GQG Partners, created in mid-2016, has enjoyed noteworthy investment success and remarkable growth in its asset base. Although 2024 was not all smooth sailing, the firm continues to act as a responsible parent, earning a Parent rating of Above Average.
GQG Partners was founded by Rajiv Jain, who had established an impressive long-term record in international investing at Vontobel, and Tim Carver, who had a background guiding young investment firms. The pair remain in the positions they had at the launch; Carver is the CEO, and Jain is the chairman, chief investment officer, and portfolio manager on all GQG funds. Defying the trend of actively managed funds losing assets, it had USD 153 billion under management as of Dec. 31, 2024, up from roughly USD 90 billion two years earlier. Its employee count rose to around 230 from 153 over that period. The firm held an IPO in Australia in October 2021, and all employees received equity stakes.
GQG offers a fairly small lineup of strategies, all relying on a growth-oriented, valuation-conscious approach, though a few are labeled as value funds. Carver says no new strategies are planned. Expense ratios are relatively reasonable.
The firm reached a settlement with the SEC in September 2024 and paid a fine after the agency found that GQG had 12 candidates for employment sign nondisclosure agreements that violated a rule requiring specific language intended to protect whistleblowers. The infraction was limited in nature and did not involve investment-related concerns.
GQG’s main vulnerability is key-person risk. Although the strategies have comanagers, Jain remains GQG's central figure. His tendency to occasionally shift sectors fairly rapidly or invest in controversial situations, while very effective thus far, could backfire at times. It also remains to be seen how GQG will deal with an extended period of outflows or underperformance.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, GQG Partners (Branding Name ID: BN00000J55), is covered by Morningstar Manager Research.
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