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FYI: The Securities and Exchange Commission is investigating whether bond giant Pacific Investment Management Co. (Pimco) artificially boosted the returns of a popular fund aimed at small investors, according to people familiar with the matter, the latest challenge for the firm run by investor Bill Gross. Regards, Ted http://www.marketwatch.com/story/pimco-etf-draws-sec-investigation-2014-09-23/print
Sounds complicated & more like an ongoing dispute between PIMCO and SEC on acceptable accounting/pricing methods rather than outright fraud. Who knows?
This will surely add to the already massive outflows from Gross's funds. And, yep - were I one of his shareholders, I'd probably be loading up the wagon and looking elsewhere.
This is not good at all. Combined with the recent news this is not a company I would wish to invest with. That is sad because just a few years ago Pimco had the perception of being a class company.
If a few particular folks decide to leave; then I will be concerned. If Mr. Gross is not involved in day to day functions of most of the funds, then perhaps there will not be any real problems with most of their bond operations. There remains very good managers, if they are left to their own to manage and not dragged into anything else internally.
Comments
Sounds complicated & more like an ongoing dispute between PIMCO and SEC on acceptable accounting/pricing methods rather than outright fraud. Who knows?
This will surely add to the already massive outflows from Gross's funds. And, yep - were I one of his shareholders, I'd probably be loading up the wagon and looking elsewhere.
I am starting to feel sorry for him.
How many bad things can happen to a guy in one year?
John is right, not long ago PIMCO had a stellar reputation.
Bill Gross was The Bond King