The GQG Partners Inc (ASX: GQG) share price looks like an opportunity in my opinion after its February 2022 update.
For people that don’t know, GQG Partners is an active fund manager that looks after people’s money by investing in shares.
February 2022 FUM
The fund manager has reported its monthly funds under management (FUM) for February.
Total FUM increased over the month of February 2022 to US$91.3 billion by US$0.1 billion. That’s despite the significant volatility/decline we’ve seen with the share market since the start of the year.
Its international equity investment segment saw a rise of US$0.2 billion to $32.5 billion of FUM.
The global equity investment segment experienced an increase of US$0.1 billion to US$27.4 billion of FUM.
Its emerging markets investment segment saw a US$0.1 billion decline of FUM to US$25.5 billion.
Finally, the US equity segment saw a US$0.1 billion drop of FUM to US$5.9 billion.
That may suggest that all segments saw solid net inflows to make up for the volatility.
In this monthly update, the company didn’t give a breakdown of how much that increase was down to market movements and how much FUM net inflows it received.
However, in the December 2021 update, GQG revealed that FUM net inflows averaged around US$1 billion in the three months and six months to the end of December 2021.
The GQG Partners share price opportunity
I think GQG now looks like a solid opportunity. The business has managed to keep growing FUM, showing there’s good resilience.
The fund manager makes a point of saying that hardly any of its revenue comes from performance fees. I think that resonates with investors – managers already get a lot of money by managing the fund regardless of how it performs. And GQG’s management team is proving to be very capable of long-term investing and achieving outperformance.
But the GQG share price is still down, at the time of writing, by 12% since 20 January 2022 and almost 20% over the past three months.
Rising FUM should come with very useful profitability benefits. GQG has told investors it’s going to pay a pretty high dividend payout ratio, meaning investors will get real, attractive cash returns every year. Indeed, every three months is the planned dividend schedule.
I think it could be one of the strong performers in the ASX financial space over the next two to three years, as well as being one of the attractive ASX dividend shares.
