In an update to the ASX on Tuesday, GQG said its funds under management (FUM) as at 30 September 2024 stood at US$161.6 billion, up from US$160.8 billion at the end of August.
The firm also posted year to date net inflows of US$17.4 billion compared to US$8.1 billion for the same period in 2023.
Breaking it down by asset class, the largest FUM rise this month was seen in its US equity division, which rose by US$500 million over the month.
GQG’s emerging markets equity FUM saw a modest rise of some US$300 million in September, while international equity and global equity both remained flat over the period, unchanged at US$62.9 billion and US$39.7 billion, respectively.
According to the firm, it continues to see positive gross sales across channels and investment strategies.
“In the third quarter, our institutional channel continued to see moderate redemption pressure from asset allocation and rebalancing changes,” GQG said this week.
“These headwinds from the institutional channel have been offset by acceleration in our wholesale and sub-advisory channels.
“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 net flows in 2024 with a solid pipeline of potential new FUM.”
As in prior periods, GQG noted that its management fees, as opposed to performance fees, continue to comprise the vast majority of its net revenue.
“Our management team remains highly aligned with shareholders and clients, and acutely focused on and committed to GQG’s future.”
In an update earlier this year, the investment boutique said it anticipates continued positive new flows in 2024 with a “solid pipeline” of potential new FUM.
This was reaffirmed in its half-year results posted in August, where GQG experienced US$11.1 billion of positive net flows during the first six months of 2024.
This month’s update follows the US Securities and Exchange Commission (SEC) settling charges against a Florida-based wholly owned subsidiary of GQG for entering into agreements with candidates for employment and a former employee that made it more difficult for them to report potential securities law violations to the SEC.
Namely, the US watchdog found in September that GQG Partners LLC violated a whistleblower protection rule, which prohibits action to impede an individual from communicating directly with the SEC staff about a possible securities law violation.
The SEC confirmed that GQG has agreed to be censured, to cease and desist from violating the whistleblower protection rule, and to pay a $500,000 civil penalty. At the time, the company had not yet admitted or denied the findings.
The ASX-listed firm saw a notable share price fall on the back of the news, down 3.47 per cent by end of trading on 27 September – a notable switch up from the 94.4 per cent gains it has seen over the last 12 months.
