Al Danah GCC Equity Trading Fund
Annual Report - 2020
CONTENT INVESTMENT FUND INFORMATION FUND PERFORMANCE FUND MANAGER CUSTODIAN AUDITOR FINANCIAL STATEMENTS
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A. INVESTMENT FUND INFORMATION
1. Al Danah GCC Equity Trading Fund
2. Investment objectives and polices Objectives of the Fund Al Danah GCC Equity Trading Fund is an open-end equity fund that aims to achieve medium and long-term capital growth by investing in listed companies that are compliant with the provisions of Islamic Shariah, in addition to companies listed in the markets of other Arab countries in the Middle East and North Africa at a rate of up to 20% of its net asset value provided that all the Fund’s assets comply with the Shariah rules specified by the Fund’s Shariah Committee. The Fund Manager has the right to invest in companies established in the countries of the Middle East and North Africa and whose main activity is concentrated in those countries, and which are listed in any of their capital markets or any of the other financial markets outside the region. In addition to investing in the shares of companies listed in those financial markets, the Fund Manager can invest in all other financial securities such as Real Estate Investment Trust funds (REIT), Exchange Traded Funds (ETF) and others. Investment Policies When choosing its investments, the Fund Manager considers the company's fundamentals, long-term profitability, ability to meet debts obligations, management capabilities, strategies, economic perspective, the level of competition and other similar factors. It analyzes these factors in addition to conducting relevant economic and sector research which may have impact on the company's future position. It should be noted that the distribution of the company's assets varies in each country according to the market situation, and the largest share is often for countries with the largest market value. The Fund Manager seeks to achieve the Fund’s objectives by investing in shares of companies listed on the local stock markets in the countries of the Gulf Cooperation Council: Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman (shares of Banque Saudi Fransi may be included). The Fund may also invest in similar securities listed in global stock markets, for example: Global Depository Receipts (GDRs) and American Depository Receipts (ADRs). The Fund is also entitled to invest in companies listed in other Arab markets in the Middle East and North Africa, taking into consideration that these investments do not exceed 20% of the Fund’s net asset value.
3. Distribution of income and gain policy The profits of the fund units will not be distributed to the investors, as the profits generated by the fund will be reinvested, and therefore the reinvestment will positively reflect on the value and price of the units.
B. FUND PERFORMANCE
1. Financial highlights for the last 3 years 2020 2019 2018 Net Asset Value (NAV) 12,702,748.00 15,315,841.00 17,547,776.00 NAV per Unit 16.14 15.45 13.71 Highest NAV per Unit 16.32 16.33 15.35 Lowest NAV per Unit 10.81 13.71 13.309 Number of Units 786,927.00 991,172.00 1,279,692.00 Income Distribution per Unit - - - Expense Ratio 3.04% 3.07% 2.51%
2. Performance record Total Annualized Return for 1 Year, 3 Years, 5 Years, and Since Inception 1 Year 3 Years 5 Years Since Inception Total Return 4.46% 13.49% 23.88% 61.42%
Total Annual Returns for Each of the Past 10 Years or Since Inception 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Total 4.46% 12.69% -3.59% -1.03% 9.33% -15.29% 9.17% 43.27% 13.52% -6.89% return
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Fund Fees and Expenses Amount (SAR) Tadawul Registration Fees 5,250 Regulatory Fees 7,500 Auditor Fee Expense 36,800 Remuneration of the Board of Directors 316 Benchmark Fees 18,750 Trading Expenses 27,191 Funding Fees - Other 19,476 Custody Fee 18,638 Management Fee 252,865 Shariah Audit Fee Expense - Total Expense Ratio % 3.04% * If there are any circumstances in which a fund manager may elect to waive or rebate any fees
3. Material Changes that occurred during the period and that affected the performance of the fund No material changes was done.
