U.S. Commodity ETFs Fall for Fifth Quarter

MarineLink.com
Wednesday, April 09, 2014

U.S. retail and institutional investors pulled cash from broad commodity exchange-traded funds for a fifth straight quarter even as coffee, natural gas and hogs prices had their best run in years, data from Thomson Reuters Lipper showed on Wednesday.

Lipper, which tracks nearly 270 U.S. exchange-traded commodity funds and products worth about $240 billion, noted a net outflow of nearly $2.7 billion in the first quarter of this year.

The data contrasts with positive flows for broad commodity exchange-traded products tracked by BlackRock for the same quarter.

With the Lipper data, the outflows were largely in two commodity ETFs run by Boston-based mutual fund manager Fidelity Investments.

The outflow appears to be slowing from the $16 billion outflow in the fourth quarter of 2013. Even so, the selling reflects continued waning appetite among investors who seem fickle on whether the commodities rally will continue.

Raw materials from coffee to lean hogs, corn, wheat, soybeans, gold and natural gas all traded sharply above analysts' estimates in the first three months of this year.

The Thomson Reuters/Core Commodity CRB Index, a closely watched gauge of commodity prices, rose nearly 9 percent for its best quarter since September 2012. The index was down through most of 2013, losing 5 percent for the year, as institutional investors pulled cash from commodity markets to chase a rally in equities.

"There's certainly a disconnect between the commodity price performance and what we have in terms of ETF flows for the first quarter," said Jeff Tjornehoj, head of Lipper Americas Research at Thomson Reuters.

"The ETF investors tend to be an institution by themselves, with flows that can be very volatile, and it's hard to understand the mood or thinking there, which can change from week to week," he added.

The highest outflow for the quarter was from Lipper's group of "General Commodity Funds," which lost a net $3.3 billion.

Although there were 145 funds in this group, nearly 80 percent of the outflows, or $2.6 billion, were from two funds: Fidelity Series Commodity Strategy Fund and Fidelity Series Commodity Strategy Fund (F).

Fidelity Investments did not respond to requests for comment.

"Energy Commodity Funds" had the second-largest outflow, losing nearly $394 million. United States Oil Fund had the biggest decline in value here, losing a net $163 million.

The outflow from the energy funds also contrasted with the broader picture in U.S. energy markets during the quarter, where oil and natural gas prices rose 3 percent each.

Fund groups that had inflows included "Precious Metals Funds", which had their first positive quarter after five quarters of outflows; and "Agriculture Funds" and "Base Metals Funds", which turned around after a year of negative flows.

"Precious Metals Funds" gained $810 million, recording their first quarterly net inflow since September 2012.

SPDR Gold Shares, the world's largest bullion-backed ETF, had the single largest net inflow, taking in $660 million.

Bullion's spot price rose almost 7 percent during the first quarter, reaching a six-month high above $1,390 an ounce.

"Agriculture Funds" gained $120 million and "Base Metals Funds" $89 million.

(Reporting by Barani Krishnan; Editing by Lisa Shumaker)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Trading Dutch Well Placed to Pursue Russia Sanctions

The seafaring Netherlands prides itself on being a trading nation, reluctant to let politics get in the way of a good deal. But since the downing, allegedly

Navios Announces VLCC Delivery

Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, has announced that the Nave Electron, a 2002-built VLCC of 305,178 dwt, was delivered

Bulk Carrier Trends

Freeport Says Indonesia Exports Could Resume Soon

Freeport-McMoRan Inc said on Wednesday it expects to "imminently" sign an agreement with Indonesia that would enable it to immediately resume copper concentrate

Global Ocean Trade: Latest Shipbuilding Orders

No tankship orders noted the past week by Clarkson Hellas in their latest S&P Weekly Bulletin, but no lack of orders in the dry bulk carrier market, all from Far East shipbuilders.

Scorpio Bulkers Gets $540m Loan for Newbuilds

Scorpio Bulkers Inc. announced that it has received a commitment for a $540 million loan facility and provides an update on the financing of its fleet. On July 21,

Finance

Royal Caribbean Profit Jumps on Higher European Demand

Royal Caribbean Cruises Ltd, the world's second-largest cruise operator, reported a big jump in quarterly profit as demand for its European cruises rose and passengers spent more onboard.

Seadrill Bondholders: Majority Accept Conversion Offer

Seadrill Limited says that holders of approximately US$547 million of Seadrill's convertible bonds due 2017 (representing approx. 84.1% of the total outstanding

General Dynamics Reports 2Q 2014 Earnings

General Dynamics today reported 2014 second-quarter earnings from continuing operations of $646 million, or $1.88 per share on a diluted basis, compared to second-quarter

News

Hall Joins Bouchard Transportation

Retired Active Duty Coast Guard Commanding Officer Brian Hall has joined Bouchard Transportation Co., Inc., the nation’s largest independently-owned oceangoing petroleum barge company,

Royal Caribbean Profit Jumps on Higher European Demand

Royal Caribbean Cruises Ltd, the world's second-largest cruise operator, reported a big jump in quarterly profit as demand for its European cruises rose and passengers spent more onboard.

2,545 Candidates Vie for 11 Positions at Maersk Drilling

Maersk Drilling reported 2,545 applicants for the 11 MITAS engineer positions available within the company in 2014. The Maersk International Technology and Science Program,

Logistics

London, Brazil Terminals Boost DP World Container Volumes

DP World , one of the world's biggest port operators, said on Thursday that its gross container volumes rose 10.7 percent from a year earlier in the first half of 2014.

Abu Dhabi Ports Shift Far More Breakbulk Cargo

Abu Dhabi Ports Company (ABPC) says that general cargo moving through Abu Dhabi’s commercial Ports has increased by 37% this year. ADPC’s commercial ports (Musaffah,

Freeport Says Indonesia Exports Could Resume Soon

Freeport-McMoRan Inc said on Wednesday it expects to "imminently" sign an agreement with Indonesia that would enable it to immediately resume copper concentrate

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Pod Propulsion Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1431 sec (7 req/sec)