Institutional Insights: Goldman Sachs 'All that Glitters is Gold (and Silver)
Goldman Sachs structured summary of the global fund flows for the week ending October 8:
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## Key Highlights
### Equities
- Global equity funds:
Net inflows remained solid but slowed to +$20bn (from +$26bn previous week).
- G10 equity funds:
Stronger net inflows, mainly due to increased demand for US equity funds.
- Japanese equities:
Flows turned negative.
- Emerging Markets (EM) equity funds:
Inflows slowed broadly.
- Sector trends:
- Industrials & Commodities: Largest net inflows as % of AUM.
- Commodities funds: Averaged nearly 1% of AUM over past 4 weeks, driven by large gold fund inflows.
- Silver funds: Smaller in dollar terms, but inflows averaged about 3% of AUM over past 4 weeks.
### Fixed Income
- Global fixed income funds:
Inflows strengthened: +$26bn (up from +$20bn previous week).
- Agg-type funds: Continued large net inflows.
- EM bond funds:
Local currency bond funds outpaced hard currency bond funds.
- Money market funds:
Assets increased by $73bn.
### FX Flows
- Cross-border FX flows:
Slowed, led by G10 currencies.
- LatAm currencies:
Led by MXN (Mexican Peso), saw the strongest foreign inflows over the past month.
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## Notable Trends
- Commodities funds (especially gold and silver) have seen exceptionally strong inflows as a % of assets under management (AUM).
- US equities continue to attract robust demand, while Japanese equities have lost momentum.
- Money market funds remain a haven, with significant asset growth.
- LatAm FX stands out as the favored destination for foreign flows in the currency space.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!