GQG sees $6.4bn outflows in July

GQG Partners recorded another significant month of client redemptions in July, with net outflows of US$4.5 billion ($6.4b), as the global fund manager continued to face pressure on funds under management.

The latest monthly update shows outflows remained broadly in line with June when GQG recorded US$4.62 billion in net redemptions. The July result was partially offset by US$5 billion in investment performance, lifting total funds under management to US$156.4 billion at the end of the month.

GQG's international strategy recorded the largest outflows in July at US$1.3 billion, followed by emerging markets at US$2.4 billion. Global and US strategies each recorded US$400 million in net income.

The latest figures extend a difficult year for the fund manager, which has now recorded US$19.6 billion ($27.8bn) in net outflows year-to-date.

That compares with US$12.2 billion in positive investment performance over the same period. GQG began 2026 with US$163.9 billion in FUM, meaning assets have fallen by US$7.5 billion despite the investment gains.

The July figures follow a sharp period of redemptions through the first half of the year. In June, GQG recorded US$3.2 billion in outflows, while the six months to June 30 saw net outflows of US$15.1 billion.

GQG previously said its focus remained on compounding client capital over a full market cycle, with disciplined attention to downside risk.

The manager also noted fees on the vast majority of its FUM are calculated as a percentage of assets rather than performance fees.

While investment performance has continued to cushion the impact of redemptions, the persistence of outflows remains a key pressure point for GQG, with shrinking FUM potentially weighing on future fee revenue.

Earlier this year, GQG had also reported substantial outflows being offset by investment performance. In April, the manager recorded US$1.4 billion in monthly outflows but offset these with US$5.7 billion in positive investment performance.

GQG's FY25 results, reported in May, showed total assets of US$163.9 billion at December 2025, while net income rose 7% to US$463 million.

Morningstar equity analyst Shaun Ler at the time subsequently described GQG's earnings outlook as weak, pointing to poor short- and medium-term relative performance and the risk of accelerating redemptions.