GQG Partners sees $7bn FUM increase

GQG Partners FUM fund management Pacific Current Group

8 February 2024
| By Laura Dew |
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GQG Partners has seen a US$7 billion increase in funds under management since the start of 2024.

In its monthly FUM update, the firm said FUM has increased from US$120 billion ($183 billion) to US$127 billion.

This was driven by net inflows of US$1.9 billion during January, up slightly from US$1.8 billion in the prior month, and from market movements.

The largest percentage increase was seen in the international equity division which rose from US$46.5 billion to US$49.2 billion and is the largest asset class. This was closely followed by global equity which rose from US$31.2 billion to US$33 billion. 

Emerging markets equity rose 4.4 per cent from US$33.6 billion to US$35.1 billion, and US equity rose 4.3 per cent from US$9.3 billion to US$9.7 billion. 

The firm is expected to release its results for the second half of 2023 on 16 February when it will share an update on its FUM, revenue and flows. 

In its first-half results in August, the firm said net revenue was US$237 million, 97 per cent of which came from management fees. It highlighted the wholesale channel and the subadvisory space as areas where it is seeing new opportunities and continued growth in existing relationships. 

It also flagged the potential for GQG to expand its retail separately managed accounts (SMAs) offering from the US into Australia. 

Another event during 2023 was the firm’s bid to acquire rival manager Pacific Current Group (PAC) as part of its focus on inorganic growth, which was eventually shelved after the bid was 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.”

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