Bill Gross, who runs the world's biggest bond fund at Pacific Investment Management Co., reduced its holdings of government related debt to the lowest level since January 2009 while saying low yields cheat investors.
Gross cut the proportion of U.S. government and related securities in Pimco's $239 billion Total Return Fund to 12 percent of assets in January from 22 percent in December, according to the Newport Beach, California-based company's website. He increased the percentage of cash equivalent holdings to 5 percent, the highest since April.
Policy makers are robbing savers by driving down real interest rates as they keep borrowing costs at record lows in a "devil's bargain," Gross said in his monthly investment commentary on Feb. 2. He advised investors to reduce holdings of Treasuries and U.K. gilts and buy higher-returning securities such as debt from emerging-market nations.
Full article at : http://www.bloomberg.com/news/2011-02-14/pimco-s-gross-lowers-government-debt-holdings-to-lowest-since-january-2009.html