WORLD SHARIAH FUNDS PCC LIMITED
REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM THE DATE OF INCORPORATION, 23 APRIL 2010, TO 30 APRIL 2011 World Shariah Funds PCC Limited
CONTENTS
Investment Objectives 1
Management and Administration 2
Investment Manager’s Reports 4
Directors’ Report 7
Independent Auditor’s Report 10
Report of the Custodian 12
Statement of Comprehensive Income 13
Statement of Changes in Net Assets Attributable to Holders of Participating Redeemable Shares 13
Statement of Financial Position 14
Statement of Cash flows 15
Notes to the Financial Statements 16
Portfolio of Investments Attributable to Participating Shareholders 35
Summary of Significant Portfolio Changes 40
Shariah Compliance Certificate 42
Notice of Annual General Meeting 43
Form of Proxy for Annual General Meeting 44
World Shariah Funds PCC Limited
INVESTMENT OBJECTIVES
RELIANCE GLOBAL SHARIAH GROWTH FUND
The investment objective of the Cell is to seek long term capital growth from an actively managed portfolio of Shariah-compliant securities which may be located in any jurisdiction or in any economic sector provided that such securities are listed securities or securities quoted on a Recognised Stock Exchange. Reliance Asset Management (Malaysia) Sdn Bhd, the Investment Manager of the Cell, will seek to provide a consistent return over time in excess of the S&P Developed BMI Shariah Index.
ASIAN PACIFIC SHARIAH GROWTH FUND
The investment objective of the Cell is to seek long term capital appreciation and income generation through investment predominantly in equities listed in stock exchanges in the emerging and developed markets in the Asian Pacific region excluding Japan, that are Shariah-compliant. CIMB-Principal Asset Management Berhad, the Investment Manager of the Cell, may invest in shares, stocks, warrants and participate in mutual funds and acquire other interests in Shariah-compliant collective investment schemes in any economic sector which are permitted under the Investment restrictions section of the Offering Memorandum and the Shariah Investment Guidelines.
MENA SHARIAH GROWTH FUND
The investment objective of the Cell is to achieve capital appreciation through investment in Shariah-compliant equities primarily listed on MENA stock exchanges and in the listed Shariah-compliant debt instruments of corporate and sovereign MENA issuers. The cell may also invest in Shariah-compliant fixed income securities and money market instruments. Investment Assets will be restricted to those located in the MENA region but will not, subject to compliance with the Shariah Investment Guidelines, be limited by economic sector. Currently, this cell has not launched.
LISTING
The GBP and US$ share classes of Reliance Global Shariah Growth Fund and Asian Pacific Shariah Growth Fund were listed on the Channel Islands Stock Exchange on 17 August 2010.
This Report to Shareholders does not constitute an offer or invitation to purchase shares in World Shariah Funds PCC Limited. Application for purchase of shares may only be made on the basis of the current Prospectus, which comprises the Scheme Particulars, the latest Annual Report of the Company, and, if published after that Report, a copy of the latest Interim Report.
Please remember that past performance is not necessarily a guide to future performance. The value of shares and income from them may fall as well as rise.
1 World Shariah Funds PCC Limited
MANAGEMENT AND ADMINISTRATION
DIRECTORS
Derek Chambers (appointed 23 April 2010) c/o 11 New Street, St. Peter Port Guernsey, Channel Islands GY1 2PF
Clive Standish-White (appointed 23 April 2010) c/o 11 New Street, St. Peter Port Guernsey, Channel Islands GY1 2PF
David Whitworth (appointed 23 April 2010) c/o 11 New Street, St. Peter Port Guernsey, Channel Islands GY1 2PF
REGISTERED OFFICE 11 New Street, St. Peter Port Guernsey, Channel Islands GY1 2PF
MANAGER Argyll Investment Services Limited Suite 4, Weighbridge House, Lower Pollet, St. Peter Port Guernsey, Channel Islands GY1 3XF
CUSTODIAN AND PRINCIPAL BANKERS State Street Trustees (Guernsey) Limited 2nd Floor Tudor House, Le Bordage, St. Peter Port, Guernsey, Channel Islands GY1 3PF
ADMINISTRATOR AND SECRETARY Legis Fund Services Limited PO Box 91, 11 New Street, St. Peter Port Guernsey, Channel Islands GY1 3EG
2 World Shariah Funds PCC Limited
MANAGEMENT AND ADMINISTRATION
REGISTRAR European Fund Administration S.A., Luxembourg 2 Rue D’Alsace, L-1017 Grand Duchy of Luxembourg
LEGAL ADVISERS TO THE COMPANY Ogier, Ogier House, St. Julian’s Avenue, St. Peter Port, Guernsey, Channel Islands GY1 1WA
AUDITOR Deloitte LLP, Regency Court, Glategny Esplanade, St. Peter Port, Guernsey, Channel Islands GY1 3HW
INVESTMENT MANAGER TO THE RELIANCE GLOBAL SHARIAH GROWTH FUND Reliance Asset Management (Malaysia) Sdn Bhd, Unit 5-7, UOA II, 21 Jalan Pinang, 50450 Kuala Lumpur, Malaysia
INVESTMENT MANAGER TO THE ASIAN PACIFIC SHARIAH GROWTH FUND CIMB Principal Asset Management Berhad, 5th Floor, Bangunan CIMB, Jalan Semantan, 50490 Kuala Lumpur, Malaysia
MARKETING CO-ORDINATOR SFM Group International S.A. Mambra 10, L-8246 MAMER, Grand Duchy of Luxembourg
MASTER DISTRIBUTOR SFM Group o.c.p., a.s. Mickiewiczova 2, SK-811 07 Bratislava, Slovakia
3 World Shariah Funds PCC Limited
RELIANCE GLOBAL SHARIAH GROWTH FUND INVESTMENT MANAGER'S REPORT for the period ended 30 April 2011
Market Review The Fund NAV rose 31.5% in the period since incorporation, compared to a 29.2% increase in the S&P BMI Developed Shariah Total Return index in US Dollar terms. The Fund generated an excess return of 2.33% above the Benchmark index over the eight and a half month period. Global equity markets posted strong gains during the second half of 2010 and into the first quarter of 2011, driven by robust corporate earnings results and accommodative monetary policy. US monetary authorities began talking publically about a second round of Quantitative Easing (QE) in August 2010, before officially unveiling QE2 on November 3rd. Under QE the Federal Reserve has purchased long-term bonds with newly created money, resulting in lower long-term yields and a greater risk appetite amongst investors. Despite marginally weaker than expected US GDP growth in Q1 2011, corporate earnings announcements have remained encouraging, with just under three quarters of S&P 500 companies delivering a positive earnings surprise in the first quarter of 2011. Crucially, global equity valuations also remain supportive, both relative to historical averages and when compared against the yields available on government bonds.
At the sector level the portfolio added value across most sectors, with the most positive stock selection effects coming from the Information Technology and Industrial sectors. The weakest sector contribution came from the Consumer Discretionary sector. The funds cash holding, which was temporarily elevated during the setup phase, was the most negative contribution factor during the period. Country and sector allocation remained static during the period and are anticipated to remain so - the Cognition investment process requires neutrality across sectors and six regional currency areas – the Canadian Dollar, US Dollar, British Pound, Euro, Yen. Our strategy remains to effect the continual realignment of the portfolio towards the dominant investment themes, as measured by the proprietary Cognition investment process.
Market Outlook Market volatility has risen steadily since the beginning of March this year, as sovereign debt concerns in the US and Europe, combined with evidence of a stalling global economic recovery, have combined to unnerve investors. At the start of May 2011 the Chicago Board Options Exchange Market Volatility Index (VIX), a widely followed measure of estimated future volatility for the S&P 500 Index, was at relative lows not seen since June 2007, before the onset of the financial crisis. By mid-August it had more than trebled to October 2008 levels, indicating levels of market uncertainty as high as those just after the Lehman’s failure. In early May 2011 the market was very much focused on European efforts to manage Greek debt restructuring. By August, the sovereign debt issue had extended all the way to the top of the debtors league table, as Standard & Poor’s controversially downgraded the AAA rating of the United States, the largest sovereign debtor in the world. Throughout this period of elevated market uncertainty, the portfolio continued to perform well, with positive attribution from stock selection across all sectors except for Information Technology.
Reliance Asset management (Malaysia) Sdn Bhd August 2011
4 World Shariah Funds PCC Limited
ASIAN PACIFIC SHARIAH GROWTH FUND INVESTMENT MANAGER'S REPORT for the period ended 30 April 2011
Market Review In Q4 2010, countries with a high exposure to technology and material stocks such as Korea, Taiwan and Australia outperformed and countries with high inflation where policy tightening was likely such as China, India and Indonesia underperformed. Despite tensions in the Korean peninsula, foreign buying of financials and technology stocks pushed up the index. The Bank of Korea kept the cash rate unchanged at 2.50% and CPI in November decelerated from October (3.3% YoY vs. 4.1% YoY). Taiwan performed well driven by technology stocks (Korean tech stocks also outperformed the market). At the municipal elections in Taiwan, the ruling KMT kept their control in Taipei, Xinbei and Taichung while the DPP won in Tainan and Kaoshiung. Taiwan’s central bank raised rates by 12.5bp and the November CPI ticked up to 1.5% YoY vs. 0.6% YoY in October. Australia did well as commodity prices firmed. The government’s recommendations regarding the planned Mineral Resources Rent tax did not surprise negatively and M&A activity was also a support. As expected, the Reserve Bank left the cash rate on hold at 4.75%.
China underperformed as the People’s Bank of China continued to tighten policy, raising the minimum reserve ratio requirement (+150bp) and hiking lending rates (+50bp for 1yr loans). This will impact excess liquidity and loan growth. CPI inflation was higher than expected at 5.1% YoY in November (4.4% YoY in October) driven by a sharp jump in food prices. India was affected by corruption allegations at the telecom ministry, selected state-owned banks, financial institutions and property companies which weighed on investor sentiment. The Reserve Bank of India raised both the repo and reverse repo rate by 25bp as expected. The Central Bank also cut the SLR by 100 bps to address the liquidity deficit in the banking system. The Central bank also promised Open Market Operations of Rs480 bn over the next month to ease the liquidity situation. Bank Indonesia maintained policy rates at 6.5% despite headline inflation coming in above expectations again at 6.96% YoY in December (6.33% YoY in November).
In Q1 2011, the Japan earthquake, tsunami and nuclear incident on 11 th March affected sentiment in Asian markets but only temporarily. The Bank of Japan poured liquidity into the financial system and doubled the size of its asset purchase plan to stabilize markets. India and Korea were the best performing markets. Korean corporates in the tech, auto, industrial and shipbuilding space were seen as beneficiaries of the situation in Japan. As expected the Bank of Korea raised the base rate by 25bps to 3.00% as part of its policy normalization cycle since last July. In India, foreigners turned net buyers after being net sellers in Jan and Feb. The RBI hiked the benchmark rate by 25bps as expected. WPI inflation accelerated further in Feb to 8.3% (Jan: 8.2%). While the primary food segment inflation moderated, non-food manufacturing inflation rose further.
