Bill Gross urges investors to gradually de-risk portfolios

[December 03, 2015]  NEW YORK (Reuters) - Bill Gross, the closely watched bond investor, on Thursday said low interest rates are keeping alive "zombie corporations" that are unproductive and warned investors to de-risk portfolios into the new year.

Gross, who oversees the $1.4 billion Janus Global Unconstrained Bond Fund, has said since earlier this year that the U.S. central bank should raise interest rates to more normal levels as zero-bound levels are harming the real economy and destroying insurance company balance sheets and pension funds.

"The faster and faster central bankers press the monetary button, the greater and greater the relative risk of owning financial assets," Gross wrote in his December Investment Outlook. "I would gradually de-risk portfolios as we move into 2016. Less credit risk, reduced equity exposure, placing more emphasis on the return of your money than a double digit return on your money."

(Reporting By Jennifer Ablan; Editing by Chizu Nomiyama)

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