4. Exercise of Annual Voting Rights
Type of Decision Date of Company General Subject of Voting Do Not Assembly Sustain Agree Assembly Agree Voting on the financial statements for the fiscal year ending 31-12-2019 √ Voting on the auditor’s report for the fiscal year ending 31-12-2019 √ Voting on the Board of Directors report for the fiscal year ending 31-12-2019. √ Voting on discharge of the Board of Directors members from liabilities for the fiscal year √ ending 31-12-2019. Voting on the resolution of the Board of Directors on what was distributed as cash dividends totaling (675) million riyals for the √ fiscal year 2019, at (1.5) riyals per share, or 15% of the capital Voting on the payment of SAR 1,8 million as remunerations and compensations to the SIIG 15/04/2020 Ordinary members of the Board of Directors, at (200) √ thousand riyals per member, for the fiscal year ending 2019. Voting on the appointment of the Company’s external auditors from among nominees, as per the Audit Committee recommendation, to review and audit the second, third and fourth √ quarter financial statements for the fiscal year 2020 and the first quarter of 2021, and approval of their fees Voting on delegating the Board of Directors to distribute interim dividends to its shareholders √ on a semi-annual or quarterly basis for the year 2020. Voting on updating the company's governance regulations regarding the functions of the √ Executive Committee. Voting on the auditor’s report for the fiscal year Savola 29/04/2020 Extraordinary ending 31-12-2019 √
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Voting on the consolidated financial statements for the fiscal year ending 31-12- √ 2019 Voting on the Board of Directors report for the fiscal year ending 31-12-2019 √ Voting on discharge of the Board of Directors members from liabilities for the fiscal year √ ending 31-12-2019. Voting on the payment of (SAR 2,150,000) as remunerations and compensations to the members of the Board of Directors, for the √ fiscal year ending 2019. Voting on the recommendation of the Board of Directors to distribute SAR 160.2 million cash dividends to shareholders for the year 2019, at 0.30 riyals per share, which represents 3% of the nominal value of the share. The eligibility would be the shareholders of the company's shares on the day of the extraordinary general √ assembly as reflected on the company's register held with the Securities Depository Center (Deposit Center). At the end of the second trading day following the due date, the date of distribution of dividends will be announced Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Almarai (34.52% owned by Savola) and its subsidiaries, in which the board members: Mr. Sulaiman A. Al-Muhaidab and Mr. Badr Al-Issa, have an indirect interest in it, which is the purchase of √ food products. The transactions and contracts in 2019 amounting to 740.30 million riyals, which are continuous contracts that are carried out in the context of normal business and in accordance with the prevailing business conditions and without any preferential conditions (Attached). Voting on the business and contracts that will take place between United Sugar Company (a subsidiary of SavolaFoods) and Almarai (34.52% owned by Savola) and its subsidiaries, in which the board members Mr. Sulaiman A. Al-Muhaidab and Mr. Badr Al- Issa, have an indirect interest in it, which the √ sale of sugar products. The transactions and contracts in 2019 amounting to 62.95 million riyals, which are continuous contracts that are carried out in the context of normal business and in accordance with the prevailing business conditions and without any preferential conditions (Attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Al-Manhal Water Factory Co., Ltd. (a majority owned company owned by of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaidab, have an indirect interest in it, which is the purchase of food √ products. The transactions and contracts in 2019 amounted to 5.79 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
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Voting on the business and contracts that will take place between The International Food Industries Company (a subsidiary of Savola Foods) owned by Savola and Almarai (34.52% owned by Savola) and its subsidiaries, in which the board members: Mr. Sulaiman A. Al-Muhaidab and Mr. Badr Al-Issa, have an indirect interest in it, which is the sale of √ specialized fat products and margarine. The transactions and contracts in 2019 amounting to 43.27 million riyals, which are continuous contracts that are carried out in the context of normal business and in accordance with the prevailing business conditions and without any preferential conditions (Attached). Voting on the business and contracts that will take place between Afia International Company (a subsidiary of Savola Foods) owned by Savola and Almarai (34.52% owned by Savola) and its subsidiaries, in which the board members: Mr. Sulaiman A. Al- Muhaidab and Mr. Badr Al-Issa, have an indirect interest in it, which is the sale of It is √ the sale of