Ann: FUM as at 31 July 2024, page-48

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Tarvold

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08/09/24

11:07

Post #: 75579530
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Originally posted by pastperformer: ↑

Obviously a very lucrative business, pinnacle has done well for itself. I have a few concerns for GQG.

1. Distribution isn't easy. I know the guys at pinnacle well, and they are like dogs with a bone. They put on a lot of great events to attract eye balls (see Chris Joye v Lockhart debate). You can't simply decide to add more products and get more FUM.

2. GQGs secret sauce is their agnostic portfolio construction. Being ahead of the curve and willing to make index agnostic bets and get them right. They have no obvious strengths outside of this (in my view).

3. They are $8bil and a huge international manager now. Whatever botique they add isnt going to move the needle unless they buy established managers, which would be earnings destructive.

4. When I see managers start to pivot outside their core competency is usually when the thing that made them special in the first place starts to fade. I know this will be a different team and not interefere in their core funds but they are a listed manager. Rajiv owns a lot of GQG shares and their listed performance matters.

5. This market is getting saturated and is prone to left tail events. Reputation matters in this industry.

I feel like GQG has been somewhat forced down this path due to PAC. There distribution in Australia (GQG) has been very weak (I have first hand experience). I can't speak to global. The only reason I found GQG was I spend a lot of time trying to indemnify high quality up and coming managers. They still aren't really mainstream here.

I have real reservstions about this move.

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In the scheme of things Australia is insignificant for GQG, the ME is a far bigger opportunity.

I agree that the purchase of the boutiques from PAC is more likely to be a distraction than a significant contributor.
I said the same at the time when GQG was bidding for PAC & that they should just have offered $1.60 to PAC for their own shares & stopped there.

GQG Price at posting: $2.48 Sentiment: Buy Disclosure: Held
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Last $2.61		Change -0.100(3.69%)		Mkt cap ! $7.708B

Open	High	Low	Value	Volume
$2.70	$2.70	$2.61	$3.840M	1.450M

Buyers (Bids)

No.	Vol.	Price($)
6	55218	$2.61

Sellers (Offers)

Price($)	Vol.	No.
$2.62	2430	1

View Market Depth

No.	Vol.	Price($)
6	55218	2.610
7	42230	2.600
2	8069	2.590
4	18606	2.580
2	21955	2.570

Price($)	Vol.	No.
2.620	2430	1
2.640	6132	4
2.660	7749	1
2.710	29900	1
2.720	9667	4

Last trade - 16.10pm 18/11/2024 (20 minute delay)

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Ann: FUM as at 31 July 2024, page-48

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Ann: FUM as at 31 July 2024, page-48

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