Hedge Funds

Pimco Total Return Fund cuts mortgage holdings in April to 19%

Bill Gross
Andrew Harrer | Bloomberg | Getty Images

The Pimco Total Return Fund, the world's largest bond fund run by Bill Gross, cut its holdings of U.S. mortgages in April but kept its high exposure of U.S. government-related securities unchanged for the same period, data from the firm's website showed on Friday.

The fund, which has $230 billion in assets, cut its mortgage holdings to 19 percent last month from 23 percent in March while holding U.S. government-related securities at 41 percent.

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The fund also increased its U.S. credit holdings to 12 percent in April from 10 percent the previous month and increased its emerging markets holdings to 7 percent last month from 6 percent in March.

The fund decreased its effective duration to 4.73 years in April from 4.97 years in March, and showed 5 percent exposure to money market and net cash equivalents in April, unchanged from the previous month.

Pacific Investment Management Co, a unit of European financial services company Allianz SE, had $1.94 trillion in assets as of March 31, according to the firm's website.