By Min Zeng
Bill Gross cut U.S. government-related debt holdings at the
Pimco Total Return Fund in July as bond prices pulled back.
U.S. government-related holdings accounted for 45% of the $223.1
billion bond fund at the end of last month, compared with 47% at
the end of June, according to data available late Monday afternoon
on Pacific Investment Management Co.'s website.
The holdings include Treasury bonds, Treasury
inflation-protected securities, Treasury futures and derivatives
linked to the U.S. government debt securities.
The Pimco fund, the world's largest bond fund by assets,
allocated 20% of its investments to mortgage-backed securities at
the end of July, compared with 22% from a month earlier.
Mr. Gross is co-founder and chief investment officer at Pimco,
which manages $1.97 trillion in global assets as part of Germany's
Allianz SE.
Treasury bond prices fell in July as demand for haven assets
dialed back. The Treasury bond market posted negative 0.16% in
total return--that includes price appreciation and interest
payments--last month, according to data from Barclays PLC.
Mr. Gross has said in recent months he favored Treasury bonds
with intermediate maturities.
Sixty-six percent of his bond fund's holdings are bonds maturing
between three year to 10 years at the end of July, according to
data from Pimco's website.
Write to Min Zeng at min.zeng@wsj.com