Pimco's McCulley to return for new role as chief economist

Known for analysis and monthly commentaries on central banks and monetary policy, McCulley in third stint at money manager

May 27, 2014 @ 2:10 pm

Pacific Investment Management Co., which runs the world's biggest bond fund, said Paul McCulley, a former money manager at the firm, will return to fill the newly created position of chief economist.

Mr. McCulley, 57, will be a member of Pimco's Investment Committee and will report to Chief Investment Officer Bill Gross, according to a statement from the Newport Beach, Calif.-based firm. Mr. McCulley, who was the head of Pimco's short-term desk and left in 2010, won't manage any money in his new role.

“During his previous years at Pimco, he played an instrumental role in anticipating and understanding economic dynamics that led to the global financial crisis,” Mr. Gross said in Tuesday's statement. “Our clients will benefit from Paul's tremendous knowledge as we identify and capitalize on opportunities in Pimco's New Neutral.”

(Don't miss: Gross' new heir apparent post-El-Erian)

The “new neutral” is Pimco's new outlook for the next three to five years, outlined this month, which is characterized by global growth converging toward lower, more stable speeds and interest rates that remain stuck below their pre-crisis equilibrium.

This is Mr. McCulley's third stint at Pimco, which was co- founded in 1971 by Mr. Gross. Best known for his analysis and monthly commentaries on central banks and monetary policy, Mr. McCulley first joined Pimco in 1990 as an account manager. He left two years later for UBS Warburg, a unit of Zurich-based UBS AG, where he served as chief economist for the Americas. He returned to Pimco in 1999 as a portfolio manager and left in 2010 after 27 years in money management to join a think tank.

Pimco has overhauled its management team following the abrupt resignation earlier this year of former Chief Executive Officer Mohamed El-Erian. Pimco has named six deputy chief investment officers in the biggest leadership shakeup in its history.

(More: Pimco gets support from CEO of parent Allianz)

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print