Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • GQG’s Funds Under Management declined to USD 166.6 billion as at 31 July 2025 from USD 172.4 billion a month earlier.

  • The company recorded USD 1.4 billion in net outflows in July, with USD 1.0 billion linked to a single institutional client.

  • Year-to-date net inflows stood at USD 6.7 billion despite July’s decline.

GQG Partners Inc. (ASX:GQG) saw its share price drop 9.16% to AUD 1.84 per share on 8 August 2025 after reporting a decline in Funds Under Management (FUM) for July.

The investment manager’s FUM totalled USD 166.6 billion as at 31 July 2025, down from USD 172.4 billion at the end of June. The decrease was driven by USD 1.4 billion in net outflows during the month, of which USD 1.0 billion was attributed to a single institutional client.

By strategy, International Equity FUM fell to USD 68.6 billion from US$69.7 billion, Global Equity decreased to USD 38.6 billion from USD 41.1 billion, Emerging Markets Equity dropped to USD 40.6 billion from USD 41.7 billion, and U.S. Equity declined to USD 18.8 billion from USD 19.9 billion. On a year-to-date basis to 31 July 2025, the firm reported net inflows of USD 6.7 billion, supported by gains in International and U.S. Equity strategies.

The company noted that its investment positioning remains defensive, aiming to limit risk within client portfolios. GQG indicated it is avoiding segments of the market perceived as having extreme valuations, which it likened to the conditions of the dot-com period.

This cautious approach has resulted in underperformance across all strategies compared with their respective benchmarks so far in 2025. The company acknowledged that such underperformance could pose challenges for attracting new funds, and that the net outflows seen in July may persist in the near term.

Despite short-term headwinds, GQG said it continues to reassess and reaffirm its portfolio positions with the objective of delivering long-term capital growth. The firm emphasised its willingness to accept higher benchmark-relative volatility in the short run to target improved absolute and risk-adjusted returns over time.

Management highlighted that the bulk of its revenue is derived from management fees—calculated as a percentage of assets under management—rather than performance fees linked to investment returns.