NA funds dominated global inflows!

Global gold-backed ETFs collectively added 22.5 tonnes (t) of gold during March, increasing their holdings to 2,415t (US$102.8bn). While the price of gold finished the month relatively flat (+46bp), a significant portion of inflows was the result of periods of sharp price rallies on strong volume, especially in the second half of March.

 

Gold’s price performance and volatility were driven by global trade tensions, a weaker US dollar, and weak stock market performance. As stock markets tumbled, investors moved into bonds and gold. Gold is one of the best performing asset classes this year, having rallied 2.5%.

 

Global inflows were dominated by North American (NA)-listed funds which added 21.5t (US$917mn, 1.7% AUM) to their holdings during March while Asian funds added assets for the 3rd consecutive month (3.1t, US$141mn, 3.5% AUM) and funds listed in Europe and other regions had muted net flows!

 

Individual flows:

iShares Gold Trust has grown 12% on the year adding 27.9t of assets:

SPDR Gold Shares and iShares Gold Trust were the primary drivers of North American and global inflows accumulating 15.1t (US$642mn, 1.8% AUM), and 5.4t (US$230mn, 2% AUM), respectively, during March

Bosera Gold, in China, continues to dominate Asian flows, adding 1.9t (US$81mn, 17% AUM) on the month

Gold Bullion Securities, in London, continues to lead European and global outflows losing 1.5t (US$61mn, 1.7% AUM) during March.

 

Year-to-date trends:

Global gold-backed funds added 47.3t of gold over the Q1:

North American funds have accounted for 85% of total net inflows on the year, driven by iShares Gold Trust (27.9t, US$1.2bn, 12% AUM), and SPDR Gold Shares (8.6t, US$396mn, 1.1% AUM). Asian funds have grown assets by 13.4% through the first quarter, driven almost entirely by Bosera Gold. The fund has grown 40% on the year adding 11t (US$470mn).

 

Europe has lost its 2017 asset-gaining momentum having slight outflows of 1.2t (US$171mn), highlighted by Gold Bullion Securities which has lost 10.6t (US$467mn, 12% AUM) on the year!

 

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