PIMCO: LESS HUMANS, MORE ROBOTS, Newport Beach, CA- based bond titan, Pacific Investment Company (PIMCO), will open a new office in Austin, TX to help recruit more tech-savy workers.
The company that once relied on one man to make its key investment decisions will now be modernizing its technology systems so that these will include data bases of information as well as platforms that trade bonds electronically. The plan is to sharpen investment focus and lower costs. With these changes, the company is expecting to be able to stay ahead of the fast-paced growth of exchange-traded funds and other passively-managed investments. Recent research has found that technology-passively-managed funds have outpaced active fund managers (that is, humans) over the past five years. Thus, PIMCO’s decision to switch from fewer humans managing the funds to more tech “robots” makes sense, at this time.
In the upcoming June, 2018 LEAD-ZINE we’ll be talking at greater length about AI and the jobs that robots might be doing in the future. Stay tuned!