Pacific Investment Management Co. (PIMCO) has announced in a press release that it is forming a Global Advisory Board to provide insight on the company's global economic, political, and strategic developments and their relevance to the financial market.
The company has appointed five world-renowned experts on economic and political issues to be part of the advisory board.
PIMCO said that they have appointed Ben Bernanke, the former chairman of the Federal Reserve as chairman of the Global Advisory Board.
Joining Bernanke would be Gordon Brown, the former U.K. Prime Minister, and Jean-Claude Trichet, the former president of the European Central Bank.
Ng Kok Song, the former CIO of the Government of Singapore Investment Corporation, and Anne-Marie Slaughter, the former director of Policy Planning for the U.S. State Department, completes the five members of the advisory board.
Dan Ivascyn, the Group CIO of PIMCO, said in the press release that the Global Advisory Board's "insights into the intersection of policy and financial markets" will be a "valuable input" to the company's investment process.
He said that the Global Advisory Board is "an unrivalled team of macroeconomic thinkers and former policymakers."
Michael Rosen, a CIO at Angeles Investment Advisors, told Bloomberg that it is not certain, though, whether putting high profile names on an advisory board will help the company make better investment decisions.
"It's possible to imagine that there's some insight these individuals can provide," he said. "But translating that into portfolio construction, securities selection and then performance is probably a number of steps removed."
PIMCO is looking to reassure its clients and fortify its ranks following the departures of CIOs Bill Gross and Mohamed El-Erian last year.
The company has hired Joachim Fels, the former chief economist at Morgan Stanley, and added Gene Sperling, a former economic adviser to two former U.S. presidents, and Noble laureate Michael Spence as consultants on economic policy.
PIMCO said in the press release that the members of the Global Advisory Board will be meeting several times a year at PIMCO's Newport Beach office, as well as in other offices of the company around the world.
The members will also be attending PIMCO's annual Secular Forum, held every May.
