* Negative trend continues from 2013 but at slower pace
* Better gold, platinum markets help cut investor redemption
By Barani Krishnan
NEW YORK, June 2 Investors pulled $4 billion
from U.S. commodity exchange-traded products in the first five
months of the year, extending last year's negative trend even as
the pace of the redemptions from gold slowed, Thomson Reuters'
Lipper data showed on Monday.
In 2013, more than $33 billion left commodity
exchange-traded funds, notes and mutual funds for the first
annual net outflow in 12 years, according to Lipper, a division
of Thomson Reuters that tracks nearly 180 U.S. exchange-traded
commodity funds and products.
Preliminary data through the third week of May shows an
outflow of $4.1 billion, versus $14.7 billion in the first five
months of 2013.
While the bulk of last year's exit was in gold, this year
money has been mostly leaving Lipper's group of "General
"We could be headed for another negative year," said Jeff
Tjornehoj, head of Americas Research at Lipper.
The continued exit came even as commodity prices, especially
those of energy, recovered after the polar vortex that gripped
the United States in the first quarter.
The Thomson Reuters/Core Commodity CRB Index, a
closely watched gauge of commodity prices, is up 12 percent
since early January.
The Lipper data is consistent with research from investment
banks indicating continued outflows from commodities this year,
albeit at a slower pace than in 2013.
Barclays, one of the biggest crunchers of commodity
numbers among investment banks, noted a total outflow of $8.5
billion through May 20 in overall commodity products, about half
the amount in the corresponding period of 2013.
The reduced ETP outflow can be attributed among other things
to improved gold prices and a strike in South Africa, the
world's No. 1 platinum producer, which has attracted investor
interest in platinum group metals.
This year so far, less than $700 million flowed out of
precious metals ETPs, down from an outflow of $18 billion in the
first five months of last year.
The spot price of gold closed May's trading at just
above $1,250 an ounce, up nearly 4 percent on the year.
Lipper data issued last week showed the first net inflow in
nine weeks for precious metals, with the group pulling in $368
million for the week ending May 28.
(Reporting By Barani Krishnan)