GQG Partners, Inc. · ASX:GQG
GQG Partners — Investor Presentation (September 2023)
45 slides from GQG Partners's investor presentation, Sep 8, 2023
Slide 1: ASX Announcement: Investor Presentation
GQG Partners ASX Announcement 8 September 2023 GQG Partners Inc. (ARBN 651 066 330) 450 East Las Olas Boulevard For personal use only Suite 750 Fort Lauderdale, FL 33301 USA INVESTOR PRESENTATION GQG Partners Inc. (GQG or the Company) (GQG:ASX) will be hosting investor presentations the week of 11 S
Slide 2: September 2023 Shareholder Roadshow
For personal use only September 2023 Shareholder Roadshow GQG Partners | The Art of Investing For the half year ended 30 June 2023 TIM CARVER MELODIE ZAKALUK STEVE FORD BRIAN KERSMANC Chief Executive Officer Chief Financial Officer Managing Director, Global Distribution Portfolio Manager AS AT 30 JU
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS For the Half Year Ended 30 June 2023 Funds Under Management Call Agenda — Net flows of US$6.2 billion Business Overview For personal use only — Funds Under Management of US$104.1 billion, an increase of 20.1% — Tim Carver, CEO from 2022 half year results Half Year Financial Resu
Slide 4: Business Overview: Strategy Level Performance
BUSINESS OVERVIEW Strategy Level Performance as at 30 June 2023 Global Equity 15 International Equity 20 12.38 12.72 16.53 Total Return % Total Return % 8.99 For personal use only 15 11.53 10 8.14 8.56 10.40 10.99 10.84 7.22 10 8.73 8.10 7.79 5 3.52 3.85 5 0 0 1 year 3 year 5 years ITD 1 year 3 year
Slide 5: Highlights
BUSINESS OVERVIEW Highlights 2023 Half Year Highlights (As at or for the half year ended 30 June 2023, unless otherwise specified) Performance For personal use only — All strategies have outperformed their respective benchmarks on a 5-year basis — Top quartile 5-year alpha and Sharpe ratio for the f
Slide 6: Operational Value Add
BUSINESS OVERVIEW Operational Value Add Estimated YTD (30 June 2023) Impact of Investment Returns and Net Flows on Ending FUM (US$ billions) For personal use only YEAR TO DATE IMPACTS ON GQG PARTNERS FUM1 Starting FUM (31-December-22) $88.0bn $6.5 $6.2 Net Flows +$6.2bn Capital Appreciation +$9.9bn
Slide 7: Funds Under Management
BUSINESS OVERVIEW Funds Under Management† FUM by Strategy FUM by Channel & Region 39.3 (US $ billions) (US $ billions) 8.2 For personal use only 37.5 12.1 28.8 27.7 45.2 8.3 83.8 21.4 Institutional Wholesale Sub-Advisory Americas EMEA Asia Pacific International Global Emerging Markets US Equity YTD
Slide 8: Growth and Diversification
BUSINESS OVERVIEW Growth and Diversification We continue to expect to add talent to the GQG platform, focusing on the following areas - Recruitment of people we can build a business around, including the enhancement of existing funds or launching new products For personal use only - Lift-out opportu
Slide 9: Half Year Financial Results
For personal use only Half Year Financial Results MELODIE ZAKALUK Chief Financial Officer AS AT 30 JUNE 2O23 8
Slide 10: Half Year Actual Results of 2023 vs. 2022
FINANCIAL RESULTS Half Year Actual Results of 2023 vs. 2022 (Dollars in US$ millions, except per share data) For personal use only HY23 HY22 HY23 HY22 Closing FUM† (US$ billions) 104.1 86.7 Net income after tax (US$ millions) 128.6 125.3 Average FUM† (US$ billions) 95.2 91.0 Distributable earnings (
Slide 11: Consolidated Statements of Operations
FINANCIAL RESULTS Consolidated Statements of Operations Consolidated Statements of Operations Commentary Half Year Comparison — Net revenue was $237.1 million, up 6.5% compared to the half year ended 30 June 2022. For the six months ended 30 June 2023 and 2022 The increase is primarily driven by gro
Slide 12: Distribution Overview
For personal use only Distribution Overview STEVE FORD Managing Director, Global Distribution AS AT 30 JUNE 2O23 11
Slide 13: Barriers to Entry and Headroom for Growth
DISTRIBUTION OVERVIEW Barriers to Entry and Headroom for Growth Barriers to Entry - Institutional distribution requires alpha generation and investment in infrastructure For personal use only • Heavily influenced by investment consultants • Requires significant resources focused on people and system
Slide 14: Accomplishments
GLOBAL DISTRIBUTION OVERVIEW Accomplishments What is the GQG "Edge" in Distribution? #1 most viewed firm global equity last 5 years — We believe allocators prefer alpha-generating boutiques #1 most viewed firm EM equity last 5 years For personal use only — GQG has distribution scale to compete #1 mo
Slide 15: Winners Are Primarily Boutique Managers
GLOBAL DISTRIBUTION SUCCESS Winners Are Primarily Boutique Managers 3YR NET FLOW TOTAL FUM NET FLOW % 3YR NET FLOW TOTAL FUM NET FLOW % GLOBAL EQUITY INTERNATIONAL EQUITY (US$ billions) (US$ billions) OF TOTAL FUM (US$ billions) (US$ billions) OF TOTAL FUM 1 Capital Group Small Cap World $13.65 $70.
