GQG Partners, Inc. · ASX:GQG
GQG Partners — Investor Presentation (March 2024)
40 slides from GQG Partners's investor presentation, Mar 18, 2024
Slide 1: ASX Announcement: Investor presentation for the week of 18 March 2024
GQG Partners ASX Announcement 18 March 2024 ASX Limited ASX Market Announcements Office Exchange Centre For personal use only 20 Bridge Street SYDNEY NSW 2000 GQG Partners Inc. (ARBN 651 066 330) Investor presentation for the week of 18 March 2024 INVESTOR PRESENTATION GQG Partners Inc. (GQG or the
Slide 2: March 2024 Shareholder Roadshow
For personal use only March 2024 Shareholder Roadshow GQG Partners For the year ended 31 December 2023 TIM CARVER MELODIE ZAKALUK MARK BARKER BRIAN KERSMANC SID JAIN Chief Executive Officer Chief Financial Officer Managing Director, Head Portfolio Manager Deputy Portfolio Manager of International AS
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS For the Year Ended 31 December 2023 (unless otherwise specified) Funds Under Management Call Agenda — Net flows of US$10.0 billion1 for the full year ended 2023 Business Overview — Funds Under Management as at 29 February 2024 of US$137.5 billion Tim Carver, CEO For personal use
Slide 4: Business Overview: 2023 Full Year Highlights
BUSINESS OVERVIEW Highlights 2023 Full Year Highlights (As at or for the year ended 31 December 2023, unless otherwise specified) Performance For personal use only — All strategies have outperformed their respective benchmarks on a 3-year and 5-year basis — Top decile 5-year alpha and Sharpe ratio f
Slide 5: Strategy Level Performance as at February 2024
BUSINESS OVERVIEW Strategy Level Performance as at 29 February 2024 Global Equity International Equity 50 42.41 40 31.75 Total Return % 40 Total Return % For personal use only 30 30 23.15 20 20 16.06 15.95 12.51 13.22 13.68 9.56 10.60 10.51 8.57 6.79 10 5.44 4.35 10 1.32 0 0 1 year 3 year 5 years IT
Slide 6: Alpha from Distribution and Investment Teams
BUSINESS OVERVIEW Alpha from Distribution and Investment Teams Estimated Impact of 2021 - 2023 Investment Returns and Net Flows on Ending FUM (US$ billions) For personal use only Impacts on GQG Partners FUM1 2021 2022 2023 2021 - 2023 Total Value Added Starting FUM $67.0 $91.2 $88.0 $49.6 Net Flows
Slide 7: Distribution Overview: Funds Under Management
DISTRIBUTION OVERVIEW Funds Under Management† 46.5 FUM by Strategy (US$ billions) FUM by Channel & Region (US$ billions) 12.8 2.3 33.6 For personal use only 31.2 43.6 49.8 7.6 9.3 97.9 27.2 Institutional Wholesale Sub-Advisory Americas Australia EMEA Other APAC International Global Emerging Markets
Slide 8: GQG Strategies Stand Apart Versus Peers on Key Metrics
PERFORMANCE OVERVIEW GQG Strategies Stand Apart Versus Peers on Key Metrics There are 7,588 eVestment strategies that are equity, long only, and actively managed. Compared to their stated benchmarks, only GQG strategies have historically met the following three criteria: For personal use only eVestm
Slide 9: Strategic Initiatives
For personal use only Strategic Initiatives AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 8
Slide 10: GQG Private Capital Solutions
STRATEGIC INITIATIVES GQG Private Capital Solutions We believe private capital managers are fundamentally attractive businesses in which to invest — Investments in managers with closed-end vehicles provide predictable, contractual management fees — Asset management firms typically have capital-light
Slide 11: Abu Dhabi Global Market (ADGM)
STRATEGIC INITIATIVES Abu Dhabi Global Market (ADGM) For personal use only We are strategically expanding our international footprint into the Middle East We believe ADGM gives GQG a competitive edge in recruiting talent from around the globe to serve in every area of our organisation The Middle Eas
Slide 12: Year-End Financial Results
For personal use only Year-End Financial Results MELODIE ZAKALUK Chief Financial Officer AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 11
Slide 13: Financial Results Highlights
FINANCIAL RESULTS Highlights Full Year Actual Results of 2023 vs. 2022 FY23 FY22 FY23 FY22 For personal use only Closing FUM† (US$ billions) 120.6 88.0 Distributable earnings (US$ millions) 297.9 253.8 Average FUM† (US$ billions) 101.9 88.8 Dividends paid (US$ millions)1 248.0 220.5 Net revenue (US$
Slide 14: Consolidated Statements of Operations
FINANCIAL RESULTS Consolidated Statements of Operations Consolidated Statements of Operations Commentary Year over Year Comparison — Net revenue for period ending 31 December 2023 increased by 18.5% to $517.6 million For the years ended 31 December 2023 and 2022 primarily driven by an increase in av
Slide 15: Consolidated Statements of Financial Condition
FINANCIAL RESULTS Consolidated Statements of Financial Condition Consolidated Statements of Financial Condition Commentary as at 31 December 2023 and 2022 — GQG continues to have a strong balance sheet, with total assets at 31 December 2023 of $389.5 million, no debt, and sufficient working capital.
