California-based investment manager Pimco has confirmed that it is being investigated by the Securities and Exchange Commission (SEC), the firm is accused of having artificially boosted the performance of its Pimco Total Return ETF.
The $3.6bn ETF fund is managed by Pimco’s founder, managing director and CIO Bill Gross (pictured).
The SEC is investigating whether Pimco has bought assets at a lower price than stated in the valuations to calculate its holdings, creating a misleading impression of the funds performance, the Wall Street Journal reported.
A Pimco spokesperson confirmed the reports, stressing that the firm has cooperated with the SEC on the matter.
The investigation comes at a challenging time for Pimco, as investors have withdrawn almost $70bn from Pimco’s flagship £221bnTotal Return Fund over the last year.