The GQG Partners Inc (ASX: GQG) share price is down 3.55% to $1.765 after the investment manager released its 1H FY25 results.
The ASX All Ords financial share opened higher at $1.88, up 2.7%, before following the rest of the market lower.
The S&P/ASX 200 Index (ASX: XJO) also began the day in the green and reset its record high at 9,025.5 points before reversing course.
ASX 200 shares are currently down 0.33% and the S&P/ASX 200 Financials Index (ASX: XFJ) is down 0.24%.
GQG Partners is a global boutique asset management firm managing active share portfolios.
Let's take a look at their results for 1H FY25.
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GQG Partners' share price falls despite higher revenue
Here are the highlights of the report:
- Revenue of US$403 million, up 11% on 1H FY24
- Net operating income of $306.8 million, up 12.3% on 1H FY24
- Net profit after tax (NPAT) attributable to shareholders of US$230 million, up 14.4% on 1H FY24
- Total funds under management (FUM) increased 10.8% to US$172.4 billion as of 30 June
- Net inflows decreased 28% from US$11.1 billion in 1H FY24 to US$8 billion in 1H FY25
- Net tangible assets of 8 US cents per share, up from 7 US cents per share in 1H FY24
- Diluted earnings per share (EPS) of 8 cents, up 14.3%
- Unfranked interim dividend of 7.34 US cents per share, up 14.5% on 1H FY24
- Dividend payable on 26 September
What else happened in 1H FY25?
GQG Partners renamed its dividend income strategies for investors in the US and Australia to 'Quality Value' in December 2024.
In January 2025, the investment firm expanded access to the Quality Value strategies to UCITS funds.
UCITS funds are regulated under European Union rules and marketed across the EU.
The firm did this by launching the GQG Partners U.S. Quality Value Fund and the GQG Partners Global Quality Value Fund.
Investors are increasingly moving away from management funds into exchange-traded funds (ETFs), and GQG is adapting to the times.
Last month, GQG launched its first active ETF for its US Equity strategy.
The ETF had about $200 million invested as of last month.
The investment manager said:
GQG's entry into the ETF market is in recognition of the increasingly significant investor demand for this type of vehicle.
By offering this strategy in an ETF format, GQG seeks to be a manager of choice for investors, diversify its product offerings for clients and tap into this growing segment of our industry.
What did GQG Partners management say?
In a letter to shareholders, GQG Partners CEO Tim Carver said the firm's focus on long-term growth had resulted in an underperformance in 1H FY25.
Carver explained:
As at 30 June 2025, our strategies underperformed their relative benchmarks over the one-year period and have mixed results over the three and five‑year periods.
This is largely a result of our relatively defensive portfolio positioning as compared to the benchmarks.
This includes, for example, being underweight technology companies in our developed markets strategies and underweight China in the Emerging Markets strategy.
Carver said GQG Partners aimed to add value for clients with less volatility and better downside risk management than the benchmarks.
In practice, this often translates into missing out on returns during exuberant bull market cycles in favour of defensive growth, he said.
Carver reminded investors that over the long run, GQG Partners' funds had compounded ahead of the market with lower volatility.
As at 30 June 2025, each of our flagship strategies outperformed its respective benchmark in each rolling five-year period since inception at least 97% of the time, if not 100%.
Despite short-term underperformance, we continue to deliver alpha for clients.
I believe we are among a very select group in the industry that has demonstrated such consistency in alpha generation.
What's next for GQG Partners?
GQG said it would continue to expand its product range to meet investor demand.
The firm believes there are significant growth opportunities within the US market, based on industry trends.
GQG Partners share price snapshot
GQG Partners' shares have fallen 34% over the past year.
By comparison, the ASX 200 is up 12% and the ASX 200 financials sector is up 21%.
