Joining a growing bandwagon of top investment and executive officers issuing open letters to shareholders, Fidelity Chairman Edward "Ned" Johnson 3rd notwithstanding (see "Fidelity Chairman Advises Caution to Regulators," PIMCO’s Bill Gross issued one of his own Friday. Gross’s take on the burgeoning fund scandal, which has now implicated his own firm, is that investigators may have gone too far.

Stepping back, characteristically, to put the scandal in perspective, Gross says: "Societies have a balancing mechanism when things go too far. . . . Societies deplore excess and especially so if they disadvantage the public. I applaud that process and was applauding along with the rest of you when some of the rascals were rounded up and brought to trial."

As far as regulators’ investigation into his own firm is concerned, Gross, one of the most famous money managers in the business, and who serves as chief investment officer of PIMCO, emphatically denies having made any illicit arrangements with Canary Capital Partners. Specifically, Gross says his firm never allowed Canary to market time some PIMCO funds in exchange for "sticky money," or money parked in other funds.

"Allegations are different from facts, and our representatives will work vigorously with regulators to make all of the facts understood," continues the letter, also signed by PIMCO CEO Bill Thompson.

The two conclude the letter by inviting PIMCO clients and "friends" to feel free to personally contact them via e-mail or phone, should they have any questions or concerns.

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