The S&P/ASX All Ordinaries Index (ASX: XAO) stock GQG Partners Inc (ASX: GQG) has been an exceptional performer in recent times. It's up around 60% this year and has nearly doubled over the past year, as shown on the chart below. And one fund manager is still very positive about the company.
GQG is a large fund manager based in the US but listed on the ASX. It has four main investment strategies: US shares, international shares, global shares and emerging markets.
GQG has managed to deliver long-term outperformance with each of its strategies compared to their respective benchmarks, which is helping to attract and grow funds under management (FUM). This is one of the things that the fund manager Blackwattle is attracted to about the company.
Ongoing growth
Blackwattle noted in its May 2024 fund commentary that GQG continued its strong inflows momentum with $1.7 billion of net inflows in April.
The fund manager said the leading indicators for inflows are "excellent", noting the strong investment returns and the re-opening of GQG's emerging markets fund.
Blackwattle said GQG is trading on a price/earnings (P/E) ratio of 12, and it's paying a dividend yield of over 7%.
The investment team at Blackwattle believes that the ASX All Ords stock "still screens cheaply" compared to the market and other funds management peers. Blackwattle pointed out that the 10-year average P/E multiple of comparable listed asset managers is 16x.
Recent update
The most recent FUM update from GQG was its monthly FUM to 31 May 2024.
This showed that GQG experienced net inflows of US$2.8 billion during the month of May, with a total FUM increase of around US$8 billion over the month thanks to the investment performance of the ASX All Ords stock's funds.
GQG finished May 2024 with US$150.1 billion of FUM.
Outlook for markets
Within its fund commentary update, Blackwattle provided some commentary on its outlook for the market. The fund manager said:
As investors digest the likelihood of fewer (if any) rate cuts in 2024, we expect equity markets to remain choppy. Many cyclical sectors have already seen meaningful corrections from the very elevated valuations at the end of February.
We are now seeing opportunities to selectively increase exposure to good quality industrial businesses that are performing well. The portfolio maintains an overweight in Resources, however following a strong share price performance from sectors such and gold and copper we have taken the opportunity to bank some profits. As such, we would expect the portfolio settings to move towards a more balanced position.
