The GQG Partners Inc (ASX: GQG) share price is up after the fund manager revealed a strong performance for the month of March 2023.
GQG is a global fund manager that’s based in the US but is expanding overseas. It runs four main strategies – international shares (excludes US), global shares, emerging markets shares and US shares.
FUM performance
GQG told investors how its funds under management (FUM) performed in the month to March 2023, as well as its quarterly inflows.
It said that its total FUM increased from $90.8 billion at 28 February 2023 to $94.5 billion at 31 March 2023.
For the three months to 31 March 2023, GQG experienced net inflows during the quarter of US$5 billion. That’s an average of more than $1.6 billion a month.
In the update, GQG said:
Against the backdrop of continued macro challenges, we believe these flows demonstrate strong business momentum driven by our long-term investment performance and our global distribution footprint. While we continue to see business momentum across multiple geographies and channels, we caution against simple extrapolation of these flows through the year, as we believe they may benefit from first quarter seasonality and were potentially driven in part by our strong 2022 investment results. At the end of the first quarter, positions in many portfolios were significantly different from 31 December 2022; notably, as at 31 March 2023, our global and US equity portfolios are now overweight in the information technology sector.
What to make of this for the ASX dividend share
Getting over $1 billion of inflows a month is a great showing considering the share market has looked particularly uncertain because of the rising interest rates.
I believe the business has a very promising future ahead thanks to a combination of its fund performance and inflows.
GQG has said it will pay out annual dividends per share equating to 90% of its distributable earnings. Not only do I think that it can deliver strong total returns, but I think GQG’s earnings can keep rising, leading to solid share price performance too, in the medium-term.
But, there are other ASX dividend shares which may be able to demonstrate less volatility than a fund manager.
