GQG Partners delivered solid full-year 2025 results, with funds under management climbing 7.1% to US$163.9 billion and net income increasing 7.3% to US$463.3 million, despite net outflows. The firm maintained a strong dividend payout, reflecting confidence in its sustainable growth strategy.
- Funds under management rose 7.1% to US$163.9 billion
- Net income increased 7.3% to US$463.3 million
- Net outflows of US$3.9 billion offset by US$14.8 billion investment gains
- 4th quarter dividend declared with 90% payout ratio
- Operating expenses up due to compensation and distribution costs
Strong Asset Growth Amid Market Challenges
GQG Partners has reported a robust financial performance for the full year ended 31 December 2025, with funds under management (FUM) increasing by 7.1% to US$163.9 billion. This growth was achieved despite net outflows of US$3.9 billion, which were more than offset by strong investment performance contributing US$14.8 billion in gains. The firm’s diversified portfolio across global, emerging markets, international, and US equity strategies continues to underpin its resilience in a complex market environment.
Revenue and Profitability Trends
Net revenue rose 6.3% year-over-year to US$808.3 million, driven primarily by a 10.8% increase in average FUM. However, fee realisation declined slightly from 49.6 basis points to 48.4 basis points, reflecting a shift in strategy and vehicle mix. Net operating income increased 7.6% to US$622.5 million, while net income attributable to GQG Partners Inc. grew 7.3% to US$463.3 million. These results highlight the firm’s ability to translate asset growth into improved profitability despite margin pressures.
Dividend and Capital Management
The board declared a fourth-quarter dividend of US$0.0365 per share, maintaining a 90% payout ratio of distributable earnings, consistent with the interim dividend paid earlier in the year. This steady dividend policy signals management’s confidence in the firm’s cash flow generation and commitment to returning value to shareholders. Operating expenses rose modestly, driven by increased compensation and third-party distribution fees, partially offset by lower general administrative costs.
Investment Performance and Distribution Expansion
GQG’s investment strategies continued to outperform benchmarks across multiple time horizons, with particularly strong returns in emerging markets and global equity composites. The firm expanded its distribution footprint, adding new wholesale and separately managed account clients in the US and Europe, and maintaining high ratings from key research houses. This broadening client base supports future growth prospects and diversification of revenue streams.
Balance Sheet and Outlook
The company’s balance sheet remains solid, with total assets of US$493.4 million as of year-end. Cash reserves are primarily allocated to working capital and dividend payments. While net outflows warrant monitoring, GQG’s strong investment performance and diversified client base provide a buffer against market volatility. The firm’s emphasis on sustainable, high-quality compounding and alignment of employee and shareholder interests positions it well for continued success.
Bottom Line?
GQG Partners’ 2025 results underscore steady growth and disciplined capital management, setting the stage for navigating evolving market dynamics.
Questions in the middle?
- How will GQG address the decline in fee realisation amid changing strategy mix?
- What are the prospects for reversing net outflows in the coming quarters?
- How might rising operating expenses impact future profitability and dividend sustainability?