GQG Partners Reports Resilience Amid Adani-Related Turmoil

Highlights:

• Resilient Asset Growth: GQG Partners (ASX: GQG) reported AUM growth to $US159.5 billion in November, reaching $US161.5 billion by December 6, despite market challenges.
• Adani Exposure Managed: The firm saw $US100 million in net inflows for November, offsetting $US300 million outflows from its emerging markets fund with over 10% exposure to Adani Group.
• Buyback Halted: GQG canceled its $100 million share buyback due to US tax uncertainties but remains open to revisiting the move in the future.

Strong Asset Growth Despite Challenges

GQG Partners (ASX: GQG) reported a rise in assets under management (AUM) to $US159.5 billion at the end of November, climbing to $US161.5 billion by December 6. The increase highlights its ability to navigate market pressures, including scrutiny over its $US10 billion ($15.6 billion) investment in Adani Group.

Market Impact of Adani Allegations

The company's shares fell over 20% after allegations of bribery against Adani Enterprises surfaced, triggering investor concerns. Despite an initial drop in AUM to $US156.7 billion shortly after the news, GQG rebounded with $US100 million in net inflows for November. This contrasts with competitors like Platinum Asset Management and Magellan Financial, which faced significant outflows.

Cancelled Buyback and Future Plans

GQG terminated its $100 million share buyback due to uncertainties in US tax treatment, though it may revisit the decision later. Chief Investment Officer Rajiv Jain indicated plans for further share acquisitions, reinforcing confidence in the firm's strategic outlook.

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