GQG Partners US Quality Value Fund Investor Shares · NASDAQ:GQHPX
GQG Partners US Quality Value Fund Investor Shares — GQG Partners — FY2022 Earnings Presentation
27 slides from GQG Partners US Quality Value Fund Investor Shares's earnings presentation, February 2023
Slide 1: Year-End Results
Year-End Results GQG Partners | The Art of Investing For year ended 31 December 2022 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 2022
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS For the Year Ended 31 December 2022 Funds Under Management Call Agenda • Melodie Zakaluk, CFO: 2022 Financial Results • Net flows of US$8.0 billion for the full-year ended 2022 • Accelerating flows in Q1 with $2.2 billion raised as of 15 February • Tim Carver, CEO: Business Over
Slide 3: Business Overview: 2022 Full-Year Highlights
BUSINESS OVERVIEW Highlights 2022 Full-Year Highlights Solid growth in core products: • Amongst the top firm in net fund inflows for active equity managers in Australia and the U.S. as measured by the leading industry benchmarking firms • GQG ranked 1st in Emerging Markets and 2nd in Global Equity i
Slide 4: Strategy Level Performance as at December 2022
BUSINESS OVERVIEW Strategy Level Performance as at 31 December 2022 International Equity 20 Global Equity 15 10 8.23 15 10.12 11.27 6.85 8.92 4.98 10 6.58 5 2.93 Total Return % 4.00 5.23 0.07 0.88 Total Return % 5 0 0 -5 -5 -4.65 -10 -10 -15 -11.29 -15 -20 -16.00 -20 -18.36 1 year 3 year 5 years ITD
Slide 5: Operational Value Add
BUSINESS OVERVIEW Operational Value Add Estimated 2022 Impact of Investment Returns and Net Flows on Ending FUM (US$ Billions) Ex 2022 Outperformance GQG Partners FUM1 Actual -/+ (Outperformance Impact)2 Impact2 31-Dec-21 FUM $91.2bn $91.2bn - 2022 Net Flows $8.0bn $8.0bn - 2022 Performance -$11.2bn
Slide 6: Full Year Financial Results
Full Year Financial Results MELODIE ZAKALUK Chief Financial Officer AS AT 31 DECEMBER 2022
Slide 7: Financial Results: Full Year 2022 vs. 2021
FINANCIAL RESULTS Full Year Actual Results of 2022 vs. 2021 (Dollars in US$ millions, except per share data) FY22 FY21 FY22 FY21* Closing FUM† (US$ billions) 88.0 91.2 Distributable earnings (US$ millions) 253.8 50.4 Average FUM† (US$ billions) 88.8 80.5 Dividends paid (US$ millions) 220.5 - Net rev
Slide 8: Summary Consolidated Statements of Operations
FINANCIAL RESULTS Summary Consolidated Statements of Operations Summary Consolidated Statements of Operations Commentary Year over Year Comparison Net revenue for 2022 increased despite headwinds by 9.8% to $436.8 million For the years ended 31 December 2022 and 2021 primarily driven by an increase
Slide 9: Consolidated Statements of Financial Condition
FINANCIAL RESULTS Consolidated Statements of Financial Condition Summary of Consolidated Statements of Commentary Financial Condition as at 31 December 2022 Balance sheet remains strong with no debt and sufficient working capital. The primary use of GQG’s cash continues to be working capital and US$
Slide 10: Consolidated Statements of Cash Flows
FINANCIAL RESULTS Consolidated Statements of Cash Flows Summary 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 2022 and 2021 distributions/dividends. Dividends are based up
Slide 11: Business Update
Business Update TIM CARVER STEVE FORD Chief Executive Officer Managing Director, Global Distribution AS AT 31 DECEMBER 2022
Slide 12: FUM, Flows, and Investment Performance
FUM, FLOWS, and Investment Performance AS AT 31 DECEMBER 2022
Slide 13: Rolling Performance as at December 2022
BUSINESS OVERVIEW Rolling Performance as at 31 December 2022 Global Rolling 5-Year Return (net of fees) International Rolling 5-Year Return (net of fees) 20 18 18 16 5-Year Total Return % 5-Year Total Return % 16 GQG Partners Global Equity 14 GQG Partners International Equity - Average 5-Year total
Slide 14: Risk-Adjusted Performance: Leading Indicator
