NEW YORK, July 30 Bill Gross, manager of the world's largest bond fund at Pimco, said Wednesday that income, rather than capital gains, would drive future investment returns.
"Capital gains from almost all asset classes are approaching dusk," Gross said in his latest monthly letter to investors. "Low but relatively dependable income will be the market's future driver."
Income is characterized as the interest payout on an asset, whereas capital gains are known to be the price gains on an asset. Gross also said that global growth rates would stay low due to a lack of aggregate demand and a "continuing surfeit of supply."
Gross is the chief investment officer of Pacific Investment Management Co., which had $1.97 trillion in assets as of June 30, according to the firm's website. His $225 billion Pimco Total Return Fund is the world's largest bond fund. (Reporting by Sam Forgione; Editing by James Dalgleish)