China’s economy appeared to have settled into a solid growth pace this year, recording an increase of 9.6% yoy in 1Q11 following 9.8% yoy growth in 4Q10. March 2011 macro indicators reported stronger than expected growth in industrial production and retail sales, while fixed investment posted a steady growth. The PBoC hiked the Reserve Requirement Ratio for the third time this year by 50bp. The Philippines central bank raised interest rates by 25bps as a pre-emptive move against higher inflation. Indonesia’s CPI in March came in lower than expected with prices declining by 0.32% MoM and core inflation remained muted. Taiwan underperformed the region. Feb export orders came in weaker than expected. Moderation in order growth was broad-based across major markets. Central bank raised interest rate by 12.5bps. The Australian market barely moved but the AUD$ appreciated 2%. The energy sector did well in anticipation of stronger demand for gas from Japan to replace nuclear power.
5 World Shariah Funds PCC Limited
ASIAN PACIFIC SHARIAH GROWTH FUND INVESTMENT MANAGER'S REPORT for the period ended 30 April 2011
Market Outlook The US debt impasse has highlighted sovereign risk of US Treasury bonds and may lead to a structural shift of fund flows away from the US over time. In the Euro, the recent rescue package buys time for Greece. We think the overall impact on Asia should be limited.
Asian fixed income and currencies face upward pressure on healthy build up in foreign exchange reserves, persistent current account surplus and improving credit ratings. We would focus on corporate results – unlike the US, we have had a mixed start to the reporting season in Asia – weakness in Taiwan / Korea (technology), Australia (domestic spending / margin pressure) and India (economic slowdown). Global growth remains anaemic - Asian growth may see downgrades following moderating US and Euro growth. This could translate into softer corporate profits growth if margins peak. With peaking inflation and slower growth, Asian central banks will find it increasing difficult to tighten policy further.
Strategy We remain positive on Asian Equities for 2H 2011, as strong fund flows into Asian fixed income markets may spill over into the regional equity markets. However, we have turned more cautious tactically over the near term. Earnings risk has emerged as a drag on market performance, following mixed Q2 2011 earnings reports. Heavy equity supply is another drag as Asian markets are often tapped to finance growth in the real economy or for strengthening of balance sheets. Our stock picks remain focused on stocks which are able to meet or beat earnings expectations.
We like growth stocks which exhibit earnings certainty and strong growth as well as dividend yield stocks with defensive growth characteristics and sustainable cash-flow. Our key investment themes are domestic consumption, smart phones, offshore marine, real estate and coal energy. We prefer ASEAN and HK/ China markets over Australia and India, given their relatively better earnings growth prospects and liquidity conditions. We are neutral on Taiwan / Korea, until the technology sector resolves its structural over-capacity issues.
CIMB Principal Asset Management Berhad August 2011
6 World Shariah Funds PCC Limited
DIRECTORS’ REPORT
The Directors are pleased to present their Annual Report and Financial Statements for World Shariah Funds PCC Limited (“the Company”) for the period from incorporation on 23 April 2010 to 30 April 2011.
DIRECTORS' RESPONSIBILITIES STATEMENT
The Directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable laws and regulations. Company law requires the Directors to prepare the Annual Report and the Financial Statements for each financial period. Under that law the Directors have elected to prepare the Financial Statements in accordance with International Financial Reporting Standards, as adopted by the European Union (“IFRSs”). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these Financial Statements, International Accounting Standard 1 requires that the Directors:
- properly select and apply accounting policies; - present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; - provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s financial position and financial performance; and - make an assessment of the Company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the Financial Statements comply with The Companies (Guernsey) Law, 2008, The Protection of Investors (Bailiwick of Guernsey) Law, 1987, The Collective Investment Schemes (Class B) Rules, 1990, and the Principal Documents. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FINANCIAL INSTRUMENTS
The Directors have identified risks from the Company holding financial instruments as detailed in note 23.
GOING CONCERN
The Directors have assessed the going concern basis of the Company as a whole and note that it is their intention to continue to operate the Company for the foreseeable future. Whilst the Cells within the Company could be subject to both high levels of illiquid investments coupled with high levels of redemption requests, the Manager, with the prior agreement of the Custodian, may suspend redemptions within the Cells to ensure the Company can continue as a going concern. For this reason, the Directors have prepared the Financial Statements on a going concern basis.
7 World Shariah Funds PCC Limited
DIRECTORS’ REPORT
COMMITTEES OF THE BOARD
The Board has not deemed it necessary to appoint a nomination or remuneration committee as, being comprised wholly of non-executive Directors, the whole Board considers these matters.
RESULTS AND DIVIDENDS
The total comprehensive income attributable to holders of participating redeemable shares for the period amounted to US$1,917,040. There were no distributions during the period.
CAPITAL VALUES
The Net Asset Value per share of each class of Participating Redeemable Share at the beginning and end of the period under review was as follows: Class of Share GBP GBP USD USD USD A B A B I
Reliance Global Shariah Growth Fund - at launch £10.00 £10.00 US$10.00 US$10.00 US$10.00 - at 30 April 2011 £12.11 £11.85 US$12.82 US$12.74 US$12.94 Dealing price - at 26 April 2011 £12.30 £12.04 US$13.02 US$12.94 US$13.14
Asian Pacific Shariah Growth Fund - at launch £10.00 £10.00 US$10.00 US$10.00 US$10.00 - at 30 April 2011 £10.34 £10.31 US$10.96 US$10.88 US$10.91 Dealing price - at 26 April 2011 £10.97 £10.94 US$11.62 US$11.53 US$11.57
A reconciliation of the IFRS accounting differences between NAV and dealing prices is shown in Note 14.
DIRECTORS
The Directors in office during the period and to date are listed on page 2.
Mr Clive Standish-White is a Director of the Manager, Argyll Investment Services Limited. Details of the fees paid to the Manager during the period are detailed in note 16.
Mr Derek Chambers is CEO of SFM Group, of which, SFM Group International S.A., the Marketing Co- ordinator, and SFM Group o.c.p., a.s., the Marketing Distributor, belong. Fees paid to these entities are detailed in note 19 and note 20.
At the period end, Mr Chambers held the following shares in the Company:
Asian Pacific Shariah Growth Fund USA A Class 25,329.48 shares Asian Pacific Shariah Growth Fund GBP A Class 1,000.00 shares Reliance Global Shariah Growth Fund GBP A Class 4,150.00 shares Reliance Global Shariah Growth Fund USA A Class 13,974.69 shares
8 World Shariah Funds PCC Limited
DIRECTORS’ REPORT
AUDITOR
Deloitte LLP were appointed as the auditor on 23 June 2010. A resolution to re-appoint Deloitte LLP as the auditor will be proposed at the next Annual General Meeting.
Each of the persons, who is a director at the date of approval of the Financial Statements, confirms that:
1. So far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and
2. The director has taken all steps he ought to have taken as director to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of Section 249 of The Companies (Guernsey) Law, 2008.
By order of the Board
David Whitworth Director
Clive Standish-White Director
25 August 2011
9 World Shariah Funds PCC Limited
INDEPENDENT AUDITOR’S REPORT To the members of World Shariah Funds PCC Limited
We have audited the Financial Statements of World Shariah Funds PCC Limited for the period from incorporation, 23 April 2010, to 30 April 2011 which comprise the statement of comprehensive income, the statement of changes in net assets attributable to holders of participating redeemable preference shares, the statement of financial position, the statement of cash flows, the portfolio statements, the summary of significant portfolio changes and the related notes 1 to 25. The financial framework that has been applied in their preparation is applicable law and International Financial Reporting Standards, as adopted by the European Union (IFRS).
This report is made solely to the Company’s members, as a body, in accordance with Section 262 of The Companies (Guernsey) Law, 2008. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND THE AUDITOR
As explained more fully in the Directors’ Responsibilities Statement, the Directors are responsible for the preparation of the Financial Statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the Financial Statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the Financial Statements sufficient to give reasonable assurance that the Financial Statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the Financial Statements. In addition, we read all the financial and non-financial information in the Annual Report to identify any material inconsistencies with the audited Financial Statements. If we become aware of any apparent material misstatement or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion the Financial Statements:
• give a true and fair view of the state of the Company’s affairs as at 30 April 2011 and of its income for the period then ended; • have been properly prepared in accordance with International Financial Reporting Standards, as adopted by the European Union; and • have been prepared in accordance with the requirements of The Companies (Guernsey) Law, 2008, the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended, The Collective Investment Scheme (Class B) Rules 1990 and the principal documents.
10 World Shariah Funds PCC Limited
INDEPENDENT AUDITOR’S REPORT (CONTINUED) To the members of World Shariah Funds PCC Limited
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where The Companies (Guernsey) Law, 2008 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept; or • the Financial Statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of the following matter where the Collective Investment Scheme (Class B) Rules, 1990 require us to report if, in our opinion:
• the information given in the Manager’s Report is inconsistent with the Financial Statements.
Deloitte LLP Chartered Accountants St. Peter Port, Guernsey
Date: 30 August 2011
11 World Shariah Funds PCC Limited
REPORT OF THE CUSTODIAN To the members of World Shariah Funds PCC Limited
In our opinion, World Shariah Funds PCC Limited (the Scheme) has been managed during the period from our appointment on 23 April 2010 to 30 April 2011 without any material breaches of the provisions of the principal documents of the Scheme or The Collective Investment Schemes (Class B) Rules 1990 which would be to the detriment of existing or former shareholders in the Scheme.
State Street Trustees (Guernsey) Limited First Floor, Dorey Court, Admiral Park, St. Peter Port, Guernsey, Channel Islands GY1 6HJ
Date: 30 August 2011
12 WORLD SHARIAH FUNDS PCC LIMITED
STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 April 2011
Note Reliance Global Asian Pacific Company Total Shariah Growth Shariah Fund Growth Fund US$ US$ US$ US$
Gains on investments 3, 9 2,113,651 838,210 - 2,951,861 Investment income 2(d), 5 57,505 36,555 - 94,060 Other gains 4 69,480 63,435 - 132,915 2,240,636 938,200 - 3,178,836
Losses on investments 3, 9 (176,410) (226,076) (402,486) Expenses 2(e), 7 (473,137) (386,173) - (859,310) (649,547) (612,249) - (1,261,796)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,591,089 325,951 - 1,917,040
Basic and diluted earnings per share A - GBP $4.73 $1.29 B - GBP $2.58 $0.84 A - USD $4.18 $1.63 B - USD $2.33 $0.95 I - USD $2.94 $0.91
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF PARTICIPATING REDEEMABLE SHARES for the period ended 30 April 2011
Note Reliance Global Asian Pacific Company Total Shariah Growth Shariah Fund Growth Fund US$ US$ US$ US$ NET ASSETS ATTRIBUTABLE TO HOLDERS OF PARTICIPATING REDEEMABLE SHARES AT THE START OF THE PERIOD ----
Movement due to issue and redemption of shares: Amounts receivable on issue 12(b) 9,752,129 5,010,463 - 14,762,592 Amounts payable on redemption 12(b) (913,064) (541,240) - (1,454,304) 8,839,065 4,469,223 - 13,308,288
Total comprehensive income for the period 1,591,089 325,951 - 1,917,040
NET ASSETS ATTRIBUTABLE TO HOLDERS OF PARTICIPATING REDEEMABLE SHARES AT THE START OF THE PERIOD 10,430,154 4,795,174 - 15,225,328
Net Asset Value per Participating Redeemable Share at 30 April 2011 A - GBP £12.11 £10.34 B - GBP £11.85 £10.31 A - USD US$12.82 US$10.96 B - USD US$12.74 US$10.88 I - USD US$12.94 US$10.91
All activities are derived from continuing operations.
