Macquarie has downgraded GQG Partners, reducing its target price by 25 per cent, amid concerns that fund outflows will continue in the short term. The downgrade follows a period of underperformance across GQG’s fund offerings. GQG Partners is a global investment firm focused on managing equity portfolios for institutions, advisors and individuals. The firm aims to deliver long-term value to clients through a combination of fundamental research and a focus on risk management.
GQG had previously achieved 34 consecutive quarters of net inflows. However, this trend reversed last year, with outflows recorded in the September and December quarters. Macquarie analysts attribute this shift to the underperformance of all GQG’s funds relative to their benchmarks across various timeframes.
Macquarie analysts anticipate ongoing challenges. “Using more recent fund performance and assuming benchmark-like performance from here, we forecast three-year relative performance will remain below the benchmark for some time,” they stated. While five-year relative performance, a key factor influencing flows, is currently holding up, Macquarie forecasts a decline from the 2027 financial year onwards.
As a result of this analysis, Macquarie has downgraded GQG to a ‘neutral’ rating, lowering the price target to $1.65. The stock responded to the news, falling 2.5 per cent on Tuesday to close at $1.58.
