GQG Partners reported a stellar 2024 with net inflows doubling to US$20.2 billion and funds under management climbing nearly 27%, underpinning strong revenue and earnings growth. The firm also expanded its dividend payout range, signaling confidence in future capital management.
- Net inflows nearly doubled to US$20.2 billion in 2024
- Funds under management rose 26.9% to US$153.0 billion
- Net revenue increased 46.9% to US$760.4 million
- Diluted earnings per share grew 52.3% to US$0.15
- Board approved flexible dividend payout ratio of 50%–95%
Robust Growth in Assets and Revenue
GQG Partners Inc. delivered a commanding financial performance for the year ended 31 December 2024, showcasing the strength of its investment strategies and business execution. The firm reported net inflows of US$20.2 billion, nearly doubling the US$10.2 billion recorded in 2023. This surge propelled funds under management (FUM) to US$153.0 billion, a 26.9% increase from the prior year.
Such growth in FUM translated into a 46.9% jump in net revenue to US$760.4 million, reflecting both the inflows and solid investment returns. Net operating income also rose sharply by 50.4% to US$577.9 million, despite increased expenses as GQG invested in talent and business expansion.
Strong Earnings and Dividend Policy Shift
GQG’s diluted earnings per share climbed 52.3% from US$0.10 to US$0.15, underscoring the firm’s operational leverage and profitability. The Board declared a fourth-quarter dividend of US$0.0378 per share, representing a 90% payout ratio of distributable earnings for the quarter.
Notably, the Board approved an expanded dividend payout ratio range of 50% to 95% of distributable earnings. This strategic move provides GQG with enhanced flexibility to balance shareholder returns and capital deployment, signaling confidence in the firm’s cash flow stability and growth prospects.
Investment Performance and Fee Competitiveness
Underlying these financial results is GQG’s consistent long-term investment performance. Across its primary strategies, the firm outperformed relevant benchmarks over five years, with the Global Equity Strategy returning 13.22% annually versus 10.06% for the MSCI ACWI Index, and the Emerging Markets Equity Strategy delivering 7.73% against 1.70% for its benchmark.
GQG’s weighted average management fee remained competitive at 49.6 basis points, with over 96% of revenues derived from asset-based fees. This fee structure is expected to provide more revenue stability amid market volatility compared to peers reliant on performance fees.
Outlook and Market Positioning
As of 31 January 2025, GQG’s FUM reached a new high of US$160.4 billion, supported by estimated net inflows of US$1.7 billion in the new year. CEO Tim Carver expressed optimism about the firm’s culture, investment performance, and growth opportunities, while acknowledging potential headwinds from market volatility and geopolitical risks.
GQG’s strategic focus on disciplined investment and business expansion positions it well to capture future opportunities. The flexible dividend policy and strong capital base provide a buffer to navigate uncertainties while rewarding shareholders.
Bottom Line?
GQG’s robust 2024 results and flexible dividend policy set the stage for sustained growth amid evolving market dynamics.
Questions in the middle?
- How will GQG balance dividend payouts with reinvestment amid market volatility?
- What impact will geopolitical tensions have on GQG’s emerging markets strategies?
- Can GQG sustain its net inflow momentum in a potentially turbulent 2025?