edible oil products. The transactions and contracts in 2019 amounting to 6.4 million riyals, which are continuous contracts that are carried out in the context of normal business and in accordance with the prevailing business conditions and without any preferential conditions (Attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Mayar Foods (a subsidiary of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaidab, have an indirect interest in it, which is the purchase of food √ products. The transactions and contracts in 2019 amounted to 134.73 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Del Monte Saudi Arabia Inc (a subsidiary of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaidab, have an indirect interest in it, which is the √ purchase of food products. The transactions and contracts in 2019 amounted to 70.80 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
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Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Nestle Inc and subsidaries (a subsidiary of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaid, have an indirect interest in it, which is the √ purchase of food products. The transactions and contracts in 2019 amounted to 383.24 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and AlJazira Food & Dates Factory (a subsidiary of Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaid, have an indirect interest in it, which is the purchase of food products. The √ transactions and contracts in 2019 amounted to 164 thousand riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaid, have an indirect interest in it, which leases √ properties. The transactions and contracts in 2019 amounted to 6.78 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Mehbaj Inc and subsidiaries (a subsidiary of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaidab, have an indirect interest in it, which rents floor √ space to sell its products within Panda stores. The transactions and contracts in 2019 amounted to 30.20 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
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Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Del Monte Saudi Arabia (a subsidiary of Abdulqadir Al Muhaidib & Sons, which owns 8.23% of Savola. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaidab, have an indirect interest in it, which rents floor space to √ sell its products within Panda stores. The transactions and contracts in 2019 amounted to 3.30 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and collection and recycle Inc. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al- Muhaidab, have an indirect interest in it, which sells recycled card board. The transactions √ and contracts in 2019 amounted to 5.94 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Zhoor Alreif. The Board Members Mr. Sulaiman A. Al-Muhaidab and Mr. Essam A Al-Muhaid, have an indirect interest in it, which rents floor space to sell its products within Panda stores. The √ transactions and contracts in 2019 amounted to 482 thousand riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Kinan International for Real Estate development that Savola owns 29.99% (direct and indirect). The Board Member mohammed aleissa has an indirect interest in it, which rents properties for its √ stores. The transactions and contracts in 2019 amounted to 31.13 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Herfy Inc that Savola owns 49% (direct and indirect). The Board Members esam almuhaideb and moataz alazawi have an indirect interest in it, which rents and purchases food items. The √ transactions and contracts in 2019 amounted to 32.81 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
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Voting on the business and contracts that will take place between Afia Internation Inc (a subsidiary of Savola) and Herfy Inc that Savola owns 49% (direct and indirect). The Board Members esam almuhaideb and moataz alazawi have an indirect interest in it, which sells edible oils. The transactions and √ contracts in 2019 amounted to 2.23 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Suger United company (a subsidiary of Savola) and Herfy Inc that Savola owns 49% (direct and indirect). The Board Members esam almuhaideb and moataz alazawi have an indirect interest in it, which sells sugar. The transactions and √ contracts in 2019 amounted to 2.18 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Food Production Inc (a subsidiary of Savola) and Herfy Inc that Savola owns 49% (direct and indirect). The Board Members esam almuhaideb and moataz alazawi have an indirect interest in it, which sells specialized fat and margirne. The √ transactions and contracts in 2019 amounted to 3.73 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between Panda Retail Company (a subsidiary of Savola) and Dur Hospitality Inc. The Board Member Bader Aleissa has an indirect interest in it, which rents properties. The transactions and contracts in 2019 √ amounted to 10.50 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached).
