PIMCO Total Return Fund, the world’s largest bond fund, increased its U.S. Treasuries holdings to the highest in over a year in April, data from the firm’s website showed on Thursday.
The fund, which has roughly $292.9 billion in assets and is run by Bill Gross, increased its holdings of U.S. Treasury securities to 39 percent in April, up from 33 percent in March.
Treasuries “are better than the alternative (cash) as long as central banks and dollar reserve countries (China, Japan) continue to participate,” Gross said in his May investment letter to clients.
Gross, a founder and co-chief investment officer of PIMCO, said in the letter entitled “There Will Be Haircuts,” that while Treasuries are a better alternative than cash, they still face a loss of at least 2 percentage points in the interest payouts after accounting for inflation. >> Read More