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PIMCO Settles Suit, Promotes Emerging-Markets Bond Skipper

Plus, equities and fixed income now under single CIO at DWS, and more.

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PIMCO announced that it has settled a class-action lawsuit relating to the firm's trading of futures contracts in 2005. The suit involved accusations that PIMCO helped to improperly enrich its clients, but the $92 million settlement is being paid solely out of PIMCO coffers from reserves it set aside during the last three years. PIMCO funds will be unaffected, and the firm does not expect the statement will affect its future financial performance, compensation for any staff, or any future plans for growth.

Ramin Toloui will take over as lead manager of  PIMCO Emerging Markets Bond (PEMDX) on Jan. 1. Toloui, who is a comanager with CEO Mohamed El-Erian on  PIMCO Global Advantage Strategy (PSAIX), will replace Curtis Mewbourne, who has managed the fund since April 2009. Mewbourne is moving to New York to oversee PIMCO's growing stable of portfolio managers there. While Mewbourne will continue running  PIMCO Diversified Income  (PDIIX) (for which he is nominated to be named Morningstar Fixed-Income Fund Manager of the Year) and  PIMCO Floating Income (PFIIX), his new responsibilities are forcing him to shed his role with Emerging Markets Bond.

Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.