GQG Partners delivers resilient 1H26 earnings and declares 2Q26 dividend
GQG Partners (ASX: GQG) reported half-year results for the period ended 30 June 2026 (1H26), with net income attributable to the company holding at USD 228.4 million and the Board declaring a 2Q26 dividend of USD 0.0362 per share.
Funds under management (FUM) stood at USD 156 billion as at 30 June 2026, with the global equity boutique marking a decade since its founding in June 2016.
The period underscored a clear tension: resilient earnings and strong margins were maintained despite net outflows of USD 15.1 billion, driven by relative underperformance during the first half of 2026.
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1H26 results at a glance
Across the reporting period, net revenue, operating income, net income and earnings per share all held broadly flat year-on-year, despite a more challenging flow environment. The operating margin remained strong at 76.0%, compared with 76.2% in 1H25.
| Metric | 1H26 | 1H25 | % Variance | Investor takeaway |
|---|---|---|---|---|
| Closing FUM (USD) | 156.0B | 172.4B | -9.5% | Lower base reflects outflows and market moves |
| Average FUM (USD) | 164.5B | 162.9B | +1.0% | Higher average base supported fees |
| Net flows (USD) | -15.1B | +8.0B | -287.8% | Reversal from inflows to outflows |
| Net revenue (USD) | 397.2M | 403.0M | -1.4% | Revenue broadly stable |
| Net income attributable to GQG (USD) | 228.4M | 230.2M | -0.8% | Earnings resilience maintained |
| Distributable earnings (USD) | 234.9M | 236.5M | -0.7% | Supports continued distributions |
| Diluted EPS (USD per share) | 0.08 | 0.08 | flat | Per-share earnings unchanged |
What drove the numbers
Revenue and fee strength held up
Average FUM rose 1.0% to USD 164.5 billion, and management fee revenue increased 1.9% from the prior-year period. This was supported by a higher average fee realisation rate of 48.6 basis points, up from 48.2 basis points, reflecting changes in strategy and vehicle mix.
Total operating expenses fell USD 0.4 million (0.5%), primarily due to lower third-party distribution, servicing and related fees, alongside reduced general operating expenses.
GQG earns the substantial majority of its revenue from management fees calculated as a percentage of FUM, with performance fees representing a smaller component.
A diversified, competitively priced book
The company’s FUM remained well diversified across geographies, vehicles, client channels and strategies. As at 30 June 2026, FUM comprised:
- International Equity: USD 70.1 billion
- Emerging Markets Equity: USD 37.1 billion
- Global Equity: USD 35.5 billion
- US Equity: USD 13.3 billion
Management stated its belief that the company’s products are priced competitively and are less likely to face margin pressure than peers, many of whose products it believes are priced at higher management fees.
CEO Commentary — Tim Carver
“Since our founding in June 2016, GQG’s objective has been to seek long-term absolute returns for clients while emphasising capital preservation and downside risk management. Over the past decade, our assets have grown to USD 156 billion in funds under management (FUM). We experienced relative underperformance during the first half of 2026, which contributed to net outflows of USD 15.1 billion over the period. Investment performance of USD 7.2 billion partially offset these outflows. Since our IPO in October 2021, FUM has grown by more than 72%.”
Long-term investment performance in context
During 1H26, net outflows of USD 15.1 billion were partially offset by USD 7.2 billion of investment performance. A “composite” refers to the aggregated returns of similar portfolios within a strategy, used to measure how the strategy has performed against its market benchmark.
Annualised composite returns from inception through 30 June 2026 (net of management fees) were reported as follows:
- International Equity: 10.3% vs MSCI ACWI Ex USA 7.5%
- Emerging Markets Equity: 6.7% vs MSCI Emerging Markets 7.3%
- Global Equity: 11.6% vs MSCI ACWI 10.7%
- US Equity: 13.5% vs S&P 500 13.8%
As the company notes, past performance may not be indicative of future results. These figures represent long-term track records since each strategy’s inception rather than performance over the reporting period alone.
The 2Q26 dividend
The Board declared a 2Q26 dividend of USD 0.0362 per share, representing 90% of the company’s second-quarter distributable earnings.
The dividend calendar is as follows:
- Declaration Date: 21 August 2026
- Ex-Dividend Date: 26 August 2026
- Record Date: 27 August 2026
- Cash Payment Date: 25 September 2026
Investment thesis and outlook
The results position GQG as a global equity boutique managing USD 156 billion in FUM, with resilient margins and a decade-plus track record, navigating a softer flow period while maintaining earnings and shareholder distributions.
FUM has grown by more than 72% since the company’s ASX IPO in October 2021, when it held USD 90.4 billion as at 31 October 2021. The 1H26 result illustrates how stable average FUM and a firm fee realisation rate can support earnings even when net flows turn negative.
The announcement does not provide forward earnings guidance or targets. Investors seeking the full detail can refer to GQG’s Investor Centre for the complete 2026 Half Year Earnings Presentation.
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