GQG Partners has reported funds under management (FUM) has remained reasonably steady after it reported its first FUM decline in 12 months in October.
The firm had witnessed consecutive FUM growth over the past year which came to a halt in October as it saw FUM slip from US$161.6 billion ($251 billion) to US$159.4 billion.
In an ASX announcement, GQG confirmed FUM has held steady at US$159.5 billion as at 30 November 2024. Gross flows for the month stood at US$4.2 billion, of which US$744 million occurred in the last week of November.
“This compares favourably to past gross flows of US$2.6 billion, US$4.0 billion and US$2.3 billion in November 2023, 2022 and 2021 respectively,” it explained.
Additionally, GQG noted the trend continued into December, with estimated US$1.1 billion in gross flows occurring from 1 December through 6 December 2024.
“We note that as of the close of business 6 December 2024, our estimated FUM is US$161.5 billion,” it stated.
Looking at asset class FUM, international equity dipped slightly from US$61.7 billion in October to US$60.5 billion in November. Similarly, emerging market equity also saw a decline from US$42.6 billion to US$41 billion.
In contrast, both global equity and US equity witnessed growth. Global equity grew to US$40.9 billion, up from US$39.4 billion in October, while US equity rose to US$17 billion, up from US$15.8 billion.
GQG also noted perceived “heightened interest” in its flows in its latest market update.
Last month, the fund manager saw its shares plunge by 20 per cent, while investors are 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.
On 21 November, in an ASX announcement, GQG confirmed it is “monitoring the charges” brought by the US Attorney’s Office for the Eastern District of New York and the US Securities and Exchange Commission.
“Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate. We note that, consistent with our portfolio construction guidelines, GQG portfolios make diversified investments and in aggregate in excess of 90 per cent of our clients’ assets are invested in issuers unrelated to the Adani Group,” GQG said in a statement.