Slide 16: Consolidated Statements of Cash Flows
FINANCIAL RESULTS Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Commentary Year over Year Comparison — The primary use of GQG’s cash continues to be working capital and For the years ended 31 December 2023 and 2022 distributions/dividends. Dividends are based upon Distr
Slide 17: Distribution & International Business Overview
For personal use only Distribution & International Business Overview MARK BARKER Managing Director, Head of International AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 16
Slide 18: Barriers to Entry and Headroom for Growth
DISTRIBUTION OVERVIEW Barriers to Entry and Headroom for Growth Barriers to Entry Headroom for Growth For personal use only — Institutional distribution requires alpha generation and investment in — Multi-channel/multi-geography approach creates opportunity for infrastructure diversification of flow
Slide 19: What is the GQG Edge in Distribution?
GLOBAL DISTRIBUTION OVERVIEW What is the GQG "Edge" in Distribution? Accomplishments — We believe allocators prefer alpha-generating boutiques #1 Most viewed global equity strategy last 5 years — GQG has distribution scale to compete #1 Most viewed emerging markets equity strategy last 5 years For p
Slide 20: Winners Are Primarily Boutique Managers
GLOBAL DISTRIBUTION SUCCESS Winners Are Primarily Boutique Managers 3YR NET FLOW TOTAL FUM NET FLOW % 3YR NET FLOW TOTAL FUM NET FLOW % GLOBAL EQUITY INTERNATIONAL EQUITY (US$ billions) (US$ billions) OF TOTAL FUM (US$ billions) (US$ billions) OF TOTAL FUM 1 Alphinity Global Equities Strategy $9.30
Slide 21: Leveraged Distribution Model
GLOBAL DISTRIBUTION OVERVIEW Leveraged Distribution Model INSTITUTIONAL WHOLESALE SUB-ADVISORY — >1,000 institutional investors globally1 — US, UK, and AUS focused — Sub-advisory relationships in Australia, Canada, Europe, Japan, and the US For personal use only — Strategy focuses on consultant rela
Slide 22: Market Penetration: eVestment Views
MARKET PENETRATION: EVESTMENT VIEWS Leading Indicator EVESTMENT VIEW COUNT GQG PARTNERS GQG PARTNERS GQG PARTNERS GQG PARTNERS For personal use only AND DISTRIBUTION SCORE1 GLOBAL EQUITY INTERNATIONAL EQUITY EM EQUITY US EQUITY eVestment 1-Year View Count 2,311 1,340 1,674 1,128 eVestment 1-Year Vie
Slide 23: International Distribution Overview
INTERNATIONAL DISTRIBUTION OVERVIEW ABU DHABI (ADGM) LONDON SYDNEY — 2 person client facing team and growing — 6 person client facing team — 8 person client facing team — Strategic focus on: — Covering UK, Ireland, and Switzerland — Covering Australia, New Zealand, and Asia ex Japan For personal use
Slide 24: EMEA Overview
For personal use only EMEA Overview AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 23
Slide 25: GQG Partners UCITS Platform
GQG PARTNERS UCITS PLATFORM EMERGING MARKETS EQUITY GLOBAL EQUITY US EQUITY — Launched February 2017 — Launched January 2019 — Launched February 2021 For personal use only — 7 year anniversary Q1 2024 — 5 year anniversary Q1 2024 — 3 year anniversary Q1 2024 — Peer group fund flows 36 months to Dece
Slide 26: UK and Europe Overview
UK AND EUROPE OVERVIEW HEADWINDS APPEAR TO BE ABATING UK Defined Benefit Pension Assets (£ trillions)1 — Potential growth in wholesale business impeded by recent challenges in UK 1.8 1.8 1.7 For personal use only defined benefit pensions and new ESG rules on the continent — A de-risking and liquidit
Slide 27: Middle East: A Rapidly Growing Centre for Wealth and Asset Management
MIDDLE EAST A Rapidly Growing Centre for Wealth and Asset Management OPPORTUNITIES IN THE MIDDLE EAST GQG PARTNERS LTD (ADGM) — The region is a rapidly growing financial centre, particularly UAE and Saudi Arabia — Abu Dhabi Global Market (ADGM) is an international financial centre and free zone For
Slide 28: Australian Market Overview
For personal use only Australian Market Overview AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 27
