In addition, PIMCO has hired Jeremie Banet, who previously worked for the firm and will return as an Executive Vice President and Portfolio Manager for real return strategies, including Treasury Inflation Protected Securities (TIPS).
Professor Spence, who is a faculty member of New York University Stern School of Business, previously served in a similar consulting role for PIMCO for a number of years until February 2014. He 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.
Banet, who also previously worked for PIMCO as a Portfolio Manager for TIPS and real return strategies from 2011 until 2014, will return to the firm Nov. 3. He will report to Mihir Worah, Managing Director and Chief Investment Officer - Real Return and Asset Allocation.
'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,' said Daniel Ivascyn, Managing Director and PIMCO’s Group Chief Investment Officer.
Added Ivascyn: '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.'
Spence and Banet join 20 other senior investment professionals PIMCO has added this year, including five Managing Directors, in areas ranging from diversified fixed income, alternatives, equities and multi-asset strategies, to global macroeconomic specialties.
A. Michael Spence
PIMCO consultant and Nobel Laureate A. Michael Spence joined NYU Stern School of Business as a professor of economics in September 2010. He is a senior fellow at the Hoover Institution and the Philip H. Knight Professor Emeritus of Management in the Graduate School of Business at Stanford University. Professor Spence, whose scholarship focuses on economic policy in emerging markets, the economics of information, and the impact of leadership on economic growth, was chairman of the independent Commission on Growth and Development (2006 - 2010), a global policy group focused on strategies for producing rapid and sustainable economic growth and reducing poverty.
He is the author of 'The Next Convergence: The Future of Economic Growth in a Multi-Speed World,' 2011. He also serves as a senior adviser at Jasper Ridge Partners and a member of the board of the Stanford Management Company as well as a number of public and private companies, and as the chairman of the academic board of the Fung Global Institute. A Rhodes Scholar and the recipient of many honors and awards, Professor Spence was awarded the Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal from the American Economic Association in 1981.
He is the author of three books and 50 articles, and is a member of the American Economic Association and a fellow of the American Academy of Arts and Sciences and the Econometric Society. Professor Spence served as Philip H. Knight Professor and dean of the Stanford Business School from 1990 to 1999. Before that, he was a professor of economics and business administration at Harvard University, chairman of its economics department, and dean of its Faculty of Arts and Sciences. Professor Spence earned a Ph.D. from Harvard University in 1972, a B.A./M.A. from Oxford University in 1968 and a B.A. (summa cum laude) from Princeton University in 1966.
Mr. Banet will be an Executive Vice President and Portfolio Manager working on real return strategies. He will start Nov. 3 and will report to Mihir Worah, Managing Director and CIO – Real Return and Asset Allocation. Mr. Banet previously worked at PIMCO from August 2011 until June 2014.
Prior to this, he worked on U.S. inflation trading at Nomura in New York. He was also head of U.S. inflation trading at BNP Paribas in New York, for the last four years of his 10 years working for the bank. Mr. Banet holds a Masters in Applied Economics and an undergraduate degree, both from Paris IX Dauphine University in France.