M&G's British 'bond vigilante' Jim Leaviss dies aged 55

LONDON, July 29 (Reuters) - One of Britain's most prominent fund managers, Jim Leaviss, whose 'Bond Vigilantes' blog became essential reading for policymakers, investors and bankers over recent decades, has died aged 55, his former employer M&G Investments said on Wednesday.

Leaviss, formerly M&G's Chief Investment Officer for fixed income, became one of the City of London's best-known market commentators through his, distinctive, sometimes unconventional views on economics, investing and public policy.

He joined M&G from the Bank of England in 1997 and helped build the fixed income team into a global operation.

"Throughout his career, Jim was generous with his time, knowledge and encouragement, mentoring and inspiring many colleagues and helping to develop generations of investment talent across the business," the company added.

Leaviss also built a loyal following through his 'Uncle Jim’s World of Bonds' podcast, which blended his market commentary with reflections on subjects ranging from economics to his love of bands such as The KLF.

In interviews with Reuters in recent years, Leaviss focused on the growing burden of government debt in major economies and the role bond markets can play enforcing fiscal discipline.

"Jim was one of those rare individuals who left an indelible impression on everyone fortunate enough to work with him," said Stefan Isaacs, co-head of macro credit at M&G.

"I had the privilege of working alongside him for more than twenty years. He was a formidable leader — exceptionally bright, endlessly creative, and gifted with the rare ability to make bond markets both engaging and enjoyable," Isaacs added.

In a farewell blog post announcing his departure from M&G in 2024 to study the history of art, Leaviss noted that the firm's fixed-income team had grown from four people when he joined in 1997 to more than 40 across London, Chicago, Singapore and Paris.

The post also highlighted some of his more light-hearted writing. Among the topics he used to illustrate economic trends were the shrinking number of "monster feet" in packets of Pickled Onion Monster Munch crisps as an example of shrinkflation, and the impact on Middle-earth's economy of the dragon Smaug hoarding gold in J.R.R. Tolkien's The Hobbit.

"He had a unique ability to connect with people, bringing warmth, wisdom, and humour to every interaction. In many ways, he was everybody's favourite uncle," said former M&G colleague Claudia Calich.

M&G said everyone at the firm was deeply saddened by Leaviss' death and praised his "extraordinary contribution" to the investment industry. The company said a virtual book of condolences had been opened and his family had asked for any donations to be made to Cancer Research UK.

(Reporting by Iain Withers and Dhara Ranasinghe; editing by Elaine Hardcastle)