Bill Gross Releases Investment Outlook, '50 Basis Deposit/No Return'

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Oct 18, 2022, 09:00 ET

LAGUNA BEACH, Calif., Oct. 18, 2022 /PRNewswire/ -- Legendary bond and fixed income investor William H. (Bill) Gross today released a new Investment Outlook, "50 Basis Deposit/No Return". In this latest Outlook, Mr. Gross writes that the total return bond fund concept he innovated at Pimco, which "worked famously until the beginning of this year" at Pimco, DoubleLine and elsewhere, "have in the last five years become quasi 'index funds'." Mr. Gross believes investors making 401K allocations, and pension and insurance balance sheets, have been "misled" believing the funds will produce a defensive return in times of stress. To the contrary, the funds are down in double digits year to date "with 50 basis points tacked on for your investment pleasure."

Mr. Gross continues: "Admittedly, even a low duration fund would have had trouble showing returns above the line this year. But -15%? These total return funds are actively managed with the ability to go low in terms of maturity duration, but they all seem to be chasing 'index-plus' performance as opposed to 'total return' management. Perhaps they should all change their names to 'index plus' to reflect that reality."

Full text of Bill Gross's October 18, 2022, Investment Outlook can be found at his website.

About Bill Gross

Bill Gross has been a pioneer in fixed income investing for more than 40 years. He co-founded PIMCO in 1971 and served as managing director and chief investment officer until joining Janus Henderson Investors in 2014. He retired in 2019 to focus on managing his personal assets and private charitable foundation. Throughout his career, he has received numerous awards, including Morningstar Fixed Income Manager of the Decade for 2000 to 2009 and Fixed Income Manager of the Year for 1998, 2000 and 2007. Mr. Gross became the first portfolio manager inducted into the Fixed Income Analysts Society's Hall of Fame in 1996 and received the Bond Market Association's Distinguished Service Award in 2000. In 2011, Institutional Investor magazine awarded him the Money Management Lifetime Achievement Award. Mr. Gross oversees the $390 million-asset William, Jeff and Jennifer Gross Family Foundation, which annually donates up to $21 million to non-profits involved in humanitarian causes, health care, and education. For more information or to view Investment Outlook archives, please visit https://williamhgross.com. For information about Mr. Gross's philanthropic activities through the William, Jeff and Jennifer Gross Family Foundation, please visit https://grossfamilyfoundation.com/. Order his new book "I'm Still Standing: Bond King Bill Gross and the PIMCO Express" on Amazon.com.