Redemption pressures impact GQG flows in H1
GQG Partners has announced net flows were down 28 per cent in the first half of 2025, with redemption pressure particularly hitting Australia.
Net flows were US$8 billion during the six-month period and it flagged it had seen asset growth in its separate accounts and retail managed accounts but this failed to stem the fact flows were down 28 per cent on the previous year when they stood at US$11 billion.
Funds under management were US$172.4 billion, up from US$155.6 billion a year ago, but it noted it had witnessed “redemption pressure” from larger investors into its Australia and UCITs funds.
In July, the firm had flagged outflows 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.
Net revenue was US$403 million, an increase of 11 per cent on the previous period. The firm said this is “overwhelmingly” derived from asset-based fees, with just 3.4 per cent coming from performance fees.
Tim Carver, chief executive of GQG, said: “Our financial results were driven in large part by our long-term investment performance, even in the face of recent underperformance. Our investment approach has always aimed to add value for clients with less volatility and better downside risk management than the benchmarks our strategies are measured against.
“We maintain a steadfast belief in our rigorous investment process, and we continue to believe if we react to dynamic markets in a disciplined manner, we will have the opportunity to find high-quality investments for our clients over the long term.”
Going into the second half of the year, it launched its first ETFs in the US in July which now have US$200 million and said these could also be launched in Australia.
“GQG’s entry into the ETF market is in recognition of the increasingly significant investor demand for this type of vehicle. By offering this strategy in an ETF format, GQG seeks to be a manager of choice for investors, diversify its product offerings for clients and tap into this growing segment of our industry,” it said.
AUTHOR
Laura Dew
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