Bouyant GQG cites fee advantage

Global fund manager GQG Group has cited the attractiveness of its fees relative to its competition as one of the factors playing into its solid half-year result.

GQG announced on Friday that average funds under management had risen by 46.5% to US$139,.5 billion with net operating income up 54.9% to US$273.2 billion.

GQG Partners chief executive, Tim Carver said the results were driven in large part by the firm’s investment performance over the long term.

“As at the end of June 2024, our strategies continued to generate solid relative returns with lower volatility compared to their benchmarks which we believe provides the foundation for continued business success,” he said.

On fees, Carver said the firm continued to offer what it believed were attractive fees relative to its competition.

“Our weighted average management fee for the half year period increased from 48.3 basis points in 2023 to 49.3 basis points, driven by a shift in FUM mix,” he said.

Carver noted that as in prior periods, GQG’s revenue was overwhelmingly derived from asset-based fees, with only 5.4% of revenues for the first half coming from performance fees.