2022 May 11
Abu Dhabi, 10 May 2022 – Waha Capital PJSC, an Abu Dhabi-listed investment management company (ADX: WAHA), has reported a 32% year-on-year increase in first quarter net profit, driven by robust returns from its Public Markets business and the strong performance of its Waha MENA Equity Fund.
The company recorded a net profit of AED 147 million in the first three months of 2022, compared to AED 111 million in the same period in 2021.
The Public Markets business, which manages emerging markets credit and equity funds, reported investment gains and fee income of AED 224 million in the three-month period. Meanwhile, Private Investments recorded positive net income, primarily due to mark-to-market gains on investments. Finally, Waha Land continued to generate steady income from its light industrial real estate assets.
Total AUM grew 8% quarter-on-quarter to reach AED 6.3 billion.
Waha Capital’s Public Markets business has remained resilient in the face of heightened volatility in global markets, with the company’s funds continuing to outperform the relevant benchmarks. Emerging equity and credit markets have been impacted by lingering supply chain disruptions, which have exacerbated global inflation and raised expectations for the additional tightening of monetary policy.
Despite these developments, the Waha MENA Equity Fund returned 8.2% in the first three months of 2022, compared to 5.5% over the same period last year. This reflects a cumulative return of 265.6% since its inception in 2014, versus the 88.4% return provided by the reference S&P Pan Arab Composite Index.
The Waha CEEMEA Credit Fund returned -1.1% in Q1 2022, compared to -22.8% for the reference JPMorgan CEEMEA CEMB Index. This disparity was driven by the defensive strategy adopted by the Waha Capital Public Markets team in late 2021, which reduced the Fund’s sensitivity to anticipated market turbulence. The Fund has returned a cumulative return of 170.5% since its inception in 2012, compared to 41.2% for its reference index.
The Waha Islamic Income Fund returned -0.3% in Q1 2022, compared to -4.76% for the reference Dow Jones Sukuk Index in the same period. The Fund has yielded a cumulative return of 56.9% since its August 2020 inception against 2.3% for its reference index.
With a new team in place led by Hashem Dabbas as Chief Investment Officer, the Private Investments business increased allocations to its Global Opportunities strategy during the first quarter – bringing total committed capital to AED 434 million to date. This fully flexible, opportunistic global mandate targets investments in the alternatives space with high risk-adjusted returns.
The Private Investments business recorded a net profit of AED 30 million in Q1 2022, versus AED 7 million in the same period last year.
The Waha Land subsidiary, which owns and operates a light industrial real estate development in Abu Dhabi, generated a net profit of AED 10 million in Q1 2022, with the property portfolio currently 95% leased.
Ahmed Khalifa Al Mehairi, Chief Executive Officer of Waha Capital: “Waha Capital reported a solid financial performance in the first quarter of 2022 with the Public Markets business proving highly resilient, and our Private Investments business continuing to allocate capital into new global growth opportunities.
Although we may have reached the final phase of the pandemic, the global economy is now confronted by a series of new challenges; including inflation, rising interest rates, and heightened geopolitical uncertainty. Within this operating environment, Waha Capital’s investment teams’ active management and differentiated strategies have continued to deliver robust returns for our equity investors and fund investors.
In 2022, we will continue to pivot towards a highly focused growth strategy that provides our shareholders with exposure to differentiated funds and asset classes. Our current focus is to develop a new suite of hedge fund strategies, enhance levels of third-party capital participation, and increase our allocation to off-market direct investment opportunities.”
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