GQG outflows triple to 6.7 billion dollars
Fund manager GQG saw its outflows triple in October, rising to US$6.7 billion.
The firm reported that outflows were US$6.7 billion, and negative investment performance resulted in a further loss of US$11 billion.
The biggest withdrawals occurred in its emerging markets funds, which saw $3.2 billion leave, while international funds lost $2.2 billion.
Global and US equities lost US$900 million and US$500 million respectively.
The emerging markets fund remains the only one where GQG has avoided increasing its technology exposure, citing the already heavy tech weighting in the index—driven by firms like TSMC and Samsung.
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Year-to-date, total withdrawals from the firm amount to $32.9 billion, though it has gained $600 million from positive returns on investments.
The company’s share price has declined 54.2 per cent over the same period, compared to gains of 4.6 per cent by the ASX 200 index.
Rajiv Jain, the firm’s chief investment officer, admitted to the heavy outflows and the plummeting share price, which analysts linked to its earlier cautious view on AI stocks. However, the company has since reversed course, boosting its technology and semiconductor holdings in three of its four funds.
Jain explained: ‘We seriously misjudged certain factors, including the surge in demand for computing power and the expansion of industrial activity across major economies worldwide.’
GQG’s shift in stance on technology and semiconductors is a significant development, and it will be interesting to see how this change affects the firm’s performance in the future. October’s outflows were up from US$2.3 billion during September, and followed two consecutive months of outflows of more than US$4 billion during July and August. At the time of entering the ASX 200 last year, shares were trading at $1.70 but have since fallen to $0.80 cent, representing a decline of 59 per cent since listing on the index in 2021.
