In an ASX update on Tuesday, GQG said its funds under management (FUM) as of September 30, 2024 stood at $161.6 billion, up from $160.8 billion at the end of August.
The company also recorded year-to-date net inflows of $17.4 billion, compared to $8.1 billion for the same period in 2023.
Breaking down by asset class, FUM’s biggest rise this month was seen in its U.S. equities division, which increased by $500 million during the month.
GQG’s Emerging Markets Equity FUM saw a slight increase of some US$300 million in September, while International Equity and Global Equity both remained stable over the period, unchanged at US$62.9 billion. US dollars and 39.7 billion US dollars, respectively.
According to the company, it continues to experience positive gross sales across channels and investment strategies.
“In the third quarter, our institutional channel continued to experience moderate redemption pressure from asset allocation and rebalancing changes,” GQG said this week.
“These headwinds from the institutional channel were offset by acceleration in our wholesale and sub-advisory channels.
“We believe our strong long-term risk-adjusted returns, combined with our global and diversified distribution capabilities, position us well in the market. We expect continued positive net flows in 2024 with a strong pipeline of potential new FUMs.
As in previous periods, GQG noted that its management fees, as opposed to performance fees, continue to constitute the vast majority of its net income.
“Our management team remains strongly aligned with shareholders and customers, and extremely focused and committed to the future of GQG. »
In an update earlier this year, the investment boutique said it expected further positive flows to continue in 2024 with a “strong pipeline” of potential new FUMs.
This was reaffirmed in its half-year results released in August, where GQG recorded $11.1 billion in positive net flows in the first six months of 2024.
This month’s update follows the U.S. Securities and Exchange Commission’s (SEC) settlement of charges against a Florida-based wholly-owned subsidiary of GQG for entering into agreements with applicants for a employment and a former employee that made it more difficult for them to report potential securities law violations. at the SEC.
Indeed, the US watchdog found in September that GQG Partners LLC had violated a whistleblower protection rule, which prohibits any action intended to prevent an individual from communicating directly with SEC staff about possible violation of securities law.
The SEC confirmed that GQG agreed to be censured, cease violating the Whistleblower Protection Rule, and pay a $500,000 civil penalty. At the time, the company had yet to admit or deny the findings.
The ASX-listed company saw its share price fall noticeably following this news, down 3.47 per cent at the end of trading on September 27 – a notable change from the gains of 94.4 percent it recorded over the last 12 months.
