GQG Partners (ASX:GQG) Sees Resilient FUM Growth Despite Challenges

2 min read | December 09, 2024 01:37 PM AEDT | By Team Kalkine Media

GQG Partners (ASX:GQG) Sees Resilient FUM Growth Despite Challenges — Image source: Shutterstock

November FUM Performance

In November 2024, GQG Partners reported its FUM reached US$159.5 billion, slightly up from US$159.4 billion in October. Net flows for the month added US$0.1 billion, highlighting modest growth despite broader challenges.

Gross inflows totaled US$4.2 billion in November, with US$744 million arriving in the last week alone. Comparatively, November 2023 saw US$2.6 billion in gross inflows, showcasing this year’s higher performance in certain weeks. The fund manager further disclosed that the positive trend continued into December, with estimated inflows of US$1.1 billion between December 1 and December 6.

By December 6, the company estimated its FUM had reached US$161.5 billion. Despite these figures, GQG emphasized that seasonal variations and other short-term factors could influence data, cautioning against drawing long-term conclusions based solely on recent numbers.

Decision on Share Buyback

In the same update, GQG Partners announced the cancellation of its CHESS Depositary Interests (CDI) buyback program. This decision stemmed from uncertainties surrounding US tax treatment, which could potentially require withholding up to 30% of proceeds due to US tax regulations.

Given the complexity of resolving these tax issues before the year-end blackout period, GQG decided it would be inappropriate to proceed with the buyback at this time. However, the company left open the possibility of revisiting the initiative once clarity on tax implications is achieved.

Insights from Leadership

Rajiv Jain, chair and chief investment officer of GQG, indicated a potential increase in his personal shareholding, subject to compliance with valuation and blackout restrictions. This reflects confidence in the company’s ability to navigate ongoing challenges.

Market Response

GQG shares climbed following the update, signaling market optimism regarding the company’s ability to maintain inflows and adapt to external pressures. Despite facing scrutiny over its investment portfolio, GQG’s steady FUM growth and leadership’s proactive approach seem to reinforce resilience in the current environment.

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