April 24, 2015 – Building a successful asset management firm is difficult. That's not an earth-shattering statement given that most firms fail to meet their expectations for asset growth. And yet each year, hundreds of firms plunge into investment management believing they have something to offer that will drive investor acceptance and success for their business.
The Pimco Total Return Fund suffered an estimated $27.5 billion of withdrawals in its first full month after the Sept. 26 departure of Bill Gross, its worst month ever for redemptions.
BlackRock, the worlds largest provider of ETFs, said the products acted as shock absorbers after Bill Grosss unexpected exit last month from Pimco.
Pimco seeking to stem redemptions after its co-founder Bill Gross left unexpectedly, was dropped as manager of a $6.16 billion strategy offered by a unit of Prudential Financial.