GQG Reports USD 156 Billion FUM with USD 15.1 Billion Net Outflows in H1 2026
GQG Partners reported a decline in funds under management to USD 156 billion as of June 30, 2026, driven by net outflows of USD 15.1 billion in the first half of the year. Positive investment returns partially offset the outflows, but strategies underperformed benchmarks over the period.
- Funds under management fell to USD 156 billion by end-June 2026
- Net outflows totalled USD 15.1 billion in H1 2026
- Investment performance added USD 7.2 billion year-to-date
- Strategies delivered positive returns but lagged benchmarks
- Fee structure remains primarily asset-based, aligning interests
FUM Decline Reflects Persistent Net Outflows
GQG Partners (ASX:GQG) saw its funds under management (FUM) drop to USD 156.0 billion as at 30 June 2026, marking a continuation of the downward trend driven by client withdrawals. June alone accounted for net outflows of USD 3.2 billion, contributing to a total first-half net outflow of USD 15.1 billion. These outflows have steadily eroded the asset base despite ongoing positive investment returns.
Investment Performance Partially Offsets Outflows
While net client redemptions weighed heavily, GQG’s investment strategies generated USD 7.2 billion in positive performance year-to-date. This helped cushion the impact on overall FUM but was insufficient to fully offset the withdrawals. The firm reported that its strategies delivered positive absolute returns in the first half of 2026, although they underperformed their respective benchmarks during this period. This underperformance reflects portfolio positioning amid prevailing market conditions.
Strategy Performance and Portfolio Management
GQG’s core strategies, spanning International, Emerging, Global, and US equities, all experienced declines in FUM, with net flows negative across the board. The firm emphasised its daily review of portfolio positioning and readiness to adjust exposures as market opportunities and risks evolve. Despite recent underperformance relative to benchmarks, GQG highlighted its focus on compounding client capital over full market cycles with disciplined downside risk management.
Fee Structure and Alignment with Shareholders
The vast majority of GQG’s fees are calculated as a percentage of assets under management rather than performance-based fees. This structure maintains alignment between management, shareholders, and clients, particularly important amid the current environment of net outflows. The management team reiterated its commitment to the long-term future of the business, signalling steady stewardship despite near-term challenges.
Looking Ahead to Upcoming Updates
GQG has scheduled its next FUM announcements for August, September, and October 2026. Investors will be watching these updates for signs of stabilisation or reversal in net flows, as well as any shifts in investment performance trends. Given the persistent outflows and benchmark underperformance, the firm’s ability to navigate market headwinds and retain client capital remains a key question.
Bottom Line?
GQG’s first-half 2026 figures highlight ongoing challenges with client retention despite positive absolute returns, underscoring the importance of portfolio agility and client confidence in coming months.
Questions in the middle?
- Will GQG’s strategies regain benchmark outperformance in the second half of 2026?
- Can the firm stem net outflows and stabilise its asset base amid market volatility?
- How might evolving fee structures influence client retention and revenue stability?
