Australian wholesale flows boost GQG FUM
Longer track records on its funds and strong performance has helped GQG Partners see net inflows rise by 79 per cent in the past year.
In its half-year results for the six months to 30 June, the US-based fund management firm said it saw overall net inflows of US$11.1 billion ($16.7 billion).
Overall funds under management (FUM) was US$155.6 billion, fuelled by net inflows during the period of US$11.1 billion and gains in global equity markets. This compares to net flows of US$6.2 billion in the first half of 2023, a rise of 79 per cent.
Specifically focusing on its Australian funds, the firm said it saw an 81 per cent year-on-year increase in Australian wholesale FUM, which rose from US$1.6 billion to US$2.9 billion. Total FUM in Australia stands at US$9.6 billion.
There was a 67 per cent year-on-year increase in Australian wholesale net flows, which rose from US$0.3 billion to US$0.5 billion.
Total wholesale flows globally stood at US$6.4 billion for the first half, with a further US$6.1 billion coming from the subadvisory and an outflow of US$1.3 billion leaving the institutional channel.
Chief executive Tim Carver said: “This is a strong result, better than the expectations we have had for the business over the past several years. We believe these flows reflect clients’ trust in our approach, driven by the consistency of our long-term returns.”
Expanding on the source of the increased flows, he said: “We saw a lot of clients sitting on the sidelines in 2022 and 2023 who are now coming into our funds. Couple that with our longer track records on all funds which are sometimes screens that people use to potentially invest so we are now available on more platforms for more investors and our performance continues to be strong. If I had to pick one of those that was more impactful, I would say it was client dollars coming off the sidelines.”
Future drivers of fund flows are expected to come from accelerating wholesale growth, continued growth of large subadvisory relationships, increased platform availability and opportunities in retail separately managed accounts.
Net revenue increased 53.1 per cent, from US$237.1 million to US$363.1 million. This was helped by an increase in management fees due to a shift in asset mix and performance fee agreements with 22 clients.
Revenue from these performance fees totalled US$19.4 million, which was an increase of US$12.4 million versus the prior year due to strong relative investment returns.
AUTHOR
Laura Dew
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