How Did GQG Partners Achieve 10.8% FUM Growth in H1 2025?

Financial Growth and Operational Highlights

GQG Partners has posted a strong set of half-year results for the period ending 30 June 2025, with funds under management (FUM) climbing to US$172.4 billion, marking a 10.8% increase from the previous year. This growth was underpinned by net inflows of US$8 billion and capital appreciation of US$11.4 billion, reflecting both investor confidence and positive market performance.

Net revenue rose 11% to US$403 million, while net operating income increased 12.3% to US$306.8 million. The firm’s average management fee rate saw a slight decline to 48.2 basis points, attributed to a shift in strategy and vehicle mix, but this was more than offset by the growth in average FUM from US$139.5 billion to US$162.9 billion. Performance fees decreased by US$5.7 million due to lower relative investment returns during the performance fee look-back period.

Strategic Expansion and Product Innovation

Operationally, GQG expanded its team by 20% year-over-year, growing from 199 to 239 employees to support business growth. The firm also broadened its product offerings, notably launching its first active ETF, the GQG US Equity ETF (GQGU), which amassed approximately US$200 million in assets shortly after its July 2025 debut. This move positions GQG to capitalize on growing investor demand for active ETFs and diversifies its distribution channels.

Additionally, GQG’s retail separately managed accounts (SMA) business continues to gain traction, managing around US$7.4 billion for eight of the top ten managed account sponsors in the US. This segment saw record net inflows of US$2.5 billion in the first half of 2025, significantly outpacing prior years and highlighting the firm’s ability to capture growth in the expanding US retail asset management market.

Investment Performance and Market Recognition

GQG’s investment strategies continue to outperform their benchmarks since inception, with all primary strategies delivering top-quintile alpha and Sharpe ratios. The firm boasts 10 out of 14 funds carrying Morningstar Gold Medals, underscoring consistent, high-quality performance. Notably, the Global Equity and Emerging Markets Equity strategies have demonstrated strong risk-adjusted returns, outperforming their respective MSCI benchmarks over multiple time horizons.

The firm’s disciplined investment approach, emphasizing forward-looking quality and sustainable competitive advantages, remains central to its value proposition. This focus has helped GQG maintain its position as a top 10 US active mutual fund family by net flows and achieve leading rankings in key markets including Australia and Europe.

Balance Sheet Strength and Dividend Policy

GQG’s balance sheet remains robust with total assets of US$488.1 million as of June 30, 2025. The company continues to prioritize returning capital to shareholders, having paid US$224.1 million in dividends during the first half of the year. The board declared a second quarter interim dividend of US$0.0356 per share, representing a 90% payout ratio of distributable earnings, maintaining a consistent and shareholder-friendly dividend policy.

Cash management remains focused on working capital needs and dividends, with advisory fee receivables growing in line with higher management fees. The firm also reported a modest increase in operating expenses, primarily driven by compensation and third-party distribution fees, reflecting its investment in talent and expanded distribution capabilities.

Looking Ahead

GQG Partners is well-positioned to leverage growth opportunities in the US retail SMA market and expand its ETF offerings. The firm’s commitment to delivering sustainable, high-performance investment outcomes with reasonable fees, combined with a highly aligned and experienced team, sets a strong foundation for continued success. Investors will be watching closely to see how GQG navigates evolving market conditions and capitalizes on its strategic initiatives in the coming quarters.