SWITZERLAND - The Novartis pension fund has reportedly revealed plans to invest 4 % of it its portfolio in precious metals.
Andre Ludin, head of portfolio management at the pharmaceutical company, said the 4% would be equally allocated into gold, platinum, palladium and silver, according to reports.
Ludin said the fund preferred to have physical metals and not futures contracts.
He said precious metals had scope to rise and investment in the sector was expected to be profitable in the long run.
The demand for platinum is said to be growing because of higher consumption in catalytic converters and new technologies such as fuel cells in vehicles.
Global Pensions recently reported how Swiss pension funds had bought 20% of the Best Asset Class (BAC) Platinum fund.
Best Asset Class (BAC) fund manager Bernard Loriol said pension funds were likely to increase investment in platinum companies for at least the next three to five years as a result of development in China, and growth in alternative energy sources such as fuel cell energy, according to reports.
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