The GQG Partners Inc (ASX: GQG) share price is up more than 2% after the fund manager reported its July update.
GQG is one of the largest fund managers on the ASX. It’s headquartered in the US, but it’s looking to expand in other countries such as Australia and Canada. It has four main investment strategies: Emerging market shares, international shares, US shares and global shares.
July 2024 update
GQG revealed that its funds under management (FUM) grew to US$156.3 billion over the month of July, up from US$155.6 billion in June. That’s growth of 0.4% in one month.
As at 31 July 2024, the fund manager had experienced net inflows for the year to date period of US$13.9 billion. That means the business saw net inflows of US$2.8 billion in July because net inflows to June 2024 was US$11.8 billion.
Let’s look at the individual breakdown between each strategy for the monthly changes.
Its international shares strategy saw FUM rise to US$60.7 billion, up from US$60.1 billion.
The global shares strategy saw FUM decline to US$38.8 billion, down from US$39.1 billion at June 2024.
GQG’s emerging markets shares FUM increased to US$43.2 billion, up from US$43 billion.
The US shares strategy experienced FUM grow to US$13.6 billion, up from US$13.4 billion.
Is the GQG share price a buy?
The GQG share price has risen jumped significantly over the past year, with an increase of more than 60% in the last 12 months.
However, the business is doing really well at continually attracting new FUM, which can help offset some of the pain caused by falling markets.
The most important thing is that GQG’s funds keep delivering good returns for investors. This help retain and attract client funds, but it can also translate into organic growth of the FUM. GQG says it main funds have delivered “strong risk-adjusted returns over the long-term”.
Pleasingly, its management fees (earned as a percentage of assets managed) are responsible for the vast majority of its net revenue, as opposed to performance fees. It hardly charges any performance fees across its funds, which can be more attractive to clients. As the FUM grows, its revenue should increase.
While GQG is not as cheap as it used to be last year, I think it still offers strong growth potential with a solid dividend yield.
I’d prefer the entry price to be even lower, but this could a decent time to buy after falling over 13% from 24 July 2024. It’s one of several attractive ASX dividend shares around.
