McCulley will be a member of PIMCO’s Investment Committee and will report to Bill Gross, Founder and Chief Investment Officer.
As Chief Economist, McCulley’s responsibilities will include chairing the Investment Committee several times monthly to lead discussion on global macroeconomic issues and central bank policy, writing and publishing commentary, and speaking with PIMCO’s clients around the world. He will not manage client portfolios or serve as a portfolio manager.
Said Gross: 'Paul is an experienced and respected thought leader on macroeconomic issues and central banks and he will be an important contributor to our investment process. During his previous years at PIMCO, he played an instrumental role in anticipating and understanding economic dynamics that led to the global financial crisis. Our clients will benefit from Paul’s tremendous knowledge as we identify and capitalize on opportunities in PIMCO’s New Neutral'.
Said Douglas Hodge, PIMCO’s Chief Executive Officer: 'Bill Gross is one of the most talented and successful investors of our time, and he has built PIMCO over the past 43 years by attracting world-class talent such as Paul to become part of our team. We are excited to have Paul join the firm in his new role and we appreciate Bill’s personal leadership in recruiting Paul to the firm'.
Over the past three years, McCulley, 57, has been chair of the Global Society of Fellows at the Global Interdependence Center, where he published two path-breaking papers on monetary and central bank policy.
Mr. McCulley first joined PIMCO in 1990 as an account manager. He left two years later to become Chief Economist for the Americas for UBS. He returned to the firm in 1999 as a portfolio manager, and became the head of the firm’s Short-Term desk and a member of the Investment Committee, and also led PIMCO’s Cyclical Forum.
A prolific author of thought leadership, economic and market commentary, McCulley coined the term “Shadow Banking System” to refer to the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks, and which played a role as catalysts for the global financial crisis. He also developed the concept of a 'Minsky Moment', referring to a sudden major collapse of asset values as part of a credit or business cycle.
Said McCulley: 'I look forward to working side by side with Bill as economic counselor and interacting with the Deputy CIOs. I anticipate writing frequent scholarly essays, as well maintaining a robust calendar of speaking engagements. PIMCO will always be Camelot to me'.
McCulley will spend up to 100 days per year working in PIMCO offices around the world, and he will also continue to dedicate a portion of his time to activities outside of the firm, including leading the Morgan le Fay Dreams Foundation, as well as academic activities.