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

Featured video

Events

Big trends in RIA acquisition

Consolidation is continuing. Acquisitions and mergers are on the rise. Is there an AUM threshold that advisers need to reach for a practice to be viable? CapTrust's Rush Benton offers some perspective.

Latest news & opinion

Raymond James executives call on industry to keep broker protocol

Also ask firms to pay for the administration of the protocol to 'ensure its longevity and relevance.'

Senate committee approves tax plan but full passage not assured

Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.

House passes tax bill, focus turns to Senate

Tax reform legislation expected to have more of a challenge in upper chamber.

SEC enforcement of advisers drops in Trump era

The agency pursued 82 cases against advisers and firms in fiscal year 2017, down from 98 the previous year.

PIABA accuses Finra of conflicts of interest

Public Investors Arbitration Bar Association report slams self-regulator over its picks for board of governors.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print