GQG forecasts continued FUM uptick amid ‘solid’ quarterly results
GQG has seen funds under management (FUM) grow to US$143.4 billion for the quarter ending 31 March 2024.
In an ASX announcement on Friday, it reported FUM was up from US$137.5 at the end of February 2024, with net flows for the quarter standing at US$4.6 billion.
While describing this as a “solid start to 2024”, it cautioned against simple extrapolation, pointing out that net flows in the first quarter of any given year are influenced by seasonality.
“However, we believe our strong risk-adjusted returns over the long term, in combination with our global, diversified distribution capabilities, position us well in the market,” GQG stated.
The vast majority of its net revenue comprised management fees as opposed to performance fees, it added.
International equity saw flows of US$2.9 billion to stand at US$55.8 billion, while global equity grew to US$36.7 billion.
Meanwhile, emerging markets equity and US equity rose to $39 billion and $11.9 billion, respectively.
GQG also signalled optimism for continued growth in FUM through the course of the year, stating that it forecast business momentum to sustain in 2024 and highlighted “a promising pipeline of potential new FUM”.
These quarterly results follow GQG’s first foray into private markets last month through the acquisition of minority interests in three of Pacific Current Group’s US-based affiliates – Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners – for an aggregate cash consideration of US$71.25 million.
The boutiques represented the foundational investments for the newly launched GQG Private Capital Solutions (PCS) and would operate independently from GQG’s traditional global equities business.
Moreover, the fund manager also confirmed in March that it had expanded its international footprint with a local presence in the Middle East through its new Abu Dhabi Global Market investment hub.
This office will focus on sovereign wealth funds, wealth management platforms, distribution partnerships, and Sharia compliant investments, it said, and is currently in early-stage buildout.
AUTHOR
Rhea Nath
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.
