Retail investors and pension funds are facing tens of millions of dollars in losses on investments in Adani Group firms, CNBC Pro can reveal. Recent evaluation shows that 951 mutual funds and ETFs worldwide have cumulatively lost greater than $4.2 billion in the worth of their Adani shares this yr. The large sell-off has seen the conglomerate’s 9 listed firms lose $115 billion in market cap as of Monday’s close. It comes after U.S. short-seller Hindenburg Research accused Adani Group in an intensive report of “brazen stock manipulation and accounting fraud scheme over the course of a long time.” In response, the ports-to-energy conglomerate, led by one in every of the world’s wealthiest men, Gautam Adani, has vehemently denied wrongdoing. In a 413-page response on Jan. 29 it warned of legal motion against Hindenburg and claimed the accusations were a “calculated attack on India” and its institutions. In response to CNBC’s evaluation of knowledge available on Factset, over 20 funds were each invested in eight or more Adani listed firms. Each of those funds has, on average, lost nearly one million dollars in value for investors this yr up to now. Use the table below to look for mutual funds and ETFs which were exposed to Adani firms: A few of the most considerable potential losses are in ETFs and index-tracker funds from Wall Street fund managers Vanguard and BlackRock’s iShares. For instance, the Vanguard Emerging Markets Stock Index Fund and Vanguard Total International Stock Index Fund have lost greater than $750 million of their Adani positions in 2022. Yet, each funds, with around $65 billion in assets, are up by greater than 6% this yr because of their diversified portfolio. These losses will probably be realized if the funds sell their shares. In the event that they don’t sell, and shares within the Adani firms rise, the losses might not be confirmed. Vanguard and Blackrock didn’t comment when contacted by CNBC. Even pension funds have been hurt by the share price falls. For instance, the Government Pension Fund Global, more commonly generally known as Norway’s sovereign wealth fund, has lost $92.3 million on its Adani bets this yr. It comes after the pension fund — one in every of the most important on the earth — reported a record lack of 1.64 trillion Norwegian kroner ($164 billion) for the entire of 2022 , citing “very unusual” market conditions. A spokesperson for Norway’s fund, which manages greater than $1 trillion in assets, told CNBC that losses were minimized because it was underweight Adani stocks — by greater than a fifth — in comparison with its benchmark index. “At the top of January the fund’s holdings of Adani firms was roughly $150 million, while the benchmark value of those firms was $800 million,” the spokesperson added. Elsewhere, CNBC Pro evaluation also revealed that Dimensional Fund Advisors, an energetic fund manager, has lost greater than $120 million within the mark-to-market value of its positions in Adani-linked firms. DFA has $85 billion in assets under management within the 11 funds with exposure to Adani. The autumn in Adani shares had a limited impact on a few of its funds’ performance because it accounted for less than 0.1% of its total assets. DFA declined to comment. Our methodology CNBC Pro calculated the losses based on the difference between the market value of Adani Group positions in funds on Dec. 31, 2022 and Feb. 6, 2023. Shares sold throughout the period were discounted from the losses. Adani Group includes Adani Enterprises, Adani Green Energy, Adani Ports & Special Economic Zone, Adani Transmission, Adani Total Gas, Adani Power, Adani Wilmar, Ambuja Cements and ACC. Only funds that proceed to have a position in Adani Group firms have been analyzed. Some funds have sold all of their Adani shares. CIBC Emerging Markets Equity Index ETF and iShares Global Clean Energy Index ETF were excluded as market values for Adani positions were unavailable from FactSet.
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