ETF Outflow Shut Australian Taurus Gold Funds


The Australian-based Taurus Funds Management shuts its gold fund, due to the precious metals ETF cash outflows and investor redemptions.

The $240 million gold fund of Taurus is no more. The fund invested mainly in gold, according to Gordon Galt, a principal in Taurus fund management, and interviewed by Bloomberg.

The performance of equities attracted investors to stock markets and other investment tools, which lead investors to ask for redemptions, according to Galt.

The April’s dip in gold price was the last straw that drove many investors to liquidate their gold ETFs. They sold around 490 metric tons this year and cutting their holdings 19 percent, according to Bloomberg.

Another reason for the mass exodus from gold ETF market was the withdrawing of the famous Billionaire George Soros. He lowered his investment in SPDR Gold Trust, the largest physically backed gold exchange traded fund, to 530,900 shares in March 31.

On the other hand, John Paulson, the famous American billionaire, maintained his 21.8 million shares held in SPDR.

SPDR gold trust currently holds 1,010.45 tonnes of gold worth around $45.58 billion and traded American and Asian markets. It suffered like others from the gold ETF investors outflow, but the sheer size of capital protected it from market volatility.