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

People’s Finance News, April 3—“For now, we won’t participate in gold investments again unless the volatility of this kind of asset returns to normal.” A fund-of-funds (FOF) manager at a public offering institution recently told reporters that, in the short term, the role of gold in diversified asset allocation seems to have already changed. “Since the gold price has been moving in tandem—rising and falling alongside equity markets over multiple trading days—we’ve started to think about the practical meaning of allocating it for its safe-haven attributes.” In the traditional diversified asset allocation framework, gold has long been viewed as the “stabilizing ballast” that helps withstand volatility and balance risk. However, when its price action begins to resonate with the equity market, its safe-haven halo faces severe doubts. This is not just a short-term aberration in one asset; it also reflects the configuration strategy that many FOF fund managers have long treated as a rule of thumb—using combinations such as “gold + Nasdaq + dividends” to navigate the cycle—which is now being shaken. (China Securities Journal)