There were no non-cellular movements during the period.
See accompanying notes to the Financial Statements 13 WORLD SHARIAH FUNDS PCC LIMITED
STATEMENT OF FINANCIAL POSITION as at 30 April 2011
Note Reliance Global Asian Pacific Company Total Shariah Growth Shariah Fund Growth Fund
US$ US$ US$ US$ ASSETS Investments at fair value through profit or loss 2f, 9 10,145,552 4,358,728 - 14,504,280 Debtors and prepayments 10 86,144 256,371 1 342,516 Cash and bank balances 6 340,158 448,213 - 788,371
TOTAL ASSETS 10,571,854 5,063,312 1 15,635,167
EQUITY Management Shares 12(b) - - 1 1 TOTAL EQUITY - - 1 1
LIABILITIES Creditors 11 141,700 268,138 - 409,838 TOTAL LIABILITIES (excluding net assets attributable to holders of participating redeemable shares) 141,700 268,138 - 409,838
NET ASSETS ATTRIBUTABLE TO PARTICIPATING REDEEMABLE SHARES 13 10,430,154 4,795,174 - 15,225,328
TOTAL EQUITY AND LIABILITIES 10,571,854 5,063,312 1 15,635,167
The Financial Statements on pages 11 to 41 were approved by the Board on 25 August 2011, and are signed on their behalf by:
David Whitworth Director
Clive Standish-White Director
See accompanying notes to the Financial Statements
14 WORLD SHARIAH FUNDS PCC LIMITED
STATEMENT OF CASHFLOWS for the period ended 30 April 2011
Period ended 30 April 2011 Note US$
Cash Flow from operating activities Total comprehensive income for the period 1,917,040 Adjustment for: Dividend income (94,051) Realised gain on sale of investments 5 (752,971) Realised loss on sale of investments 3 247,084 Unrealised gain on investments 3 (2,198,890) Unrealised loss on investments 3 155,402 Increase in debtors (129,838) Increase in creditors 133,326 Net cash used in operating activities (722,898)
Cash flow from investing activities Dividend income 70,526 Purchases of investments (20,103,275) Sales of investments 8,126,888 Net cash outflow from investment activities (11,905,861)
Cash flow from financing activities Proceeds from issue of participating shares 14,762,592 Payment on redemptions of participating shares (1,345,462) Net cash inflow from financing activities 13,417,130
Net increase in cash and cash equivalents 788,371
Cash and cash equivalents at the start of the period 6 -
Cash and cash equivalents at the end of the period 6 788,371
See accompanying notes to the Financial Statements
15 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
1. THE COMPANY
World Shariah Funds PCC Limited (the “Company”) is an open-ended investment company incorporated in Guernsey. The Company is authorised by the Guernsey Financial Services Commission as a Class B Collective Investment Scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987.
During the period, the Company operated two cells, Reliance Global Shariah Growth Fund and Asian Pacific Shariah Growth Fund with five sub-classes each. The first shares were allotted on 17 August 2010 and the new cells were listed on the Channel Islands Stock Exchange on that day. The investment managers of Reliance Global Shariah Growth Fund and Asian Pacific Shariah Growth Fund are Reliance Asset Management (Malaysia) Sdn Bhd and CIMB-Principal Asset Management Berhad respectively.
The assets of the Company can be either cellular assets, (assets attributable to the individual cells), or non- cellular assets. The assets attributable to a cell comprise assets represented by the proceeds of cell share capital, reserves and any other assets attributable to the cell. The non-cellular assets comprise the assets of the Company which are not cellular assets. Where a liability arises from a transaction in respect of a particular cell, and there are insufficient assets within this cell, then there will be recourse to the non-cellular assets but not to the assets of any other cell.
The investment objective of the Reliance Global Shariah Growth Fund cell is to seek long term capital growth from an actively managed portfolio of Shariah-compliant securities which may be located in any jurisdiction or in any economic sector provided that such securities are listed securities or securities quoted on a Recognised Stock Exchange.
The investment objective of the Asian Pacific Shariah Growth Fund cell is to seek long term capital appreciation and income generation through investment predominantly in equities listed in stock exchanges in the emerging and developed markets in the Asian Pacific region excluding Japan, that are Shariah- compliant.
Critical accounting judgements and key sources of estimation uncertainty Where such judgements are made, they are indicated within the accounting policies described in note 2 below.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Statement of compliance The Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union ("IFRS").
The preparation of Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Board of Directors to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements are disclosed as part of the relevant accounting policy disclosures.
16 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) a) Statement of compliance (continued) The following standards and amendments to existing standards, that are relevant to the Company’s operations have been published and are mandatory for accounting periods beginning on January 1, 2011 or later periods and have not been early adopted:
IFRS 9, ‘Financial Instruments’, issued in December 2009. The standard addresses the classification and measurement of financial assets. IFRS 9 divides all financial assets that are currently in the scope of IAS 39 into two classifications – those measured at amortised cost and those measured at fair value. The standard is not applicable until January 1, 2015 but is available for early adoption. The Directors have not yet decided when to adopt IFRS 9. Its adoption is not expected to have a very significant impact on the Financial Statements because the majority of the Company’s financial assets are designated at fair value through profit or loss.
Revised IAS 24, ‘Related party disclosures’, issued in November 2009. It supercedes IAS 24, ‘Related party disclosures’ issued in 2003 and is required to be applied from January 1, 2011. The Company will apply the standard from May 1, 2011. However its adoption is not expected to have a significant impact on the Financial Statements.
The following standards, amendments and interpretations are mandatory for accounting periods beginning on or after January 1, 2010 but are not relevant to the Company’s operations:
• IAS 27 (revised), ‘Consolidated and separate Financial Statements’ (effective from July 1, 2009); • IAS 39 (amendment), ‘Financial instruments: Recognition and measurement’ (effective from July 1, 2009); • IFRS 1 (amendments), ‘Additional exemptions for first-time adopters’ (effective from January 1, 2010); • IFRS 2 (amendments), ‘Group cash-settled share-based payment transactions’ (effective from January 1, 2010); • IFRS 3 (revised), ‘Business combinations’ (effective from July 1, 2009); • IFRIC 17 ‘Distributions of non-cash assets to owners’ (effective from July 1, 2009); • IFRIC 18 ‘Transfers of assets from customers’ (effective from July 1, 2009) • ‘Additional exemptions for first-time adopters’ (Amendment to IFRS 1) was issued in July 2009 (effective from January 1, 2010); • ‘Classification of rights issues’ (Amendment to IAS 32), issued in October 2009 (effective from February 1, 2010); • ‘Prepayments of a minimum funding requirement’ (Amendments to IFRIC 14), issued in November 2009 (effective from January 1, 2011); • IFRIC 19, ‘Extinguishing financial liabilities with equity instruments’ (effective from July 1, 2010); • ‘Classification of rights issues’ (Amendment to IAS 32), issued in October 2009 (effective from February 1, 2010); • ‘Prepayments of a minimum funding requirement’ (Amendments to IFRIC 14), issued in November 2009 (effective from January 1, 2011).
17 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) b) Operating segments The Directors are of the opinion that the Company is engaged in a single segment of business for each class, being investment business. The Reliance Global Shariah Growth will invest in Shariah-compliant securities which may be located in any jurisdiction or in any economic sector provided that such securities are listed securities or securities quoted on a Recognised Stock Exchange and the Asian Pacific Shariah Growth Fund will invest in equities listed in stock exchanges in the emerging and developed markets in the Asian Pacific region excluding Japan, that are Shariah-compliant. c) Basis of preparation The Financial Statements have been prepared on a historical cost basis, except for the revaluation of certain financial assets at fair value through profit or loss. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.
The Directors have assessed the going concern basis of the Company as a whole and note that it is their intention to continue to operate the Company for the foreseeable future. Whilst the Cells within the Company could be subject to both high levels of illiquid investments coupled with high levels of redemption requests, the Manager, with the prior agreement of the Custodian, may suspend redemptions within the Cells to ensure the Company can continue as a going concern. For this reason, the Directors have prepared the Financial Statements on a going concern basis.
Judgements made by management in the application of IFRS that have significant effects in the Financial Statements are disclosed, where applicable, in the relevant notes to the Financial Statements.
In order to reflect the results of the Company, the figures representing each Cell have been aggregated in US Dollars to produce a statement of comprehensive income, statement of changes in net assets attributable to holders of participating redeemable shares and statement of financial position.
The following principal accounting policies have been applied consistently by the Company: d) Income Recognition Dividend income arising on the Company’s investments is recognised in the statement of comprehensive income when the Company’s right to receive the dividend has been established, normally being the ex- dividend date. Dividend income is recognised on a gross basis, including withholding tax, if any. Related withholding tax is recognised separately in the statement of comprehensive income. Any income or distribution received by a Cell from investment assets in relation to securities which relate to income from non-Shariah compliant investment assets are considered impure income. The impure income is subject to an income purification process determined by the Shariah Adviser from time to time by which the impure income is distributed to organisations considered beneficial to the public at large and which are approved by the Shariah Adviser. The income purification is shown as an expense in the Statement of Comprehensive Income. e) Expenses All expenses are recognised in the statement of comprehensive income on an accruals basis. Expenses that relate to the set-up and organisation of the Company are expensed as incurred. Those expenses that relate to the Company as a whole are allocated to each Cell pro rata to their net asset value. The Company has no employees.
18 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) f) Financial assets at fair value through profit and loss i) Classification The Company classifies its investments in equity securities as financial assets at fair value through profit or loss. These financial assets have been designated by the Board of Directors at fair value through profit or loss from initial recognition. Financial assets designated at fair value through profit or loss are those that are managed and their performance evaluated on a fair value basis in accordance with the Company’s investment strategy as documented in its Scheme Particulars, and information about these financial assets are evaluated by the management of the Company on a fair value basis together with other relevant financial information.
ii) Recognition Financial assets at fair value through profit or loss are recognised when the Company becomes party to the contractual provisions of the instrument. Recognition takes place on the trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned.
iii) Measurement At initial recognition, financial assets are measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset. Associated transaction costs on the acquisition or issue of financial assets at fair value through profit or loss are expensed in the statement of comprehensive income in the period incurred.
