Additionally, the advisor would seek long-term positive returns by managing portfolio duration, credit risk and volatility through various debt qualities and include long, short or negative duration. The fund could hold high-yield/high-risk, junk bonds, along with other securities that pay dividends.
Bill Gross previously helped manage the PIMCO Total Return ETF (NYSEArca: BOND), an ETF version of PIMCO’s flagship Total Return Fund (PTTRX). In late September, Gross left Pacific Investment Management Co. and joined Janus Capital Group Inc.
In Gross’ monthly investment outlook, he warned of the potential negative concsequences in the current sub-zero yield environment. Specifically, the loose global monetary policies may help in the short-term, but Gross argues that the negative or zero bound interest rates may exacerbate low growth by pushing people to save and defer consumption. Consequently, he believes investors should stay conservative and own high quality bonds and low P/E, high quality stocks.
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.