ASX:GQG
GQG Partners Inc
Investment Summary
The fund managers believe that GQG Partners Inc is currently facing mixed signals regarding its performance and attractiveness as an investment. Recently, the company experienced a significant decline of 15.8% after bribery charges against Adani executives, impacting fund flows despite estimates showing a minimal ~1% effect on Funds Under Management (FUM). Conversely, in earlier reports, GQG had shown positive momentum with 13.9% and 16.5% increases in share prices, attributed to $1.7b net inflows and a robust outlook for future inflows of $2.9bn in early 2024. Fund managers note GQG trades at an attractive valuation with price-to-earnings (P/E) ratios around 9x to 12x and dividends ranging from 7% to 10%. They contend that GQG remains undervalued compared to the industry average P/E of 16x, highlighting its potential as a worthwhile investment despite current challenges.
Commentary From The Managers
Blackwattle Investment Partners
30 Nov 2024
$2.02
- Blackwattle Investment Partners continues to monitor the situation regarding GQG Partners Inc.
- GQG experienced a 15.8% decline in November due to legal charges against Guatam Adani and Adani executives.
- The estimated negative impact on GQG’s Funds Under Management (FUM) from Adani's share value decline is approximately 1%.
- This news follows a period of weak relative performance for GQG, affecting fund flows.
- GQG is currently trading at a ~9x P/E and offers a 10% dividend yield.
Blackwattle Investment Partners
31 May 2024
$2.62
- Shares in GQG rose 13.9% during the month.
- The company maintained strong flows momentum with $1.7b of net inflows in April.
- Leading indicators for inflows are excellent.
- Notable strong performance and re-opening of the Emerging Markets fund.
- At 12x P/E, GQG is paying an >7% dividend.
- GQG screens cheaply vs the market and peers.
- The 10-year average P/E multiple of comparable listed asset managers is 16x.
Blackwattle Investment Partners
28 Feb 2024
$2.20
- GQG rose 16.5% during the month.
- Company released FUM update alongside 1H24 result, showing $2.9bn of inflows for the first ~6 weeks of CY24.
- Inflows are exceeding consensus expectations of $9bn for the full year.
- Leading indicators for inflows are excellent due to strong performance and an expanded distribution team.
- New office in Abu Dhabi is set to launch, enhancing their market reach.
- Re-opening of the Emerging Markets fund contributes to positive outlook.
- Investment in headcount is largely completed, indicating expected operating leverage.
- Currently, at 11 P/E with a dividend yield over 8%, GQG appears cheap compared to market and peers.
- The 10-year average P/E multiple of comparable listed asset managers is 16x.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.