GQG flat: Performance appears to be turning following the global investment manager’s shift in positioning back in July, though the continued outflows remain a concern.
Key results:
- September net outflows: US$2.3bn, offset by the US$2.4bn investment gain.
- Quarterly net outflows: US$11.1bn, against US$4.4bn of positive investment performance.
- Year-to-date net outflows: US$26.2bn, compared with US$11.6bn of investment gains.
- Closing FUM: US$149.2bn, down from US$163.9bn at the start of the year.
All four primary strategies delivered positive absolute and relative returns in September and the third quarter, suggesting performance may be turning. However, the continued outflows show that better returns have yet to restore confidence.
Improving performance is essential, but GQG needs to do more than lift returns — ultimately management needs to reduce scepticism around the investment process to stem outflows. Given GQG’s reliance on management fees linked to FUM, persistent withdrawals remain a risk to earnings even as markets recover. We remain invested but want to see sustained relative outperformance translate into moderating outflows before becoming more constructive.
MM is long but remains vigilant toward GQG
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