BOND manager Pimco is under investigation over allegations it submitted bogus prices for its $3.6bn (£2.2bn) Total Return exchange traded fund (ETF).
The group, led by Bill Gross, is being investigated by the Securities and Exchange Commission over concerns it misvalued holdings in the ETF, which flattered performance.
“Pimco has been cooperating with the SEC in this non-public matter and we take our regulatory obligations and responsibilities to our clients very seriously,” the firm said.
“We believe our pricing procedures are entirely appropriate and in keeping with industry best-practices.”
The SEC did not comment.