After initial recognition, financial assets at fair value through profit or loss are measured at fair value without any deduction for transaction costs that may occur on the sale of these financial assets. Gains or losses arising from changes in fair value are included in the statement of comprehensive income for the period in which they arise.
The fair value of financial assets at fair value through profit or loss traded in an active market is based on quoted current bid prices at the balance sheet date. When current bid and asking prices are unavailable for the financial assets at fair value through profit or loss traded in an active market, the fair value is based on the last traded price.
The value of any investment which is not quoted, listed or normally dealt in on a stock exchange or over the counter market shall be the value considered by the Directors in good faith to be the value thereof.
iv) De-recognition Financial assets at fair value through profit or loss are de-recognised when the contractual rights to the cash flows from the financial asset expire or if the Company transfers the financial asset and the transfer qualifies for de-recognition in accordance with IAS 39 Financial Instruments: Recognition and Measurement.
Realised gains and realised losses on de-recognition are determined using the weighted average method and are included in the statement of comprehensive income for the period in which they arise.
19 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) g) Foreign Currency Translation
Functional and presentation currency The Board of Directors considers the United States Dollar as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. The US Dollar is the currency in which the Company measures its performance and reports its results. The Financial Statements are presented in US Dollars, which is the Company’s functional and presentation currency.
Transactions and balances Transactions in currencies other than US Dollars are recorded at the rates of exchange prevailing on the dates of the transactions. Foreign exchange gains and losses arising from the settlement of such transactions and from the translation at year end exchange rates of monetary items and non-monetary assets and liabilities that are denominated in foreign currencies are recognised in the statement of comprehensive income in the period. Foreign exchange gains and losses on financial assets at fair value through profit or loss are recognised together with other changes in the fair value in the line item Net gains on investments. Net foreign exchange gains / (losses) on monetary financial assets and liabilities other than those classified as at fair value through profit or loss are included in the line item Other gains.
As at 30 April 2011, the following closing exchange rates have been used:
1 US$ = 0.9273 AUD 0.9509 CAD 0.8775 CHF 5.095 DKK 0.6833 EUR 0.6069 GBP 7.7711 HKD 8,648.00 IDR 81.76 JPY 1,083.43 KRW 5.3253 NOK 1.2417 NZD 6.1057 SEK 1.2323 SGD 29.95 THB 28.917 TWD
20 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) h) Due from and due to brokers Amounts due from and to brokers represent receivables for securities sold and payables for securities purchased respectively that have been contracted for but not yet settled or delivered on the statement of financial position date. They are measured at amortised cost. i) Cash and cash equivalents Cash and cash equivalents includes cash in hand. j) Other payables and accruals Other payables and accruals are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method. k) Participating redeemable shares The Company issues participating redeemable shares. Furthermore the participating redeemable shares are redeemable at the holder’s option and are thus classified as financial liabilities. Participating redeemable shares can be put back to the Company on each dealing day for cash equal to a proportionate share of the Company’s net asset value.
Participating redeemable shares are issued and redeemed at prices based on the Company’s net asset value per share at the time of issue or redemption. The Company’s net asset value per share is calculated by dividing the net assets attributable to the holders of participating redeemable shares with the total number of outstanding participating redeemable shares. In accordance with the provisions of the Company’s regulations, investment positions are valued based on the last traded market price (bid price) for the purpose of determining the net asset value per share for subscriptions and redemptions. l) Share capital Financial instruments issued by the Company are treated as equity only to the extent that they do not meet the definition of a financial liability. m) Critical accounting judgements and key sources of estimation or uncertainty In the application of the Company’s accounting policies, which are described in note 2 to the Financial Statements, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
i) Critical judgements in applying accounting policies The following are the critical judgements, apart from those involving estimations (see below), that management have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the Financial Statements.
21 World Shariah Funds PCC Limited
NOTES TO THE FINANCIAL STATEMENTS for the period ended 30 April 2011
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) m) Critical accounting judgements and key sources of estimation or uncertainty (continued)
Functional and presentational currency The Board of Directors considers the currency of the primary economic environment in which the Company operates to be US Dollars as this is the currency which in their opinion most fairly represents the economic effects of the underlying transactions, events and conditions.
ii) Key sources of estimation or uncertainty The Board of Directors is of the opinion that there are no key assumptions or other key sources of estimation or uncertainty at the period end date.
22 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
3. NET GAINS/(LOSSES) ON INVESTMENTS Reliance Global Asian Pacific Shariah Growth Shariah Growth Company Total Fund Fund
US$ US$ US$ US$
For the period ended 30 April 2011: Proceeds from sales of investments 4,911,974 3,404,066 - 8,316,040 Original cost of investments sold (4,422,210) (3,387,943) - (7,810,153) Gain realised on investments sold during the period 578,386 174,585 - 752,971 Loss realised on investments sold during the period (88,622) (158,462) (247,084)
Movement in unrealised appreciation for the period 1,535,265 663,625 - 2,198,890 Movement in unrealised depreciation for the period (87,788) (67,614) - (155,402)
Net gains and losses on investments 1,937,241 612,134 - 2,549,375
4. OTHER GAINS Reliance Global Asian Pacific Note Shariah Growth Shariah Growth Company Total Fund Fund
US$ US$ US$ US$ For the period ended 30 April 2011: Reimbursement of expenses 7 65,066 51,787 - 116,853 Other currency gains 2(g) 4,414 11,648 - 16,062
69,480 63,435 - 132,915
5. INVESTMENT INCOME Reliance Global Asian Pacific Shariah Growth Shariah Growth Company Total Fund Fund
US$ US$ US$ US$ For the period ended 30 April 2011: Dividend income 57,496 36,555 - 94,051 Other income 9 - - 9
57,505 36,555 - 94,060
6. CASH AND CASH EQUIVALENTS
For the purposes of the statement of cash flows, cash and cash equivalents, comprise bank balances and cash held by the Company. Cash and cash equivalents at the end of the financial period as shown in the statement of cash flows can be reconciled to the related items in the statement of financial position as follows:
Reliance Global Asian Pacific Shariah Growth Shariah Growth Fund Fund Company Total
US$ US$ US$ US$
Cash and bank balances 340,158 448,213 - 788,371
340,158 448,213 - 788,371
23 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
7. EXPENSES Reliance Global Asian Pacific Note Shariah Growth Shariah Growth Company Total Fund Fund
US$ US$ US$ US$
For the period ended 30 April 2011: Administration fees 18 32,883 18,992 - 51,875 Audit fee 17,316 10,073 - 27,389 Custodian fees 17 18,127 10,468 - 28,595 Legal fees 1,041 1,454 - 2,495 Management fee 16 29,039 16,794 - 45,833 Regulatory fees 2,636 2,461 - 5,097 Formation expenses 241,160 241,136 - 482,296 Bank charges 1,998 916 - 2,914 Registrar fees 22,567 20,283 - 42,850 Listing fees 1,384 1,384 - 2,768 Directors fees, expenses and insurance 22 9,988 6,890 - 16,878 Marketing expenses 19,20 62,378 32,883 - 95,261 Investment management fees 21 29,608 18,172 - 47,780 Performance fees 16 - 3,230 - 3,230 Income purification 2,908 459 - 3,367 Miscellaneous expenses 104 578 - 682
473,137 386,173 - 859,310
A Total Expense Ratio ("TER") cap will apply in respect of each Classes of the Cells as set out below.
The TER cap for each Class is expressed as a percentage of the Net Asset Value for each Class. The defined TER cap includes all and any fees paid by the Company with respect to such Class (except in relation to the performance fees in respect of those Classes for which a performance fee is applicable), and the TER of a given Class will in no event exceed such Classes TER cap as stated below. The Marketing Co-ordinator agrees to bear the risk of any Class exceeding its defined TER cap. Hence , if the TER actually incurred for a given Class should exceed its TER cap, the Marketing Co-ordinator would reimburse the difference to the Class. In the event that the TER actually incurred for a given Class should remain below its TER cap, the residual amount of the TER after deduction of all fees paid by the Company and costs and expenses borne by the Company per annum shall be remitted to the Marketing Co-ordinator. In the current period total expenses exceeded the TER Cap in the Reliance Global and Asian Pacific Cells and reimbursements from the Marketing Co-ordinator were due to the Cells of US$65,071 and US$51,787 respectively (see note 19).
The following TER caps shall be applicable unless any change to the TER cap has been notified to the Shareholders and the Offering Memorandum has been amended accordingly.
Reliance Global Asian Pacific Shariah Growth Shariah Growth Fund Fund
Class A 3.00% 3.00% Class B 4.00% 4.00% Class I 1.50% 1.50%
8. TAXATION
The Company is exempt from taxation in Guernsey under the Income Tax (Exempt Bodies) Guernsey Ordinance 1989.
The Company is subject to withholding tax on dividend income in certain jurisdictions.
With effect from 17 August 2010, the Company has been accepted into the Reporting Fund regime under Regulation 55(1)(a) of The Offshore Funds (Tax) Regulations 2009.
24 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
9. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
(a) Categories of financial instruments As at 30 April 2011 % of net assets attributable to holders of Fair value in participating US$ shares
Financial assets at fair value through profit or loss
Reliance Global Shariah Growth Fund At fair value through profit or loss - Listed equity securities 10,145,552 97.27% Receivables - Cash and bank balances 86,144 0.83% - Debtors and prepayments 340,158 3.26%
Asian Pacific Shariah Growth Fund At fair value through profit or loss - Listed equity securities 4,358,728 90.90% Receivables - Cash and bank balances 256,371 5.35% - Debtors and prepayments 448,213 9.35%
During the period under review, the Company has not reclassified any financial assets from fair value classification to measurement at cost or amortised cost or from a cost or amortised cost measurement to fair value, and all transfers of financial assets fully qualified for de-recognition. All liabilities are held at amorised cost.
(b) Fair value of financial instruments
The following table shows financial instruments recognised at fair value, analysed between those whose fair value is based on:
- Quoted prices in active markets for identical assets and liabilities (Level 1);
- Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
- Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
Level 1 Level 2 Level 3 Total US$ US$ US$ US$
Reliance Global Shariah Growth Fund At fair value through profit or loss - Listed equity securities 10,145,552 -- 10,145,552
Asian Pacific Shariah Growth Fund At fair value through profit or loss - Listed equity securities 4,358,728 -- 4,358,728
25 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
9. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
(b) Fair value of financial instruments (continued)
Reliance Global Asian Pacific Shariah Growth Shariah Growth Company Total Fund Fund
US$ US$ US$ US$ Financial assets at fair value through profit or loss Additions 13,120,285 7,150,660 - 20,270,946 Disposals (4,911,974) (3,404,066) - (8,316,040) Realised gains on sale of investments 578,386 174,585 - 752,971 Realised losses on sale of investments (88,622) (158,462) - (247,084) Cost at end of the period 8,698,075 3,762,717 - 12,460,792 Unrealised gains on investments 1,447,477 596,011 - 2,043,488 Total net investments at fair value at the end of the period 10,145,552 4,358,728 - 14,504,280
The carrying value of all other financial assets and liabilities approximates their fair value.
