GQG Partners Surges with 27% FUM Growth and Strategic Expansion in 2024

Strong Financial Performance

GQG Partners reported a stellar set of full-year results for 2024, with funds under management (FUM) climbing to US$153 billion, a 26.9% increase from the prior year. This growth was fueled by net inflows of US$20.2 billion and strong investment returns across all primary strategies, which outperformed their benchmarks on 3-, 5-, and 10-year bases. Net revenue surged 46.9% to US$760.4 million, while net operating income rose 50.4% to US$577.9 million, reflecting both top-line growth and operational leverage.

The company’s disciplined approach to fee management and strategy mix contributed to an increase in average management fee rates, while performance fees also rose due to robust relative returns. Operating expenses increased, driven by expanded headcount, higher sales commissions, and investments in infrastructure and client-facing activities, but these were well covered by revenue growth.

Dividend Policy and Shareholder Returns

GQG declared a fourth-quarter dividend of US$0.0378 per share, maintaining a 90% payout ratio of distributable earnings. The board also approved an expanded dividend payout range of 50-95%, providing flexibility to balance growth investments and shareholder returns. Dividends paid during 2024 totaled US$370.2 million, reflecting the company’s commitment to returning capital to shareholders amid strong earnings growth.

Strategic Initiatives: PCS and Abu Dhabi Expansion

Among the highlights was the successful launch and initial funding of the PCS Master Fund, which closed on US$93 million in December 2024. This initiative positions GQG uniquely within the GP Stakes industry, leveraging a team with over 100 years of combined experience and a robust distribution platform. The PCS Master Fund was deconsolidated late in the year following loan repayment, with no net impact on GQG’s income but signaling a new growth avenue.

Additionally, GQG expanded its global footprint by establishing a fully licensed and regulated office in Abu Dhabi’s ADGM financial center. This move enhances access to regional markets, talent, and investors, and supports operational efficiencies through a 'follow the sun' model. The Abu Dhabi office also enables GQG to offer Shari'a-compliant strategies, broadening its product suite.

Investment Performance and Market Position

GQG’s investment strategies continue to distinguish themselves, with all four primary strategies delivering top-quintile alpha and Sharpe ratios over multiple time horizons. Twelve funds hold Morningstar Gold or Silver ratings, underscoring consistent outperformance and risk management. The firm ranks among the top 10 actively managed US mutual fund families by net flows, with strong growth in UCITS and Australian funds as well.

The renaming of Quality Dividend Income strategies to Quality Value reflects a strategic repositioning to emphasize value investing with a focus on free cash flow and earnings certainty. This aligns with client feedback and expands the addressable market, supported by competitive fee structures.

Outlook and Organizational Strength

With a total headcount of 236, GQG continues to invest in talent and infrastructure to support growth. The management team, led by Chairman and CIO Rajiv Jain and CEO Tim Carver, remains focused on delivering sustainable, high-performance outcomes with lower volatility and fair fees. The firm’s alignment with clients is reinforced by significant employee ownership and co-founders’ net worth tied to GQG stock and strategies.

Looking ahead, GQG is optimistic about 2025, buoyed by a robust pipeline of PCS deals, strong fundraising momentum, and expanding distribution channels globally. The firm’s strategic initiatives and consistent investment performance position it well to capture further market share in a competitive asset management landscape.