ABU DHABI, 29th July, 2023 (WAM) — Waha Capital PJSC, a prominent investment management company listed on the Abu Dhabi Securities Exchange (ADX: WAHA), has announced its financial results for the first half of 2023, demonstrating a remarkable performance with a staggering 221% increase in net profit compared to the same period last year, amounting to AED 318 million. The company’s exceptional results were underpinned by robust returns from its capital markets funds and higher fee income derived from managing third-party assets.
Throughout H1 2023, Waha Capital’s total operating income soared to AED 500 million, marking an impressive 123% surge from the AED 224 million recorded in the corresponding period of the previous year. This growth in income can be predominantly attributed to the stellar performance of Waha Investment, a wholly owned asset management subsidiary. The company’s emerging markets funds continued to deliver substantial returns, drawing substantial capital from investors seeking lucrative opportunities.
Waha Investment reported net investment returns of AED 481 million for the first half of 2023, demonstrating its prowess in the capital markets arena. Furthermore, fee income generated from managing third-party capital nearly doubled year-on-year, reaching AED 46 million, showcasing the trust and confidence clients place in Waha Capital’s expertise.
The company’s flagship credit and equity funds remained resilient amid global market volatility, maintaining their exceptional multi-year track record of outperformance. The Waha MENA Equity Fund achieved an impressive total return of 10.5% in the first half of the year, outperforming its benchmark’s return of 5.4%. Since its inception in January 2014, the fund has delivered a cumulative return of 321.4%, significantly surpassing the S&P Pan Arab Composite Index’s return of 62.9%.
Similarly, the Waha Emerging Markets Credit Fund, which pursues diverse long-short strategies in emerging markets fixed income, reported a total return of 3.8% for the first half of the year, just marginally behind its benchmark’s return of 4.1%. Nonetheless, since its inception in 2012, the fund has achieved an impressive cumulative return of 189.2%, surpassing the JPMorgan EMBI Global Diversified Index’s return of 45.0%.
The success story continued with the Waha Islamic Income Fund, which recorded a total return of 3.78% (gross of fees), exceeding its benchmark’s return of 2.03%. Launched in August 2020, the fund primarily invests in global sukuk and Shari’ah-compliant equities, and it has achieved a cumulative return of 19.4% (gross of fees), in stark contrast to the Dow Jones Sukuk Index’s return of -3.1%.
Waha Land, the wholly-owned subsidiary specializing in light industrial real estate assets, played a vital role in contributing to the company’s revenue growth. It recorded total revenue of AED 23 million in the first six months of 2023, predominantly driven by steady rental income.
Expressing his delight with the outstanding performance, Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, stated, “Waha Capital performed strongly in the first half of 2023, generating net profit of AED 318 million and a return on average equity of 12.6%. Despite challenging macroeconomic conditions, the emerging markets funds managed by Waha Investment have delivered positive returns, further extending their multi-year track record of outperformance. This has resulted in inflows of AED 2.1 billion in third-party capital, which has contributed significantly to the company’s fee income.”
Additionally, Mohamed Hussain Al Nowais, Managing Director of Waha Capital, expressed his satisfaction with the company’s resilience and financial position during the first half of 2023. He commended the investment teams for creating value while managing risks in the face of heightened global market uncertainty. Al Nowais also highlighted the growing interest among regional institutional investors and family offices, leading to substantial capital commitments, with assets under management now exceeding US$2 billion, and third-party assets accounting for 57% of this total.
In conclusion, Waha Capital’s outstanding performance in H1 2023 reaffirms its position as a leading investment management company, offering lucrative opportunities and exceptional returns to its clients and stakeholders. With a robust track record and a diverse portfolio of successful funds, the company is poised for continued growth and success in the dynamic global financial landscape.
