The GQG Partners Inc (ASX: GQG) share price rose another 2% today after reporting a strong update for May 2024.
GQG is a US-headquartered fund manager that offers four main strategies: international shares, global shares, emerging market shares and US shares.
May 2024 FUM update
GQG’s funds under management (FUM) was US$142 billion on 30 April 2024 and it announced today it had risen to US$150.1 billion by 31 May 2024. That’s an increase of 5.7% in just one month. which is helpful for the GQG share price.
The update showed international shares increased to US$58.9 billion at 31 May 2024, up from US$55.8 billion. The global shares segment saw FUM rise from US$35 billion in April 2024 to US$37.6 billion. Emerging shares FUM rose to US$41.1 billion, up from US$39.6 billion. The US shares FUM increased to US$12.5 billion, up from US$11.6 billion.
A lot of the monthly FUM changes are caused by market movements, meaning share price movements within the fund. But, it’s also affected by how much extra money investors are giving to the fund manager to manage.
GQG revealed, that as of 31 May 2024, it had experienced net inflows of US$9.1 billion for the year to date period. In April, the net inflows for 2024 to date were US$6.3 billion, which means it saw US$2.8 billion of net inflows in May 2024.
Is the GQG share price a buy?
With the GQG share price up 80% in the last 12 months, it’s not as cheap as it was. But, if the company’s FUM keeps rising then the share price could rise too, as well as the profit and dividend.
The global share market has tended to rise over the long-term, so there is a natural tailwind for GQG’s FUM. I think it’s one of the most appealing ASX fund managers, though the next six months may see less FUM growth because the share market has seen a rapid ascent over the last six and 18 months.
I’d call it a buy, though there are other ASX dividend shares I’d rather invest in.