Slide 16: 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, For personal use only Canada, Europe, Japan, and the US — Strategy focuses on consultant — St
Slide 17: 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 SCORE* GLOBAL EQUITY INTERNATIONAL EQUITY EM EQUITY US EQUITY eVestment 1-Year View Count 2,416 1,305 1,528 1,158 eVestment 1-Year Vie
Slide 18: US Market Overview
For personal use only US Market Overview AS AT 30 JUNE 2O23 17
Slide 19: US Market Is Large Multi-Channel Opportunity
US MARKET IS LARGE MULTI-CHANNEL OPPORTUNITY Traditional Market Sizing 2021: U.S. Market Sizing Components by Investment Vehicle $89.3 trillion (US$ billions) For personal use only Addressable Marketplace Adjustments: YOY GROWTH 3-YEAR 5-YEAR 10-YEAR $20.4 trillion INVESTMENT VEHICLE 2021 RATE CAGR
Slide 20: US Is Growing Market with Massive Scale
US IS GROWING MARKET WITH MASSIVE SCALE Total Professionally Managed US Assets The US Has the Largest Share of Total Net Assets of Under Management by Client Segment Worldwide Regulated Open-End Funds 2017 – 2021 (US$ billions) (US$ trillions, year-end) For personal use only $68,864 55.2% 55.3% 52.1
Slide 21: GQG Multi-Channel Approach Addresses Scale Challenge
GQG MULTI-CHANNEL APPROACH ADDRESSES SCALE CHALLENGE Institutional Wholesale Sub-advisory — 11 person client facing team — 19 person team and growing — Broad opportunities across channels For personal use only — Strategic focus on investment — 27 platforms offering GQG Funds • Leverage of partner sa
Slide 22: US Retail Advisor Market
For personal use only US Retail Advisor Market AS AT 30 JUNE 2O23 21
Slide 23: Barriers to Entry Can Create Opportunity
BARRIERS TO ENTRY CAN CREATE OPPORTUNITY GQG Client Segmentation Model $50 – 250mm $250 – 500mm $500 – 750mm $750 - $1bil $1billion + 100 90 Barriers to Entry 80 — Rise of models 70 For personal use only 60 • Alpha driven 50 — Platform rationalization 40 Models are either created in-house using 3rd
Slide 24: Large Market Poses Distribution Challenge
LARGE MARKET POSES DISTRIBUTION CHALLENGE NATIONAL & INDEPENDENT INSURANCE RETAIL BANK Most Investment Company Total Net Assets ADVISOR HEADCOUNT WIREHOUSE REGIONAL B/D IBD HYBRID RIA RIA B/D B/D ALL CHANNELS Number of advisors 43,237 44,149 53,462 31,920 40,162 51,390 24,235 288,555 Are in Mutual F
Slide 25: GQG Leveraged Sales Model
GQG LEVERAGED SALES MODEL For personal use only Field Sales Client Portfolio Managers 17 8 Product & Performance National Accounts Marketing 2 8 Pacific Northwest Southwest Mountain Plains Central South Midwest Mid-South Ohio Valley Mid-Atlantic Northeast Southeast AS AT 30 JUNE 2O23 24
Slide 26: Content Marketing & Media Extends Reach
CONTENT MARKETING & MEDIA EXTENDS REACH For personal use only AS AT 30 JUNE 2O23 25
Slide 27: US Mutual Fund Distribution Success
US MUTUAL FUND DISTRIBUTION SUCCESS Winners are Primarily Large Product Distributors 3YR NET FLOW TOTAL FUM NET FLOW % 3YR NET FLOW TOTAL FUM NET FLOW % GLOBAL EQUITY INTERNATIONAL EQUITY (US$ billions) (US$ billions) OF TOTAL FUM (US$ billions) (US$ billions) OF TOTAL FUM 1 American Funds Global In
Slide 28: US Institutional Market
For personal use only US Institutional Market AS AT 30 JUNE 2O23 27
Slide 29: US Pension Market Nearly 15x Australia
US PENSION MARKET NEARLY 15X AUSTRALIA Evolution of Assets Under Management Over the Past Two Decades (US$ billions) For personal use only 2002 2012 2022e US 8,968 US 16,848 US 30,439 Japan 2,289 Japan 3,166 Japan 3,099 UK 1,120 UK 2,879 Canada 2,880 Canada 754 Canada 2,510 UK 2,568 Netherlands 503
Slide 30: Consultants Are Key Leverage Point
