Good afternoon to our U.S. stockholders, and good morning to our Australian CDI holders. We are pleased to welcome you to our Annual Stockholders' Meeting, which we are holding virtually to increase access and participation. My name is Rajiv Jain, and I am the Executive Chairman, Chief Investment Officer of GQG Partners. On behalf of the GQG Board, it is my pleasure to address you at our 2025 annual meeting. Before we proceed with the business of the meeting, I would like to introduce my fellow directors: Tim Carver, our Chief Executive Officer and an Executive Director; Elizabeth Proust , our Lead Independent Director; Melda Donnelly, an Independent Director; and Bryan Weeks, an Independent Director.
Also present today are Mel Zakaluk, our Chief Financial Officer, Anthony Scoda , and Drew Rudolph, the KPMG and Company's Auditor, and Rick Sherley, the Company's General Counsel and Secretary, who will act as Secretary and Voting Inspector of the meeting. Mel, would you formally commence the meeting on my behalf?
Thank you, Rajiv. It is now the time set forth in the notice of the meeting, which was duly given. Therefore, the meeting is properly convened. As set forth in the notice of meeting and the proxy materials, this meeting has been called for the purpose of considering and acting upon the election of Bryan Weeks to serve as a Class 1 Director. Stockholders and CDI holders may submit questions at any time during this meeting. To do so, please click on the Ask Question button on the virtual meeting website. Type your question and click Submit. I encourage you to submit questions as soon as possible. We will also address questions received prior to the meeting at the appropriate time during the meeting. Stockholders may vote at any time until polls are closed.
However, holders of CDIs were required to submit their voting instructions prior to the meeting, as set forth in the meeting notice, and will not be able to vote during the meeting today. Please refer to the online portal guide if you have questions. The result of the vote will be declared and released to the ASX as soon as possible after this meeting. Rajiv will comment on our current perspective of the market and will respond to general questions about GQG after the vote. Rajiv, would you share some of your thoughts about GQG?
Thank you, Mel. GQG was launched with a clear intent to build an enduring institution that would outlive its founders. We continue to hold ourselves highly accountable and hope every client and every shareholder sees in our behavior that we take seriously the stewardship of their capital. To truly align ourselves with our clients and shareholders as partners, we believe we must share the same perspective as co-investors. Not only are we majority shareholders in the business, but our team has invested meaningfully in our strategies alongside our clients. As we have said before, we believe that we must adapt our thinking constantly in our pursuit of investment returns. This culture of adaptability permeates our organization, and we hope it will continue to make us nimble and responsive as markets evolve.
Although we won't always get our investment decisions right, we may lag markets at times, we believe that the strength of our investment culture is a driving force for long-term outperformance. I remain very proud of the board we have assembled. As you know, our board is made up of highly skilled, highly engaged people. Tim and I continue to be deeply engaged and thrilled to serve our shareholders, both as board members and executives, and our independent directors bring deep experience, knowledge, and care to the board. As the largest shareholder in GQG, I remain passionate about the future of this firm. I'm aligned with you in my expectation that the executive team will continue to focus on delivering value to our clients and thereby create long-term shareholder value.
I'm very happy with our team and the execution of our investment process and will endeavor to continue to drive a culture of engagement and focus from a professional staff. With that, I will turn it over to our CEO, Tim Carver.
Thanks, Rajiv. I'd like to begin by thanking our team for their continued commitment to excellence. As you know, our team is highly aligned with our clients and our shareholders, and their commitment to delivering for our clients and shareholders stands out. Our team has collective exposure to our strategies of hundreds of millions of dollars, and outside of our Chairman, owns on a vested and unvested basis more than 185 million shares or CDIs of GQG. This extraordinary alignment should let you know that we eat our own cooking and our outcomes are closely tied to those of our shareholders. As a reminder, Rajiv and I take absolutely zero bonuses personally. We get paid as shareholders and are therefore focused on creating shareholder value. One of the hallmarks of our team's approach is adaptability. This year, we saw that in spades.
Our investment team has been remarkably agile in moving the portfolio against a volatile macroeconomic and political landscape. We do this with the goal of protecting client capital and thereby delivering better risk-adjusted returns over time. Our business also continues to grow and adapt. In 2024, our funds under management reached $153 billion, fueled by a strong net cash flow of $20 billion, resulting in net revenues of $760 million, roughly a 47% increase over 2023. Net operating income and diluted earnings per share both increased roughly 50% to reach $578 million and $0.15 per share, respectively. We are pleased with our net flows of $6 billion through April 30, 2025, particularly given the global economic environment.
A final 2024 dividend of $3.78 per share was paid in March, and the board declared a first quarter 2025 interim dividend of $3.78 per share, representing a 93.3% payout ratio of distributable earnings for the first quarter. The board of directors felt it was appropriate to maintain a stable dividend this quarter. Everyone who's listened to these calls before knows that I believe you should hold me and our team to account for the value we are adding as a management team as compared to a theoretical passive GQG. That is, had you owned GQG at the beginning of the year and simply had market returns, what have we done to earn our keep in adding value to the business?
