Commodity investments fall but ETPs gain

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Commodity investments as a whole lost assets during the last two quarters but commodity ETPs held up with $2.8bn of inflows, according to Barclays Capital.

This is the first consecutive fall in commodity investments since 2008; during the third quarter assets fell from $408bn to $393bn, with index swaps bearing the brunt, losing $5bn. Flows across the sector were flat. Q3 also marked the most volatile quarter ever for commodity flows, adds Barclays. There was $9bn of inflows in July (the highest since December 2010) but the end of the quarter saw the largest ever monthly outflow - $10bn. This reflects moves in the underlying commodity indices. Benchmark indices performed positively until the end of August but sentiment turned in Septembe...

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