GQG Partners has announced a decline in funds under management in December, fuelled by redemptions from its institutional channel.
FUM declined by 4 per cent from US$159.5 billion ($255 billion) in November to US$153 billion in December after the firm experienced US$200 million in net outflows.
In an ASX statement, the firm attributed the outflows to its institutional channel where it experienced redemptions.
The largest reduction was seen in international equities and global equities that both fell by more than 5 per cent.
International equities fell from US$60.5 billion to US$57.2 billion while global equities fell from US$40.9 billion to US$38.8 billion.
“While we witnessed net outflows for the month of December, the fourth quarter brought continued positive gross and net sales,” the firm said.
“For the quarter, our institutional channel continued to see moderate redemption pressure from asset allocation and rebalancing changes. We believe that we continue to be well positioned relative to the competition with strong long-term risk adjusted returns bolstered by our global distribution capabilities.”
Overall flows for the 2024 calendar year were $20.3 billion, double the $10.2 billion seen in 2023, while flows for the three months to 31 December were US$2.8 billion.
Only two months in the 2024 calendar year experienced outflows: October and December.
It had previously said in November that the firm was likely to observe “heightened interest in our near-term flows” after the firm was caught up in the legal problems of energy and infrastructure company Adani Group.
The fund manager saw its shares plunge by 20 per cent in November, while investors were believed to have pulled around US$1 billion out of funds. It followed news that Adani Group companies, of which GQG is a major backer, were facing indictment charges from US authorities over an alleged bribery scheme.
In December, the firm also closed its first private markets fund at $145 million. This was the first fund as part of its new private capital solutions business that sits separate from its global equities division.
This will be focused on providing a broad range of financing and strategic solutions to mid-market private capital asset management firms, including perpetual equity investments, structured financings, and distribution services across institutional and retail markets.
