Morningstar - Q3 2023 - 53

Strategies
An Unorthodox but Worthwhile Option
GQG Partners Global Quality Equity follows a flexible approach,
in experienced hands.
Gregg Wolper
BEST IDEAS: MANAGER
This article is adapted from the fund's Morningstar Global Fund Report dated
June 20, 2023.
GQG Partners Global Quality Equity (named GQG Partners Global Equity
outside the United States) won't satisfy investors who prefer low turnover and
a standard growth approach, but those willing to accept a flexible, sometimes
rapidly changing portfolio from a talented and experienced manager can
be well served here. The U.S.-, Australia-, and Ireland-domiciled share classes
of the strategy all receive Morningstar Medalist Ratings of Gold.
Lead manager Rajiv Jain has racked up an impressive record running
several funds during his long tenures at previous employer Vontobel and at
GQG, which he co-founded in 2016. This global strategy was launched
in Australia in June 2017 and in the U.S. in late March 2019. Like Jain's other
funds, this offering-comanaged by Sudarshan Murthy and Brian
Kersmanc-has prospered: Its since-inception performance has been
strong in all jurisdictions.
Jain has a growth-oriented outlook but considers limiting losses a priority.
Therefore, he looks for companies on solid financial footing that have
weathered tough economic climates and whose industries are growing rather
than stagnating. However, he's willing to heavily overweight sectors
or countries, and in recent years he has made some drastic, fairly rapid
shifts. For example, entering 2021 this strategy's U.S.-domiciled portfolio had
no exposure to the energy sector, but on March 31, 2023, it had 16%
of assets there versus just 5% in the strategy's benchmark, the MSCI All
Country World Index. The tech sector had been slashed to around
5% of assets in 2021-22 but zoomed to an overweighted 22% by the
March 2023 portfolio.
Jain says he's only responding to rapidly changing financial conditions and
highly volatile share prices, such as the big rally in tech stocks that
made them unappealing and their subsequent steep decline that rendered
their valuations more reasonable. Meanwhile, his claim that he targets
" quality growth " is supported by portfolio metrics such as return on equity
and net profit margin, which have been consistently above the fund's
benchmark save for a brief period in 2021. K
Gregg Wolper is a senior manager research analyst at Morningstar Research Services LLC.
GQG Partners Global Quality Equity GQRIX
Stats 06/30/2023
Morningstar Medalist Rating
Œ
Fee Level
Below Average
Process
High
Growth of 10K 06/30/2023
$16K
10
12
14
8
07/2020
Value
Blend
07/2021
Morningstar Style Box 03/31/2023
Growth
Snapshot as
of most recent
portfolio.
07/2022
Morningstar Ratings 06/30/2023
Period
Mstar
Return
3-Yr
5-Yr -
10-Yr -
Overall Rating
Top 5 Sectors 03/31/2023
■ Fund ❙ Category Average
d Healthcare
a Technology
o Energy
y Financial Svcs
i Communication Svcs
0%
16.20
22.25
2.15
11.39
7.26
9.09
10
morningstar.com/products/magazine
16.30
12.87
20
30
53
26.37
26.81
Mstar
Risk
-
-
Morningstar
Global
Large Growth
13.81
GQG Partners
Global Quality
Equity
13.46
Morningstar Category
Global Large-Stock Growth
3-Yr Annlzd Return
10.41%
Morningstar Pillars 06/30/2023
People
High
Parent
Above Average
Expense Ratio
0.75%
3-Yr % Rank in Cat
24
Mstar
Rating
Above Avg Below Avg QQQQ
-
-
QQQQ
Small
Mid
Large
https://www.morningstar.com/authors/13/gregg-wolper http://www.morningstar.com/products/magazine
Morningstar - Q3 2023

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