Pimco's Gross boosts EMD and cash weightings

The world's biggest mutual fund, Bill Gross' $220bn Pimco Total Return fund, increased exposure to emerging market debt to its highest level since 2008 and significantly boosted cash last month.

Gross raised the EMD weighting from 5% to 6% in March, the only increase in bond holdings. The manager cut exposure to US government and government-related debt assets from 33% to 35% - while bonds of other global developed nations fell from 19% to 18% last month, the first reduction since October last year. Mortgage securities dropped from 16% to 17%, while the weighting to investment grade corporate bonds was flat at 16%. Pimco Total Return saw its cash weighting rise considerably in March, up from 2% to 5%.