Pimco ETF Draws Probe by SEC (WSJ)
The Securities and Exchange Commission is investigating whether bond giant Pacific Investment Management Co. artificially boosted the returns of a popular fund aimed at small investors, according to people familiar with the matter, the latest challenge for the firm run by investor Bill Gross. A probe into pricing issues at Pimco has been under way for some months, the people familiar with the matter said. Mr. Gross has been interviewed by SEC investigators, the people said. Mr. Gross declined to comment for this article. The issues being scrutinized by the SEC include the way a flagship exchange-traded fund, managed by Mr. Gross, purchased and valued certain bonds. Investigators from the SEC’s enforcement division are examining whether the $3.6 billion Pimco Total Return ETF BOND +0.08% bought investments at discounted prices but relied on higher valuations for the investments when the fund calculated the value of its holdings shortly thereafter. Such a maneuver could make it seem as though the ETF had scored quick gains when it was in fact taking advantage of variations in the way some investments are valued in the bond market.
Harvard Endowment Earns 15.4% Return for Fiscal 2014 (WSJ)
Those returns exceeded internal goals and boosted the endowment’s assets to $36.4 billion as of June 30. Harvard also deepened its commitment to alternative investments in hedge funds, private equity and assets such as real estate. The nonprofit agency that manages Harvard’s money said it had received approval to increase allocations to private equity and hedge funds during fiscal 2015 to 34% of assets, up from 31%, according to a letter issued by Harvard endowment chief Jane Mendillo.
Oracle Cuts Ellison’s Stock Awards, Adds CEOs’ Incentives (Bloomberg)
Ellison’s performance-based stock award was cut by 187,500 shares, or $7.28 million based on Oracle’s closing price today, and his stock-option award for fiscal 2015 was reduced by 750,000 shares, according to a filing with the U.S. Securities and Exchange Commission. Ellison’s total compensation last year was $67.3 million, down from $79.6 million the prior year. Mark Hurd and Safra Catz were both named CEOs of the software maker on Sept. 18, while Ellison became chairman and took on the title of chief technology officer. Hurd will run sales, marketing and strategy, while Catz will remain chief financial officer and oversee legal and manufacturing operations. Each received a one-time grant of 500,000 stock options and a performance-based stock award of 125,000 shares in connection with their promotions, according to the filing.
Apple’s Tim Cook: ‘Get on board’ with climate change (CNBC)
Apple CEO Tim Cook took on the hot-button issue of climate change on Monday during the Climate Week NYC 2014 conference. Speaking during the opening day of the high-profile climate change event, Cook said people shouldn’t accept a trade-off when it comes to business and the environment. “What are the root causes?” he said. “And you are not accepting that there is a trade-off between the economy and the environment. Too many people believe you can do this or that. What we found is that both are doable. If you innovate and you set the bar high, you will find a way to do both.” Cook added: “When you realize it and you see the urgency, it is time to act now. Everyone that hasn’t been on board, that’s OK, but now is the time to get on board.”
Looking to cuddle? There’s an app for that (NYP)
The app launched on Sept. 11 allows users to set their hug preferences, including whether they like to be the big or little spoon to ensure they are matched with nearby huggers of similar tastes. Cuddlr founder Charlie Williams told The Daily Mirror newspaper that the app was only designed for a “little cuddle,” but users could take the relationship further if they pleased. “On Cuddlr, you get together straightaway, have a little cuddle, and then part ways,” he said. “If you want to hang out again, you can exchange information then and there — but you already know what kind of cuddles they give.” Read more »