The GQG Partners Inc (ASX: GQG) share price is under the spotlight after revealing its latest FUM update for December 2021.
GQG December Funds under management (FUM)
GQG revealed that its total FUM had increased over the month of December 2021 from $87.3 billion to $91.2 billion. All dollars mentioned are in US dollars.
It saw growth in each of its FUM categories of international shares (to $32.3 billion), global shares (to $27.3 billion), emerging markets (to $25.6 billion) and US shares (to $6 billion).
For the quarter to 31 December 2021, it experienced net inflows of $3 billion. For the six months to 31 December 2021, it saw US$6.2 billion of net inflows when combined with the September 2021 quarter. The company had forecast net inflows of $3.9 billion in its prospectus.
Those net flows include the re-investment of after-tax IPO proceeds by GQG leadership into different funds. The re-investment is not expected to materially impact the average fee compared to its total FUM.
Growth across the board
GQG said it’s seeing business momentum across multiple geographies and channels. Its FUM and flow numbers include three new sub-advisory relationships established during the quarter: tow for its US equity strategy and one in Australia for its global dividend income strategy.
It said that its more recently launched strategies and products continue to achieve strong strong adoption, which ended the year with over $0.5 billion in net assets less than one year after launch.
The fund manager is also seeing “healthy” growth in its existing US mutual fun sub-advisory relationships. This included the GS GQG Partners International Opportunities Fund, which GQG sub-advises as part of the Goldman Sachs US mutual fund family. This fund added $1.2 billion in net inflows for this quarter and $5.2 billion in net inflows for the full calendar year.
Final comments
GQG also noted that management fees continue to be the vast majority of its net revenue, not performance fees.
The management team remain the largest shareholders in GQG and remain highly aligned with shareholders and are highly focused and committed to GQG’s future.
My thoughts on the GQG share price
GQG continues to grow FUM at an impressive rate and I think it’s one to watch in the funds management space. The fees charged seem to be priced sustainably and it is also seemingly quite growth-focused, which gives it a good chance of solid long-term investment performance.
The fund manager has committed to a high dividend payout ratio, which means that it could be one of the ASX dividend shares to consider for income as well. Over the last two months, GQG has dropped around 10%, so I think it could be a more attractive option despite growing FUM since listing.
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