The GQG Partners Inc (ASX: GQG) share price is under the spotlight after the business reported its December 2023 update.
GQG is one of the biggest fund managers on the ASX.
Funds under management update
The fund manager reported that its total funds under management (FUM) had increased from US$112.6 billion at November 2023 to US$120.6 billion at December 2023. This was a record high for the company.
In the November update, it said in the first 11 months of 2023 it experienced net inflows of US$9 billion. In this December update, the company revealed its annual net inflows for the year to 31 December 2023 were US$9.9 billion. That means the net inflows were US$0.9 billion for the month of December, which is helpful for GQG shares.
The December quarter saw net inflows of US$1.8 billion.
GQG said on a full-year basis, it expects to be among the top firms in net fund inflows for active equity managers, both in Australia and the US, as measured by “leading industry benchmarking firms”.
Can this performance continue?
GQG said that its expects “continued business momentum in 2024, and begin the year with a promising pipeline for potential new business.
The fund manager then said it believes its strong risk-adjusted returns in 2023, and over the longer-term, in combination with its global, diversified distribution capabilities, position it “well” in the market.
Management fees as a percentage of assets managed, as a percentage of assets managed, rather than performance fees, continue to make up the vast majority of its revenue. So, this ongoing FUM growth is good for profit.
Is the GQG share price an opportunity?
GQG has done a very good job of growing its FUM since it listed on the ASX. Its management team remain “highly aligned” with all shareholders because of their holding of GQG shares and they have “significant exposure” to its investment performance.
With ongoing net inflows, a large dividend and growth of underlying earnings, there’s a lot to like about this business – I’d happily own it as an ASX dividend share in my income-focused portfolio.
