Recent allegations of improper mutual fund trading at firms under the PIMCO brand brought by New Jersey regulators have prompted fund tracker Morningstar to recommend selling funds run by PIMCO Equity Advisors (PEA).

Morningstar maintains that it will make no changes to its opinion of PIMCO, the fixed-income operation run by veteran Bill Gross, despite the fact that the complaint implicates all three units of German insurance giant Allianz AZ. The situation here is particularly "messy" because the corporate structure under which all of those firms fall are not easily unpacked.

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