Investment giant Pimco said the Securities and Exchange Commission may take legal action against its total-return fund. The investment management company said it received a Wells notice, which means SEC investigators are recommending that the agency take civil action against the company. Pimco said it will have an opportunity to demonstrate to the SEC why it believes its actions were appropriate and standard for its industry, and that regulators shouldn't take any action against it. Pimco said the SEC is looking into the valuation of positions in non-agency mortgage-backed securities the found bought between its creation on Feb. 29, 2012 and June 30 of that year. The SEC is also investigating the fund's performance disclosures for that period and its compliance policies and procedures. The SEC is not formally accusing Pimco or the Pimco Total Return Active Exchange-Traded Fund of wrongdoing. Pimco, or Pacific Investment Management Co., said in September that it was cooperating with an SEC probe.