GQG enters new year with record FUM

In its latest quarterly update, GQG has reported its funds under management (FUM) as at the end of 2023 stood at some US$120.6 billion, a record high for the firm.

Previously, it reported $112.6 billion in FUM at the end of November 2023.

Over the quarter from 1 October-31 December, GQG saw net inflows of $1.8 billion and $9.9 billion for the year. 

Breaking down its FUM, GQG reported increases across all its equity categories. International equity came out on top at $46.5 billion at the end of December, from $43.3 billion at the end of November 2023. 

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Meanwhile, global equity grew from $29.7 billion to $31.2 billion during the same time period.

Continuing the trend, US equity rose to $9.3 billion from $8.8 billion and emerging markets equity from $30.8 billion to $33.6 billion.

In an ASX announcement, the global investment boutique said it expected to be among the top firms in net fund inflows for active equity managers, both in Australia and the US, on a full year basis, as measured by leading industry benchmarking firms.

“We are pleased to have again delivered for our clients and shareholders this year,” GQG stated. 

“We expect continued business momentum in 2024, and begin the year with a promising pipeline for potential new business. 

“We believe our strong risk-adjusted returns in 2023 – and over the longer term – in combination with our global, diversified distribution capabilities, position us well in the market.”

As in previous periods, the firm’s management fees i.e. fees that are a percentage of assets managed continued to make up the bulk of its net revenue compared to performance fees. 

“Our management team remains highly aligned with all shareholders, has significant exposure to our investment performance, and is acutely focused on and committed to the future of GQG Partners,” the ASX statement noted. 

Last year, the firm explained its consideration of inorganic growth in making a bid for rival fund manager Pacific Current Group (PAC). However, this was eventually rejected by PAC’s largest shareholder. 

Although GQG said it still observes “strategic merit” in its proposal, PAC opted to cease the sale process.

According to Laird Abernethy, managing director for Australia at GQG, the bid had been an “opportunistic” move to acquire the manager, which holds a 4 per cent stake in GQG.

“We are considering inorganic growth but we don’t need it which means we can be opportunistic. We aren’t forced into it in order to achieve scale,” he previously told Money Management in December.

“Growth for us could come from three sources: hiring an individual, doing a lift-out of a team of investment talent from another firm, or doing M&A.”