{"id":6077,"date":"2016-11-30T15:56:00","date_gmt":"2016-11-30T21:56:00","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1267"},"modified":"2022-03-11T13:40:55","modified_gmt":"2022-03-11T19:40:55","slug":"pimco-agrees-pay-almost-20m-settle-sec-charges-misled-exchange-traded-fund-investors","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/pimco-agrees-pay-almost-20m-settle-sec-charges-misled-exchange-traded-fund-investors\/","title":{"rendered":"PIMCO Agrees to Pay Almost $20M to Settle SEC Charges That It Misled Exchange-Traded Fund Investors"},"content":{"rendered":"<p>\t\t\t\tPacific Investment Management Company (PIMCO) has agreed to settle the U.S. Securities and Exchange Commission\u2019s charges accusing the firm of misleading investors about the performance of one of its exchange-traded funds and not placing an accurate value on certain fund securities. As part of the settlement, PIMCO will pay almost $20M and hire an independent compliance consultant.<\/p>\n<p>The regulator contends that investors were drawn to\u00a0the\u00a0Pimco Total Return Active ETF\u00a0after, within months of its launch in 2012, it did well enough to outperform the investment management firm\u2019s flagship mutual fund. The fund was previously managed by Bill Gross, PIMCO\u2019s co-founder, and it was intended to mirror PIMCO\u2019s flagship Total Return Fund.<\/p>\n<p>Although Pimco Total Return Active ETF&#8217;s initial success is linked to the smaller-sized bonds that were purchased to help boost early performance, in its yearly and monthly reports PIMCO purportedly gave investors other reasons for these early results that were \u201cmisleading.&#8221; Meantime, the SEC said, PIMCO did not disclose that the initial performance success was a result of an \u201codd lot strategy\u201d\u2014referring to the purchase of the smaller bonds, which were non-agency mortgage-backed securities\u2014and that this approach that would not be sustainable as the fund continued to grow.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/pimco-agrees-pay-almost-20m-settle-sec-charges-misled-exchange-traded-fund-investors\/#more-6077\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pacific Investment Management Company (PIMCO) has agreed to settle the U.S. Securities and Exchange Commission\u2019s charges accusing the firm of misleading investors about the performance of one of its exchange-traded funds and not placing an accurate value on certain fund securities. As part of the settlement, PIMCO will pay almost $20M and hire an independent [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4023,3760,3761],"tags":[2655,2656,2657],"class_list":["post-6077","post","type-post","status-publish","format-standard","hentry","category-exchange-traded-funds","category-sec-enforcement","category-securities-and-exchange-commis","tag-odd-lot-strategy","tag-pimco","tag-pimco-total-return-active-etf"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>PIMCO Agrees to Pay Almost $20M to Settle SEC Charges That It Misled Exchange-Traded Fund Investors &#8212; Investor Lawyers Blog &#8212; November 30, 2016<\/title>\n<meta name=\"description\" content=\"Pacific Investment Management Company (PIMCO) has agreed to settle the U.S. Securities and Exchange Commission\u2019s charges accusing the firm of misleading &#8212; November 30, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/pimco-agrees-pay-almost-20m-settle-sec-charges-misled-exchange-traded-fund-investors\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"PIMCO Agrees to Pay Almost $20M to Settle SEC Charges That It Misled Exchange-Traded Fund Investors &#8212; Investor Lawyers Blog &#8212; November 30, 2016\" \/>\n<meta name=\"twitter:description\" content=\"Pacific Investment Management Company (PIMCO) has agreed to settle the U.S. Securities and Exchange Commission\u2019s charges accusing the firm of misleading &#8212; November 30, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"PIMCO Agrees to Pay Almost $20M to Settle SEC Charges That It Misled Exchange-Traded Fund Investors &#8212; 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