“We’d stay at the front end because the front end rolls down at a very attractive rate,” Gross said in the TV interview. “That promotes some type of capital gain. You can combine that with some relatively safe credit and produce those 3 to 4 percent returns in the bond market.”
In equities, “stick to attractive p/e’s, high dividend yielding stocks that can maintain their dividend and whose companies are buying back their stock, that should give you a 5 to 6 percent return in a 2 to 3 percent growth world,” Gross said.
The performance of the $244 billion Total Return Fund over the past three years puts it ahead of 72 percent of similarly managed funds, gaining 4.2 percent over the period, according to data compiled by Bloomberg.
Pimco, a unit of the Munich-based insurer Allianz SE, managed over $2 trillion in assets.