SEC Investigates Pimco ETFs

Hit by internal squabbles and under performance from its funds in recent months, it is the latest trouble to hit the world’s largest manager of bonds.

Saying that it was fully co-operating with the SEC, Pimco said:

“we take our regulatory obligations and responsibilities to our clients very seriously.”

The firm went on to state that its pricing polices were appropriate and aligned with industry standards.

The statement was released by the firm after the Wall Street Journal reported the investigation by the US federal agency.

It is understood that investigators from the commission have interviewed a number of executives at Pimco, including its chief executive and founder Bill Gross. It is also understood that the investigation, which Pimco says is a ‘non-public’ affair, has been going on for a number of months.

The investigation by the commission is examining whether Pimco gave clients investing in its Total Return ETF an inaccurate picture of the performance of the fund.

It is also looking at whether the firm is guilty of buying products at a lower price only to make its profit calculations based on a lower valuation.