Precious metal funds recorded the fourth-largest inflow of new money, and investment-grade funds took money, Bank of America Merrill Lynch (BAML) announced on Friday. The reason is the growing trade tensions between China and the US and concerns about global growth. Gold and its derivatives are, as always, safe havens in such times.
In equities, United States equity funds experienced an outflow of 15,2 billion USD in the same week, the highest since December 2018, while emerging market equity funds have posted the largest outflow since August 6,2 with 2015 billion USD, the BAML cites EPFR -Dates.
The moves follow after a turbulent week on the world markets, where China drops its yuan below the 7 dollar level, reflecting the latest salvo in a Beijing-Washington trade dispute, and fueling new fears of a global economic slowdown.
The yuan's yielder on Monday helped drain 12,4 billions of dollars from global equity funds, the 12th largest daily outflow in global equity fund history.
Volatility led investors to assets that were considered safe. 2,3 billion dollars flowed into precious metal funds. 11 billion dollars have gone gold in the last 10 weeks, the largest inflow since Brexit in 2016, according to BAML.
Since high-yield bond funds posted the largest outflows since December 2018, investment-grade bond funds recorded inflows into the 29. Week and generated revenue of 6,7 billion USD.
Rare Earth and Metals Institute based on information from Reuters - August 2019
