Australia-listed shares of GQG Partners 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)
Reuters
