Bernanke Joins Pimco

(RTTNews) - Pacific Investment Management Co., LLC, commonly called PIMCO, said Wednesday that former Federal Reserve Chairman Ben Bernanke will serve as a senior advisor to the global investment management firm.

"We are honored to have Dr. Bernanke serve as an advisor to PIMCO, and look forward to benefitting from his extraordinary knowledge and expertise to help us add value for our clients. His unrivalled experience in navigating the global economy through the Financial Crisis will provide PIMCO's investment professionals with unique insights as we help our clients amidst a challenging and uncertain period for global markets in coming years," said Douglas Hodge, PIMCO's Chief Executive Officer.

"During his recent participation in two of our quarterly economic forums Dr. Bernanke provided significant insights about global macroeconomic issues and monetary policy, and we are confident that our ongoing relationship with him will further enhance our robust investment process," said Daniel Ivascyn, PIMCO's Group Chief Investment Officer.

Newport Beach, California-based PIMCO, an autonomous subsidiary of German insurer Allianz SE, has about $1.6 trillion in assets under management and runs the largest bond mutual fund in the world.

The hiring of Bernanke is the latest and by far the most prominent high-level appointments the firm has made following the abrupt departure of co-founder and former chief investment officer Bill Gross in September last year that accelerated redemptions from the firm's largest fund, Pimco Total Return Fund.

After succeeding Alan Greenspan, Bernanke served two terms as Fed chairman from 2006 to 2014. During his tenure as chairman, Bernanke oversaw the Fed's response to the financial crisis.

Greenspan had also signed on as a special consultant to PIMCO following his retirement in 2006 after 18 years as Fed chairman.

This is Bernanke's second consulting agreement with a top money manager in recent time. Earlier this month, it was announced that Bernanke will work with Citadel, a hedge fund founded by billionaire Kenneth Griffin, as a senior advisor.