The GQG Partners Inc (ASX: GQG) share price is leaping higher today.
Shares in the United States-based fund manager closed yesterday trading for $2.13. In morning trade on Friday, shares are swapping hands for $2.25 apiece, up 5.6%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.9% at this same time.
Investor interest has been roused again today following the release of the company's full 2023 calendar year results.
Read on for the highlights.
GQG share price leaps on 2023 funds growth
- Net flows of US$10.0 billion
- Funds under management as at 31 December of US$120.6 billion, up 37.0% year on year
- Net revenue of US$517.6 million, up 18.5% from 2022
- Net operating income of US$384.4 million, up 15.7% year on year
- Final unfranked dividend of 2.6 US cents per share, up from 2.0 US cents per share in 2022
What else happened with GQG during the year?
The GQG share price is getting some tailwinds today from the strong growth in funds under management, which reached $120.6 billion as at 31 December. That's up 37.0% from the prior year. Management attributed the growth to both net flows and investment performance.
Diluted earnings per share increased 19.0% from 2022 to 9.55 US cents per share.
And the final dividend payout of 2.6 US cents per share represents a 90% payout ratio of GQG's distributable earnings. If you're looking to bank that dividend, you'll need to own shares at market close next Tuesday. The stock trades ex-dividend on Wednesday, 21 February.
GQG pays quarterly dividends. Across 2023 the company paid out 9.1 cents per share, up 17.3% from the 2022 dividend payments.
What did management say?
Commenting on the results sending the GQG share price higher today, CEO Tim Carver said:
Our financial result is driven in large part by our investment performance over the long-term. As at the end of December 2023, our strategies continued to provide solid long-term performance as compared to their benchmarks … which we believe provides the underpinnings for continued business success…
As at 31 January, our FUM totalled US$127.0 billion, which is a record high for our business, and we have experienced estimated net flows of US$2.9 billion for the 2024 year to date period through 14 February.
What's next?
Looking at what could impact the GQG share price in the months ahead, Carver said the company's relatively low fees could set it up well for more strong performance.
According to Carver:
Our weighted average management fee for … 2023 was 48.8 bps [0.488%], which we believe to be very competitive. As a result, we may be less likely to face margin pressure in the future relative to peers with higher average management fees.
In addition, more than 96% of our revenues last year were derived from asset-based fees, which we expect to exhibit more stability in periods of market volatility. Less than 4% of our revenues were derived from performance fees.
GQG share price snapshot
With today's big intraday boost factored in, the GQG share price is up an impressive 55% in 12 months.
And that's not including the four dividends GQG paid out in 2023!
