Pimco's new managers trump former boss

Washington

THE new managers of the Pimco Total Return Fund have been trumping former boss Bill Gross since he left the world's largest bond fund, boosted by an opposing bet tied to short-term US interest rates.

Following Mr Gross' surprise Sept 26 exit, the trio that took over the US$125 billion fund reduced its exposure to debt maturing within five years, according to filings. Mr Gross went the other way on shorter-term debt after joining the Janus Global Unconstrained Bond Fund on Oct 6, ploughing two-thirds of its net assets into corporate bonds coming due before 2018.