The GQG Partners Inc (ASX: GQG) share price is up more than 1% after another strong month for the fund manager.
GQG is based in the US but it’s expanding geographically in countries like Australia and Canada.
Good FUM performance in March
The fund manager revealed that its funds under management (FUM) had grown from US$137.5 billion in February 2024 to US$143.4 billion at the end of March 2024.
GQG said that it experienced net inflows of US$4.6 billion for the three months to 31 March 2024. The investment performance by GQG’s funds is usually the stronger contributor to the fund manager’s FUM growth, but the inflows are a very helpful bonus.
Looking at the individual strategies, the ‘international’ shares strategy saw the biggest increase in dollar terms, with a rise from US$52.9 billion in February to US$55.8 billion in March 2024.
‘Global’ shares saw a US$700 million monthly rise to US$36.7 billion, ’emerging markets’ shares saw a US$1.9 billion rise to US$39 billion and US shares saw a US$400 million increase to US$11.9 billion.
Strong performance to continue?
GQG can’t control what happens with share prices, but management said it has demonstrated a “solid start” to 2024.
The fund manager cautioned investors about extrapolating its recent performance considering there can be some “seasonality”.
But, GQG also said it believes the “strong risk-adjusted returns over the long-term” combined with its global, diversified distribution capabilities, position it “well in the market”.
It said it expects “continued business momentum in 2024 with a promising pipeline of potential new FUM”.
The company’s management fees comprise the vast majority of its net revenue, rather than performance fees.
GQG also said that it remains “highly aligned with shareholders and clients, and acutely focused on and committed to GQG’s future.”
Final thoughts on the GQG share price
GQG is doing all the right things to keep growing earnings, which can help grow the underlying value of the business and that should boost the dividend too.
Is it a buy after such a big share price run? I think it can keep rising over the medium-term, particularly if it keeps experiencing strong inflows. However, I think it could be a stock that falls harder if the market drops, so that would be my preferred choice to jump on GQG shares.
It’s one of the leading ASX dividend shares though, in my opinion.
