudited)
Itqan Fund for Murabahat and Sukuk 4,000,000 4,036,549
═════════ ═════════
Al Yusr Morabaha and Sukuk Fund
NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) At 30 June 2017
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7 TRADING INCOME, NET
For the six-month period ended 30 June
2017 (Unaudited)
SR
2016 (Unaudited)
SR
Unrealised gains (losses) 2,837,592 (603,488)
Realised (losses) gains (54,255) 705,872 ───────── ─────────
2,783,337 102,384
═════════ ═════════
8 TRANSACTIONS WITH RELATED PARTIES The Fund is managed and administered by the Fund Manager. For this service the Fund pays a management fee
calculated on every valuation day, at an annual rate of 0.5% of the Fund’s daily net assets.
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 Morabaha investments in the Bank and borrows from the Bank at
prevailing market rates.
The Bank acts as the Fund’s banker and the Fund Manager acts as the custodian to the Fund’s investment.
During the period, the Fund has placed special commission bearing Morabaha placements with the Bank.
9 LAST VALUATION DAY
The last valuation day of the period was 30 June 2017 (2016: 30 June 2016).
10 RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