Voting on share buyback of 700,000 ordinary shares to kept as treasury shares within the scope of employee benefit program (EBP) and to nominate the board to put place the policy and procedures that govern this program. And nominate the board to buy company shares √ within 12 months of EGM date with ability to delegate. The share buyback will be through internally generated funds, and the company may retain the shares as treasury shares without selling or within the scope of EBP for a period of 5 years. (attached) Voting on increase the number of seats in the audit committee from 3 to 5 members with nomination of Mohammed √ Aleissa/nonexecutive member - Bader Alrabiah/independent member as of assembly date until 30 September 2022. (CV attached)
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Vote to amend the remuneration and √ nominations committee's work list Voting on the Board of Directors report for the fiscal year ending 31-12-2019. √ Voting on the financial statements for the fiscal year ending 31-12-2019 √ Voting on the auditor’s report for the fiscal year ending 31-12-2019 √ Voting on discharge of the Board of Directors members from liabilities for the fiscal year √ ending 31-12-2019.
Vote to approve H1 2019 dividend of SAR 439,999,999 riyals, equivalent to SAR 0.6 per √ share or 6% of capital Voting on the payment of 4.100.000 million as remunerations and compensations to the √ members of the Board of Directors for the fiscal year ending 2019. Voting on the appointment of the Company’s external auditors from among nominees, as Sipchem 29/04/2020 Extraordinary per the Audit Committee recommendation, to review and audit the second, third and fourth √ quarter financial statements for the fiscal year 2020 and the first quarter of 2021, and approval of their fees Vote on authorizing the board to distribute dividend on a semi -annual/quarterly basis for √ the FY2020
Voting on share buyback of 73,126,989 ordinary shares to kept as treasury shares as it BOD view that market price is below fair value. The transaction will be from internally generated funds and nominate the board to √ buy company shares within 12 months of EGM date. The share may be kept for up to 5 years and after which the company must abide by rules and regulations of related process. √ Vote to amend article 28 of company bylaws Voting on the Board of Directors report for the fiscal year ending 31-12-2019. √ Voting on the auditor’s report for the fiscal year ending 31-12-2019 √ Voting on the financial statements for the fiscal year ending 31-12-2019 √ Voting on discharge of the Board of Directors members from liabilities for the fiscal year √ ending 31-12-2019. Voting on the appointment of the Company’s external auditors from among nominees, as SACO 30/04/2020 Ordinary per the Audit Committee recommendation, to review and audit the second, third and fourth √ quarter financial statements for the fiscal year 2020 and the first quarter of 2021, and approval of their fees
Vote to approve H1 2019 dividend of SAR36 √ million, equivalent to SAR 1.0 per share and not to distribute dividends for H2 2019. Voting on the payment of 1,800,000 million as remunerations and compensations to the √ members of the Board of Directors for the fiscal year ending 2019.
