GQG Faces Outflows Amid Strong Performance

Global equity manager GQG Partners experienced over $6 billion in investor withdrawals last month, even as it successfully navigated a significant technology stock sell-off that impacted rivals. Fort-Lauderdale based GQG Partners manages various investment funds, specialising in global and emerging markets for institutional and individual investors. Investment chief Rajiv Jain, a vocal critic of the artificial intelligence trade, has seen his firm record $US28 billion in year-to-date outflows, including $US4.5 billion specifically withdrawn in July.
Mr Jain’s contrarian call against the AI trend paid off in July. Concerns over AI spending and China competition triggered a brutal rout in South Korea’s sharemarket and sent the Philadelphia Semiconductor Index to its worst month since 2008. GQG’s flagship Global Equity Fund returned 1.1 per cent, beating the MSCI All-Country World Index ex-Tobacco’s 0.1 per cent rise. This surpassed rivals like Platinum and Hyperion, exposed to chipmaker losses. The Emerging Markets Equity Fund gained 3.3 per cent, significantly outpacing the MSCI Emerging Markets ex-Tobacco Index, which fell 3.1 per cent.
Despite robust returns, investors pulled $US4.5 billion across all GQG strategies in July. Morningstar analyst Shaun Ler noted GQG needed a “very solid multi-year track record” to reverse persistent outflows. Nevertheless, the company grew its funds under management by $US400 million to $US156.4 billion last month, as strong performance offset withdrawals. This figure remains below $US163.9 billion at year-start. GQG shares fell 0.9 per cent to $1.42, tumbling 19 per cent this year. The firm declined comment, citing a blackout period before its half-year results.