GQG Partners Shares Extend Rout to New Record Low After $17.7 Billion October Funds Plunge Rattles Investors

SYDNEY — Shares of GQG Partners Inc. fell nearly 9% on Thursday to a fresh record low. Investors continued selling the global fund manager a day after it reported a sharp drop in funds under management.

GQG shares closed down 7 Australian cents, or 8.97%, at A$0.71. The stock fell as low as A$0.705, below Wednesday's previous record low. More than 30 million shares changed hands.

GQG's market value has fallen to about A$2.1 billion, and the shares are down about 51% over the past year.

On Wednesday, GQG shares plunged 19.6% to close at A$0.78, making it the worst performer on the S&P/ASX 200 index.

Funds under management plunge

The selloff followed GQG's monthly update showing total funds under management fell to US$131.6 billion at Oct. 31, from US$149.2 billion at the end of September. That was a decline of about US$17.7 billion, or 11.8%, in a single month.

The drop was driven by net client outflows of US$6.7 billion, nearly triple September's US$2.3 billion, and investment performance losses of US$11 billion.

Year to date, net outflows have reached US$32.9 billion. Funds under management have fallen from US$163.9 billion at the end of 2025.

Mistimed tech bet

GQG's flagship Global Equity Fund fell 10.1% in October after a sharp selloff in U.S. technology stocks. The losses came after Chief Investment Officer Rajiv Jain shifted the firm's portfolios toward technology shares.

GQG rotated back into semiconductor and AI technology stocks shortly before a global chip stock pullback, analysts noted. U.S. chip stocks have been hit by worries about AI spending and, more recently, a scandal involving Nvidia CEO Jensen Huang.

Other Australian active managers, including Regal Partners and Wilson Asset Management, also suffered double-digit fund losses in October. The losses reflected concerns about financing the AI boom, persistent inflation, rising interest rates and a housing downturn.

Pressure on earnings

GQG earns management fees based on its average funds under management. Analysts said the decline in assets reduces the firm's earnings capacity and its ability to pay dividends.

Morningstar cut its fair value estimate for GQG in October, citing what it called unrelenting redemptions.

"The main uncertainty is the persistence of client withdrawals," Kalkine said in an analysis, adding that the next monthly update will show whether the October decline continued or moderated.

GQG was founded in 2016 and is headquartered in Fort Lauderdale, Florida. It manages money for pension funds, sovereign wealth funds, wealth management firms and other institutions, with offices in New York, Seattle, London and Sydney.

The firm listed on the ASX in 2021. Its shares traded as high as A$1.97 over the past year.

This article is for informational purposes only and does not constitute investment advice.