(c) Net gains on financial assets through profit or loss Reliance Global Asian Pacific Shariah Growth Shariah Growth Company Total Fund Fund For the period ended 30 April 2011 US$ US$ US$ US$ Gains realised on sale of investments held at fair value through profit or loss 578,386 174,585 - 752,971 Losses realised on sale of investments held at fair value through profit or loss (88,622) (158,462) - (247,084) Net realised gains on financial assets held at fair value through profit or loss 489,764 16,123 - 505,887
Unrealised gains on financial assets held at fair value through profit or loss 1,535,265 663,625 - 2,198,890 Unrealised losses on financial assets held at fair value through profit or loss (87,788) (67,614) - (155,402) Net unrealised gains on financial assets held at fair value through profit or loss 1,447,477 596,011 - 2,043,488
10. DEBTORS & PREPAYMENTS Reliance Global Asian Pacific Company Total Shariah Growth Shariah Growth Fund Fund US$ US$ US$ US$ As at 30 April 2011: Expense reimbursements 65,071 51,787 - 116,858 Due from broker - 189,152 - 189,152 Dividends receivable 14,678 8,847 - 23,525 Prepayments 6,395 6,585 - 12,980
86,144 256,371 - 342,515
26 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
11. CREDITORS Reliance Global Asian Pacific Company Total Shariah Growth Shariah Growth Fund Fund US$ US$ US$ US$ As at 30 April 2011: Accruals 81,923 41,893 - 123,816 Management fee payable (note 16) 4,240 2,040 - 6,280 Performance fee payable (note 16) - 3,230 - 3,230 Due to broker - 167,670 - 167,670 Share redemptions payable 55,537 53,305 - 108,842
141,700 268,138 - 409,838
12. SHARES IN ISSUE
The principal rights attaching to the classes of shares are as follows: Management Shares
The Management Shares exist to comply with Guernsey Law. The Management Shares can only be issued at par and are owned by the Manager.
The Management Shares confer upon the holders thereof the right, in a winding up, to repayment of capital subject to the prior repayment of the nominal amount paid up on the Participating Redeemable Shares, but confer no further right to participate in profits or assets of the Company. Management Shares will not entitle the holders thereof to receive any dividends.
At general meetings, in a poll, every holder is not entitled to vote in respect of each Management Share held.
Participating Redeemable Shares
In a winding-up the holders of Participating Redeemable Shares rank ahead of holders of any other class for repayment of the nominal amount paid up on their shares. In addition, they have the right to receive surplus assets available for distribution after repayment of the nominal amounts paid up on the Management Shares and Nominal Shares. The shares confer the right to dividends.
At general meetings, in a poll, every holder is entitled to one vote in respect of each Participating Redeemable Share held. a) Authorised 2011 US$ 1 Management share of no par value 1 500,000,000 Participating Redeemable shares of no par value - 1 b) Issued/ redeemed Reliance Global Asian Pacific Company Total Shariah Growth Shariah Growth Fund Fund
SHARES IN ISSUE No. No. No. No. Management Shares - Issued during the period - - 1 1 As at 30 April 2011: - 1 1
Participating Redeemable Shares Class A GBP - Issued during the period 26,196 24,247 - 50,443 - Redeemed during the period ---- As at 30 April 2011: 26,196 24,247 - 50,443
Participating Redeemable Shares Class A USD - Issued during the period 558,270 333,623 - 891,893 - Redeemed during the period (32,075) - - (32,075) As at 30 April 2011: 526,195 333,623 - 859,818
27 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
12. SHARES IN ISSUE (continued) Reliance Global Asian Pacific Company Total Shariah Growth Shariah Growth Fund Fund
No. No. No. No. Participating Redeemable Shares Class B GBP - Issued during the period 119,536 35,407 - 154,943 - Redeemed during the period (22,713) (21,808) - (44,521) As at 30 April 2011: 96,823 13,599 - 110,422
Participating Redeemable Shares Class B USD - Issued during the period 94,748 42,401 - 137,149 - Redeemed during the period (14,583) (16,098) - (30,681) As at 30 April 2011: 80,165 26,303 - 106,468
Participating Redeemable Shares Class I USD - Issued during the period 19,000 19,000 - 38,000 - Redeemed during the period ---- As at 30 April 2011: 19,000 19,000 - 38,000
Total shares in issue 748,379 416,772 1 1,165,152
US$ US$ US$ US$ SHARE CAPITAL Management Shares Issued during the period - - 1 1 As at 30 April 2011: - - 1 1
Participating Redeemable Shares Class A GBP - Issued during the period 440,196 391,064 - 831,260 - Redeemed during the period ---- As at 30 April 2011: 440,196 391,064 - 831,260
Participating Redeemable Shares Class A USD - Issued during the period 5,963,010 3,427,692 - 9,390,702 - Redeemed during the period (314,014) - - (314,014) As at 30 April 2011: 5,648,996 3,427,692 - 9,076,688
Participating Redeemable Shares Class B GBP - Issued during the period 2,072,424 566,909 - 2,639,333 - Redeemed during the period (423,515) (365,218) - (788,733) As at 30 April 2011: 1,648,909 201,691 - 1,850,600
Participating Redeemable Shares Class B USD - Issued during the period 1,086,499 434,798 - 1,521,297 - Redeemed during the period (175,535) (176,022) - (351,557) As at 30 April 2011: 910,964 258,776 - 1,169,740
Participating Redeemable Shares Class I USD - Issued during the period 190,000 190,000 - 380,000 - Redeemed during the period ---- As at 30 April 2011: 190,000 190,000 - 380,000
Total share capital 8,839,065 4,469,223 1 13,308,289
28 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
13. NET ASSETS ATTRIBUTABLE TO HOLDERS OF PARTICPATING REDEEMABLE SHARES Reliance Global Asian Pacific Total Shariah Growth Shariah Growth Fund Fund US$ US$ US$ As at 30 April 2011 Share Capital 8,839,065 4,469,223 13,308,288 Reserves 1,591,089 325,951 1,917,040 10,430,154 4,795,174 15,225,328
14. NAV RECONCILIATION GBP A Class GBP B Class USD A Class USD B Class USD I Class Total US$ US$ US$ US$ US$ US$
Reliance Global Shariah Growth Fund As at 30 April 2011 Net assets attributable to holders of participating redeemable shares per the statement of financial position 522,832 1,891,964 6,748,058 1,021,380 245,920 10,430,154 Difference due to change in NAV date (3,748) (20,542) (48,371) (7,315) (1,789) (81,765) Difference due to amortised formation costs 12,095 43,636 156,109 23,633 5,687 241,160 Net assets attributable to holders of participating redeemable shares per valuation for dealing purposes at 26 April 2011 531,179 1,915,058 6,855,796 1,037,698 249,818 10,589,549
Asian Pacific Shariah Growth Fund As at 30 April 2011 Net assets attributable to holders of participating redeemable shares per the statement of financial position 413,504 231,070 3,657,042 286,197 207,361 4,795,174 Difference due to change in NAV date 4,173 2,689 36,906 2,896 2,084 48,748 Difference due to amortised formation costs 20,786 11,635 183,833 14,390 10,492 241,136 Net assets attributable to holders of participating redeemable shares per valuation for dealing purposes at 26 April 2011 438,463 245,394 3,877,781 303,483 219,937 5,085,058
The difference in Net assets attributable to holders of participating redeemable shares per the financial statements and that per valuation for dealing purposes is due to formation fees being amortized over five years in the valuations per the scheme particulars and being expensed in the year they are incurred in the Financial Statements in accordance with IFRS and the adjustment for price differences between 26 April 2011 (the last dealing day) and 30 April 2011 (the year end date).
15. RELATED PARTY TRANSACTIONS Mr Clive Standish-White is a Director of the Manager, Argyll Investment Services Limited. Details of the fees paid to the Manager during the period are detailed in note 16. Mr Derek Chambers is CEO of SFM Group, of which, SFM Group International S.A., the Marketing Co-ordinator, and SFM Group o.c.p., a.s., the Marketing Distributor, belong. Fees paid to these entities are detailed in note 19 and note 20.
At the period end, Mr Chambers held the following shares in the Company:
Asian Pacific Shariah Growth Fund USA A Class 25,329.48 Asian Pacific Shariah Growth Fund GBP A Class 1,000.00 Reliance Global Shariah Growth Fund GBP A Class 4,150.00 Reliance Global Shariah Growth Fund USA A Class 13,974.69
16. MANAGEMENT AND PERFORMANCE FEES The fees payable to the Manager by the Company (including each of the Cells) is 0.2% per annum of the Net Asset Value of each Cell subject to a minimum of £40,000 per annum for the first two years in which the management fee accrues. Fees paid to the Manager during the period were US$45,833 of which an amount of US$6,280 was outstanding at the period end.
The Manager is also due a performance fee of 20% of the net increase above 8% of the Net Asset Value of each of the GBP and USD Class I shareholdings. At the year end an amount of US$3,230 was payable to the Manager of the Asian Pacific Shariah Growth Fund as a performance fee. The performance fee is payable at the end of the performance period being the end of the financial year. There is no performance fee payable in relation to the Reliance Global Shariah Growth Fund in relation to the period ended 30 April 2011 as the Manager has elected to waive the fee for the period. This fee is being accrued with effect from 1 May 2011.
29 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
17. CUSTODIAN FEES
The Custodian is entitled to receive a fee based on the Net Asset Value of each Cell of:
- 0.10% where the Net Asset Value of the Cell is between US$Nil and US$75 million; - 0.075% where the Net Asset Value of the Cell is between US$75 million and US$150 million; and - 0.05% where the Net Asset Value of the Cell is above US$150 million
The fees payable to the Custodian by each Cell are subject to an overall minimum fee in respect of all cells of: a) US$40,000 for the 12 month period from the effective date of the Custodian Agreement; and b) US$60,000 for each 12 month period following the 12 month period from the effective date of the Custodian Agreement
The Custodian was entitled to receive a take on fee capped at US$20,000.
The Custodian is also entitled to a Global Custody Services Fee for each market of an investment made up of a safekeeping fee which is charged on a per country basis as a percentage of the net asset value of each Cell and a transaction fee as an individual charge per transaction on a per country basis.
18. ADMINISTRATION FEES
The Company administrators are Legis Fund Services Limited. The fees payable to the Administrator by each Cell are 0.125% per annum of the Net Asset Value of each Cell subject to the receipt of a minimum of £20,000 per annum in respect of all of the cells. Additionally, the Administrator is entitled to receive a fee of £10,000 per annum for the preparation of annual financial statements, £7,000 per annum for the preparation of interim financial statements and £10,000 per annum for company secretarial services, including quarterly board meetings. The Administrator was entitled to a take on fee capped at £30,000, in respect of both cells.
