Bill Gross urges exposure to developing markets on demographics

[NEW YORK] Bill Gross, the closely-watched bond investor, on Thursday said investors should consider increasing their exposure to developing markets over the long-term while buying 10-year inflation-protected Treasuries given demographic factors.

Mr Gross, who oversees the US$1.3 billion Janus Global Unconstrained Bond Fund, said in his January Investment Outlook that demographics would dominate financial markets over the next few decades and that developed nations like the United States should invest more in emerging markets in order to compensate for a growing number of retired baby boomers.

"Demographics may not rule absolutely, but they likely will dominate investment markets and returns for the next few decades until the Boomer phenomena fades away," Mr Gross said.

REUTERS