2022 Oct 28
Key Highlights
Abu Dhabi, 28 October 2022 – Waha Capital PJSC (“Waha Capital” or “the Company”), an Abu Dhabi-listed investment management company (ADX: WAHA), has reported net profit of AED 259 million year-to-date despite continued volatility in global markets.
Waha Capital recorded net profit of AED 259 million for the first nine months of 2022, compared to AED 454 million for the same period last year. In Q3 2022, the Company reported net profit of AED 160 million, an increase of 125% on Q3 2021 (AED 71 million). This strong performance was achieved despite challenging macroeconomic conditions caused by high inflation and geopolitical uncertainty.
The Public Markets business, which actively manages emerging markets credit and equity funds, reported net investment returns of AED 360 million and net profit of AED 307 million for the first nine months of 2022. The Private Investments business, which pursues a multi-asset investment approach across different sectors and geographies, recorded net investment returns of AED 68 million and net profit of AED 25 million. Meanwhile, Waha Land generated net investment returns of AED 37 million and net profit of AED 28 million.
Waha Capital’s total assets under management stood at AED 6.5 billion at the end of September 30, 2022.
In September 2022, Waha Capital was featured in Forbes Middle East’s Top 30 Asset Management Companies 2022 list. This is the second consecutive year that the company has featured in this prestigious ranking of the best regional asset managers.
Public Markets Highlights
High inflation, the ongoing conflict in Ukraine, and a rising interest rate environment continues to impact global markets. In the first nine months of 2022, the Public Markets business recorded net profit of AED 307 million compared to AED 594 million for the same period last year. In Q3 2022, net profit reached AED 194 million, versus AED 150 million for the same period in 2021.
The Waha MENA Equity Fund reported a total return of 12.1% for the first nine months of 2022, compared to 0% for the reference S&P Pan Arab Composite Index. The Fund has delivered a cumulative return of 278.8% since its inception in 2014, versus the S&P Pan Arab Composite Index’s return of 63.8%. Furthermore, the Fund has again been recognised among the top 50 hedge funds globally, ranking 15th in the 2022 survey by the Global Investment Report. It was the only fund based in the MENA region to feature in the ranking.
The Waha CEEMEA Credit Fund returned -2.0% for the first nine months of 2022, with the reference JPMorgan CEEMEA CEMB Index recording total returns of -27.6% for the same period. The Fund has delivered a cumulative return of 168.1% since its inception in 2012, compared to 32.4% for the reference index.
The Waha Islamic Income Fund returned -1.76% (gross of fees) for the first nine months of 2022, compared to -11.75% for the reference Dow Jones Sukuk Index.
Private Investments Highlights
The successful implementation of a new growth strategy for the Private Investments business has started to deliver value, with the business recording net profit of AED 25 million in the first nine months of 2022 compared to a net loss of AED 36 million for the same period last year. In Q3 2022, the business reported net profit of AED 5 million versus a net loss of AED 47 million in Q3 2021.
The business continued to deploy capital into its Global Opportunities portfolio, bringing its assets under management to AED 1 billion as of 30 September 2022.
The Core Portfolio recorded net profit of AED 28 million in the first nine months of 2022. A new platform, Waha Health, was launched this year and seeded with Waha Capital’s two premium healthcare assets, HealthBay and Orchid Fertility IVF. In Q3 2022, the company successfully divested its stake in Anglo Arabian Healthcare.
The business continues to monetise its mature assets, with gains realised this quarter from the sale of stakes in Bahrain-based ADDAX Bank and SDX Energy, which is listed on the London Stock Exchange.
Waha Land Highlights
In Q3 2022, Waha Land, a wholly owned subsidiary of Waha Capital, agreed to sell 17 leased warehouse buildings at the ALMARKAZ Industrial Development in Abu Dhabi to Peninsula Real Estate Management Limited for AED 555 million.
Waha Land, which owns and operates a light industrial real estate development in Abu Dhabi, generated a net profit of AED 28 million year-to-date, compared to AED 29 million in the same period last year. For Q3 2022, Waha Land recorded a net profit of AED 9 million, versus AED 12 million for the same period in 2021. The property portfolio is currently 95% leased.
Waleed Al Mokarrab Muhairi, Chairman of Waha Capital: "The operating environment in Q3 2022 remained challenging as high inflation and geopolitical uncertainty continued to impact global capital markets and other asset classes.
Despite macroeconomic headwinds, Waha Capital demonstrated its resilience and reported strong financial performance for the third quarter, with total income increasing 67% and net profits more than doubling year-on-year. The flagship funds in the Public Markets business have continued to outperform their respective benchmarks year-to-date and cumulatively since inception. Meanwhile, the Private Investments business has grown its Global Opportunities and Core Portfolio while also generating value by monetising mature assets. Attracting third-party capital and growing the investor base remains a strategic priority for the organisation, with total assets under management increasing AED 700 million in the first nine months of the year.
With a diversified portfolio and healthy balance sheet, Waha Capital is well-equipped to navigate ongoing economic volatility. The board is confident that the extensive experience and expertise within Waha Capital’s team will enable the company to deliver long-term value to our shareholders."
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