19. MARKETING CO-ORDINATOR FEES
The fees payable by each Cell to the Marketing Co-ordinator shall be 0.25% per annum of the Net Asset Value of the Cell calculated weekly and payable monthly in arrears. Fees paid to the Marketing Co-ordinator during the period were US$95,261.
In accordance with the Total Expense Ratio cap (see note 7), the following net amounts are due to the Company from the Marketing Co-ordinator:
GBP A Class GBP B Class USD A Class USD B Class USD I Class Total US$ US$ US$ US$ US$ US$
Reliance Global Shariah Growth Fund 2,934 45,284 8,724 5,051 3,078 65,071
Asian Pacific Shariah Growth Fund 3,359 36,165 4,253 4,450 3,560 51,787
20. MASTER DISTRIBUTOR FEES i. Subscription charges In respect of the Class A and Class I shares of each Cell, the Manager shall pay the Master Distributor 100% of any and all subscription charges received from or on behalf of Participating Shareholders. ii. Redemption charges In respect of the Class B shares of each Cell, the Manager shall pay the Master Distributor 100% of any and all redemption charges received from or on behalf of Participating Shareholders.
The Master Distributor is entitled to receive a fee from:
(a) each of the A Class Shares of a Cell at a rate of 0.75% per annum of the Net Asset Value of the relevant class of Participating Redeemable Shares to be accrued weekly and payable monthly in arrears; (b) each of the B Class Shares of a Cell at a rate of 0.75% per annum of the Net Asset Value of the relevant class of Participating Redeemable Shares to be accrued weekly and payable monthly in arrears; and (c) each of the I Class Shares of a Cell at a rate of 0.18% per annum of the Net Asset Value of the relevant class of Participating Redeemable Shares to be accrued weekly and payable monthly in arrears
The Manager shall pay 25% of the performance fee received by the Manager to the Master Distributor as set out in the supplement of the Scheme Particulars relating to each Cell. The performance fee is calculated as 20% of the net increase of above 8% of the NAV of each of the GBP I Class and USD I Class, subject to a high water mark, being the highest NAV of the respective class on which a performance fee has been paid in a preceding performance period.
An ongoing supplemental charge of 1% per annum of the subscription amount for B Class Shares of each Cell shall be calculated and payable monthly in arrears by the Company to the Master Distributor.
The fees payable to the Manager in connection with the conversion of shares of the Company from one class of a Cell to another as set out in the Offering Memorandum shall be payable by the Manager to the Master Distributor.
30 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
21. INVESTMENT MANAGEMENT FEES
The Investment Managers of each Cell are entitled to receive a fee from:
(a) the A Class Shares of the Cell at a rate of 0.5% per annum of the Net Asset Value of that class to be accrued weekly and payable monthly in arrears;
(b) the B Class Shares of the Cell at a rate of 0.5% per annum of the Net Asset Value of that class to be accrued weekly and payable monthly in arrears; and
(c) the I Class Shares of the Cell at a rate of 0.12% per annum of the Net Asset Value of that class to be accrued weekly and payable monthly in arrears.
In addition, the manager shall pay to the Investment Manager 75% of the performance fee received by the Manager as set out in the supplement to the Scheme Particulars relating to the Cell.
22. DIRECTORS' FEES
David Whitworth is entitled to a fee of £10,000 per annum from the date of incorporation. Mr Derek Chambers and Mr Clive Standish-White are both due a fee of £7,500 per annum but have agreed to waive any fees as Directors of the Company for one year from the date of their appointment.
All Directors are also entitled to reimbursement of out of pocket expenses properly incurred in the performance of their duties.
23. FINANCIAL INSTRUMENTS a) Financial risk management objectives and policies
The General Investment Restrictions and the Fund Particulars set out the risk management policies and guidelines for each of the Cells operated by the Company. They include the Cells’ investment objectives, which are shown on page 1 of these financial statements, their tolerance of risk and their general risk management philosophy. The main risks are summarised below. b) Market price risk
Each Cell may be prone to changing market conditions as a result of: (a) Global, regional or national economic conditions; (b) Governmental policies or political progression; (c) Development in regulatory framework, law and legal issues; (d) General movements in interest rates; (e) Broad investor sentiment; and (f) External shocks (e.g. natural disasters, war etc.)
All of the above may result in uncertainties and fluctuations in the price of the underlying securities of each of the Cell’s investment Assets. Such movements in the underlying values of the securities may cause the Net Asset Value or proceeds of Shares to fall as well as rise, and income produced by a Cell may also fluctuate. The market risk can be managed by ensuring a rigorous review of macroeconomic trends by the Manager and/or investment Managers to determine investments in markets that are not highly correlated.
Although movements in interest rates may affect the value of investments, it does not suggest that the Cells invest in interest bearing instruments. The interest rate referred herein is to the general interest rate of the country, which may affect the value of a Cell’s Investment Assets.
Price sensitivity
At 30 April, 2011, if market prices had been 20% higher with all other variables held constant, the net assets attributable to holders of the participating shares for the period would have been US$2,900,856 higher, arising due to the increase in the fair value of financial assets at fair value through profit or loss.
At 30 April, 2011, if market prices had been 20% lower with all other variables held constant, the net assets attributable to holders of the participating shares for the period would have been US$2,900,856 lower, arising due to the decrease in the fair value of financial assets at fair value through profit or loss.
31 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
23. FINANCIAL INSTRUMENTS (CONTINUED) c) Risk of Shariah non-compliance
As each of the Cells invests only in securities of companies whose principal activities comply with Shariah requirements, it may be subject to a higher level of risk than a portfolio which is not subject to any specific requirements. Furthermore, there is an inherent risk of the reclassification of Shariah status risk, where the currently held Shariah-compliant securities in the relevant Cell’s portfolio may be re-designated as non Shariah-compliant securities. If this occurs, the value of the relevant Cell may be adversely affected where the Manager and/or Investment Managers will take the necessary steps to dispose of such securities in accordance with the rules of divestment of non Shariah-compliant securities as detailed in the Shariah Investments Guidelines section of each supplement to the Offering Memorandum. The Company monitors this risk through the appointment of a Shariah Advisory committee which review the investment portfolio and advise on any potential acquisitions.
d) Credit risk
All of the Company's cash balances are held by State Street Trustees (Guernsey) Limited ("State Street") and bankruptcy or insolvency of the bank may cause the Company's rights with respect to the cash held by them to be delayed or limited and in the worst case scenario, could be subject to total loss. The Company monitors the credit quality of State Street on a regular basis.
The Company's custodian is also State Street Trustees (Guernsey) Limited. Bankruptcy or insolvency of the Custodian may cause the Company's rights with respect to investments held by the Custodian to be delayed. Investments held by the Custodian are ring-fenced and will be protected should the Company become bankrupt or insolvent. e) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. It does not in any way suggest that the Company will invest in non Shariah-compliant financial instruments.
The Company’s exposure to interest rate risk is limited as the Company has not invested in interest bearing securities at the period end nor does it have any cash held on interest bearing accounts. f) Currency risk
Foreign currency risk is the risk that the value of financial assets and liabilities will fluctuate because of changes in foreign currency rates. The Company’s exposure to foreign currency risk is detailed as follows:
Assets as at 30 Liabilities as at April 2011 30 April 2011 Total
US$ US$ US$
Reliance Global Shariah Growth Fund Australian Dollar 362,473 - 362,473 Canadian Dollar 586,472 - 586,472 Danish Krone 254,575 - 254,575 Euro 751,898 - 751,898 Hong Kong Dollars 33,053 - 33,053 Japanese Yen 704,744 - 704,744 New Zealand Dollar 170,370 - 170,370 Norwegian Krone 312,249 - 312,249 Singapore Dollars 33,967 - 33,967 Sterling 988,442 (55,341) 933,101 Swedish Krone 175,528 - 175,528 Swiss Franc 102,667 - 102,667 4,476,438 (55,341) 4,421,097
Assets as at 30 Liabilities as at April 2011 30 April 2011 Total
US$ US$ US$
Asian Pacific Shariah Growth Fund Australian Dollar 992,663 - 992,663 Hong Kong Dollar 997,499 (167,670) 829,829 Indonesian Rupiah 251,883 - 251,883 Singapore Dollars 392,251 - 392,251 South Korean Won 1,090,481 - 1,090,481 Sterling 5,546 (40,090) (34,544) Taiwan Dollars 853,721 - 853,721 Thai Bhat 38,169 - 38,169 4,622,214 (207,760) 4,414,453 32 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
23. FINANCIAL INSTRUMENTS (CONTINUED)
Foreign currency sensitivity At 30 April 2011, the Company is mainly exposed to AUD, EUR, HKD, GBP, JPY, KRW and TWD. If the US$ had weakened 10% against AUD, EUR, HKD, GBP, JPY, KRW and TWD with all other variables held constant, the net assets attributable to holders of participating shares would have been US$651,742 lower, arising as a result of an increase in the fair value of foreign currency denominated financial liabilities set off by the increase in foreign currency denominated financial assets.
Conversely, if the US$ had strengthened 10% against AUD, EUR, HKD, GBP, JPY, KRW and TWD the net assets attributable to holders of participating shares would have had the equal but opposite effect. g) Liquidity risk
Liquidity risk is defined as the ease with which a security can be sold at or near its fair value depending on the volume traded on the market. This is applicable to both listed and unquoted securities. Generally, if the security encounters a liquidity crunch, the security may need to be sold at a discount to the fair value of the security. This in turn would depress the Net Asset value growth of the relevant Cell. For the purpose of each Cell, the Manager and/or Investment Managers will attempt to balance the entire portfolio by investing in a mix of assets with satisfactory trading volumes and those that occasionally could encounter poor liquidity. This is expected to reduce risks for the entire portfolio without limiting the relevant Cell’s growth potential.
The maturity of the Cells' cash and investment assets and liabilities (excluding redeemable shares) relating to the cash and investing activities as at 30 April 2011 were as follows:
Reliance Global Shariah Growth Asian Pacific Shariah Growth Fund Fund Assets Liabilities Assets Liabilities US$ US$ US$ US$
In 1 year or less 86,144 141,700 256,371 268,138 In more than 1 year but less than 2 years - - - - In more than 2 years but less than 5 years - - - - In more than 5 years - - - - No date 10,485,710 - 4,806,941 - 10,571,854 141,700 5,063,312 268,138
The ability to realise the assets in a timely manner will affect the ability of the Company to repay its redeemable shareholders. Should the Manager and Custodian deem it necessary they have the option to suspend dealing in the fund if they believe it is in the interests of shareholders.
Liquidity risk arises as a result of the Company not having sufficient cash to meet liabilities as they fall due. The Directors have the ability to limit redemptions to 10% of the Net Asset Value of the Cell on any Redemption day and Redemption requests being paid within ten business days after each Dealing day.
h) Capital management
The capital of the Company is managed in accordance with the Company's investment objectives and policies. This includes the Directors having the ability to limit the value of shares redeemed on a redemption day to 10% of the Net Asset Value of the Cell and Redemption requests being paid within ten business days after each Dealing day.
