Abu Dhabi’s Waha Capital H1-2022 numbers show greater adaptability to global volatility
ADX-listed firm’s public and private investment plays held their own
The Abu Dhabi investment management firm Waha Capital was launched in 1997 to leverage its emerging market expertise, business networks, and research capabilities to deliver attractive returns to shareholders and investors in its funds. The ADX-listed company's market value stands at Dh2.58 billion.
The public markets focussed division that oversees emerging market credit and equity funds recorded a fee income of Dh152 million for the first-half of 2022 despite challenging macroeconomic conditions. Maintaining a selective investment strategy through its global opportunities portfolio and realizing value from mature assets, the private investments operations have been a robust financial pillar for Waha Capital, recording a net profit of Dh28 million.
Compared to the previous year, the Waha Land subsidiary that owns and manages a light industrial real estate development in Abu Dhabi also had a successful first-half. It produced a net profit of Dh20 million against Dh17 million during the same period in 2021. Currently, 95 per cent of the portfolio's properties are leased.
Defensive moves
Despite the increased volatility in global capital markets, Waha's active management of public market funds into a more defensive posture allowed them to exceed their respective benchmarks in 2022. In the first-half, the Waha MENA Equity Fund had a total return of 7.8 per cent compared to the benchmark S&P Pan Arab Composite Index's 0.4 per cent. Moreover, the Waha CEEMEA Credit Fund returned a -5.8 per cent amid turbulence in global fixed income markets, outperforming the -26.4 per cent return by the benchmark JPMorgan CEEMEA CEMB Index.
In for the long-term
As a result, Waha is now well-positioned to provide long-term, sustainable wealth for its shareholders after building on the previous year's success. With macro-economic uncertainty expected to continue, the diversification of Waha Capital's public and private portfolios is likely to provide strength and stability to investors and shareholders.
The company has a robust financial position and continues to attract third-party capital to its funds, with assets under management increasing Dh500 million. For the second-half of 2022, Waha Capital's objective is to ensure the private and public investment businesses continue to accelerate the company's progress.
The company has a 12-month dividend yield of 5.68 per cent.