GQG Partners’ performance sees Zenith ratings upgrade

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MEDIA RELEASE: The GQG Partners Global Equity Fund (unhedged) has been upgraded to a “highly recommended” rating from Zenith Investment Partners.

In addition, the hedged share class of the Fund also has been given a “highly recommended” rating in its first review by Zenith.

The GQG Partners Global Equity Fund (both hedged and unhedged classes) seeks to invest in high quality companies with attractively priced future growth prospects in both developed and emerging markets. It seeks to limit downside risk while providing attractive returns to long-term investors over a full market cycle.

In its Product Assessment Report issued 2 October 2020, Zenith said: “Zenith’s high level of conviction in the Fund is underpinned by the portfolio manager’s experience and unique investment process that has delivered an impressive long-term track record. Zenith holds GQG’s investment capabilities in high regard and believes the Fund is well positioned to deliver strong absolute returns over the long term”. 

The report also said: “Zenith believes the team is collectively highly experienced and its unique structure is a key point of difference relative to peers. Overall, we view [Chairman and Chief Investment Officer Rajiv] Jain as an impressive and insightful investor whose oversight is critical to the overall success of the Fund and the broader business”.

Zenith further observed that “GQG structures its team to work on . . . initial company analysis independently as a means to leverage the differentiated skillsets amongst the team and to avoid group think. Zenith believes this provides a robust framework that harnesses diversity of ideas and is a crucial element for the quality of debate and discussion amongst the team”.

Finally, the report noted that “Zenith believes GQG’s process is based on a sound investment thesis and that it is well positioned to deliver strong absolute returns over the long term”.

GQG Partners’ director of wholesale relationships in Australia, Daniel Bullock, points out that the rating upgrade reflects the knowledge and experience of Mr Jain, the firm’s co-founder and CIO, as well as the calibre of the GQG Partners team.

“Rajiv and the team have striven to deliver consistently strong investment outcomes for our investors, with Zenith noting the Fund’s performance has placed it in the first quartile of its peer group1 since inception2.

“This rating continues the positive momentum that GQG Partners has been building in Australia since we established our business here in 2018.

“We are particularly pleased that the Fund has continued, during the market uncertainty and volatility of 2020, to retain consistency with its long-term strategy”, Mr Bullock said. 

The investment objective of the Fund is to provide a rate of return (after fees and expenses and before taxes) which exceeds the return of the benchmark MSCI ACWI ex Tobacco (AUD). Since inception2, it has returned 17.09 per cent (net of fees) compared to the benchmark return of 9.23 percent as at 30 September 2020. In the year to date, the Fund has returned 13.21 per cent (net of fees) compared to -0.47 percent for the benchmark as at 30 September 2020. Over one- and three-year periods as at 30 September 2020, the Fund has returned 17.64 and 18.44 per cent (net of fees), respectively, compared to 3.99 and 10.59 per cent, respectively, for the benchmark.