GQG Partners has reported net revenue growth of 9.8 per cent for the year ending 31 December 2022 to US$436.8 million.
This result was delivered on the back of US$8.0 billion of positive net inflows experienced over the full year as previously disclosed by the global investment boutique.
GQG Partners chief executive officer and executive director Tim Carver noted this was despite “a challenging market environment with continued industry outflows and overall negative market returns”.
“We ended the year at nearly 96.5 per cent of the level of funds under management (which reflects both net flows and investment performance) at which we began the year (US$91.2 billion at year end 2021 compared to US$88.0 billion at year end 2022),” he said.
“Net operating income increased 2.7 per cent to US$332.1 million during the same period, reflecting the increase in average funds under management partially offset by an increase in expenses as GQG continues to invest in talent and overall business activities.”
Average funds under management increased by 10.3 per cent, from US$80.5 billion in 2021 to US$88.8 billion in 2022. Net income after tax was reported to be down by 22 per cent to US$237.9 billion, from US$304.9 billion a year earlier.
The firm said that it has seen strong business momentum across a variety of geographies and channels and claimed to offer “very attractive fees” relative to its competition.
“Our weighted average management fee for the 12 months ended 31 December 2022 was 48.0 bps, slightly lower than 49.2 bps for 2021,” GQG said.
“Furthermore, less than 3 per cent of our revenues continue to be derived from performance fees, as opposed to asset-based fees, which we believe will be more stable in periods of market volatility.”
GQG’s board has declared a quarterly interim dividend of US$0.0187 per share representing 90 per cent of distributable earnings for the December quarter.
“Our financial result is driven in large part by our investment performance over the long term,” commented Mr Carver.
“As at the end of the year 2022, our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success.”
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
