Zurich Cantonal Bank has suggested today (29th September) that the metal stocks it uses to support its platinum exchange-traded fund (ETF) ZPLA.S have risen considerably in the past two months.

Erich Meier, Head of Asset Allocation and Alternative Investments at ZKB Asset Management, has confirmed that the company's stock has increased by 27 per cent since 23rd July.

The news bucks the trend at a time when many platinum ETFs are posting outflows, but Mr Meier has explained that this indicates the different strategies employed by Swiss investors.

He told Reuters: "We have much less speculative, hedge-fund driven money in Zurich than in London."

It has also emerged that the bank increased its holdings to back its palladium ETF ZPAL.S by 1.6 per cent during the same period, taking the figure from 418,000 oz to 424,600 oz.

When asked about the value of ETFs to investors, Mr Meier added: "The product has 100 percent guaranteed physical delivery to the client."



Source:

UPDATE 1-Zurich Cantonal platinum ETF holdings rise 27 pct (29/09/08)
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLT59138220080929