SHUAA Capital psc, the leading asset management and investment banking platform in the region, has affirmed its position as one of the leading regional asset managers, outperforming global industry benchmarks and strong growth in Assets Under Management across its Incorporated Cell Company (ICC) fund range, domiciled in Abu Dhabi Global Market (ADGM) and managed by SHUAA GMC Limited, the wholly-owned FSRA-regulated subsidiary of SHUAA.
The business’ reputation as an asset manager of choice was cemented with a 210 percent growth in total AUM over a two-year period, increasing from USD 74 million to over USD 230 million despite challenging market conditions. In addition to strong inflows, ICC multi-asset funds delivered stellar performances.
Nujoom Aggressive Fund capped performance at -0.5 percent in 2022, with Nujoom Balanced Fund at -9.8 percent, resulting in both funds beating the global benchmark which ended 2022 at -12.3 percent. Moreover, the Global Sukuk Fund, which launched in September 2022, closed the year at 0.5 percent versus the benchmark at -10.8 percent. The sukuk fund outperformed almost all its peers, with an average outperformance of more than 600 basis points (6percent).
Ajit Joshi, MD and Head of Public & Private markets at SHUAA Capital, said, “We are pleased to report that our funds have significantly outperformed their composite benchmarks and peers despite market headwinds. The challenging global macroeconomic backdrop only confirms the effectiveness of our disciplined investment call and identification of investor needs for Shariah-compliant investments across prime geographies and regions. We remain committed to bringing the most attractive opportunities to our investors, built on long-term views that protect capital better than competitors through dynamic market cycles.”
SHUAA established the ICC fund structure in Abu Dhabi Global Market (ADGM) in November 2020 to launch differentiated fund strategies under the ICC platform and has since launched five funds. The ICC funds are domiciled in ADGM and managed by SHUAA GMC, a 100 percent subsidiary of SHUAA Capital.
SHUAA GMC is also working to launch two additional funds under the ICC umbrella in the first half of 2023 and expects AUM under this product platform to exceed USD 400 million. The new funds will expand the choices available to institutional investors, high-net-worth individuals and corporate investors, and will provide additional investment opportunities to diversify their investments across geographies and asset classes.
As part of its new fund pipeline, SHUAA also plans to add Saudi Arabia and GCC-focused funds and money market funds to its ICC platform. The expansion of the ICC fund offering is in line with SHUAA’s strategy to diversify and grow its recurring fee income base.
About SHUAA ICC Funds
Nujoom Aggressive Fund is a multi-asset fund with a composition of Sukuk, global equities, private debt, and private equities. The fund aims to invest 70-80 percent of its AUM in Shariah-compliant regional and global equities and 20-30 percent of its AUM in Shariah-compliant fixed-income investments.
Nujoom Balanced Fund is also a multi-asset strategy with a composition of Sukuk, global equities, private debt, and private equities. The fund aims to invest 45-55 percent of its AUM in Shariah-compliant regional and global equities and 45-55 percent of its AUM in Shariah-compliant fixed-income investments.
SHUAA Global Sukuk Fund is invested in global sukuk, Murabaha, Ijarah and other Shariah-compliant instruments. Its sukuk strategy is based on managing fixed-income investments in pursuit of maximising return on investment by minimising risk and managing profit rates.
SHUAA Global Equity Fund is an actively managed fund focused on maximising capital growth through a diversified portfolio of Shariah-compliant global equities. The fund targets high-quality, high-growth businesses that it believes are currently undervalued. The fund invests across most sectors and regions globally.
SHUAA North American Fund is an actively managed fund focused on maximising capital growth through a diversified portfolio of Shariah-compliant North American equities. The fund targets high-quality, high-growth businesses that it believes are currently undervalued. The fund invests across most sectors within North America.