2021 Aug 10
ABU DHABI, 10 August 2021 – Waha Capital PJSC, a leading investment company in Abu Dhabi, has reported a strong increase in first-half net profit, driven by returns delivered by its public markets funds management business.
The Public Markets business, which manages emerging markets credit and equity funds, delivered healthy returns on proprietary investment made by Waha Capital as well as fee income from third-party investors. The business reported net income of AED 320 million during the first half of the year. The Private Investments business produced net income of AED 34 million during the period from its diversified portfolio of global assets, which include exposure to healthcare, industrial real estate, energy, travel, and U.S. equities.
PUBLIC MARKETS HIGHLIGHTS
The Waha CEEMEA Credit Fund provided investors with a total return of 6.7% in the first half of 2021, contributing to a cumulative return of 172.5% since inception in 2012, which is equivalent to an annualised rate of return of 11.1%. The fund’s trailing total return (12 months to end-June 2021) was 16.9%.
The Waha MENA Equity Fund provided a total return of 14.9% in the first half, bringing the cumulative return to 192.2% since inception in 2014, which is equivalent to an annualised rate of return of 15.4%. The fund’s trailing total return (12 months to end-June 2021) was 35.1 %.
The Waha Islamic Income Fund, which invests in Shari’a compliant assets across sukuk and equity markets, produced a total return of 5.0% in the first half, bringing the investment return since inception to 9.6%.
PRIVATE INVESTMENTS HIGHLIGHTS
The business is entering its next phase of growth through a strategy to selectively re-channel capital into new growth opportunities. In line with this strategy, Waha Capital divested a portion of its holding in Nasdaq-listed National Energy Services Reunited Corp (NESR) through a series of open market transactions during the first half of 2021.
Meanwhile, Waha Land continued to generate steady income, driven by a 95% occupancy rate at its Almarkaz industrial real estate development in Abu Dhabi. Latin America-focused travel firm Despegar and Waha Capital’s U.S. securities portfolio also contributed positive returns for Waha Capital during the first half of the year.
H.E. Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital: “Waha Capital has successfully navigated the diverse challenges presented by the pandemic over the last 18 months, including widespread economic disruption as well as volatility in global capital markets and in oil prices. The positive financial performance in the first half of the year and a robust balance sheet provide solid foundations for the company as it embarks on its next phase of growth. The Executive Management team, with the full backing of the Board, is taking a rigorous approach to implementation of a strategy to develop further depth and scale in both the funds management business and the private investments business. Our objective is clear: to deliver continuous value creation to shareholders within a world class governance framework.”
Ahmed Khalifa Al Mehairi, Chief Executive Officer of Waha Capital: “Our strong first-half results are testament to the capacity of Waha Capital to deliver stable and sustained financial performance through economic and market cycles. The Public Markets business has grown into a significant emerging markets money manager, with assets under management of over US$ 1 billion, and our funds have continued to provide attractive returns to Waha Capital and third-party investors. The Private Investments portfolio remains resilient, and we continue to assess opportunities to recycle capital selectively into new areas of growth. As the global operating environment gradually improves, Waha Capital is well positioned to deliver on its clear strategy for further growth.”
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