Bond investment behemoth Pacific Investment Management Co. (PIMCO) has rehired a Nobel Prize-winning economist as a consultant and is bringing back a portfolio manager who will return as a new executive vice president (EVP).
Nobel Laureate Economist Michael Spence joins PIMCO as a consultant on macroeconomic and global policy issues, while Jeremie Banet, who worked at PIMCO in the past, will serve as EVP and portfolio manager for real return strategies, including Treasury Inflation Protected Securities (TIPS), according to a company statement.
Spence, a faculty member at New York University’s Stern School of Business, previously consulted for PIMCO in a similar capacity for several years until February 2014.
“As a Nobel Prize winner, Dr. Spence’s expertise in macroeconomics will provide us with invaluable input in formulating our global economic outlook, which is the foundation of the firm’s proven investment process,” says Daniel Ivascyn, managing director and PIMCO’s group chief investment officer in a statement.
Spence will participate in PIMCO’s Cyclical and Secular Forums and also provide direct input to the firm’s Investment Committee, as he did during his prior work with PIMCO, according to the statement.
Banet, who worked at PIMCO from 2011 to 2014 as a portfolio manager for TIPS and real return strategies, will assume the same role on Nov. 3, officials say. He will report to Mihir Worah, managing director and chief investment officer for real return and asset allocation.
“Jeremie’s return adds strength to PIMCO’s deep expertise in real return strategies, as we help clients navigate lower policy rates in The New Neutral, which can leave their investments vulnerable to the corrosive long-term effects of inflation,” says Ivascyn in a statement.
Banet and Spence are just the latest additions in a recent round of hiring at PIMCO, which has seen 20 other senior investment professionals join the firm in the last year.
Late last month, amid controversy, influential fixed income investor William H. Gross abruptly left PIMCO where was the chief investment officer and co-founder. Gross now works for mutual fund giant Janus Capital Group.
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