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Vote on authorizing the board to distribute √ dividend on a semi -annual/quarterly basis for the FY2020 Voting on the business and contracts that will take place between SACO and heirs of Abdullah Baksh owners of Abrar International as major shareholders of SACO. The Board Members Talal Baksh and Hani Shuwaeir have an indirect interest in it, related to a lease contract of a store in Jeddah for the period √ 28/2/2009 to 26/2/2020. The transactions and contracts in 2020 amounted to 2,000,000 million riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Voting on the business and contracts that will take place between SACO and heirs of Abdullah Baksh owners of Abrar International as major shareholders of SACO. The Board Members Talal Baksh and Hani Shuwaeir have an indirect interest in it, related to a lease contract of a store in Jeddah for the period √ 9/4/2017 to 31/12/2030. The transactions and contracts in 2020 amounted to 1,985,000 million Saudi riyals, which are contracts and continuous commercial transactions In the context of normal business and in accordance with prevailing business conditions and without any preferential conditions (attached). Vote to appoint samer baeissa as independent board member starting 26/5/2019 to 20/7/2020 √ to replace board member abdulmohsen Altouq. CV attached Voting on electing board members for three years effective 01/7/2020, ending on √ 30/6/2023. (CV attached) Voting on the formation of Audit Committee, its charter and members remuneration for three Sisco 28/06/2020 Ordinary years effective 01/7/2020. The nominees are √ (CVs attached): Waleed Kayal, AbuBaker Jaber, Abdulatif Jazar
Vote to amend board of directors membership √ chartre
Vote to nominate board of directors for a 3 year term effective 14/11/2020. (CV attached) Note that if the results do allow the bank to √ appoint minimum number of independent members, independent board members will be AL-Rajhi replaced based on votes received 9/11/2020 Ordinary Bank Vote on the formulation of the audit committee and its roles and remuneration of its members for a 3 year term effective 14/11/2020. The √ nominees are(CV attached); Abdullah almuneef, Abdullah Tumerek and Faraj abuthnain Vote to amend Sharia policy √
Aldrees 16/11/2020 Ordinary Vote to nominate board of directors for a 3 √ year term effective 22/12/2020. CV attached
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Voting on the formation of the audit committee, its charter and member remunerations for a 3 √ year term effective 22/12/2020. The nominees are Adel Alotaibi, Eid Alshammari, Khalid Alkuwaiter and Saad Aldrees
5. Fund's Board Annual Report The members of the Fund Board of Directors are as follows. Member Name Member Classification Mr. Ehab Talib Ahmed Farhan Chairman, Non-Independent Mr. Abdullah Sulaiman Abdulaziz Al-Oraini Vice-Chairman, Non-Independent Mr. Walid Saud Hamad Al-Khathlan Member, Non-Independent Mr. Muhammad Fathallah Abdul-Khaleq Al-Bukhari Member, Independent Mr. Hani Ibrahim Ahmed Obaid Member, Independent
- The Fund Board held two meetings during 2020 First Meeting – 25th August 2020 – Riyadh The following is a summary of the key decisions approved and the matters discussed by the Fund Board: . Essential developments . Funds’ performance during the period . General view & funds compliance with all applicable rules and regulations Second Meeting – 8th December 2020 – Riyadh The following is a summary of the key decisions approved and the matters discussed by the Fund Board: . Essential developments . Funds’ performance during the period . General view & funds compliance with all applicable rules and regulations . Approval of independent board members
C. FUND MANAGER
1. Saudi Fransi Capital Head Office: PO Box 23454, Riyadh 11426, Saudi Arabia Phone +966 11 282 6666 - Fax +966 11 282 6725 Website: www.sfc.sa
2. Sub-Manager and Investment Adviser None
3. A Review of Investment Activities The Saudi Equity market “Tasi” gained 4% during the year 2020, or 301 points, at 8,690 points, compared to 2019 closing at 8,389 points.
TASI lost 22% (1,884 points) in Q1 2020, hurt by coronavirus and low oil prices. However, the index recouped its losses in the last nine months of the year.
Major events impacting Saudi market's performance in 2020:
COVID-19 and the measures taken to overcome the crisis, including the suspension of Umrah, international flights and closure of malls. Plunge in oil prices as brent crude hit its lowest since 2002 at $20.37 per barrel. Interest rates were cut twice to maintain the monetary stability amid the coronavirus outbreak, with the reverse repo and repo rates hitting 50 and 100 basis points, respectively. Recovery of traded value during the second half of the year and significant increase in the number of transactions that exceeded 500,000 in some sessions; the highest since 2006. Tadawul completing its inclusion in FTSE Russell and periodic changes of MSCI.
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Launch of the derivatives market and start of futures contracts trading. Implementation of a 15% value-added tax (VAT) with the exemption of real estate supplies, as well as the levy of a real estate transaction tax. Announcement of 2021 budget, with estimated expenditures of SAR 990 billion and revenue of SAR 849 billion, and an expected deficit of SAR 141 billion.
