Investors allocate to gold amid rising Ukraine tensions

Gold bars 1ETF Securities says its long gold exchange-traded products (ETPs) saw inflows for the fifth consecutive week during the week ending August 17, adding that investors are allocating to gold amid rising tensions between Russia and the Ukraine. Its physical gold ETPs saw $75.5 million (€56.4 million) of inflows last week, despite the price only gaining 0.6% in the past month. This brings the four-week total to $282.6 million, the highest since August 2012. Long oil ETPs have also attracted investors, reaching their highest inflows in eight weeks at $41.7 million, a result of falling oil prices and sustained high political risk in the Middle East. In a report, Nitesh Shah, associate director, and Nicholas Brooks, head of research and investment strategy, say: "The conflicts in Ukraine, Iraq, Syria and Libya combined with the returning debt problems in Argentina and lacklustre growth in Europe appear to be causing investors to re-assess (or at least hedge) their risky asset allocations." They also found that inflows into ETF Securities' Daily Leveraged Silver reached a 12-week high. Investors bought $5 million of leveraged exposure to silver as the price dipped 1% last week and 6% over the month. ETF Securities is an independent exchange-traded product provider, which, at the end of June, managed $19.7 billion of global investor assets. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.