GQG Partners Reports US$172.4B FUM with US$3.4B Q2 Net Inflows

Record Funds Under Management

GQG Partners Inc. has announced a new milestone with funds under management (FUM) reaching a record US$172.4 billion as of June 30, 2025. This marks a steady increase from US$168.5 billion at the end of May, underscoring the firm’s continued growth in a competitive asset management landscape. The firm’s diverse strategies, including international, global, emerging markets, and U.S. equities, have collectively contributed to this expansion.

Net Flows and Market Positioning

June saw net inflows of US$0.7 billion, contributing to a robust US$3.4 billion for the second quarter and a year-to-date total of US$8.0 billion. While these inflows demonstrate investor confidence, they represent a slowdown compared to the US$11.1 billion net flows recorded in the same period last year. This moderation may reflect broader market uncertainties and the firm’s cautious stance.

Defensive Strategy and Performance Impact

GQG has maintained a defensively positioned portfolio throughout the quarter, prioritizing capital preservation amid volatile macroeconomic conditions and mixed corporate earnings data. This approach, while prudent, has resulted in relative underperformance across all strategies compared to their benchmarks. The firm acknowledges that such underperformance could pose challenges to attracting future net inflows, yet it remains committed to this strategy to safeguard client assets.

Revenue Composition and Management Alignment

Management fees, which are based on assets under management, continue to form the bulk of GQG’s revenue, overshadowing performance fees. This revenue structure provides a stable income base, less susceptible to short-term market fluctuations. The management team’s strong alignment with shareholders and clients signals a long-term commitment to the firm’s growth and strategic direction.

Looking Ahead

As GQG navigates the balance between defensive positioning and performance pressures, investors will be watching closely for signs of portfolio adjustment or shifts in net flow trends. The firm’s ability to maintain growth momentum while managing relative underperformance will be critical in the coming quarters.