GQG Partners reported US$11.1 billion in positive net inflows in the first six months of the year, the global investment boutique confirmed in its half-year results on Thursday.

In a report to shareholders, GQG CEO Tim Carver noted that these results exceeded the expectations it had set for the business over the past few years.

“We believe these flows reflect client confidence in our approach, driven by the consistency of our long-term returns,” Carver said.

Amid these flows and gains in global equity markets, GQG's funds under management ( FUM ) increased 49.5 percent from a year earlier, reaching US$120.6 billion as of June 30.

This comes after the firm saw its FUM surpass US$150 billion for the first time in May, less than a year after it crossed the US$100 billion mark at the end of June 2023.

Additionally, net operating income increased 54.9% from $176.4 million in 1H23 to $273.2 million, with GQG citing its continued investment in talent and the overall business,

Meanwhile, net income in the first half of 2024. amounted to USD 363.1 million, an increase of 53.1 percent over the previous corresponding period.

The firm clarified that it earns revenue primarily from management fees, which are based on a percentage of FUM. Management fees accounted for 94.6 per cent of GQG's half-year net income, suggesting it creates stability in the income stream, particularly during periods of volatility.

"As in previous periods, our revenue is primarily derived from asset-based fees, with only 5.4 percent of our revenue for the first half of 2024." come from performance fees. We expect this revenue mix to remain stable over time, contributing to what we consider a high-quality earnings profile,” Carver said.

"Our financial performance is largely due to our long-term investment performance. By the end of June 2024. our strategies have continued to generate solid relative returns with lower volatility compared to their benchmarks, which we believe provides the foundation for continued business success,” he added.

Subsequently, in the year to June 30, GQG Partners Global Equity outperformed its benchmark, the MSCI ACWI, with a return of 36.96%, while GQG Partners US Equity achieved 38.52%, outperforming the S&P 500 by 13.96 percentage points.

Meanwhile, its international equity strategy more than doubled the performance of the benchmark MSCI ACWI Ex USA, returning 29.68% versus 11.62%, and its emerging markets equity strategy returned 33.2%, beating the one-year performance of the MSCI EM Index yield of 12.55 percent.

Noting that its investment performance "underpins the entire business," Carver reiterated GQG's focus on maintaining that performance.

"Of course, there will be periods where we underperform, but we believe that our culture of focus, drive and adaptability can help us right the ship as we follow the markets, pointing us in a direction that will help us to achieve our goal of long-term excellence.”

The company's board declared a quarterly interim dividend of $0.0335 per share, representing 90 percent of distributable earnings for the quarter ending June 30, 2024.