GQG Partners (GQG) H1 2024 earnings summary

Executive summary

• Funds under management (FUM) reached $155.6 billion as of 30 June 2024, up 49.5% year-over-year, driven by $11.1 billion in net flows and $23.9 billion in capital appreciation.

• Net revenue rose 53.1% year-over-year to $363.1 million, with net operating income up 54.9% to $273.2 million and net income after tax increasing 56.4% to $201.2 million.

• All four core investment strategies outperformed benchmarks on one-, three-, and five-year bases, achieving top decile alpha and Sharpe ratios.

• 10 of 12 funds now hold Morningstar gold-medal ratings, supporting strong retail and wholesale flows.

• Strategic expansion included the acquisition of three boutique interests, launch of Private Capital Solutions (PCS), and operational launch in Abu Dhabi.

Financial highlights

• Average FUM for the period was $139.5 billion, up from $95.2 billion in 1H23.

• Distributable earnings totaled $209.9 million, up from $136.6 million in 1H23.

• Dividends paid amounted to $167.8 million, with dividend per share paid at $0.0566 and declared at $0.0641.

• Operating margin for H1 2024 was 75.2%, up from 73.8% in 2H23.

• Management fees comprised 94.6% of net revenue, supporting stable earnings.

Outlook and guidance

• Management anticipates continued strong net flows in 2024, supported by robust investment performance, expanded distribution, and a strong client pipeline.

• Private markets business (PCS) not expected to materially impact group financials in the next three years.

• Management remains confident in capacity and ability to scale current strategies and sustain long-term client value.

• Continued investment in client-facing activities, new markets, and infrastructure is expected.

• Management expects continued fee pressure in the asset management industry but believes its fee structure is sustainable.