The world's biggest bond fund manager, Pimco's Bill Gross, issued his December newsletter this week. The title, "Anything but 0.1%, refers to the national average yield for money market funds. Mr. Gross describes the tough environment for savers right now. Money markets yield 0.1%, one year CD's average 1%, and two-year Treasuries yield less than 0.75%! What is a conservative investor to do for income needs? Mr. Gross describes what Pimco has recently been buying for income in one very overlooked area: utilities. The utility sector has not really participated in this year's market rally because of regulation and political fears. Despite this, many utilities offer a long-term record of steady dividends and actual growth markets. Their dividend yields can be very attractive for some income investors. The track record for Pimco's Bill Gross is second-to-none in the fixed income world, and his latest advice may be very timely.

