NEW YORK, April 3 (Reuters) - Bill Gross, manager of the world’s largest bond fund at Pimco, said Thursday that asset returns will be in the low- to mid-single digits this year despite relatively positive growth.
“Return expectations... for all unlevered assets and Markowitz generated portfolios will be in the low- to mid-single digits,” Gross said in his monthly letter to investors titled “Bob.”
Gross, whose flagship Pimco Total Return Fund has $232 billion in assets, said Pimco recommends overweighting credit. He said that credit maturing within 1 to 5 years should hold current levels if inflation stays low, but that credit maturing between 5 and 30 years is at risk.
Pacific Investment Management Co., a unit of European financial services company Allianz SE, had $1.91 trillion in assets as of Dec. 31, according to the firm’s website. (Reporting by Sam Forgione; Editing by Chizu Nomiyama)