Pimco Sees Stocks Returning 4% to 5.1% as Economy Slows

Pacific Investment Management Co., manager of the world’s largest mutual fund, said returns from U.S. equities will decline from their historic averages over the next decade as the U.S. economy grows at a slower pace.

Equities will return an annualized 4 percent to 5.1 percent over the coming five to 10 years, down from their historical rate of almost 10 percent, Saumil Parikh, a portfolio manager who leads Newport Beach, California-based Pimco’s cyclical forum, said in a November asset allocation report being posted on the firm’s website today.