Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Assets Managed By Commodity Funds Resume Growth

Published 10/09/2012, 05:13 AM
Updated 07/09/2023, 06:31 AM
BARC
-
GC
-
GLD
-
BIG
-
BMA
-
AUMN
-

Commodity funds assets under management (AUM) have started growing again. The peak was reached around the end of QE2 (summer of 2011). Since then the inflows weakened until investors began to anticipate a new round of monetary expansion from the Fed. The growth resumed this past summer (particularly in late August) in spite of weak global fundamentals.

Barclays: Given the difficult regulatory backdrop, a slowing Chinese economy and the wide range of Macro-economic and financial market risks currently hanging over investors, this is a positive result for a sector that has been under pressure for most of the year-to-date. Whilst the net flow of funds into commodity investments for the year to date at just $7bn remains a long way below last year’s $25bn in the first eight months of the year, the consistent inflows over the past 3 months suggest a turning point in investor flows may have been reached.
COMMODITY aUm
A big portion of the increase has been driven by precious metals, as funds such as GLD (SPDR Gold Trust) AUM hit new records. With the CFTC proposal to impose limits overruled in court (see discussion), growth in the AUM of commodity exchange traded products should resume.
GLDSO

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.