While the Saudi Parrarel market “Nomu” closed the year 2020 gaining 265%, or 19,066 points, at 26,245 points, compared to 2019 closing at 8,389 points.
Trading in Nomu market is limited to qualified investors as per CMA listing rules.
On the GCC front, indices ended the year 2020 in varying proportions. The Saudi market closed up 4%, assisted by the recovery of trading volumes, followed by the Qatar market, as it ended the year 2020 slightly higher by 0.1%. On the other hand, Kuwait market was the biggest underperformer, down 13%. The Dubai Financial Market came second down 10%, followed by all of Muscat Market, Bahrain Market and Abu Dhabi Financial Market at rates of 8%, 7% and 1% respectively.
4. Fund’s Performance 2020 Al Danah GCC Equity Trading Fund Performance 4.46% Benchmark Performance 6.09%
*The Fund underperformed the benchmark by 163 bps.
5. Material Changes to terms and conditions _ Updating the summary of financial disclosure for public funds. _ Updating default example.
6. Any other information that would enable unitholders to make an informed judgment about the Fund’s activities None.
7. Investment in Other Investment Funds The Fund does not invest in other investment funds.
8. Special Commission The Fund Manager did not receive any special commission during the period.
9. Any other data and information required by the Regulations - Fund Manager's Subscriptions in Units in an Investment Fund None.
- Conflicts of Interest None.
- Breach of Investment Limitations None.
- Incorrect Valuation or Pricing None.
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D. CUSTODIAN
1. HSBC Saudi Arabia Limited Head Office: Olaya - Al-Mrooj 7267 P.O. Box: 2255 Riyadh 12283, Saudi Arabia Phone +966 92000 5920 - Fax +966 11 299 2385 Website: www.hsbcsaudi.com Email: [email protected]
2. Duties and Responsibilities The Custodian is responsible for its obligations in accordance with the provisions of the Investment Funds Regulations, whether it fulfils its responsibilities directly or assigns it to a third party under the provisions of the Investment Funds Regulations or the list of authorized persons. The Custodian is liable towards the Fund Manager and unitholders for the losses of the Fund resulting from its fraud, shortcoming, misbehavior or deliberate negligence. The Custodian is responsible for preserving and protecting the Fund’s assets for the benefit of unitholders, and it is also responsible for taking all necessary administrative measures in relation to preserving the Fund’s assets.
3. Custodian’s Opinion a. The Fund Manager issued, transferred and redeemed the units in accordance with the provisions of the Investment Funds Regulations and the Fund's Terms and Conditions. b. The Fund Manager valued and calculated the price of units in accordance with the provisions of the Investment Funds Regulations, the Fund's Terms and Conditions and the Information Memorandum. c. The Fund Manager did not breach some of the investment restrictions, limitations and borrowing powers applicable to the Investment Fund Regulations.
E. AUDITOR
1. Al Azem, Al Sudairy, Al Shaikh and Partners Certified Public Accountants and Consultants Member of Crowe Global P.O Box 10504, Riyadh 11443 Phone number: +96611217 5000 - Fax: +96611217 6000 Website: www.crowe.com/sa
2. Auditor’s Opinion a. The financial statements have been prepared and audited in accordance with SOCPA standards, the Investment Funds Regulations, the Fund's Terms and Conditions and the Information Memorandum. b. The financial statements give a true and fair view of the net income and the net gains or losses of the Fund’s assets in that accounting period. c. The financial statements give a true and fair view of the financial position of the Fund at the end of the period.
The Fund's Reports are available upon request free of charge. These reports are also available on the fund manager’s website for free www.sfc.sa and on the Saudi Stock Exchange (Tadawul)
Saudi Fransi Capital (Closed Joint Stock Company owned by Banque Saudi Fransi) – Commercial Registration 1010231217 – Authorized and Regulated by the Capital Market authority (CMA) under license 11153-37
F. FINANCIAL STATEMENTS
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