The capital structure of the Company consists of cash and bank balances and proceeds from the issue of participating shares.
The Directors and the Manager review the capital structure and, as part of this review, the Manager considers the cost of capital and the risks associated.
The Company is not subject to externally imposed capital requirements.
33 WORLD SHARIAH FUNDS PCC LIMITED
NOTES TO THE AUDITED FINANCIAL STATEMENTS (CONTINUED)
for the period ended 30 April 2011
24. EARNINGS PER SHARE
Basic and diluted earnings per share are calculated based on total comprehensive income for the period divided by the weighted average number of shares in issue for the period.
Earnings Per Share - Total Comprehensive Income Per Class
Reliance Global Asian Pacific Shariah Shariah Growth Growth Fund Fund US$ US$
A - GBP class 82,636 22,440 B - GBP class 243,055 29,379 A - USD class 1,099,062 229,350 B - USD class 110,416 27,421 I - USD class 55,920 17,361
1,591,089 325,951
Weighted average number of shares per class
Reliance Global Asian Pacific Shariah Shariah Growth Growth Fund Fund US$ US$
A - GBP class 17,470 17,373 B - GBP class 58,101 18,023 A - USD class 425,209 271,633 B - USD class 47,373 29,011 I - USD class 19,000 19,000
25. POST BALANCE SHEET EVENTS
On 27 July 2011, Mr Derek Chambers sold 13,833.38 USD A Class shares in Asian Pacific Shariah Growth Fund and 13,974.69 USD A Class shares in Reliance Global Shariah Growth Fund.
As of 9 August 2011, the unaudited Net Asset Value of each Cell was as follows:
GBP A Class GBP B Class USD A Class USD B Class USD I Class GBP GBP US$ US$ US$
Reliance Global Shariah Growth Fund 11.14 10.85 11.60 11.50 11.76
Asian Pacific Shariah Growth Fund 8.98 8.83 9.36 9.26 9.36
34 WORLD SHARIAH FUNDS PCC LIMITED
PORTFOLIO STATEMENT
as at 30 April 2011
ASIAN PACIFIC SHARIAH GROWTH FUND LISTED INVESTMENTS MARKET % HOLDING VALUE OF NET US$ ASSETS Australian Dollars (19.59%) Alumina Limited 38,230 93,174 1.94% BHP Billiton Limited 6,378 315,220 6.57% Brambles Limited 13,459 97,680 2.04% Incitec Pivot Limited 14,805 60,031 1.25% Linc Energy Limited 33,000 96,797 2.02% OZ Minerals Limited 97,457 151,341 3.16% Telstra Corp Limited 25,044 78,592 1.64% Worley Parsons Limited 1,426 46,672 0.97% 939,507 19.59%
Hong Kong Dollars (17.81% Anta Sports Products Limited 65,000 105,056 2.19% Belle International Holdings Limited 63,000 122,902 2.56% CNOOC Limited 40,000 98,622 2.06% Cosco Pacific Limited 64,000 132,429 2.76% Petrochina Co Limited 108,000 155,098 3.23% Sa Sa International Holdings Limited 228,000 136,429 2.85% Xinyi Glass Holdings Limited 86,000 103,584 2.16% 854,120 17.81%
Indonesian Rupiah (5.25%) PT Ramayana Lestari Sentosa TBK 394,000 33,259 0.69% PT Semen Gresik 55,000 60,419 1.26% Tambang Batubara Bukit Asam 40,500 104,435 2.18% United Tractors TBK 20,000 53,770 1.12% 251,883 5.25%
Singapore Dollars (7.19%) Golden Agri-Resource Limited 178,000 96,056 2.00% Keppel Corp Limited 11,000 106,224 2.22% Sembcorp Marine Limited 31,000 142,636 2.97% 344,916 7.19%
South Korean Won (21.07%) Hyundai Engineering & Construction 1,968 163,299 3.41% Hyundai Mobis 748 247,854 5.17% LG Display Co Limited 5,380 191,180 3.99% Oci Co Limited 281 165,991 3.46% Samsung Electric Co Limited 293 241,501 5.04% 1,009,825 21.07%
Taiwan Dollars (14.42%) Chungwa Telecom Co 18,400 57,967 1.21% Formosa Plastics Corporation 28,000 113,290 2.36% Hon Hai Precision Industry 23,000 86,299 1.80% HTC Corporation Limited 5,000 224,777 4.69% Nan Ya Plastics Corporation 23,000 69,834 1.46% Taiwan Semiconductor 55,000 139,226 2.90% 691,393 14.42%
Thai Bhat (0.78%) PTT Exploration & Production Public 6,000 37,262 0.78% 37,262
35 WORLD SHARIAH FUNDS PCC LIMITED
PORTFOLIO STATEMENT (CONTINUED)
as at 30 April 2011
MARKET % HOLDING VALUE OF NET US$ ASSETS
United States Dollars (5.77%) Ctrip.Com International Limited 2,400 116,928 2.44% Infosys Technologies SP ADR 829 54,034 1.12% Sterlite Industries (India) Limited 3,600 58,860 1.23% 229,822 4.79%
Total Investments (91.88%) 4,358,728 90.90%
Cash (9.35%) 448,213 9.35%
Other Net Liabilities (-1.23%) (11,767) (0.25)% Net assets attributable to holders of redeemable participating shares 4,795,174 100.00%
36 WORLD SHARIAH FUNDS PCC LIMITED
PORTFOLIO STATEMENT
as at 30 April 2011
RELIANCE GLOBAL SHARIAH GROWTH FUND LISTED INVESTMENTS MARKET % HOLDING VALUE OF NET US$ ASSETS Australian Dollars (3.56%) BWP Trust 36,904 70,640 0.68% Coal & Allied Industries 1,243 149,581 1.43% Medusa Mining Limited 6,653 57,612 0.55% Mount Gibson Iron Limited 41,748 84,640 0.81% 362,473 3.47%
Canadian Dollars (5.64%) Anvil Mining Limited 5,729 38,499 0.37% B2Gold Corporation 15,972 54,085 0.52% Baytex Energy Corporation 1,758 108,024 1.04% Equinox Minerals Limited 17,582 149,767 1.44% Golden Star Resources Limited 10,992 35,372 0.34% Imperial Oil Limited 1,560 82,028 0.79% Transglobe Energy Corporation 8,173 118,697 1.13% 586,472 5.63%
Danish Krone (2.43%) Coloplast A/S 1,032 149,887 1.44% Novo Nordisk A/S 838 104,688 1.00% 254,575 2.44%
Euro (7.14%) Diasorin S.p.A. 2,676 127,632 1.22% Fugro NV 989 89,637 0.86% Mayr-Melnof Karton AG 329 39,482 0.38% Nokia Oyj 5,548 50,503 0.48% Orion Oyj 1,002 24,606 0.24% Recordati S.p.A. 12,934 135,245 1.30% SEB SA 449 48,770 0.47% SMA Solar Technology AG 320 37,695 0.36% Total SA 405 25,617 0.25% Vacon Oyj 392 26,791 0.26% Viscofan SA 3,260 142,032 1.35% 748,010 7.17%
Hong Kong Dollars (0.32%) Power Asset Holdings Limited 4,726 33,053 0.32% 33,053
Japanese Yen (7.03%) Adeka Corporation 3,892 38,035 0.36% Hokuto Corporation 2,814 62,193 0.60% Kaken Pharmaceutical Co Limited 2,570 32,911 0.32% Kewpie Corporation 3,900 46,222 0.44% Megmilk Snow Brand Co Limited 4,700 71,857 0.69% Miraca Holdings Inc 2,537 95,262 0.91% Nihon Kohden Corporation 4,900 103,022 0.99% Sawai Pharmaceutical Co Limited 1,061 94,083 0.90% Toagosei Co Limited 29,000 154,647 1.48% 698,232 6.69%
New Zealand Dollars (1.62%) Ryman Healthcare Limited 83,287 170,370 1.63% 170,370
Norwegian Krone (2.92%) Kongsberg Gruppen 5,149 158,571 1.52% TGS Nopec Geophysical Co ASA 5,926 153,678 1.47% 312,249 2.99%
37 WORLD SHARIAH FUNDS PCC LIMITED
PORTFOLIO STATEMENT (CONTINUED)
as at 30 April 2011
MARKET % HOLDING VALUE OF NET US$ ASSETS
Singapore Dollars (0.32%) Straits Asia Resources Limited 14,189 33,967 0.33% 33,967
Sterling (9.40%) Aggreko Plc 5,241 154,320 1.48% Aveva Group Plc 929 24,507 0.23% Hochschild Mining Plc 4,758 47,823 0.46% IMI Plc 4,497 80,915 0.78% Petrofac Limited 6,572 163,515 1.57% Renishaw Plc 5,495 159,988 1.53% Rightmove Plc 3,676 64,204 0.62% Soco International Plc 24,000 154,187 1.48% Spectris Plc 3,078 75,213 0.72% W.H. Smith Plc 6,851 53,056 0.51% 977,728 9.38%
Swedish Krone (1.66%) Atlas Copco AB 1,893 55,001 0.53% Billerud Aktiebolag 5,750 69,218 0.65% Teliasonera AB 6,190 50,021 0.48% 174,240 1.66%
Swiss Franc (0.99%) Zehnder Group AG 33 102,667 0.98% 102,667
US Dollars (54.55%) 3M Co 1,314 127,734 1.21% Aaron's Inc 1,177 33,886 0.32% Advance Auto Parts Inc 2,151 140,804 1.34% American Science & Engineering Inc 1,534 135,145 1.29% Amgen Inc 823 46,788 0.45% Ansys Inc 863 47,715 0.46% BMC Software Inc 1,211 60,829 0.58% Bristol-Myers Squibb Co 6,566 184,505 1.77% CA Inc 2,359 58,008 0.56% Cadence Design Systems Inc 5,313 55,149 0.53% Chevron Corporation 1,402 153,435 1.47% Colfax Corporation 6,500 142,025 1.36% Compuware Corporation 11,418 129,366 1.24% ConocoPhillips 2,926 230,949 2.21% Core Labs NV 1,211 116,232 1.11% Cummins Inc 401 48,192 0.46% Darling International Inc 9,999 161,684 1.55% Devry Inc 2,246 118,813 1.14% Dollar Tree Inc 2,550 146,625 1.41% Donaldson Company Inc 1,013 62,026 0.59% Dover Corporation 1,158 78,790 0.76% Ebix Inc 847 19,354 0.19% Eli Lilly & Company 3,749 138,750 1.33% EMC Corp 6,874 194,809 1.87% Freeport-McMorran Copper & Gold 976 53,709 0.51% Gilead Sciences Inc 3,972 154,272 1.48% Gulfport Energy Corp 1,705 58,038 0.56% H.B. Fuller Company 3,395 74,181 0.71% Hansen Natural Corp 1,575 104,186 1.00% Hershey Co 1,593 91,932 0.88% Carried forward 3,167,931
38 WORLD SHARIAH FUNDS PCC LIMITED
PORTFOLIO STATEMENT (CONTINUED)
as at 30 April 2011
MARKET % HOLDING VALUE OF NET US$ ASSETS
Brought forward 3,167,931 Hubbel Inc 1,292 90,427 0.87% Intel Corporation 2,641 61,245 0.59% Intuit Inc 2,942 163,458 1.57% Lawson Software Inc 5,709 63,199 0.61% Liveperson Inc 6,044 80,748 0.77% Mattel Inc 1,994 53,280 0.51% McCormick & Company 936 45,976 0.44% Mentor Graphics Corp 7,546 111,304 1.07% Middleby Corporation 1,178 105,631 1.01% Millicom International Cellular SA 315 34,115 0.33% National Oilwell Varco Inc 2,094 160,589 1.53% Nu Skin Enterprises Inc 4,434 142,287 1.36% O'Reilly Automotive Inc 776 45,831 0.44% Packaging Corporation of America 4,567 130,297 1.25% Parametric Technology Corporation 2,226 54,025 0.52% PSS World Medical Inc 4,871 140,090 1.34% Quest Software Inc 2,178 56,105 0.54% Red Hat Inc 1,852 87,914 0.84% Rollins Inc 2,632 55,193 0.53% Ross Stores Inc 1,677 123,578 1.18% Sonoco Products Co 1,930 66,701 0.64% Starbucks Corporation 1,428 51,679 0.50% TE Connectivity Limited 4,365 156,485 1.50% The Brinks Company 4,119 135,968 1.30% The Coca Cola Company 1,006 67,865 0.65% Tibco Software Inc 5,130 153,849 1.48% TJX Companies Inc 488 26,167 0.25% W.W. Grainger Inc 393 59,579 0.57% 5,691,516 54.55%
