GQG Partners reported a 7.1% increase in funds under management for 2025, driven by strong investment performance despite net outflows, while declaring a solid fourth-quarter dividend.
- Funds under management rose 7.1% to USD 163.9 billion
- Net revenue increased 6.3% to USD 808.3 million
- Net income grew 7.3% to USD 463.3 million
- Fee realization declined due to strategic shifts and vehicle mix
- Declared 4Q25 dividend of USD 0.0365 per share
Strong Growth Despite Market Headwinds
GQG Partners Inc. has released its full-year results for 2025, showcasing a resilient performance amid a challenging investment environment. The firm’s funds under management (FUM) increased by 7.1% year-on-year to USD 163.9 billion, reflecting a USD 10.9 billion uplift driven primarily by positive investment returns. This growth comes despite net outflows of USD 3.9 billion, signalling that while some clients withdrew funds, the firm’s investment strategies delivered solid gains.
CEO Tim Carver highlighted the company’s steady growth trajectory, noting that FUM peaked at a record USD 172.4 billion mid-year before settling at year-end. Since its IPO in 2021, GQG has impressively grown its assets by over 81%, underscoring its expanding footprint in the global asset management space.
Revenue and Profitability Trends
Net revenue rose 6.3% to USD 808.3 million, supported by a 10.8% increase in average FUM to USD 164.3 billion. However, fee realisation per dollar of assets declined slightly from 49.6 basis points to 48.4 basis points, attributed to a strategic shift in product mix and investment vehicles. Performance fees also fell from USD 24.6 million in 2024 to USD 13.8 million in 2025, reflecting a more conservative earnings component tied to investment outperformance.
Despite these shifts, GQG maintained strong profitability, with net operating income climbing 7.6% to USD 622.5 million and net income increasing 7.3% to USD 463.3 million. The company’s operating margin remained robust at 77%, demonstrating effective cost management and operating leverage as revenues grew faster than expenses.
Diversification and Competitive Positioning
GQG’s portfolio remains well diversified across investment strategies, with USD 71.4 billion in International Equity, USD 40.8 billion in Emerging Markets, USD 36.8 billion in Global Equity, and USD 14.9 billion in US Equity. This spread helps mitigate risks associated with any single market or sector. The firm also benefits from a diversified distribution network and a competitive fee structure, with average fees below many peers, potentially insulating it from margin pressures common in the asset management industry.
More than 98% of GQG’s revenues are asset-based fees, providing a stable income stream less reliant on volatile performance fees. This model supports consistent dividend payments, with the board declaring a fourth-quarter dividend of USD 0.0365 per share, representing 90% of distributable earnings.
Looking Ahead
While the firm’s strategic fee adjustments and product mix changes have impacted fee realisation, GQG’s ability to grow assets and earnings amid net outflows is a testament to its investment capabilities and client loyalty. Investors will be watching closely to see how the company navigates fee pressures and market volatility in the coming quarters, especially as it balances growth ambitions with maintaining strong margins.
Bottom Line?
GQG’s 2025 results confirm its resilience and strategic agility, but sustaining growth amid evolving fee dynamics will be key.
Questions in the middle?
- Will GQG’s fee realisation continue to decline with further strategic shifts?
- How will net outflows trend in 2026 amid market uncertainties?
- Can GQG maintain its strong operating margins while expanding product offerings?