Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Bill Gross once again puts weight behind treasuries

Bill Gross once again puts weight behind treasuries

Economist Peter Perkins last week said there was ‘nothing left for bonds’, but, in his most recent market update, Bill Gross has shown his support for the asset by adding 4% to his treasuries exposure.

According to the October factsheet for his $281 billion PIMCO Total Return Bond, T-bills now account for 24% of the fund, which is an increase on the 20% allocated at the end of September.

With the increase comes a gradual trimming of his exposure to mortgage-backed securities – a position he had built up to account for 52% of the fund in July of this year.

Gross has begun to make systematic cuts to this asset class over the past few months. His allocation to MBS falls from 49% of the fund at the end of September to 47% in the most recent data.

Elsewhere, Gross has also slightly reduced his allocation to investment grade credit, which falls from 12% at the end of September to 11% at the end of October.

This is while also enacting a 1% increase in high yield credit, which now accounts for 3% of the fund.

How much Gross allocates to government treasuries has been of keen interest ever since the outspoken investor dumped all of his treasury holdings in March 2011.

At the time, many market commentators had suggested, in taking this stance, Gross was pre-empting government intervention in the bond market.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

William H Gross
William H Gross
1/16 in Bonds - US Dollar (Performance over 3 years) Average Total Return: 14.09%
Citywire TV
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter