NEW YORK Jan 26 Assets under management (AUM)
in commodities fell 22 percent in 2008 but the plunge was due
more to the slump in oil, metals and grain prices than outflow
of funds, Barclays Capital said on Monday.
Commodity investment products saw an estimated inflow of
$15 billion last year, up 4 percent from 2007, BarCap said.
The London-based investment bank said the AUM for
commodities at the close of 2008 was $154 billion, down from a
high of $270 billion in the second quarter.
It did not give an AUM estimate for the end of 2007. But
the 22 percent drop it cited for last year suggested the
previous year's close at around $197 billion.
BarCap, one of the biggest cheerleaders in commodities in
recent years, dwelt instead on last year's inflows as the
"This reaffirms the fact that price falls were the primary
reason for the fall in AUM and not widespread outflows," BarCap
said in a report.
The bulk of the inflows came from demand for commodity
exchange-traded products, or ETPs, which BarCap said was rather
strong in the first half of the year from retail and
Passive exposure to long-only commodity indexes was another
major contributor, it said.
Despite heavy liquidation in indexes through the third and
fourth quarters, inflows to ETPs continued, it said.
For full BarCap report, click here%20flows%20Q4%2008%2026%20Jan%2009.pdf
(Reporting by Barani Krishnan; Editing by Christian Wiessner)