GQG Partners’ funds under management (FUM) increased to US$108.1 billion during July, a US$4 billion increase on a month earlier, when its FUM sat at US$104.1 billion.
In an update to the ASX on Monday, the global investment boutique noted it had experienced net inflows of US$6.0 billion over the first seven months of the calendar year.
This was down from GQG’s previous update for the first half of the year, when the firm said it had experienced US$6.2 billion of net flows year-to-date. GQG pointed out that a “large redemption” of US$0.8 billion from a UK pension fund had occurred during the month of July.
“This relates to the broad de-risking from UK pension funds that we have discussed previously. Absent this redemption, net inflows through 31 July 2023 would be US$6.8 billion,” GQG said in its latest update.
Breaking down its FUM, GQG noted that the category of international equity increased from US$39.3 billion at the end of June to U$40.9 billion at the end of July, while global equity rose from US$28.8 billion to US$29.2 billion.
Over this same period, emerging markets equity recorded an increase from US$27.7 billion to US$29.4 billion, while US equity lifted from US$8.3 billion to US$8.6 billion.
The update follows GQG’s announcement late last month that it intends to submit a “non-binding indicative proposal” to acquire all of the issued ordinary shares in multi-boutique asset management firm Pacific Current Group.
“We believe that we can put forward a compelling proposal to PAC shareholders and that we will be viewed as strategically compelling to both PAC’s underlying portfolio companies and management team,” GQG Partners chief executive officer Tim Carver said at the time.
“We have a long history with PAC, both as executives and by virtue of our corporate relationship. We have evaluated the PAC portfolio and have a strategic vision for unlocking value for PAC’s shareholders and portfolio companies. We are confident in our transaction approach and will look forward to participating in the PAC transaction process.”
GQG, which did not provide any specific details of its proposal, noted that it could not give any assurance that a transaction will proceed or the terms and conditions of such a transaction.
Regal Partners had also earlier lobbed a bid for Pacific Current. Both Regal and GQG noted that their respective proposals would be subject to a number of preconditions, including satisfactory completion of due diligence, the execution of binding transaction documents, and board approval.
Additionally, any transaction would also require the support of Pacific Current shareholders as well as required regulatory and other approvals.
