U.S.-based commodities, precious metals funds bleed $779 mn: Lipper

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Published: July 24, 2015 10:51:13 AM

Investors in U.S.-based funds pulled $779 million from commodities and precious metals funds in the week ended July 22, marking the funds' biggest outflows since late 2013, data from Thomson Reuters' Lipper service showed on Thursday.

Investors in U.S.-based funds pulled $779 million from commodities and precious metals funds in the week ended July 22, marking the funds’ biggest outflows since late 2013, data from Thomson Reuters’ Lipper service showed on Thursday.

The cash withdrawals from the commodities and precious metal funds, which mainly invest in gold futures, follow gold’s deep slump. The yellow metal is down more than 40 percent from its 2011 peak and crashing back toward $1,000. “Gold lost technical support, $1,130, this week and traders bailed,” said Jeff Tjornehoj, head of Lipper Americas Research.

“Still, I’m surprised it wasn’t a bigger rout.” Stock funds posted $1.4 billion in withdrawals to mark their second straight week of outflows. Funds that specialize in U.S. shares accounted for the total outflows, with investors pulling $4.5 billion from the funds. Tjornehoj said equity ETF traders “seemed to take a risk-on attitude” as they sold the core ETFs – SPDR S&P 500 ETF Trust , iShares Russell 2000 index and SPDR Dow Jones Industrial Average. The same traders were bullish on PowerShares QQQ Trust, Series 1, XLF Financial Select Sector SPDR Fund P> and Ishares Trust Russell 1000.

For their part, U.S.-based Chinese stock funds posted $278 million of outflows, their fifth straight week of withdrawals, Lipper said. U.S.-based European stock funds attracted inflows of $906 million, their biggest inflows in five weeks, Lipper added.

Taxable bond funds attracted $3.4 billion in new cash to mark their third straight week of inflows. U.S.-based money market funds attracted $18.9 billion of inflows after $9.4 billion of outflows the prior week, according to Lipper data.

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