PIMCO’s Bill Gross was in the news Thursday as the eagerly awaited ETF version of Total Return Fund began trading.
The bond manager’s latest investment outlook suggests investors in PIMCO Total Return ETF (NYSEArca: TRXT) can expect Gross to play some defense.
Investors are in a “new age” with yields at “the zero bound,” he wrote. “And it seems to us at PIMCO that successful investing in a deleveraging, low interest rate environment will require defensive in addition to offensive skills,” Gross said.
Going forward, PIMCO’s “playbook” is to recognize zero bound limits and systemic debt risk in global financial markets, emphasize relatively reliable and safe income, and seek consistent alpha, or risk-adjusted performance.