CONSULTANTS ARE KEY LEVERAGE POINT Consultant Use by Institutional Channel 2022 For personal use only 100% 93.5% 91.2% 88.3% 90% 84.4% 82.1% 77.6% 80% 73.8% 70% 63.9% 60% 55.2% 51.6% 49.1% 50% 42.3% 40% 33.3% 30% 25.1% 19.8% 20% 17.0% 10% 0% Taft-Hartley DB Taft-Hartley DC Public DC Public DB Corpor
Slide 31: Highly Competitive Rating Process
HIGHLY COMPETITIVE RATING PROCESS Top 20 Consultants Advise >80% of Assets Manager Success Rates at Consultants For personal use only Source: Fin|Searches. Source: Greenwich Associates. AS AT 30 JUNE 2O23 30
Slide 32: Broad Opportunities for Direct Sales
BROAD OPPORTUNITIES FOR DIRECT SALES Direct Investor Sales Process Top 20 US Pension Plans (US$ billions) For personal use only PENSION PLAN SIZE 1 Federal Retirement Thrift Investment Board $769.5 2 California Public Employees' Retirement System $461.0 3 California State Teachers' Retirement System
Slide 33: US Sub-Advisory
For personal use only US Sub-Advisory AS AT 30 JUNE 2O23 32
Slide 34: Broad Opportunities in US Sub-Advisory
BROAD OPPORTUNITIES IN US SUB-ADVISORY Sub-Advised Assets by Vehicle 2017-2026E (US$ billions) For personal use only $3,500 $4,086 $3,938 $3,179 $4,150 $2,971 $3,740 $2,999 $3,000 $3,560 $3,555 $2,828 $3,381 $3,298 $2,664 $3,193 $2,497 $2,508 $2,424 $2,500 $2,840 $2,211 $2,610 $2,000 $1,909 $1,787 $
Slide 35: GQG US Sub-Advisory Relationships
GQG US SUB-ADVISORY RELATIONSHIPS Leverage and Reach Sub-Advisory Opportunities GQG US Sub-Advisory FUM (US $ billions) — Retail and institutional relationships For personal use only 34.5 — Independent sales teams — High barrier to entry clients 28.9 27.5 • Variable insurance products • Insurance af
Slide 36: GS GQG Partners International Opportunities Fund
GS GQG PARTNERS INTERNATIONAL OPPORTUNITIES FUND Largest Fund Globally for GSAM GS GQG Partners International Opportunities Fund FUM — Only GSAM fund in wirehouse models (US$ billions) 29.0 For personal use only — Thousands of advisor clients 22.5 23.9 — Thousands of retail investors 15.2 GSAM US Re
Slide 37: Performance Overview
For personal use only Performance Overview BRIAN KERSMANC Portfolio Manager AS AT 30 JUNE 2O23 36
Slide 38: Risk-Adjusted Performance: Leading Indicator
PERFORMANCE OVERVIEW Risk-Adjusted Performance: Leading Indicator 40 20 40 20 GQG Partners GQG Partners Global Equity International Equity For personal use only 20 10 20 10 0 0 0 0 1-YEAR ITD (1-OCT-14) 1-YEAR ITD (1-DEC-14) AS AT 30 JUNE 2023 AS AT 30 JUNE 2023 RETURN RANK RETURN RANK RETURN RANK R
Slide 39: Risk-Adjusted Performance
PERFORMANCE OVERVIEW Risk-Adjusted Performance Global Equity Risk-Return % International Equity Risk-Return % GQG inception (1 June 2016) to 30 June 2023 GQG inception (1 June 2016) to 30 June 2023 15 14 For personal use only GQG Partners 12 12 Global Equity Returns Returns 10 GQG Partners 9 MSCI AC
Slide 40: Rolling Performance as at June 2023
PERFORMANCE OVERVIEW Rolling Performance as at 30 June 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 - Averag
Slide 41: 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, 46 of 46 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 2
Slide 42: 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 43: Question Time: Management Team
QUESTION TIME Management Team For personal use only TIM CARVER MELODIE ZAKALUK STEVE FORD BRIAN KERSMANC Chief Executive Officer Chief Financial Officer Managing Director, Portfolio Manager Global Distribution AS AT 30 JUNE 2O23 42
Slide 44: 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 45: Important Information
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,
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