Pimco CEO says firm to expand equities business: CNBC
NEW YORK (Reuters) - Pimco intends to expand its equities business and there will be no difference in the firm's portfolio management following the departure of former Chief Investment Officer Bill Gross, two top Pimco executives said on Tuesday.
Pimco plans to "absolutely grow" its equities business, Chief Executive Officer Doug Hodge told CNBC. There will also be "no difference" in the way money is managed now compared with when Gross was still at Pimco, group Chief Investment Officer Dan Ivascyn told the cable television network.
"At least for the coming weeks and even the next couple of months, expect us to be very comfortable and only make incremental change across most client accounts," Ivascyn said.
Ivascyn said the firm was still following its "New Neutral" thesis of interest rates globally remaining low for a prolonged period of time, and that the 10-year Treasury note yield offered "reasonable value" and would likely hit 3 percent over the next few years.
He also said the U.S. dollar would continue to strengthen against many global currencies. The 10-year yield was last at 2.505 percent in Tuesday afternoon trading.
Gross, the bond market's most renowned investor, quit Pimco for distant rival Janus Capital Group Inc (JNS.N: Quote) last Friday, the day before he was expected to be fired from the huge investment firm he co-founded more than 40 years ago.
Hodge told Reuters on Sept. 28 that Pimco was moving away from a founder-led model and that the asset manager's flagship fund, the Pimco Total Return Fund, formerly run by Gross, "does not define Pimco.”
Gross managed the world’s biggest bond fund, with $222 billion in assets, since 1987. He co-founded Pimco, a $2 trillion asset management firm, in 1971.