GQG shares climb on FUM rise
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More news: GQG shares climbed on the ASX in early trading after the investment boutique recorded a rise in funds under management (FUM) to US$143.4 billion ($217.7 billion) during March.
Shares were up 2.7% to $2.26 by 11:45am AEDT.
ECP Asset Management partner Damon Callaghan noted that GQG's recent share price rally has been driven by a significant increase in the profitability of the business, with FUM growing from around US$106 billion in September 2023 to US$143.4 billion last month.
What they said: Commenting on the result, Callaghan said: "Over the last six months GQG's share price is up nearly 70%. Long term investors could be forgiven for thinking they've missed the buying opportunity. However, the stock continues to trade on 11x earnings with a 9% dividend yield".
"With all GQG funds generating meaningful alpha over the last 12 months, we believe the business will continue to accumulate client flows at a rapid clip, expanding its profitability and eventually earning a higher PE multiple — as we believe is warranted for a business at this stage of its lifecycle," he said.
GQG Partners FUM grows 4.3% in March
The news: GQG Partners extended monthly gains as the investment boutique's funds under management (FUM) in March rose to USD143.4 billion ($217.7 billion).
The numbers: GQG's FUM grew 4.3% month on month to USD143.4 billion in March.
The Florida-headquartered fund manager saw gains across each of its segments, with international equity up 5.5% to USD55.8 billion, global equity up 1.9% to USD36.7 billion, emerging markets equity up 5.1% to USD39 billion and US equity up 3.5% to USD11.9 billion.
GQG reported net flows during the quarter of USD4.6 billion.
However, the month-on-month FUM increase was lower than in February, when GQG's funds grew 8.3%.
The context: GQG said the result demonstrated a "solid start" to 2024, noting that "net flows in the first quarter of any given year are influenced by seasonality" while "cautioning against simple extrapolation".
Last month, GQG shares dipped after asset manager Pacific Current Group sold its 4% stake in the investment boutique. Days later, GQG announced the launch of GQG Private Capital Solutions, with the acquisition of a trio of US boutiques from Pacific Current Group for an aggregate cash consideration of USD71.25 million.
The source: ASX announcement
