Pimco hires Morgan Stanley's Fels as economic adviser

Pacific Investment Management Co., the $1.68 trillion money manager seeking to bolster its team after co-founder Bill Gross left last year, hired Joachim Fels as global economic adviser. Mr. Fels, who was previously chief economist at Morgan Stanley, will report to Pimco's Group Chief Investment Officer Daniel Ivascyn, according to a statement today from the Newport Beach, Calif.-based firm. (More: Pimco Total Return performance is back at the top) The manager of the world's bond biggest mutual fund is seeking to reassure clients and fortify its ranks after a year of record redemtpions and the departures of co-chief investment officers Mr. Gross and Mohamed El-Erian. In the past year, the firm has hired 28 senior professionals, including Gene Sperling, a former economic adviser to two U.S. presidents, and Nobel laureate Michael Spence as consultants on economic policy. “Joachim is a highly regarded global economic expert who will bring tremendous insights and make significant contributions to Pimco's investment process,” Mr. Ivascyn said in the statement. Pimco has named top performers to run its biggest fund and is pointing to a rebound in returns since Mr. Gross left, with the Pimco Total Return Fund beating 93% of peers so far this year, according to data compiled by Bloomberg. Mr. Fels, who will join Pimco as a managing director, will work out of the firm's Newport Beach office. He was previously based in London. During his 19 years with Morgan Stanley, he also held positions including chief international economist, chief global fixed income economist and co-head of European economics, according to the statement.