NEW YORK Jan 10 The PIMCO Total Return Fund,
the world's largest mutual fund, increased its Treasury holdings
while decreasing its mortgage holdings in December, data from
the firm's website showed on Thursday.
The flagship fund, which has $285.4 billion in assets,
increased its exposure to Treasuries to 26 percent from 23
percent in November. Meanwhile, the fund decreased its biggest
holding in mortgage securities to 42 percent from 44 percent in
Bill Gross, who runs the fund as PIMCO's founder and
co-chief investment officer, said in his January investment
letter that the U.S. Federal Reserve's monthly purchases of
mortgages and Treasury securities will lead to inflation and
gradually weaker investment returns.