GQG flags flows headwind for H2
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
In the monthly funds under management (FUM) update, the US asset manager said total FUM at the end of June stood at US$172.4 billion ($263 billion). This is up from US$168.5 billion in the previous month.
During June, the firm saw inflows of US$0.7 billion with international and emerging markets equities being the biggest beneficiaries of this at US$0.3 billion each. Global equity was the only division to see outflows of US$0.1 billion.
The largest division is international equity, which has US$69.7 billion, followed by global equity and emerging markets equity which stand at US$41.1 billion and US$41.7 billion respectively, and then US equity at US$19.9 billion.
Year-to-date inflows covering the first six months of 2025 stand at US$8 billion, although this is down from US$11.1 billion for the same period a year ago, representing a decline of 27 per cent.
GQG flagged this could potentially continue in the third quarter of the year, thanks to relative underperformance of the funds, which the firm attributed to defensive positioning in the portfolios.
For example, its Global Equity Fund has lost 6.2 per cent since the start of the year compared to gains by the MSCI ACWI ex Tobacco Index benchmark of 1.1 per cent.
“We have continued to position our portfolios defensively, and as a result, we saw relative underperformance across all strategies as compared to their respective benchmarks during the quarter.
“As stewards of capital and given valuations, corporate earnings data and macroeconomic volatility, we have continued to be defensively positioned with the goal of protecting client capital. While we are experiencing short-term relative underperformance, we reaffirm this portfolio positioning. While Q2 net flows were strong, we also recognise relative underperformance can be a headwind to future fund flows.”
Last month, research house Morningstar, which previously identified GQG as a firm set to increase its FUM, stated it could face near-term challenges after seeing a period of outflows.
AUTHOR
Laura Dew
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