May 5, 2015 – For the first time, more than half of all 401(k) contributions will go into target-date funds, research firm Cerulli Associates estimates. It projects the assets in target-date funds to hit $2 trillion by 2019.
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.