Hi
@Alee26Following is provided on the basis of not being financial advice and is to be used for general discussion purposes only. Keen on others feedback (I may have forgotten a thing or two).
They are different businesses on the following basis:
1) PNI boutiques have a lot of Retail FUM and PNI assists smaller boutique fund managers accumulate FUM in the Australian Market (looking to expand overseas).
2) PNI boutiques have a proportion of FUM invested in other asset classes, Coolabah Capital in the bond market and Metrics Partners in non-bank lending. GQG won’t participate in these markets.
3) GQG global distribution channels are mature in US and UK, growing in Australia, EU and Canada.
4) GQG has a global reputation. Pinnacle Australian focus, but looking outwards. GQG removes Australia performance risk and limited Addressable Market (still large globally, but not as big as US and UK).
5) Obvious PE Ratio differences between the two, is this justified if growth is the same? We will find out 03/08 how GQG’s FUM growth compares to PNI when PNI release results. Which should have the higher multiple?
6) GQG’s Emerging Market fund performance was top 2 in Australia and globally for the last quarter. PNI doesn’t own such boutiques.
7) PNI exposure through Hyperion to tech stocks. GQG will change as they judge best.
Answer isn’t simple, it will depend on what you want your portfolio construction to be based on risk profile.
There are also alternatives to PNI worth exploring if you are looking for diversity of asset classes at better valuation and higher FUM growth.
Best of Luck
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