Bond giant Pacific Investment Management Co. aka Pimco said Monday that it received a Wells Notice from the SEC and the firm could be sued by the country’s top securities regulator over how it valued assets in ETF $BOND, one of its most popular exchange-traded bond funds aimed at small investors.
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The Pimco Total Return ETF, previously managed by star investor Bill Gross, has been under investigation by the Securities and Exchange Commission for at least a year for artificially boosting returns, The Wall Street Journal has reported.
Pimco disclosed Monday that it received a so-called Wells notice from the SEC, an indication that the agency intends to file a civil enforcement action against the firm related to its investigation. The notice isn’t a formal allegation of wrongdoing and it doesn’t mean the agency has found that any laws were violated.
The original story from WSJ is available via this link