GQG Partners (GQG) – Outflows persist

GQG Partners operates as a boutique asset management company in global markets. The company was founded in 2016 and is based in Fort Lauderdale, Florida.

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GQG Partners reported fund net outflows in September of US$1.7 billion ($2.6 billion), pushing total funds undermanagement (FUM) down 1% to US$167.2 billion even as manager recorded positive absolute returns for the month. Emerging markets and US funds were the hardest hit, both recording outflows of US$600 million, while global and international strategies suffered smaller outflows of US$200 million and US$300 million, respectively. September-quarter net outflows were US$4.9 billion ($7.5billion), a run rate higher than Ord Minnett and market expectations for the second half of CY25 of US$6.0 billion and US$4.6 billion respectively.

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GQG Partners’ defensive tilt in its strategies meant its funds continued to underperform on relative basis – in September this underperformance amounted to 4.0 percentage points (ppt). We note that QGQ has recorded positive absolute returns in October so far but is underperforming by 0.7–1.4ppt in relative terms across its various strategies.

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Ord Minnett maintains its target price of$2.80 on GQG and keeps its Buy recommendation on valuation