Slide 29: GQG Australian Business: Institutional Channel
GQG AUSTRALIAN BUSINESS Institutional Channel BARRIERS TO ENTRY GQG SOLUTION GQG’S INSTITUTIONAL BUSINESS — Consolidation — Segmentation and prioritisation of sales resources — Institutional FUM were A$3.0 billion when we opened a For personal use only — Regulator actively promoting plan consolidati
Slide 30: GQG Australian Business: Wholesale Channel
GQG AUSTRALIAN BUSINESS Wholesale Channel BARRIERS TO ENTRY GQG SOLUTION GQG’S WHOLESALE BUSINESS — Large established incumbents — Articulating our founding philosophy of client alignment — Wholesale FUM have grown from zero to A$4.3 billion1 For personal use only since March 2020 — Some overseas ma
Slide 31: GQG Australian Business: Recent Highlights
GQG AUSTRALIAN BUSINESS RECENT HIGHLIGHTS GQG Australian Managed Funds CFS First Choice Global Equity Sub- Complex (A$ billions) Advised by GQG (US$ millions) — Australia FUM grew 46% during 2023 4.62 For personal use only — Global Equity ranked #1 for flows during the trailing one- 346 year and thr
Slide 32: Performance Overview
For personal use only Performance Overview BRIAN KERSMANC SID JAIN Portfolio Manager Deputy Portfolio Manager AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 31
Slide 33: Rolling Performance
PERFORMANCE OVERVIEW Rolling Performance as at 31 December 2023 Global Rolling 5-Year Return (net of fees) International Rolling 5-Year Return (net of fees) 20 20 GQG Partners International Equity For personal use only 5-Year Total Return % 5-Year Total Return % GQG Partners Global Equity 15 15 - Av
Slide 34: Portfolio Adaptability
PERFORMANCE OVERVIEW Portfolio Adaptability GQG Partners Global Equity Composite Relative and Absolute Sector Weights from January 2017 through February 2024 For personal use only Relative Sector Weights Absolute Sector Weights 30 100 90 Comm Serv 20 Cons Disc 80 10 +/- Benchmark Cons Stap 70 0 Ener
Slide 35: All-Weather Alpha
PERFORMANCE OVERVIEW All-Weather Alpha GQG Partners Global Equity Rolling 5-Year Outperformance and Volatility GQG outperformed the benchmark and peer universe, with less volatility, 52 of 52 times (100%). For personal use only 1.3 9 1.2 6 1.1 3 1.0 Alpha % Beta 0 0.9 -3 0.8 -6 0.7 0.6 -9 2020 2021
Slide 36: Conclusion
CONCLUSION We are passionate about investing For personal use only We will always endeavour to grow, learn, adapt, and attain a competitive advantage in our markets We are the caretakers of peoples’ futures We strive to deliver sustainable high-performance outcomes with lower absolute volatility thr
Slide 37: Question Time: Leadership Team
QUESTION TIME Leadership Team For personal use only Tim Carver Melodie Zakaluk Mark Barker Brian Kersmanc Sid Jain Chief Executive Officer Chief Financial Officer Managing Director, Head of Portfolio Manager Deputy Portfolio Manager International AS AT 31 DECEMBER 2023, UNLESS OTHERWISE SPECIFIED 36
Slide 38: Important Information
IMPORTANT INFORMATION The information provided in this document does not constitute investment advice and no investment decision should be made based on it. Neither the information contained in this document or in any accompanying oral presentation is a recommendation to follow any strategy or alloc
Slide 39: Important Information: Information About Awards
IMPORTANT INFORMATION INFORMATION ABOUT AWARDS Australia: Morningstar Fund Manager of the Year – Global Equities Morningstar Awards 2023©. Morningstar, Inc. All Rights Reserved. Awarded to GQG Partners Global Equity Fund for Fund Manager of the Year –Global Equities Category, Australia. Award finali
Slide 40: Important Information: Index Descriptions
IMPORTANT INFORMATION MSCI All Country World (Net) Index (MSCI ACWI) The MSCI All Country World (Net) Index (MSCI ACWI) captures large and mid-cap representation across 23 developed and 24 emerging markets countries. Developed countries Australia, Austria, Belgium, Canada, Denmark, Finland, France,