Fixed income investment manager PIMCO has named Dr. Richard Thaler as senior adviser on Retirement and Behavioural Economics.
Dr. Thaler, who is a renowned economist and Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business, was awarded the Nobel Prize in Economic Sciences in 2017. He is also a co-founder and partner at Fuller & Thaler Asset Management, which uses behavioral finance to manage portfolios of small-cap US equities.
At PIMCO, Dr. Thaler will be responsible for enhancing the firm's commitment to better understand human behaviour and how it impacts decision-making, including how individuals make decisions in saving for and spending during retirement.
PIMCO aims to use these insights to help create investment solutions which better serve a wide variety of client needs, both in the accumulation of assets to prepare for retirement, and strategies for winding down those assets in a thoughtful way that accommodates the inevitable uncertainties facing retirees, the firm said in a statement.
PIMCO recently announced a long-term partnership with the Center for Decision Research (CDR) at the University of Chicago Booth School of Business, to support behavioural science research from some of the field's foremost experts. These collaborations are part of broader efforts to incorporate outside perspectives to help expand knowledge and enhance the firm's ability to deliver the best possible outcomes for investors.