UPDATE 1-Commodity investment grew $4.8 billion in June -BarCap

Fri Jul 20, 2012 6:18pm IST

* June inflows powered by return of investors
    * Q2 records worst commodity investment flow


    July 20 (Reuters) - Net investment inflows into commodities
rebounded in June to $4.8 billion, from net outflows of $9.1
billion in May, as investors returned following a slump in
commodity prices, investment bank Barclays Capital said on
Friday. 
    "A modest rebound in June came too late to stop Q2
registering as the worst ever for commodity investment flows
with a net outflow of $5.3 billion," the bank said in a note.
    The bank said commodity assets under management (AUM)
dropped $31 billion from the first quarter to $404 billion in
the second quarter.
    The precious metals sector received a large $3.2 billion
inflow in June, followed by energy, with an inflow of $1.1
billion.
    "The commodity with the largest exposure in ETPs
(exchange-traded products), gold, experienced its strongest
month in June since February this year with flows of $2.2bn and
AUM closing June at $125bn," Barclays said in the note.
    Agriculture and base metals also recorded inflows of $400
million and $100 million, respectively.
    Commodity-linked ETPs received the highest inflows of $3.2
billion for the month, while commodity indices gained $1.2
billion in fresh inflows. Inflows of commodity medium-term notes
slumped to $382 million in June.
    
Following is a breakdown of commodity assets under management in
billions of dollars, according to Barclays Capital:
    
                         Jun-12 May-12 Q1-12 2011 2010 
 Total                    404     393   435   399  380
 Indices                  125     120   141   137  155
 Exchange-traded products 200     195   217   187  160
 Medium-term notes         79      78    77    75   55
    
                         Jun-12 May-12 Q1-12 2011 2010
 Total                    404     393   435   399  380
 Precious metals          191     186   205   179  153
 Base metals               18      18    20    18   18
 Agriculture               89      86    94    88   96
 Energy                   106     104   116   114  114
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