GQG ends 2022 with strong footing
Despite a tumultuous year for equity markets, GQG has ended the year at nearly 96% of the level of funds under management at which it began.
Per industry benchmarking, GQG said it would expect 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 it received US$8 billion ($11 billion) in inflows during the year.
GQG’s December quarterly figures indicated the firm wrapped up 2022 at US$88 billion, compared to $US91.2 billion at year end 2021.
For the quarter, it experienced net inflows of US$0.9 billion.
“Given global equity market returns, combined with overall industry net outflows in 2022, we are pleased that we have been able to withstand these pressures and continue to deliver for our clients and shareholders this year,” GQG noted.
Of the total funds under management at year end, international equity comprised the largest chunk at US$33.1 billion, followed by global equity at US$25.2 billion.
Emerging markets equity stood at US$22.8 billion and US equity was US$6.9 billion.
All funds were slightly lower than November 2022 figures, the quarterly data showed.
As in prior periods, GQG highlighted that management fees, those fees that were a percentage of assets managed, continued to make up the lion’s share of net revenue, compared to performance fees linked to investment performance.
GQG stated: “We continue to see business momentum, with a solid pipeline for potential new business in 2023. We believe our strong investment performance in 2022, combined with our global, diversified distribution capabilities position us well in the market”.
AUTHOR
Rhea Nath
Recommended for you
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
An independent expert has ruled the Perpetual deal with KKR is no longer in the best interest of shareholders in light of the increased tax liabilities.
