GQG Partners shares tumble as it posts $200m in outflows in December
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The news: GQG Partners reported December outflows of USD200 million ($321 million), in the wake of US government bribery charges against its key portfolio holding Adani Group.
The numbers: GQG shares tumbled 9.68% to $1.96 in early trading following its funds under management announcement. Over the past 12 months its shares have risen 17.26%.
GQG reported funds under management FUM of USD153 billion as of 31 December 2024, compared to USD120.6 billion a year earlier.
Year-to-date FUM totalled USD20.3 billion in 2024, versus USD10.2 billion in the previous year.
Three of its four equity segments saw outflows in December. US equity took inflows of USD400 million, while international equity saw outflows of USD400 million, global equity USD100 million and emerging markets equity USD200 million.
The context: The Florida-headquartered fund manager said its institutional channel continued to see moderate redemption pressure from asset allocation and rebalancing changes.
The heavy outflows in December also followed a hefty market sell-off at the end of November, after US prosecutors charged the chair of Adani Group over an alleged USD250 million bribe. GQG became one of the biggest investors in Adani Group companies in 2023.
While Morgans downplayed the impact of GQG's Adani exposure, the likes of UBS and Morgans downgraded the stock, driven by negative sentiment surrounding the saga.
The source: ASX announcement
