GQG (ASX:GQG) share price up 5% amid strong FY21 profit growth

GQG delivered strong profit growth in FY 2021…

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Key points

  • GQG Partners' funds under management grew strongly in FY 2021
  • This underpinned strong revenue growth and even stronger profit growth
  • Management advised that its result was underpinned by its successful investment strategies

The GQG Partners Inc (ASX: GQG) share price is having a positive finish to the week.

In morning trade, the fund manager's shares are up 5% to $1.47 following the release of its full year results.

GQG share price up amid strong FY 2021 growth

  • Average funds under management (FUM) up 77% to US$80.5 billion
  • Closing FUM of US$91.2 billion
  • Net revenue up 74.9% to US$397.9 million
  • Net income after tax up 81.6% to US$304.9 million
  • Dividends per share of 1.54 US cents

Management commentary

GQG's CEO, Tim Carver, was pleased with the company's performance during the first half. He put its strong growth down to the positive results of its investment strategies.

Mr Carver commented: "We are pleased to announce our financial results for the 2021 financial year. During the year GQG saw 36.1% growth in funds under management to US$91.2 billion. This represents net FUM flow of US$17.1 billion for 2021, bolstered by strong absolute performance across our strategies. This, combined with FUM growth in prior periods, led to Net Revenue growth of 74.9% to US$397.9 million. Net income after tax increased 81.6% to US$304.9 million from US$167.9 million in 2020, reflecting the increase in average funds under management and cost efficiencies."

"Our financial result is driven in large part by our investment performance over the long term. As at the end of the year our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success."

Outlook

While no guidance has been given for FY 2022, management appears optimistic on the future.

It notes that it continues to see strong business momentum in a variety of geographies and channels and highlights that its fees are very attractive relative to its competition.

Positively, management also revealed that although markets have experienced significant volatility since the beginning of 2022, its funds under management have remained broadly stable with FUM of US$93.8 billion as at 18 February 2022.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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