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| Pimco-run bond fund investigated by US authorities | |
| (35 minutes later) | |
| The world's largest bond fund, run by investment firm Pimco, is being investigated over allegations that managers inflated returns. | The world's largest bond fund, run by investment firm Pimco, is being investigated over allegations that managers inflated returns. |
| The $222bn (£135bn) exchange-traded fund is run by celebrated financier and Pimco co-founder Bill Gross, who has been interviewed by US authorities, according to the Wall Street Journal. | The $222bn (£135bn) exchange-traded fund is run by celebrated financier and Pimco co-founder Bill Gross, who has been interviewed by US authorities, according to the Wall Street Journal. |
| Pimco said the investigation was a "private matter" and that its pricing procedures were "entirely appropriate". | Pimco said the investigation was a "private matter" and that its pricing procedures were "entirely appropriate". |
| The fund declined by 1.9% last year. | The fund declined by 1.9% last year. |
| Known as Total Return, the fund is Pimco's flagship product, and Mr Gross' personal project. | Known as Total Return, the fund is Pimco's flagship product, and Mr Gross' personal project. |
| The Californian firm confirmed it had been co-operating with the US regulator, the Securities and Exchange Commission (SEC), but did not elaborate on the nature of the investigation. | The Californian firm confirmed it had been co-operating with the US regulator, the Securities and Exchange Commission (SEC), but did not elaborate on the nature of the investigation. |
| The Wall Street Journal reported on Tuesday that the investigation had been going on for months and concerned the manner in which Pimco purchased and valued certain bonds. | The Wall Street Journal reported on Tuesday that the investigation had been going on for months and concerned the manner in which Pimco purchased and valued certain bonds. |
| The company, widely considered to be the world's biggest bond manager, was set up in 1971, and acquired by insurance giant Allianz in 2000. | The company, widely considered to be the world's biggest bond manager, was set up in 1971, and acquired by insurance giant Allianz in 2000. |
| The fund concerned has been plagued by poor performance, with investors pulling almost $70bn (£42bn) out of it since May 2013, according to Reuters. | The fund concerned has been plagued by poor performance, with investors pulling almost $70bn (£42bn) out of it since May 2013, according to Reuters. |
| In January, Pimco's chief executive, Mohammed el-Erian, announced his resignation for undisclosed reasons. | In January, Pimco's chief executive, Mohammed el-Erian, announced his resignation for undisclosed reasons. |
| Shares in Allianz have fallen slightly following news of the SEC investigation | Shares in Allianz have fallen slightly following news of the SEC investigation |