There were no material changes that occurred during the period that affected the performance of the fund. The Fund Manager has exercised voting rights, for more details please refer to the “Exercise of Voting Rights appendix”. Roles and Responsibilities of the Fund Board هتايلوؤسمو قودنسلا ةرادإ سلجم راودأ .ج The responsibilities of the members of the fund board.
Monitoring and, if necessary, approving or ratifying potential conflicts of interest identified by the fund manager. Ensuring that the fund manager fulfills its obligations in the best interests of the unitholders in accordance with the IFR and the terms of the fund. Keeping minutes of the meetings, which contain all the discussions and facts of the meetings and the decisions made by the board of directors of the fund.
A statement of any conflict or potential conflict of interest between the interests of a fund board member and the interests of the fund. قودنسلا حلاصمو Members of the Fund Board may be members of others. funds that may seek investment objectives similar to those of the Fund. Therefore, in the exercise of his business, a member of the Fund Board may find himself in a situation of potential conflict of duties or interests with one or more funds.
عقد مجلس إدارة الصندوق ثلاثة اجتماعات.
Names and addresses of Sub-Manager / Investment Adviser
Period for the management of the person registered as fund manager
A disclosure of the expense ratio of each underlying fund at end of year and the weighted average expense
The custodian will be held responsible towards the fund manager and unit holders for any losses caused to the investment fund as a result of the custodian's fraud, negligence, misconduct or willful default. The custodian will be responsible for taking custody and protecting the fund's assets on behalf of unitholders, and taking all necessary administrative measures in relation to the custody of the fund's assets. In relation to investment funds, the fund operator will be responsible for the operation of the investment fund.
The fund operator must keep the books and records relating to the operation of the fund it operates. The fund operator must establish and maintain a register of unitholders in the Kingdom in accordance with the Investment Fund Regulations. The fund operator will be responsible for the process of dividend distribution (if available) to shareholders.
The fund operator must process requests for subscriptions or redemptions according to the fund's Terms and Conditions. The fund operator will be responsible for calculating the price of the units and valuing the assets of the fund. By doing so, the fund operator will provide a full and fair valuation according to the fund's Terms &.
SNB CAPITAL GCC TRADING EQUITY FUND (formerly known as AlAhli GCC Trading Equity Fund). Managed by SNB Capital Company – formerly known as NCB Capital Company). SNB CAPITAL GCC TRADING EQUITY FUND (FORMERLY KNOWN AS ALAHLI GCC TRADING EQUITY FUND). Managed by SNB Capital Company - formerly known as NCB Capital Company). SNB CAPITAL GCC TRADING EQUITY FUND (FORMERLY KNOWN AS ALAHLI GCC TRADING EQUITY FUND). Managed by SNB Capital Company - formerly known as NCB Capital Company) NOTES TO THE FINANCIAL STATEMENTS.
SNB Capital GCC Trading Equity Fund (formerly known as AlAhli GCC Trading Equity Fund) (the. “Fund”) is an open-end Shariah-compliant investment fund managed by SNB Capital Company (formerly known as NCB Capital Company) ( “the Fund Manager”), a subsidiary of The Saudi National Bank (formerly known as National Commercial Bank) (“the Bank”), for the benefit of the Fund's Unitholders. The Fund's objective is to achieve long-term capital growth by actively managing a concentrated portfolio of Shariah compliant companies in the GCC stock market. The terms and conditions of the Fund were approved by the Capital Markets Authority (“CMA”) on 29 December 2014 (corresponding to 7 Rabi Al-Awwal 1436 H).
The Fund is governed by the Investment Funds Regulations (the "Regulations") promulgated by the Capital Market Authority ("CMA") on 3 Dhul Hijja 1427 H (corresponding to 24 December 2006), then amended on 16 Sha'ban 1437 H ( corresponding to 23 May 2016). The Fund is established in accordance with Article 31 of the Investment Funds Rules ("Regulations") issued by the Capital Markets Authority ("CMA").
