Morningstar Reaffirms Rating After Pimco Wells Notice

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Mark Melin
Published on
Updated on

When Pacific Investment Management Co. (Pimco) announced in a press release Monday that it had received a Wells notice from the U.S. Securities and Exchange Commission, worries arose that an SEC lawsuit might be close behind.  At issue was the posted returns from March and August of 2012 in Pimco’s Total Return exchange traded fund. The SEC was investigating if those returns were artificially inflated based on trading in certain mortgage bonds. However, one analyst is out today with a report today saying that the situation is not as negative as it might seem, reaffirming their C grade neutral rating….

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.