How Did GQG Partners Grow Funds to $172B Amid Market Challenges?

Strong Growth in Assets and Revenue

GQG Partners Inc., a global investment boutique listed on the ASX, has released its interim financial results for the six months ended 30 June 2025, showcasing solid growth across key metrics. The firm’s funds under management (FUM) climbed 10.8% year-on-year to US$172.4 billion, reflecting both positive net inflows and market appreciation. Net revenue increased by 11% to US$403 million, while net operating income rose 12.3% to US$306.8 million, underscoring the company’s operational efficiency and expanding scale.

Robust Net Flows and Dividend Declaration

During the first half of 2025, GQG recorded net inflows of US$8 billion, a strong indicator of investor confidence amid a complex market environment. The Board declared a quarterly interim dividend of US$0.0356 per share, representing a 90% payout ratio of distributable earnings. This dividend reflects the company’s commitment to returning value to shareholders while maintaining a prudent capital allocation strategy.

Investment Performance and Fee Structure

CEO Tim Carver highlighted that the company’s financial results were largely driven by its long-term investment performance, despite some recent underperformance. GQG’s disciplined investment approach aims to deliver value with lower volatility and better downside risk management compared to benchmarks. The firm’s primary equity strategies continue to outperform relevant indices on a risk-adjusted basis, with standout Sharpe ratios and alpha generation across global, international, emerging markets, and US equity strategies.

Interestingly, GQG’s weighted average management fee decreased slightly from 49.6 basis points to 48.2 basis points, reflecting a shift in strategy and vehicle mix. The vast majority of revenue; over 96%; comes from asset-based fees, with performance fees contributing a modest 3.4%, indicating a stable and predictable revenue base.

Outlook and Market Positioning

Despite recent market volatility, GQG remains confident in its rigorous investment process and disciplined approach to navigating dynamic markets. The company’s ability to attract significant net inflows and grow assets under management suggests strong investor trust. With a diversified client base including pension funds, sovereign wealth funds, and wealth managers, GQG is well positioned to capitalize on long-term growth opportunities in active equity management.

Investors will be keen to hear further insights during the upcoming investor conference call scheduled for 22 August 2025, where management is expected to elaborate on strategy execution and market outlook.