GQG Partners sees monthly outflows continue
GQG Partners has seen a year of consecutive monthly outflows, with investors yet to be convinced by the firm’s pivot back into technology. In its monthly funds under management (FUM) update, it saw $4.3 billion in outflows during August, its second-highest monthly outflows since the start of the year.
This followed $4.5 billion in July and $3.2 billion in June, with every month seeing outflows for the past 12 months, much of which has been attributed to its avoidance of AI.
While some monthly outflows have been offset by positive investment performance, this was not the case for August, where it reported -$2.9 billion thanks to investment performance. This meant FUM fell from $156.4 billion at the start of the month to $149.2 billion and from $163.9 billion at the start of the year.
The firm’s chief investment officer, Rajiv Jain, admitted that the firm had “grossly underestimated” the impact of technology and AI on the markets in the past. In the firm’s half-year results, it detailed how it has now moved overweight on technology and semiconductors in three out of four of its funds, after a long period of bearishness towards the space.
Rajiv Jain said, “We found better opportunities simply because some of the drivers on the compute side now are far more sustainable than even six months ago. Secondly, the valuation of some of these hyperscalers have come off significantly.” He also noted that the sell-off in Korea and Taiwan was an excellent opportunity to pick up some of these names because they believe the markets might remain tighter for longer.
At the start of the month, S&P Dow Jones said GQG Partners is to be removed from the ASX 200 after a year, following a drop in market capitalisation. The US-headquartered fund manager was listed on the ASX in October 2021 and made its way up to the ASX 200 by September 2025.
Although it will still remain listed, the demotion from the index reflects a fall in its market capitalisation. At the time of entering the ASX 200 last year, shares were trading at $1.70 but have since fallen to $1.22, valuing the company at $3.6 billion. Since listing on the index in 2021, shares are down 39 per cent.
GQG Partners’ market capitalisation has decreased significantly.
The firm’s removal from the ASX 200 is a result of this decrease.
