GQG Partners, Inc. · ASX:GQG
GQG Partners — FY2023 Earnings Presentation
29 slides from GQG Partners's earnings presentation, Feb 16, 2024
Slide 1: Year-End Results
For personal use only Year-End Results GQG Partners For the year ended 31 December 2023 RAJIV JAIN TIM CARVER MELODIE ZAKALUK STEVE FORD Chairman and CIO Chief Executive Officer Chief Financial Officer Managing Director, Global Distribution AS AT 31 DECEMBER 2023
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS For the Year Ended 31 December 2023 Funds Under Management Call Agenda For personal use only — Net flows of US$10.0 billion1 for the full year ended 2023 — Business Overview — Funds Under Management as at 31 December 2023 of US$120.6 billion, an — Tim Carver, CEO increase of 37.
Slide 3: 2023 Full Year Highlights
BUSINESS OVERVIEW Highlights 2023 Full Year Highlights (As at or for the year ended 31 December 2023, unless otherwise specified) For personal use only Performance — All strategies have outperformed their respective benchmarks on a 3-year and 5-year basis — Top decile 5-year alpha and Sharpe ratio f
Slide 4: Strategy Level Performance as at December 2023
BUSINESS OVERVIEW Strategy Level Performance as at 31 December 2023 For personal use only Global Equity International Equity 30 30 22.20 22.47 Total Return % Total Return % 19.81 20 20 15.62 14.20 12.73 11.72 12.16 10.31 9.71 8.17 10 6.99 7.08 10 5.75 4.25 1.55 0 0 1 year 3 year 5 years ITD 1-Oct-14
Slide 5: Alpha from Distribution and Investment Teams
BUSINESS OVERVIEW Alpha from Distribution and Investment Teams Estimated Impact of 2021 - 2023 Investment Returns and Net Flows on Ending FUM (US$ 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 $49.6 Net Flows
Slide 6: Year-End Financial Results
For personal use only Year-End Financial Results MELODIE ZAKALUK Chief Financial Officer AS AT 31 DECEMBER 2023 6
Slide 7: Financial Results Highlights
FINANCIAL RESULTS Highlights Full Year Actual Results of 2023 vs. 2022 For personal use only FY23 FY22 FY23 FY22 Closing FUM† (US$ 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)* 248.0 220.5 Net revenue (US$
Slide 8: Consolidated Statements of Operations
FINANCIAL RESULTS Consolidated Statements of Operations Consolidated Statements of Operations Commentary For personal use only 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 drive
Slide 9: 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 For personal use only $389.5 million, no debt, and suffi
Slide 10: Consolidated Statements of Cash Flows
FINANCIAL RESULTS Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Commentary For personal use only 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. Dividend
Slide 11: Business Update
For personal use only Business Update TIM CARVER STEVE FORD Chief Executive Officer Managing Director, Global Distribution AS AT 31 DECEMBER 2023 11
Slide 12: Portfolio & Performance Review
For personal use only Portfolio & Performance Review AS AT 31 DECEMBER 2023 12
Slide 13: GQG Strategies Stand Apart Versus Peers on Key Metrics
PERFORMANCE OVERVIEW GQG Strategies Stand Apart Versus Peers on Key Metrics For personal use only 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: eVestm
Slide 14: Rolling Performance as at December 2023
PERFORMANCE OVERVIEW Rolling Performance as at 31 December 2023 For personal use only Global Rolling 5-Year Return (net of fees) International Rolling 5-Year Return (net of fees) 20 20 5-Year Total Return % GQG Partners International Equity 5-Year Total Return % 15 GQG Partners Global Equity 15 - Av
Slide 15: Pivoting of the Portfolio
