Gold bears the brunt as funds pull $9.1bn from markets Investment funds pulled $9.1bn from commodities markets in April, the second biggest monthly outflow on record, as fears of tighter monetary policy prompted second thoughts about gold and other hard assets. The estimate from Barclays underlined how investors have started to turn away from commodities in the face of surging stock markets and a steady inflation outlook. The bank has historically been bullish on commodity prices. Barclays" monthly investor survey said commodity assets under management were $385bn in April, the lowest in 11 months. Falls in commodity indices last month suggest the May asset figure will be even lower. The bulk of the net outflows, $8.7bn, were from exchange traded products backed by precious metals. Products such as the SPDR Gold Trust are typically backed by physical gold but are traded on a stock exchange, making it easy for investors to flee the market. Physically backed metals funds in turn must offload holdings to match redemptions, helping create a feedback loop of selling. The SPDR Gold Trust has dumped more than 200 tonnes of gold since April 1. "Poor performance, regulatory uncertainty and ethical considerations regarding agricultural exposures have all contributed to the sluggish commodity investment activity so far this year, though the number-one driver of outflows remains the steady liquidation of physically-backed gold investments," Barclays said. In 2013 to date, the S&P GSCI commodities index has lost 3.6 per cent on a total return basis. The Dow Jones-UBS total return index has dropped 5.3 per cent. At the same time the S&P 500 stock index has risen 15 per cent. "Any significant improvement in commodity investment flows is unlikely to materialise until clear signs of an improvement in growth materialise and the performance of commodity assets improves relative to other asset classes, neither of which appear likely any time soon," Barclays said. Investor concerns in recent months have centred on worries over the outlook for growth in China. Barclays said the recovery in oil, metals and grain prices that accompanied the recovery from the global financial crisis has been stalled since early 2011. For example, since hitting a record high of $10,190 a tonne in February 2011, benchmark London Metal Exchange copper prices have fallen 29 per cent. Gold has slid 28 per cent from its 2011 peak, tin has dropped 38 per cent, and iron ore has tumbled 42 per cent on the same basis.