Gold is no longer a mandatory option; FOF diversified allocation embarks on a path of seeking change

“I won’t participate in gold investments again for the time being, unless the volatility of this asset class returns to normal,” a public fund institution’s FOF fund manager recently told reporters. In the short term, the role of gold in diversified asset allocation seems to have changed. “Since gold prices have moved in tandem with the equity markets for several trading days, we’ve started to reconsider its hedging value.” In traditional multi-asset allocation frameworks, gold has long been regarded as a “ballast” to withstand volatility and balance risk. However, when its price trend begins to resonate in sync with the equity markets, its safe-haven halo faces serious questioning. This is not just a short-term anomaly of an asset but also reflects that the allocation strategies once regarded as a guiding principle by many FOF fund managers—relying on combinations like “gold + Nasdaq + dividends” to navigate cycles—are being challenged. (China Securities Journal)