Pacific Investment Management Co. [PIMCO] has rehired Paul McCulley, a former senior executive of the bond giant to be its chief economist, the Wall Street Journal reports.
McCulley, who had previously been at PIMCO, but left in 2010 as a senior partner, will take on a newly created role of chief economist and Managing Director and will also be a member of the firm’s investment committee, according to the company.
Mr. McCulley is the latest new high-level appointment at the Newport Beach, Calif.-based firm after Mohamed El-Erian, who had been Pimco’s CEO and co-chief investment officer, stepped down in January. Pimco has struggled with poor performance and investor redemptions since Mr. El-Erian left and has since appointed six new deputy chief investment officers. According to investment research firm Morningstar, customers have withdrawn $55 billion from Pimco’s flagship Total Return Bond Fund since May of last year, a record outflow for the $2 trillion money manager.
Part of Mr. McCulley’s job, notes the report, will be to meet with Pimco’s large institutional clients, a move that the investment firm hopes will help reassure clients.
“This announcement may be a surprise to them, but it will certainly be positive because of his history” at the firm, Bill Gross, chief investment officer and co-founder of Pimco said in an interview.