GQG Partners Inc (ASX: GQG) shares are falling on Friday morning.
At the time of writing, the ASX financial share is down 2.5% to $2.78.
This follows the release of the fund manager's half year results.
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ASX financial share falls on FY 2024 results release
- Average funds under management (FUM) up 46.5% to US$139.5 billion
- Net revenue up 53.1% to US$363.1 million
- Net operating income up 54.9% to US$273.2 million
- Net income up 56.4% to US$201.2 million
- Quarterly dividend of 3.35 US cents per share
What happened during the half?
For the six months ended 30 June, GQG Partners reported a 46.5% increase in average FUM to US$139.5 billion. This was driven by a combination of positive net flows and a strong investment performance.
Management believes its positive net flows of US$11.1 billion during the half reflect its clients' trust in its approach, driven by the consistency of its long‑term returns. The good news is that it anticipates continued positive flows in 2024 thanks to its pipeline of client demand across multiple geographies and channels.
This is supported by its attractive fees relative to competition. It notes that its revenue is overwhelmingly derived from asset-based fees. Only 5.4% of its revenues for the first half of 2024 came from performance fees.
And with its margins improving year on year, the ASX financial share reported a 54.9% increase in net operating income to US$273.2 million.
However, as strong as this growth was, it has fallen a touch short of the 65% growth that Morgans was forecasting. This may explain why its shares are falling today.
Finally, the company declared a quarterly dividend of 3.35 US cents per share, which brought its first half dividends to 5.66 US cents per share. This is up 46.3% year on year.
Management commentary
The ASX financial share's CEO, Tim Carver, was pleased with the half. He said:
We are pleased to announce our half year financial results for the period ending 30 June 2024. GQG ended the period with funds under management (FUM) across all strategies and vehicles at an all-time high of US$155.6 billion. FUM increased 49.5% from US$104.1 billion as at 30 June 2023 due to strong investment performance and positive net inflows into our strategies.
During the first half of 2024, GQG had positive net flows of US$11.1 billion. Our net revenue in the first half of 2024 was US$363.1 million, an increase of 53.1%, compared to the first half of last year. During the first six months of 2024, net operating income increased by 54.9% from US$176.4 million during the first half of 2023 to US$273.2 million
And while no guidance has been provided for the second half, Carver spoke positively about the company's outlook. He said:
We continue to believe if we react to dynamic markets in a disciplined manner, we will have the opportunity to find solid investments for our clients over the long‑term.
