A probe by the U.S. Securities and Exchange Commision into Pimco's Total Return Exchange-Traded Fund is separate from a wider scrutiny of disclosures in the ETF industry, Bloomberg said on Wednesday, citing a person familiar with the matter. The investigation is about whether bond fund manager Pimco inflated the returns of its Total Return ETF, which is run by founder Bill Gross. The issues being probed by the SEC include whether the ETF bought investments at discounted prices while relying on higher valuations for the assets when the fund calculated the value of its holdings, the Bloomberg report said. Pimco and its owner, Allianz, Europe's biggest insurer, confirmed the probe after a report in the Wall Street Journal said the SEC investigation into the $3.6 billion ETF has been going on for at least a year but has picked up pace in recent weeks. Pimco was not immediately available for comment but earlier on Wednesday said it was cooperating with the SEC.
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