Pimco Cut Total Return Fund Muni Allocation to 4% in May
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Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., cut its stake in municipal debt to 4 percent of assets, the lowest allocation in nine months, the company said today.
The last time the Total Return Fund, valued at $285 billion as of May 31, held such a small amount of munis was in July 2012, according to data compiled by Bloomberg. Gross directed 5 percent of assets to state and local debt from August 2012 through April.