BASIS OF ACCOUNTING
NCB Capital Company has completed its merger proceedings with Samba Capital & Investment Management Company with effect from 9 July 2021 and the name has been changed to SNB Capital Company. The Regulations were further amended ("the Amended Regulations") on 17 Rajab 1442 H (equivalent to 1 March 2021), with detailed requirements for all funds in the Kingdom of Saudi Arabia.
BASIS OF MEASUREMENT
FUNCTIONAL AND PRESENTATION CURRENCY
CHANGES IN FUND’S TERMS AND CONDITIONS
CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (continued) 3 Financial assets and liabilities
SIGNIFICANT ACCOUNTING POLICIES (continued) 3 Financial assets and liabilities (continued)
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 7 Units in issue
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 11 Accrued expenses and other payables
CASH AND CASH EQUIVALENTS
INVESTMENTS – MEASURED AT FAIR VALUE THROUGH INCOME The composition of investments measured at fair value via the income statement divided by industry is.
INVESTMENTS – MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS The composition of investments measured at fair value through profit or loss by industry sector is
RELATED PARTY TRANSACTIONS AND BALANCES
RELATED PARTY TRANSACTIONS AND BALANCES (continued) Transactions with related parties
FINANCIAL RISK MANAGEMENT 1 Financial risk factors
The fund's financial assets and liabilities are denominated in currencies other than its functional currency. Accordingly, the value of the Fund's assets may be affected positively or adversely by fluctuations in exchange rates. All the fund's assets and liabilities are non-commission-bearing, and the fund is therefore not exposed to commission risk.
The other price risk is the risk that the value of the Fund's financial instruments will fluctuate as a result of changes in market prices caused by factors other than foreign exchange rate movements and commissions. The price risk arises mainly from the uncertainty about the future prices of the financial instruments owned by the Fund. The Fund Manager monitors daily the concentration of risk for the capital based securities and industries in accordance with the defined limits by closely following the volatility of the portfolio level.
The fund manager seeks to manage credit risk by monitoring credit exposures, limiting transactions with specific counterparties and continuously assessing the counterparties' creditworthiness. At the balance sheet date, the fund's maximum exposure to credit risk is represented by the carrying amount of liquid assets, which represents cash in bank with a local bank with a Moody's credit rating of A3. Liquidity risk is the risk that the Fund may not be able to generate sufficient cash to meet its obligations in full as they fall due, or may only be able to do so on terms that are materially unfavorable.
The terms and conditions of the fund provide for the subscription and redemption of property units every Saudi business day, so it is exposed to the liquidity risk of fulfilling the redemptions of property unit holders on these days. The fund manager monitors liquidity requirements by ensuring that sufficient funds are available to meet potential liabilities as they arise, either through new subscriptions, liquidation of the investment portfolio or by taking out short-term loans from the funds raised by the fund manager. The fund manages liquidity risk by investing mainly in securities that it expects to be able to cash out within a short year.
Operational risk is the risk of direct or indirect loss arising from a variety of causes related to the processes, technology and infrastructure that support the Fund's activities either internally or externally at the Fund's service provider and from external factors other than credit, liquidity, currency and market. risks such as those arising from legal and regulatory requirements. The Fund's objective is to manage operational risk to balance limiting financial losses and damage to its reputation with achieving its investment objective to maximize returns for unitholders. However, the Fund Manager remains aware of the micro and macroeconomic challenges presented by COVID-19, the effects of which may be felt for some time, and is closely monitoring its exposures.
EVENTS AFTER THE END OF THE REPORTING PERIOD
The COVID-19 pandemic continues to disrupt global markets as many regions experience new waves of infections despite previously containing the outbreak with aggressive precautionary measures. However, the Government of the Kingdom of Saudi Arabia (“the Government”) has so far managed to control the outbreak, mainly due to the effective measures taken by the Government.
LAST VALUATION DAY
APPROVAL OF THE FINANCIAL STATEMENTS
