GQG Partners has seen funds under management (FUM) grow to US$120.6 billion for the year ended 31 December 2023.
In an ASX announcement on Friday, it noted these results marked a 37 per increase in FUM from the end of 2022.
Net flows for CY2023 stood at US$10 billion, a standout among its listed peers, according to GQG Partners chief executive Tim Carver. With flows of US$2.9 billion for the new year as at 14 February 2024, the trend has continued into 2024.
“The growth in FUM reflects strong performance from our investment team and another great effort from our business team,” Mr Carver said.
“The increase in FUM led to net revenue growth of 18.5 per cent to US$517.6 million during 2023.
“Net operating income increased 15.7 per cent to US$384.4 million during the same period, reflecting an increase in average funds management partially offset by an increase in expenses as GQG continues to invest in talent and overall business activities.”
As many as 35 new employees joined the firm in 2023 and the firm has strategic plans to open a new office in Abu Dhabi, pending final authorisation, GQG announced.
“GQG continues to see solid business momentum in a variety of geographies and across channels,” Mr Carver said.
He highlighted its quarterly update in January, which saw funds under management hit a record-high of US$127 billion and grew from US$112.6 billion at the end of November 2023.
“As I look forward into the rest of the year, I see strength in the key measures of health for our business. We see solid opportunities for growth in the years ahead and are energised to try to capture them,” he remarked.
The chief executive also touched upon its “competitive” management fees in what has been described as a trying time for active managers.
“Our weighted average management fee for the 12 months ended 31 December 2023 was 48.8 bps, which we believe to be very competitive. As a result, we may be less likely to face margin pressure in the future relative to peers with higher average management fees,” he said.
“In addition, more than 96 per cent of our revenues last year was derived from asset-based fees, which we expect to exhibit more stability in periods of market volatility.”
Less than 4 per cent of its revenues were derived from performance fees, Mr Carver added.