PERFORMANCE OVERVIEW Pivoting of the Portfolio GQG Global Equity Active Exposure versus the MSCI ACWI Index % For personal use only Last 3 Calendar Year Ends Current and 5-Year Sector Range Current and 5-Year Factor Range 9.5 Energy 17.9 8.2 0.3 Materials 2.8 -0.8 -9.3 Industrials -6.4 -5.6 -8.6 Con
Slide 16: All-Weather Alpha
PERFORMANCE OVERVIEW All-Weather Alpha use only 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%). 1.3 9 1.2 6 1.1 For personal 3 1.0 Alpha % Beta 0 0.9 -3 0.8 -6 0.7 0.6 -9 2020 2021
Slide 17: Risk-Adjusted Performance
PERFORMANCE OVERVIEW Risk-Adjusted Performance Global Equity Risk-Return % International Equity Risk-Return % For personal use only Since GQG Inception 1-June-2016 Since GQG Inception 1-June-2016 15 15 GQG Partners 13 Global Equity 12 eVestment Global Large GQG Partners eVestment ACWI ex USA Returns
Slide 18: Distribution Update
For personal use only Distribution Update AS AT 31 DECEMBER 2023 18
Slide 19: Funds Under Management
DISTRIBUTION OVERVIEW Funds Under Management† For personal use only 46.5 FUM by Strategy (US$ Billions) FUM by Channel & Region (US$ Billions) 12.8 2.3 31.2 33.6 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 20: Funds Under Management Rollforward
DISTRIBUTION OVERVIEW Funds Under Management† Rollforward of FUM (US$ Billions) For personal use only BY YEAR 2019 2020 2021 2022 2023 Beginning FUM 17.6 30.7 67.0 91.2 88.0 Net Flows 7.6 25.3 17.1 8.0 10.01 Performance 5.5 11.0 7.1 -11.2 22.6 Ending FUM 30.7 67.0 91.2 88.0 120.6 NET FLOWS BY CHANNE
Slide 21: Flows
DISTRIBUTION OVERVIEW Flows For personal use only National Accounts Top US Mutual Fund Families by Net Flows in 2023 (US$ Billions) — 26 platforms currently offer GQG mutual funds — 17 Emerging Markets Equity recommended lists and 11 model placements JP Morgan — 2 Global Equity recommended lists Bri
Slide 22: Australian Distribution Success
AUSTRALIAN DISTRIBUTION SUCCESS For personal use only 3YR NET FLOW TOTAL FUM NET FLOW % GLOBAL EQUITY FUNDS (AUSTRALIA) Global Equity Fund (Australia) Net Flows (AU$ millions) (A$ millions) (A$ millions) OF TOTAL FUM 1 GQG Partners Global Equity Fund $1,652.31 $2,781.27 59% 800 696 2 AMP Sup Special
Slide 23: Morningstar Ratings
DISTRIBUTION OVERVIEW Morningstar Ratings GQG Partners Open End Fund Ratings as at 31 December 2023 For personal use only MUTUAL FUNDS - MORNINGSTAR MORNINGSTAR RATING MORNINGSTAR RANK % MORNINGSTAR MEDAL GQG Partners Global Quality Equity Fund ★★★★★ 1 Gold GQG Partners Emerging Markets Equity Fund
Slide 24: eVestment Views: Leading Indicator
DISTRIBUTION OVERVIEW eVestment Views: Leading Indicator For personal use only EVESTMENT VIEWS GQG GLOBAL GQG INTL GQG EMERGING MKTS GQG US 1-Year View Count 2,311 1,340 1,674 1,128 1-Year View Peer Rank 1 of 717 1 of 157 1 of 607 3 of 1,230 2,500 2,311 2,000 1,674 1,500 1,340 1,128 1,000 500 98 97
Slide 25: Investment Environment
For personal use only Investment Environment RAJIV JAIN Chairman & Chief Investment Officer AS AT 31 DECEMBER 2023 25
Slide 26: Conclusion
CONCLUSION For personal use only We are passionate about investing 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 27: Question Time: Management Team
QUESTION TIME Management Team For personal use only RAJIV JAIN TIM CARVER MELODIE ZAKALUK STEVE FORD Chairman & Chief Executive Officer Chief Financial Officer Managing Director, Chief Investment Officer Global Distribution AS AT 31 DECEMBER 2023 27
Slide 28: 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 For personal use only is a recommendation to follow
Slide 29: Important Information
IMPORTANT INFORMATION MSCI All Country World (Net) Index (MSCI ACWI) For personal use only 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, Denm