Again, I'm pleased to report that in 2024, our distribution team drove over $20 billion of net new flows, and our investment team added $500 million of excess return on top of a very strong market return as well. While I'm pleased with this result in 2024, we know that this business requires us to perform again and again, year in and year out. We obviously can't predict the future, but we can commit to continuing to do our best to serve clients well and focus on delivering for our shareholders. I know I speak on behalf of our entire team in saying thank you for your continued trust in us.
Now I'll turn it over to Mel to give us an overview of the 2024 financial result.
Thank you, Tim. I will provide a few highlights, as I'm sure many of you have reviewed our annual report. We are pleased with our financial results for full year 2024 and have seen good momentum in net cash flow into 2025. GQG experienced roughly 50% growth year over year on key metrics, including net operating income, net income after tax, and diluted earnings per share as a result of higher average funds under management. Funds under management growth was just under 27% year over year, driven by $20.2 billion of net flows from the tailwind from equity markets that were mostly positive around the world. Our operating margin for full year 2024 was 76%, a 170 basis point increase from 2023. Management fees continue to represent the large majority of our revenue and represented 96.8% of our net revenue in 2024.
We believe this high proportion of management fees provides a foundation for stable, quality earnings, particularly during periods of equity market volatility. Net revenue increased by approximately 47%, and operating expenses increased 37% as compared to the prior year. More than half of the increase in operating expenses in 2024 was driven directly to costs that are driven by the growth in funds under management and sales. Now I'll turn it over to Rajiv.
Rajiv, would you like to take it from here?
Thank you, Tim and Mel. It's now time to note the record date and quorum for the meeting and to commence the business of the meeting. Rick, would you please do so?
The Board of Directors set April 1, 2025, as the record date for this meeting. A partial count of the shares of Common Stock represented at the meeting in person or by proxy shows that the holders of more than a majority of the outstanding shares of Common Stock of the company entitled to vote at the meeting are represented. Therefore, I declare a quorum present at the meeting, ready for transaction of business, and the meeting ready for transaction of business. Rajiv, would you declare the polls for voting to be open?
I declare the polls for voting to be open.
I note that the polls are therefore opened as of 7:10 P.M. U.S. Eastern Daylight Time. Stockholders are being asked to vote on one proposal, which is to elect Bryan Weeks to serve as a Class 1 Director. For this proposal to be approved, the nominee must receive the affirmative vote of the holders of the plurality of the votes cast by stockholders present in person or by proxy and entitled to vote at the meeting. All stockholders entitled to vote at this meeting have the ability to do so online. If you are a stockholder entitled to vote at this meeting and have not yet voted, or if you want to change your previously cast vote, please do so through the website used to access this meeting. If you have already voted by proxy, it is not necessary to vote again.
If you are a CDI holder, you may not have voted the meeting. All shares represented by proxy will be voted as specified in the form of proxy. Shares represented by proxy where no vote is specified will be voted in accordance with the recommendation of the board of directors, which is in favor of the proposal. Bryan, would you discuss your background and suitability to serve on the Board of Directors with our stockholders and CDI holders?
Thanks, Rick. Yes, I'll give a quick update. I have served as Director of GQG Partners since my appointment in June 2024. My background includes a CFA designation and three decades of experience in the asset management industry. This includes serving as the head of Americas institutional business at Russell Investments and the CEO of Silver Creek Capital Management. My leadership experience extends into technology, where I serve on the Board of Directors of Slalom Consulting, a global technology consulting firm. At GQG Partners, I'm a member of the board's risk committee, audit committee, and the remuneration and nomination committee. I have full attendance at all board and committee meetings and have sufficient time to devote to the board now and in the future.
We will now respond to submitted questions related to the proposal. Rick, please review the questions.
We have one question submitted relative to the proposal, which is submitted by Stephen Mayne and says, "We might be registered in Delaware, but with the primary listing on the ASX, could board candidate Bryan Weeks comment on why we've never voluntarily put up a remuneration report for a non-binding advisory vote, like the vast majority of ASX-listed companies have to do because of Australian law? Indeed, with the Trump administration destabilizing global markets, have we thought about leaving Florida and running our operations from Australia to align with the ASX listing? How much would it cost shareholders to make such a switch?" Before I hand this off to Bryan, I think I will just give a little context and remind shareholders that Rajiv and Tim do not receive bonuses or equity grants in connection with their remuneration. They only receive a fixed salary and otherwise are compensated as shareholders.
As a practical matter, that means that there's an incredible level of alignment between management and shareholders. I would also point out that our headquarters are in Florida, and without knowing exactly how much it would be, I think, extremely expensive to move them. Bryan, I'll turn it over to you and see if you'd like to make any additions to that.
Sorry, I was trying to get it off mute. No, Rick, I think it's a great summary. When you look at the company and how leadership is compensated, the alignment is there. I understand fully there's different markets in the world where they want more and more transparency on what remuneration actually looks like. In our case, the way we're operating today, I think, is excellent, primarily because of the alignment of the leadership team and how they are compensated. I don't think it's a confrontational topic.
