GQG Partners (GQG) H2 2024 earnings summary

Executive summary

• Funds Under Management (FUM) reached US$153.0 billion at year-end 2024, up 26.9% year-over-year, driven by net inflows of US$20.2 billion and strong investment performance across all core strategies.

• Net revenue grew 46.9% to US$760.4 million, net operating income rose 50.4% to US$577.9 million, and net income attributable to shareholders increased 52.8% to US$431.6 million.

• Diluted EPS increased 52.3% to US$0.15.

• Board declared a Q4 2024 dividend of US$0.0378 per share, maintaining a 90% payout ratio, and expanded the future payout range to 50%-95% of distributable earnings.

• Strategic initiatives included the PCS acquisition, Abu Dhabi office launch, and rebranding of Quality Dividend Income to Quality Value.

Financial highlights

• Average FUM for 2024 was US$148.2 billion, up from US$101.9 billion in 2023.

• Distributable earnings rose to US$447.9 million, and dividends paid totaled US$370.2 million.

• Dividends per share declared for 2024 totaled US$0.1367, up 50.2% year-over-year.

• Weighted average management fee for 2024 was 49.6 bps, with over 96% of revenues from asset-based fees.

• Operating margin for 2024 was 76%, up 170 basis points from 2023.

Outlook and guidance

• Entering 2025 with strong momentum, optimism, and a robust pipeline for PCS, with FUM reaching US$160.4 billion as of January 2025.

• Board expanded dividend payout range to 50%-95% of distributable earnings for greater flexibility.

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

• Management acknowledges potential headwinds from market volatility and geopolitical factors.

• Rebranding of Quality Dividend Income to Quality Value expected to unlock significant growth opportunities.