Preferred shares are non-voting shares. The earnings are outlined as follows: This is in Note 10(a) on page 66, identifies FVTOCI investments of PAC's The income derived from FVTOCI assets are here from Note 2(a) on page 49: Highlighted is the income from GQG and EAM. I assume EAM dividends are stable due to minimal growth and contribute approximately $1M in dividends.
The report from CEO/CIO states this is the first year without GQG commission revenue (PAC placed a few billion from Australian Industry funds). I don't believe there is any other revenues for GQG, other than dividend income this year.
Valuation Comparison Once GQG growth matures, I believe the market cap that GQG can achieve is similar to T. Rowe Price (TROW:NAS-$US49B/$A66B) and Blackstone Group (BX:NYSE-$US92.3B/$A125.6B). These companies manage between $US1.6T and $US684B. Blackstone has a PE Ratio of 19.38 times and T. Rowe has a PE Ratio of 17.5 times.
Here are GQG's latest FUM growth figures: $A113.055B - $A94.903B = $A18.152B/$94.906B = 19.1% growth in the last quarter $A113.055B - $A64.695B = $A48.36B/$64.695B = 74.8% growth over the last year
Listing at $A5B and growing at the same rate over the next five years will see exponential growth, FUM to reach over $1T if FUM continues to grow at 75% per year. If growth slows to 50% this coming year and then continues at 30% thereafter, it will take 7 years to reach up to Blackstone Group. This is the most probable outcome, GQG has room to grow due to the size of its market.
Here are the ASX listed Fund Managers:
Based on FUM growth, the two comparative Fund Mangers are definitely PNI and AEF. There is also higher growth expectations as they are a US based company and can grow to Blackstone Groups level of FUM over the next 10 years.
Is there any US Fund Management company that even grows this quickly that we can compare GQG to?
My only thought is to compare it to Blackstone's and T. Rowe's market cap, their fees and Fund Management capacity profile would be very similar to GQG's. Then we work our way back to what we should pay for it today, given that it may take between 7 to 10 years to reach there.
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