There are no further written questions for review at this time. We'll have more time for general questions and answers at the end of the meeting. Rajiv, would you present the preliminary voting results?
This completes the presentation of the proposal to be voted at the meeting. I now present a slide which sets the preliminary voting proxy votes that were received as the applicable cutoff time for CDI and the shares in relation to the items of business. We'll now pause for a minute to allow stockholders to make any final votes. Any votes cast before the polls close today will be counted in the final tally along with the proxies previously received. Since everyone has now had the opportunity to vote, I declare the polls closed for the matters voted upon at this meeting. Rick?
I note that this is as of 7:16 P.M. U.S. Eastern Daylight Time. Polls may take some time to count to obtain the final results and verify fully. After the votes have been counted, the results will be released to the ASX as soon as possible. Rajiv will now provide a few remarks around the current state of the markets, and then we'll have an opportunity to respond to more general questions.
Thanks, Rick. As we're all aware, this year has started out with quite a high level of uncertainty in so many different areas, particularly from a geopolitical perspective, which in itself, but also along with rising interest rates, can have meaningful implications. We've seen rising rates in the U.S. and Japan, which we believe has significant implications for global capital markets. We are fairly defensively positioned. We believe that the opportunity set will evolve from time to time. We have adjusted the portfolio to incorporate the heightened level of uncertainty. However, we take a three to five-year view as do our clients, so we feel reasonably comfortable in terms of where the opportunity set is and how we're positioned. Thank you.
We've now reached the time in the meeting for general questions. Any questions about the reports for the auditor on the audit and the auditor's report can be submitted via the virtual platform. If you have a question specifically regarding the audit, please ensure you direct the question to Anthony Scoda and Drew Rudolph of KPMG. We will now answer properly submitted written questions. The first one is submitted by Stephen Mayne . More than a quarter of Donald Trump's cabinet hails from Florida, and he seems to specialize in hosting billionaires at Mar-a-Lago. As a Florida-based billionaire, could Rajiv Jain comment on whether he's dined with Mr. Trump at Mar-a-Lago and whether any of our company's funds have been spent in any way on the U.S. president or his wider political business operation?
What does Mr. Jain think of Mr. Trump's policies and approach to governing, and have any Trump administration decisions adversely impacted our business so far? Rajiv, do you want to take that?
Yeah. As a matter of policy, we do not allow any political contributions, and no, I've not dined with or actually, I've never met President Trump.
Okay. For the second question submitted by Stephen Mayne , could the Executive Chair and Lead Independent Director both comment on GQG's approach to ESG investing, particularly the decision to have four oil giants, ExxonMobil, Petrobras, Occidental Petroleum, and Exxon Corp, in the top 10 holdings of GQG Partners Global Equity Fund shortly after the 2021 float? What is the current situation in terms of GQG being negatively screened by clients because of our large exposure to fossil fuels? How exposed are we currently with oil prices remaining depressed? Rajiv and Elizabeth, would you like to take this one?
Yeah, let me start first. We look at both financial and non-financial data to invest in various opportunities globally. We have invested in fossil in various shapes and forms over the years. We do not believe our business has been impacted in any meaningful manner. Obviously, there are clients who would take a different view on that, but we feel very comfortable and based on our work in investing in these names.
Elizabeth?
Thanks, Rick. Just to add to what Rajiv has said, we know that there are some investors who prioritize not investing in fossil fuel companies, but we assume that investors who are unwilling to invest in a manager who invests in fossil fuel producers may look to other managers. Our experience is that many investors are looking to invest the way we do and that those offerings that we have appeal to those investors.
That's great. We have one more question, also submitted by Stephen Mayne . GQG raised AUD 1.2 billion from Australian investors at AUD 2 a share in November 2021. With the shares closing at AUD 2.15 yesterday, this has been a rare but modest win for investors in a recent major IPO in the ASX. Our Executive Chair, Rajiv Jain, received 85% of the float proceeds, which was one of the biggest individual paydays from an Australian IPO. Given he still controls the company with the 2.07 billion ordinary shares worth AUD 4.45 billion, what are his current succession and control plans for GQG? Also, how often does he visit Australia? Tim, do you want to start on this one?
Sure. Thanks, Rick. First, I'd say that Rajiv invested the vast majority of his proceeds from the IPO in GQG strategies and locked up those investments for seven years from the IPO, tightening his alignment with both clients and our shareholders. I'd also note that since the listing, GQG has had a total return of roughly 43.3%, which compares favorably with the ASX total return for the same period, which was roughly 36.3%. Rajiv and I and the team remain committed to building the business and serving our shareholders for the foreseeable future. Of course, as part of that, we have quite robust and well-developed succession plans for the entire executive team. Our executive team visits Australia at least twice a year, oftentimes more, as well as having a full permanent presence with our Australian office.
Thanks, Tim. Do you have anything you'd like to add, Rajiv?
No, I think Tim covered it.
It appears we have no more questions. Rajiv, would you like to close the meeting?
We appreciate your attendance at today's meeting. Thank you and have a great day. The meeting is now closed.