In an update to the ASX on Monday, the fund manager said its FUM as at 30 June 2024 was US$155.6 billion, with net inflows during the quarter of US$6.5 billion.
At the end of financial year 2024, GQG’s net flows year to date were US$11.1 billion as compared to US$6.2 billion for the same period in 2023, alongside positive gross sales across channels and investment strategies.
“In the second quarter, our institutional channel continued to see moderate redemption pressure from asset allocation and rebalancing changes,” GQG said. “These headwinds from the institutional channel have been offset by acceleration in our wholesale and sub-advisory channels.”
Breaking it down by asset class, GQG’s international equities edged up from US$58.9 billion to US$60.1 billion, while global equity expanded from US$37.6 billion to US$39.1 billion.
Emerging markets equity jumped from US$41.1 billion to US$43.0 billion, while US equity gained US$0.9 billion, rising to $US13.4 billion.
Looking ahead, GQG said: “We believe our strong risk-adjusted returns over the long-term, in combination with our global, diversified distribution capabilities, position us well in the market. We anticipate continued positive new flows in 2024 with a solid pipeline of potential new FUM.”
In May, the firm completed the acquisition of the minority interests in Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners for an aggregate cash consideration of US$71.2 million.
These will be the foundational investment in the firm’s new GQG Private Capital Solutions (PCS) division and operate separately from its global equities business.
PCS will be focused on providing a broad range of financing and strategic solutions to mid-market private capital asset management firms, including perpetual equity investments, structured financings, and distribution services across institutional and retail markets.
GQG chief executive Tim Carver said: “This transaction accelerates GQG’s aim to launch a private capital investment advisory business. Avante, Cordillera, and Proterra are excellent examples of the types of firms and people we will seek to partner with on behalf of our PCS clients.”
GQG is one of several fund managers that are targeting the private capital market as investors seek out alternative investments. As well as GQG, HMC Capital and Regal Partners have both made their own acquisitions in the space of Payton Capital and Merricks Capital, while property fund manager Centuria Capital has increased its stake in real estate finance division Centuria Bass.
