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Company Update | GQG Partners Inc. (GQG)

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Analyst: Vincent Cook, Portfolio Manager - ASX 100, Clime Investment Management

GQG is a global equities funds management business. In just five years since the founding of GQG by CIO Rajiv Jain in partnership with Pacific Current Group, the business has grown to surpass household name Magellan in funds under management (FUM). As at 31 December 2021, GQG had US$91.2 billion under management, compared to Magellan’s US$69.4 billion. This has been built on the track record of Rajiv Jain from Vontobel, with consistently strong fund performance at GQG and a well established global distribution infrastructure. The growth of FUM and the impressive flows history is illustrated in Figure 1.

Figure 1 – Funds and Flows  

Source: UBS, GQG Prospectus

 

This week, GQG reported FUM of US$91.2 billion as at 31 December 2021, up 4.5% over the quarter as indicated in Figure 2 below. This was attributable largely to net inflows of $3.0bn, which followed $3.2bn in the September quarter. Flows over the six months equate to an annualised 13.6% of 31 December FUM. This means that, at the current rate of inflows, the company is on track to achieve solid double-digit growth in revenues for FY22. This should be further supported by investment returns and operating leverage.

The inflows reported by the company compare favourably to the prospectus forecast of $7.8bn in net inflows over the 12 months to June 2022. GQG has already achieved 79% of the forecast in just six months. On current consensus forecasts, the stock is trading on a 15.0x FY2022 PE (December year-end) and offering a 6.7% dividend yield (unfranked).

Figure 2 – Funds Under Management Update

Source: GQG ASX release, January 2022

 

 

 

 

Figure 2 – Funds Under Management Update


over what period? June quarter?  [JS1] [JS1]

 [HC2]December Quarter as the sentence above states [HC2]

Ownership Disclosures: 
Our fund partner Clime Asset Management (Clime) owns (GQG) on behalf of various mandates where it acts as an investment manager.

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