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 "Be cautious and content with low positive returns in 2015. The time
for risk taking has passed," Gross, who oversees the Janus Global
Unconstrained Bond Fund, wrote in his monthly investment outlook.
Gross titled his letter "Ides," as in the Ides of March, and warned
investors to stay vigilant.
"When the year is done, there will be minus signs in front of
returns for many asset classes. The good times are over," he wrote.
The Janus Global Unconstrained Bond Fund, which Pimco co-founder
Bill Gross started managing in October, attracted an estimated $770
million in November, bringing its assets to more than $1.2 billion,
according to Morningstar data.
Previously, in a collection of investment views released on Monday
on the Janus Capital site, Gross had noted expectations for low
global growth in 2015.
In those views, he noted that the U.S. Federal Reserve could find
itself challenged to raise interest rates in 2015, despite its
recent signaling that tighter policy could be on the way.
On Tuesday, he went further, saying that "at some future date ...
asset returns in many categories may turn negative."
Should that happen, he wrote, investors should consider
"high-quality assets with stable cash flows" such as "Treasury and
high-quality corporate bonds, as well as equities of lightly levered
corporations with attractive dividends and diversified revenues both
operationally and geographically."
Gross, long known and still considered the world's "Bond King," quit
bond giant Pacific Investment Management Co (Pimco) on Sept. 26 for
distant rival Janus. Two sources had told Reuters he was expected to
be fired the next day.
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Gross helped launch Pimco more than four decades ago and built it
into a $2 trillion investment powerhouse, only to see his reputation
suffer after a run of lackluster returns, more than a
year-and-a-half of outflows from Pimco's flagship fund, and
unflattering stories about his management style.
At Janus, Gross' monthly outlooks have continued the mix of
investing advice and quirky asides for which he's been known. The
January letter, for example, referred to Father Time as a "grumpy
old codger" and opened with a cartoon depicting the passing of last
year and beginning of this.
"2015 may see a continuing round of musical chairs as riskier asset
categories become less and less desirable," he wrote on Tuesday.
(Reporting by Luciana Lopez; additional reporting by Sam Forgione;
Editing by Chizu Nomiyama and Alan Crosby)
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