GQG’s Defensive Bet Leads to Investor Exodus and Slower Growth

GQG Partners Faces Investor Pullback

GQG Partners Inc., a notable player in the asset management sector, has disclosed a notable contraction in its funds under management (FUM), which stood at US$167.2 billion as of September 30, 2025. This represents a slight decline from US$167.6 billion at the end of August, driven by net outflows of US$1.7 billion during September and a more substantial US$4.8 billion over the entire third quarter.

While the firm still reports positive net inflows of US$3.2 billion year-to-date, this figure is a stark contrast to the US$17.4 billion inflows recorded in the same period last year, signaling a significant slowdown in new capital commitments.

Defensive Positioning Amid Market Volatility

The company attributes this pullback largely to its sustained defensive investment stance, which, while prudent in the face of extended market valuations and macroeconomic uncertainty, has led to relative underperformance in recent months. GQG’s management emphasizes their ongoing commitment to reevaluating portfolio positioning daily, aiming to protect client assets should market volatility intensify.

This cautious approach appears to be a situation with both benefits and drawbacks, it may safeguard capital during turbulent times but has also contributed to subdued performance compared to more aggressive strategies, potentially influencing investor confidence and capital flows.

Revenue Stability and Management Alignment

Despite the challenges in asset growth, GQG highlights that management fees; calculated as a percentage of assets under management; continue to constitute the bulk of its net revenue. This fee structure provides a relatively stable income base, even as performance fees linked to investment returns fluctuate.

Moreover, the company underscores strong alignment between its management team, shareholders, and clients, signaling a unified focus on long-term value creation and resilience in uncertain markets.

Looking Ahead

As GQG navigates these headwinds, the firm’s ability to adapt its investment strategies and regain investor confidence will be critical. Market watchers will be keen to see whether the defensive posture pays off in protecting capital or if it further dampens growth prospects in an increasingly competitive asset management landscape.