Gross reduced the Total Return Fund's net cash-and- equivalent position to negative 32 percent from negative 25 percent. It can have a so-called negative position by using derivatives, futures or by shorting.
Pimco's Government and Treasury debt category includes fund holdings of U.S. Treasury notes, bonds, futures and inflation- protected securities.
Pimco, a unit of the Munich-based insurer Allianz SE, managed $1.35 trillion of assets as of September.