March 5, 2015 – For many bond managers, equities seemed like a great idea after the 2008 financial crisis. The Federal Reserve had pushed interest rates to near-zero, potentially leaving little room for bonds to appreciate and fueling a rally in stock markets thats about to enter its seventh year.
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.