“GQG Partners (GQG) funds under management (FUM) is up 3.7% for the month to US$155.6 billion, with another very strong monthly net inflow contribution (+US$2 billion) and solid market/investment performance (+US$3.5 billion) across all core strategies,” Raymond said.
“Flows look to be strongest in International and Global.
“Net inflows for the first half of 2024 are now US$11.1 billion (vs US$6.2 billion in the previous corresponding period).
“GQG noted that the Institutional channel continued to see moderate redemption pressure from asset allocation and rebalancing, however this has been offset from an acceleration in wholesale and sub-advisory channels (we expect this should have a slightly positive management fee margin mix impact as well).
“FUM movements at the strategy level ranged from +2% to +7.2%. with all four strategies delivering positive absolute performance (ranging from +0.3% to +3.4%).
“Outperformance relative to benchmarks ranged from -1.4% to +0.6%.
“This very strong momentum continues for GQG, with flows exceptionally strong (and outside the seasonally stronger first quarter period).
“We are conscious not to extrapolate monthly strength into our forecasts (Morgans forecasts last updated in May 2024, with FUM +9.6% since), however on a stand-alone basis we expect recent FUM updates would see approx.10% upgrades to consensus forecasts on an annualised basis.
“Whilst the share price has re-rated, the earnings strength see’s GQG’s headline price earning (PE) multiple reasonably stable at approx. 14x financial year 2024.
“We think this is a multiple GQG can sustain (or expand) given the current momentum,” Raymond concluded, as he confirmed GQG as an ADD to an investor’s portfolio.
GQG Partners (GQG)
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