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• Net Flows: Over $20 billion in net flows for the year, reaching $153 billion by year-end 2024.

• Net Revenue: $760 million, a 37% increase from the prior year.

• Net Operating Income: $578 million, a 50% increase from the prior year.

• Dividend: Fourth quarter dividend of USD0.0378 per share, up from USD0.0348 in the third quarter.

• Operating Margin: 76%, a 170 basis point increase from 2023.

• FUM Growth: Just under 27% year-over-year, driven by $20.2 billion of net flows.

• Management Fees: Represented 96.8% of net revenue in 2024.

• Average Management Fee: 49.6 basis points, up from 48.8 basis points in 2023.

• Operating Expenses: Increased by 37% compared to the prior year.

• Compensation and Benefits: Consistent at circa 56% of total operating expenses year-over-year.

• Effective Tax Rate: Decreased from 26.97% to 26.48%.

• Cash and Accounts Receivable: Growth aligned with revenue growth.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GQG Partners Inc (ASX:GQG) reported strong net flows of over $20 billion for the year, bringing total assets under management to $153 billion.

• Net revenues increased by approximately 37% to $760 million, with net operating income rising by 50% to $578 million.

• The company declared a fourth-quarter dividend of USD0.0378 per share, maintaining a 90% payout ratio, and plans to expand the dividend payout ratio to 50% to 95% of distributable earnings.

• All four primary strategies demonstrated strong long-term outperformance on a 3-, 5-, and 10-year basis, with top quintile 5-year Alpha and Sharpe ratios.

• GQG Partners Inc (ASX:GQG) successfully closed its first acquisition, launching the Private Client Services business, and reported strong performance from the acquired boutiques.

Negative Points

• The institutional business has experienced seven consecutive quarters of net outflows, indicating a more mature and potentially saturated channel.

• There was a notable asset allocation shift in Q4, with investors moving away from non-US towards US equity strategies, impacting flows.

• The company faces challenges in maintaining its high operating margin, which is heavily influenced by market beta and sales growth.

• Management fee margins are at the higher end of their historical range, with potential downward pressure if US equity grows faster than other strategies.

• The PCS Master Fund de-consolidation had a complex accounting impact, although it resulted in a zero net income after-tax impact for GQG Partners Inc (ASX:GQG).

Q & A Highlights

Q: Can you elaborate on the dividend policy change and its implications for capital management? A: Tim Carver, CEO: The change provides flexibility with our capital base. We don't plan to reduce the dividend to build capital currently. The change allows us to use the balance sheet for growth opportunities, such as acquisitions, without relying on debt. Rajiv and I are incentivized to maintain high dividends as we are major shareholders.