BUSINESS OVERVIEW Risk-Adjusted Performance: Leading Indicator 0.0 0.9 GQG Partners 0.6 GQG Partners 0.0 Global Equity -0.5 0.6 International Equity -0.5 0.4 -1.0 0.3 -1.0 0.2 -1.5 0.0 -1.5 0.0 1-YEAR ITD (1-OCT-14) 1-YEAR ITD (1-DEC-14) AS OF 31 DECEMBER 2022 AS OF 31 DECEMBER 2022 SHARPE RANK SHAR
Slide 15: Risk-Adjusted Performance
RISK-ADJUSTED PERFORMANCE Global Equity risk-return % US Equity risk-return % Inception (1 October 2014) to 31 December 2022 Inception (1 July 2014) to 31 December 2022 14 20 Returns Returns 12 GQG Partners 10 Global Equity 15 GQG Partners eVestment Global Large Cap Equity Universe US Equity 8 10 6
Slide 16: Pivoting of the Portfolio
BUSINESS OVERVIEW Pivoting of the Portfolio GQG Partners Global Equity GQG Global Equity Factor Exposure Under/Overweight Benchmark % Current and 5-Year Range vs MSCI ACWI -3.0 Energy 9.5 17.9 -2.3 Materials 0.3 2.8 -6.9 Industrials -9.3 -6.4 -5.4 Consumer Discretionary -8.6 -10.4 0.5 Consumer Stapl
Slide 17: Pivoting of the Portfolio: Rolling Outperformance
BUSINESS OVERVIEW Pivoting of the Portfolio GQG Rolling Outperformance, Volatility, and Peer Rankings Alpha: GQG Global Equity Rolling 5-Year vs MSCI ACWI Beta: GQG Global Equity Rolling 5-Year vs MSCI ACWI 10 1.3 8 1.2 6 1.1 4 Alpha % Beta % 1.0 2 0 0.9 -2 0.8 -4 0.7 -6 -8 0.6 9/30/2019 12/31/2019
Slide 18: eVestment Views: Leading Indicator
BUSINESS OVERVIEW eVestment Views: Leading Indicator eVestment View Count and Distribution Impact Score as of 31 December 2022 GQG Partners GQG Partners GQG Partners GQG Partners GQG Partners Strategies Global Equity International Equity EM Equity US Equity eVestment 1-Year View Count 2,064 1,171 1,
Slide 19: Morningstar Ratings: Leading Indicator
BUSINESS OVERVIEW Morningstar Ratings: Leading Indicator GQG Partners Open End Fund Ratings as of December 31, 2022 MUTUAL FUNDS OVERALL MORNINGSTAR RATING MORNINGSTAR RANK % GQG Partners Global Quality Equity Fund ★★★★★ 1 GQG Partners Emerging Markets Equity Fund ★★★★★ 7 GQG Partners US Select Qual
Slide 20: Funds Under Management
BUSINESS OVERVIEW Funds Under Management FUM† by Strategy (US $ Billions) FUM† by Channel & Region (US $ Billions) 7.2 33.1 31.5 25.2 10.7 22.8 39.9 6.9 70.1 16.6 International Global Equity Emerging Markets US Institutional Wholesale Sub-Advisory Americas EMEA Asia Pacific Institutional Client Conc
Slide 21: Funds Under Management: Rollforward
BUSINESS OVERVIEW Funds Under Management† Rollforward of FUM (US$ Billions) Funds Under Management • Current pipeline across all channels is growing BY YEAR 2019 2020 2021 2022 Beginning FUM 17.6 30.7 67.0 91.2 • 1Q23 net flows have accelerated vs. 4Q22 net flows Net Flows 7.6 25.3 17.1 8.0 Performa
Slide 22: Operational Value Add 2020-2022
BUSINESS OVERVIEW Operational Value Add 2020 - 2022 Operational Value Add (US $ Billions) Estimated Estimated FUM1 from Outperformance2 Total Value Added 2020 25.3 1.8 27.1 2021 17.1 0.8 17.9 2022 8.0 6.1 14.1 $59.1 $50.4 $8.7 Net Flows + Additional FUM from Outperformance = Total Value Added Source
Slide 23: Investment Environment
Investment Environment RAJIV JAIN Chairman & Chief Investment Officer AS AT 31 DECEMBER 2022
Slide 24: Conclusion
CONCLUSION 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 through many market cycles
Slide 25: Question Time
QUESTION TIME Management Team 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 2022 24
Slide 26: Important Information
IMPORTANT INFORMATION The information provided in this document does not constitute disclosures. respect to any of such data. Without limiting the foregoing, in no event investment advice and no investment decision should be made based on shall MSCI, any of its affiliates or any third party involved
Slide 27: Important Information
IMPORTANT INFORMATION The MSCI All Country World ex USA Index (MSCI ACWI ex USA) is NOTICE TO SOUTH AFRICAN INVESTORS an international equity index that excludes securities from the United Investors should take cognisance of the fact that there are risks States. The index tracks stocks from 22 devel