Bond guru Bill Gross, manager of the largest bond fund in the world, PIMCO’s Total Return Bond Fund, to attend the annual ETF Virtual conference, providing his insight on where the fixed-income market is heading and and potential risks in the new year.
At the ETF Virtual Summit on January 15, Bill Gross, CFA, Founder, Managing Director and co-CIO at PIMCO, will talk about how financial advisors should position their fixed-income portfolio as a way to diversify against potential risks ahead.
Gross has predicted that the long bull market for bonds, which spanned three decades, has come to an end, reports Joe Light for Wall Street Journal.
Consequently, Gross has pointed to a so-called Bond War brewing.
“Bond managers must adapt to a new world of near zero bound interest rates and the likelihood of lower total returns,” Gross said.
Managers should begin focusing on “carry,” which consists of maturity extension, credit spreads, yield curve differences, volatility, and currency components, as a way to protect downside risks.
PIMCO is also expected to expand its actively managed bond ETF offerings as a way to help investors and advisors adapt to the changing environment. New active ETFs on the launch pad include PIMCO Diversified Income Exchange-Traded Fund (DI), PIMCO Real Return Exchange-Traded Fund (no ticker provided) and PIMCO Low Duration Exchange-Traded Fund (LDUR). [PIMCO Readies Three More Bond ETFs]
The three new offerings would help PIMCO market three mutual fund strategies in an ETF wrapper, including PIMCO Diversified Income Fund (PDIIX), PIMCO Real Return Fund (PRRIX) and PIMCO Low-Duration Fund (PTLDX).
Financial advisors interested in attending the annual virtual summit on January 15 can take a look at the ETF Virtual Summit site for a more detailed agenda and updated information.