Total Investments (97.26%) 10,145,552 97.27%
Cash (3.27%) 340,158 3.26%
Other Net Liabilities (-0.53%) (55,556) (0.53)% Net assets attributable to holders of redeemable participating shares 10,430,154 100.00%
39 WORLD SHARIAH FUNDS PCC LIMITED
SUMMARY OF SIGNIFICANT PORTFOLIO CHANGES
for the period ended 30 April 2011
ASIAN PACIFIC SHARIAH GROWTH FUND
TOP TWENTY PURCHASES HOLDING COST* No. US$
Samsung Electronics Co Limited 378 267,815 BHP Billiton Limited 3,216 120,397 Hyundai Mobis Co Limited 400 104,428 Linc Energy Limited 33,000 101,779 LG Display Co Limited 2,720 101,084 LG Display Co Limited 2,660 98,204 Oz Minerals Limited 55,615 95,437 BHP Billiton Limited 2,784 94,806 Oci Co Limited 281 93,381 Sembcorp Marine Limited 21,000 93,080 Hyundai Engineering Co Limited 1,141 90,153 BHP Billiton Limited 2,000 79,124 Samsung Sdi Co Limited 530 77,169 Ctrip.Com Intl Limited 1,771 73,352 HTC Corporation 3,000 69,918 Oz Minerals Limited 41,842 67,569 Singapore Airlines Limited 6,000 67,385 Hyundai Engineering Co Limited 827 61,237 Banpu Public Co Limited 2,400 60,719 Brambles Limited 8,200 60,286
Total Top Twenty Purchases 1,877,323
TOP TWENTY SALES HOLDING PROCEEDS* No. US$
Samsung Electronics Co Limited 168 136,034 BHP Billiton Limited 2,565 109,468 Samsung Sdi Co Limited 640 97,159 Banpu Public Co Limited 3,800 96,178 CSL Limited 2,386 91,000 Seek Limited 12,996 90,715 Timah Tbk PT 300,500 85,001 Taiwan Fertilizer Co Limited 29,000 84,219 Gintech Energy Corporation 30,000 81,096 Posco Manufactures 702 77,716 Golden Agri-Resources Limited 134,000 73,724 Leighton Holdings Limited 2,294 69,245 Dr. Reddy's Laboratories Limited 1,925 68,440 China Coal Energy Co Limited 42,000 65,154 Semen Gresik PT 56,000 61,762 BHP Billiton Limited 1,308 60,597 Caltex Australia Limited 5,100 60,354 Geely Automobile Holdings Limited 125,000 59,369 Geely Automobile Holdings Limited 120,000 55,124 Yanzhou Coal Mining Co Limited 20,000 55,027
Total Top Twenty Sales 1,577,382
* based on value of transactions
40 WORLD SHARIAH FUNDS PCC LIMITED
SUMMARY OF SIGNIFICANT PORTFOLIO CHANGES
for the period ended 30 April 2011
RELIANCE GLOBAL SHARIAH GROWTH FUND
TOP TWENTY PURCHASES HOLDINGS COST* No. US$
TE Connectivity Limited 5,114 181,078 EMC Corporation 6,874 179,143 Miraca Holdings Inc 4,540 172,661 Coloplast A/S 1,291 172,123 American Science & Engineering Inc 1,897 164,184 ConocoPhillips 2,655 162,861 Aveva Group Plc 6,492 161,077 Gilead Sciences Inc 3,972 150,764 Compuware Corporation 13,597 142,881 Toagosei Co Limited 29,000 141,328 Eli Lilly & Company 3,749 132,414 Dollar Tree Inc 2,282 119,396 Coal & Allied Industries Limited 1,010 118,886 Diasorin SpA 2,676 117,213 National Oilwell Varco Inc 1,424 112,857 Kongsberg Gruppen ASA 5,217 110,173 Soco International Plc 19,762 105,417 Nihon Kohden Corporation 4,900 105,045 Cameco Corporation 2,650 104,197 Baytex Energy Corporation 1,758 100,363
Total Top Twenty Purchases 2,754,061
TOP TWENTY SALES HOLDINGS PROCEEDS* No. US$
Cameco Corporation 4,407 137,241 Aveva Group Plc 4,519 116,290 Asahi Kasei Corporation 14,845 88,049 Chevron Corporation 989 87,910 Pall Corporation 1,664 87,398 Adeka Corporation 7,708 82,550 Blackpearl Resources Inc 18,193 80,787 Investor AB 3,496 79,166 Chevron Corporation 939 77,586 Hokuto Corporation 3,381 77,360 IBM Corporation 537 76,863 Iress Market Technology Limited 8,537 75,011 Marathon Oil Corporation 2,157 73,376 Carbo Ceramics Inc 578 72,736 Silvercorp Metals Inc 5,904 70,604 Kaken Pharmaceuticals Co Limited 5,767 69,748 Sika AG 30 69,426 Automatic Data Processing Inc 1,389 65,146 Oracle Corporation 2,369 64,672 Orion Oyj 2,960 64,275
Total Top Twenty Sales 1,616,194
* based on value of transactions
41 World Shariah Funds PCC Limited
RELIANCE GLOBAL SHARIAH GROWTH FUND
ASIAN PACIFIC SHARIAH GROWTH FUND
The Shariah Adviser of World Shariah Funds PCC Limited in relation to the Cells confirms that the business of the Reliance Global Shariah Growth Fund and Asian Pacific Shariah Growth Fund was conducted in a Shariah Compliant manner for the financial period ending 30 April 2011.
Abdul Ghani Endut CIMB Islamic Bank Berhad
42
WORLD SHARIAH FUNDS PCC LIMITED Registered Office Address: 11 New Street, St. Peter Port, Guernsey, GY1 2PF Registration Number: 51802
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of World Shariah Funds PCC Limited (the “Company”) will be held at Legis House, 11 New Street, St Peter Port, Guernsey, GY1 2PF on Thursday 20 October 2011 at 10:00 a.m. to transact the business set out in the following Resolutions. Resolutions 1 to 3 (inclusive) will be proposed as Ordinary Resolutions.
RESOLUTIONS
1. To receive and adopt the annual report and audited financial statements for the period from incorporation 23 April 2010 to 30 April 2011.
2. To re-appoint Deloitte LLP as auditor of the Company until the conclusion of the next general meeting at which accounts are laid before the Company.
3. To authorise the Directors of the Company to determine the remuneration of the auditor.
By Order of the Board
Legis Fund Services Limited Administrator and Secretary Legis House, 11 New Street St. Peter Port, Guernsey, GY1 2PF
25 August 2011
NOTES
1. A shareholder entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and, on a poll, to vote in his stead. Such proxy need not be a member of the Company. 2. A form of proxy is enclosed and to be valid must be lodged with the Secretary at the Company’s registered office, c/o Legis Fund Services Limited, PO Box 91, 11 New Street, St Peter Port, Guernsey, GY1 3EG, Channel Islands not less than 48 hours before the time fixed for the meeting. 3. If you do not intend to attend the meeting please complete and return the form of proxy as soon as possible.
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WORLD SHARIAH FUNDS PCC LIMITED (“the Company”)
Form of Proxy
For use at the Annual General Meeting of the Company scheduled to be held on Thursday 20 October 2011 at 10:00 a.m.
I /We ( registered shareholder ),…………………………………………………………………….…… of ( registered address ),……………………………………………………………………………..…… being (a) Member(s) of the above named Company hereby appoint the Company Secretary/Chairman of the Meeting or
...... (see note 2) as my/our proxy to attend represent and vote for me/us on our behalf at the Annual General Meeting of the Company to be held on Thursday 20 October 2011 at 10:00 a.m. and at any adjournment thereof.
Please indicate with an “X” in the spaces below how you wish your votes to be cast in respect of the resolutions which are set out in the Notice convening the Meeting. If no specific direction as to voting is given, your proxy will vote or abstain at his or her discretion.
Ordinary Resolutions For Against Abstain
1. To receive and adopt the annual report and audited financial statements for the period from incorporation 23 April 2010 to 30 April 2011. 2. To re-appoint Deloitte LLP as auditor of the Company until the conclusion of the next general meeting at which accounts are laid before the Company.
3. To authorise the Directors of the Company to determine the remuneration of the auditor.
Date...... Signature......
Proxy Notes:
1. This form is for the use of shareholders only and will be used only for the purpose of demanding or voting on a poll. 2. You may, if you wish, delete the words ‘the Company Secretary/Chairman of the Meeting’ and substitute the name(s) of your choice. Please initial such alteration. 3. To be effective the form must be returned to The Secretary, Legis Fund Services Limited, P O Box 91, Legis House, 11 New Street, St Peter Port, Guernsey, GY1 3EG, so as to be received not later than 48 hours before the time appointed for the meeting (or any adjourned meeting). 4. In the case of a corporation, the form must be executed under its common seal or under the hand of an officer or attorney duly authorised in writing. 5. In the case of joint holders, the signature of any one of them will suffice, but the names of all joint holders should be shown. The vote of the senior joint holder who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders and for this purpose seniority shall be determined by the order in which the names stand in the Register of Members in respect of the joint holding.
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