PEA Capital, formerly known as Pimco Equity Advisors and manager of some of PIMCO’s brand-name funds, has been approached by the SEC in a matter relating to market timing by Canary Capital Partners, The Wall Street Journal reports this morning.

PEA has told the SEC that it permitted Canary to market time a few of its funds for several months, according to a statement that PEA issued to the WSJ. Canary proposed investing a large sum of money in a number of PEA funds in exchange for permission to time other funds.

Both PEA and PIMCO are divisions of Allianz Dresdner Asset Management of America.

PEA also said it has not yet received specifics of the Commission’s pending complaint and that this "inconsistent" trading activity did not "collectively" harm long-term shareholders.

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The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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