Archive · 5 Oct 2026
Global Pension Funds Increase Gold Allocations for Diversification
Some pension funds are putting part of their money into gold.
They are doing this because bonds may not balance out stock-market ups and downs as reliably as before.
Gold has often moved differently from shares during stressful market periods.
Different funds have chosen different amounts of gold, from about 2% to 5% of their portfolios.
Some own gold through futures rather than holding the metal directly.
Their choices depend on their goals, risks and investment rules.
The funds see gold as one part of a broader portfolio, not as their only investment.
Pension funds are adding gold as bond-equity correlations rise and bonds face greater scrutiny as diversifiers.
Dutch fund Pensioenfonds PDN reached a 5% gold allocation in April 2021 after beginning purchases in October 2020.
Fairfax County Employee Retirement Systems holds 3% in gold through futures, citing inflation concerns and diversification.
The UK’s Now: Pensions Master Trust has around 2% in gold, while Australia’s NGS Super has maintained 3% since June 2020.
Funds use different approaches, including strategic allocations, alternatives portfolios and futures, depending on their objectives and risk frameworks.
- Who
- Pensioenfonds PDN, Fairfax County Employee Retirement Systems, Now: Pensions Master Trust and NGS Super.
- What
- The pension funds have incorporated gold into their portfolios, with allocations ranging from around 2% to 5%.
- When
- The cited investments began between June and October 2020, with PDN completing purchases and Now: Pensions making its first investment in 2021.
- Where
- The Netherlands, the United States, the United Kingdom and Australia.
- Why
- The funds cite diversification, market-stress protection and, in some cases, inflation or currency-debasement concerns.
Reasons funds are adding gold
Factors shaping or limiting allocations
Portfolio diversification
Reasons funds are adding gold
Gold has historically shown low-to-negative correlation with equities during market stress, which funds see as a potential diversifier.
Factors shaping or limiting allocations
The report describes different allocation sizes and methods; gold is incorporated according to each fund’s objectives, governance, risk budget and investment philosophy.
Role of bonds
Reasons funds are adding gold
The increased correlation between bonds and equities has prompted questions about how effectively government bonds diversify portfolios.
Factors shaping or limiting allocations
The accounts do not show funds abandoning bonds altogether; PDN reduced government-bond exposure by 10% and directed the proceeds across gold and other assets.
- Pensioenfonds PDN allocation
- 5%; purchases began in October 2020 and were completed in April 2021.
- PDN fund size
- €7.7 billion.
- Fairfax County allocation
- 3% in gold through futures.
- Fairfax County assets
- About US$6.2 billion.
- Now: Pensions allocation
- Around 2% of total assets, accessed through futures.
- NGS Super allocation
- 3%, maintained since June 2020.
- PDN funding approach
- Reduced government-bond exposure by 10%; half the proceeds went to gold and the remainder to equities, real estate and infrastructure.