GQG Partners' Australia shares rise as FUM update eases Adani-linked fears

GQG Partners

09/12/2024 24:51

By Aaditya GovindRao
       Dec 9 (Reuters) - Australia-listed shares of GQG
Partners  GQG.AX  rose on Monday after it reported an increase
in its funds under management (FUM) and gross flows for
November, pacifying investor worries after losses linked to
India's Adani Group.
    The stock was up 5.1% at A$2.185 by 0046 GMT, while the
benchmark index  .AXJO  was down 0.3%.
    GQG reported gross flows of $4.2 billion, compared to $2.6
billion in the same period last year.
    Its FUM rose to $159.5 billion as at Nov. 30, from $159.4
billion as at Oct. 31.
    "Given recent events, we perceive heightened interest in our
near-term flows," it said in a statement.
    U.S.-based GQG is a major backer of Adani Group companies,
whose founder Gautam Adani and some top executives were accused
by U.S authorities of being part of a scheme to bribe Indian
officials to secure power-supply deals, charges the group has
called "baseless."
    GQG shares fell over 11% last week after UBS downgraded the
stock saying the firm may have lost A$600 million ($383.2
million) in FUM in the two days following the indictment.
    Analysts at Ord Minnett said they viewed GQG's FUM update as
positive.
    "Overall, impact from Adani-related issues appears minimal
in the context of their overall business," the analysts said.
    Separately, GQG said it was ending plans for an up to A$100
million on-market buyback of its Australia-listed shares, citing
uncertainty on the U.S. tax treatment of the proceeds.

($1 = 1.5657 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Varun
H K)
 ((Aaditya.GovindRao@thomsonreuters.com;))