The GQG Partners Inc (ASX: GQG) share price is down 5% after the fund manager gave its February 2026 monthly update.
GQG is one of the largest fund managers on the ASX, offering various strategies including US, global, international (excluding US) and emerging market shares.
February 2026 update
Funds under management (FUM) is a key financial metric for many fund managers because that’s largely how GQG generates revenue from asset-based management fees.
The business reported that each of its strategies saw FUM growth. However, each of the strategies also saw FUM outflows, perhaps more than the market was expecting.
Overall, GQG’s FUM increased by US$7.2 billion to US$172.9 billion thanks to US$10.5 billion of investment performance. However, there were net outflows of US$3.2 billion.
The international FUM grew from US$72.8 billion in January 2026 to US$76.8 billion in February thanks to US$4.8 billion of investment performance. But, it saw net outflows of US$0.9 billion for the month.
Emerging market FUM increased from US$41.7 billion to US$42.1 billion, with US$1.7 billion of investment performance. But, net outflows were US$1.3 billion over February.
Global FUM grew from US$37.4 billion to US$39.4 billion. This growth happened thanks to US$2.8 billion of investment performance, while net outflows were US$0.8 billion for the month.
US FUM increased from US$13.8 billion to US$14.7 billion. Investment performance contributed US$1.1 billion of the FUM change, but net outflows were US$0.2 billion over February.
My thoughts on the GQG share price
Ultimately, investors want to see the company’s FUM rise, which it did. It’s one of the biggest monthly rises of FUM in GQG’s history.
Yet, the market didn’t like it. Net outflows aren’t slowing down, in-fact this was one of the biggest months of outflows the company has seen.
GQG isn’t going to be able to deliver amazing investment performance every single month, yet the outflows could continue. However, if it can outperform the market then it could retain and attract FUM as it was doing before 2025.
If the FUM is rising, then net profit and the dividend can rise. The business isn’t priced for (much) FUM growth, so it could outperform expectations. The dividend yield alone looks like it could be above 10%.
But, there are other ASX dividend shares that could be better, in my opinion, where long-term success is clearer to see.
